2026-01-10 18:20:54

Loan strategies may seem tax-saving, but there are hidden risks behind them. During asset crashes, liquidation risks can catch you off guard in minutes. Especially in highly volatile crypto markets, collateral can quickly shrink, increasing the probability of forced liquidation. The apparent tax advantages may quickly be wiped out by liquidation losses. Therefore, before using leverage, you need to carefully calculate how much drawdown you can withstand.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

15 Likes

Reward
15
8
Repost
Share

Comment

0/400

MoonWaterDroplets

· 01-11 10:55

Really, leverage is a double-edged sword. It feels great when making money, but when losing, it can wipe you out completely...

View OriginalReply0

AirdropBuffet

· 01-10 18:50

The graveyard of leverage players, each more tragic than the last

View OriginalReply0

MidnightTrader

· 01-10 18:50

I've stepped into this mess before. Leverage feels great for a moment, but liquidation is a cremation ground.

View OriginalReply0

TokenUnlocker

· 01-10 18:43

Really, leverage is just gambling with your life. Last time I saw a guy get liquidated overnight, and he lost all his tax advantages and even ended up losing money.

View OriginalReply0

GateUser-74b10196

· 01-10 18:41

Leverage can really mess people up; I've seen too many get liquidated because of it.

View OriginalReply0

CryptoMotivator