When it comes to 'low leverage', do you all think it is a low-risk and stable option? But do you really think it's that 'stable'?
In fact, it only looks not very dangerous; the actual risks might not be noticed by you.
The dealer's 'black hand' is never absent.
Imagine the market suddenly experiences a 50% crash, or drops slowly down to 70%. By the time you are patient and waiting for the market to stabilize, you might have already been thrown out by the market. Or just when you are about to enter the market, a sudden fierce move sweeps you out.
The risk of leverage is like hidden reefs at sea, which can capsize you at any moment.
Low leverage is actually not as 'stable' as you think.
Some people believe that using 40% of their capital with double leverage is about right, feeling completely secure. It seems like there’s no problem, but if you think carefully, this is actually equivalent to still doing spot trading, just with an 'extra cost'.
If you hold a position for a long time, that little bit of funding rate is like slowly pressing down on you, eventually making it hard to breathe. Low-leverage contracts don’t show obvious advantages unless faced with extreme market conditions (like crazy market fluctuations).
If you want to amplify your returns, using high leverage is possible for experts, but for most people, this kind of play amplifies the risks exponentially.
Spot trading is the most stable 'lifesaver'.
In contrast, spot trading is actually the most reliable choice. When the market rallies, spot trading can also bring you substantial profits without taking on the risks of leverage; if the market remains still, not losing is equivalent to gaining. The key is, as long as you don't chase highs in spot trading, steadily making profits is basically not a problem.