Is double leverage really stable? Don't be fooled again!

Recently, the issue of leverage has left me with some thoughts—Is double leverage really low risk? Or does it just seem "stable"?

You can never figure out the dealer's tricks:

Sudden 50% drop, or slowly grind down to 70%, then starts a super boring sideways market; by the time your patience runs out, you might have to leave.

Violent liquidation follows a wave of fierce operations, and before the good show even starts, you've already been thrown out of the game.

Some people think that low leverage is quite safe, for example, using 40% of your position to open a 2x leverage, sounds pretty good, right? But in fact, this is equivalent to paying extra for spot trading! Moreover, over time, that funding rate will squeeze you to the point of suffocation, just like a frog in boiling water.

To be honest, low-leverage contracts have almost no advantages unless you encounter extremely extreme market conditions (like the crazy liquidation during the "312 market"). Experts can use high leverage to amplify profits, but for most people, the risks of such strategies are simply disproportionate.

On the contrary, spot trading is actually the most stable choice:

When the market rises, spot trading can earn you a lot, with no need to take on the risks of leverage.

When the market doesn't rise, spot trading is even more stable, with limited losses; just holding on means profit.

The most important point: as long as you don’t chase highs, the returns on spot trading have always been quite good.

Low leverage seems safe, but in reality, it’s an invisible killer; high leverage looks like a windfall, but in reality, it’s more like a tool for harvesting the unsuspecting.

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