3- DO NOT USE HIGH LEVERAGE.

The third lesson in our series on how to make money in crypto will be do not use high leverage.

Although a line down and a line up are drawn and resistance and target points are determined, for the upward direction in the coin market, the investors above must first have liquidity, and for the downward direction, the investor below must first have liquidity. Otherwise, everyone will make easy money. First of all, let's take a look at what leverage is in simple terms. Leverage ; The money we have is displayed in the position opened with the desired coefficient. That's why you might not have $10. Or it could be $100. So, what should we pay attention to when using leverage trading? Of course, we will take into account how much target or how much loss the coin will incur. Let's say; We have 10 dollars in hand and we estimate that the coin will go to the "rising" 20% target. We want to deposit $100, but we have $10. When we open a trade with 10x, we will open a trade of 10x10 = 100 dollars with 10 dollars. Well, when the coin makes a 10% profit, our money will gain 100% value, of course, otherwise, when it loses 10% value, we will lose 100%. For this reason, there is liquidation in leveraged transactions. The emphasis that you should not use high leverage will be understood from here. When we open 50x, we will be liquid when the coin loses 2% value. When we open 20x, we will be liquid when it loses 5% value. The ideal leverage is 5x-6x. We can have a flexible position up to 20% loss of coin value. When we gradually incur losses, adding coins reduces your risk.