[TP Academy⑮] The temptation of 100x leverage… your assets go to zero in an instant

TechubNews
BTC-3,43%

For investors wavering amidst the noise of the cryptocurrency market, ‘TokenPost Academy’ with 8 years of practical experience will provide true investment standards. We invite you to embark on a seven-stage masterclass journey that replaces ‘intuition’ with ‘data’ and ‘luck’ with ‘strength’. [Editor’s Note]

“Bitcoin only increased by 1%, but my money doubled!”

The greatest appeal of futures trading lies in the use of leverage to amplify gains. Use your 1 million KRW principal to borrow 9 million KRW from the exchange, purchasing assets worth 10 million KRW (10x). As long as the price rises by 10%, you can achieve a 100% return relative to your principal.

But the opposite is also true. A 10% decline will instantly wipe out your 1 million KRW principal. This is the terrifying ‘liquidation’.

◆ Liquidation Price Calculation: A deadly zone in the blink of an eye

The higher the leverage, the closer the liquidation price is to your entry price.

10x leverage: Price fluctuation of 10% triggers liquidation. (relatively lenient)

50x leverage: Price fluctuation of 2% triggers liquidation. (dangerous)

100x leverage: Price fluctuation of 1% triggers liquidation. (deadly in the blink of an eye)

Bitcoin’s daily 5% rise or fall is common. Using leverage over 20x is essentially declaring, “Today I rely on luck.”

◆ Isolated Margin( vs Cross Margin): How to protect your wallet

Even if liquidation occurs, mechanisms exist to minimize losses.

Cross Margin(: Use all funds in your wallet as collateral. While less likely to be liquidated, once it happens, the entire wallet will be wiped out. (Joint guarantee)

Isolated Margin): Use only the specific funds (margin) you投入 as collateral. Even if liquidation occurs, remaining funds in the wallet are safe. (Firewall)

Beginners must use ‘Isolated Margin’. Even if you make mistakes and fail to stop losses in time, at least you can avoid bankruptcy.

◆ “Leverage is a poisoned Holy Grail”

Professional traders typically use 3~5x leverage, rarely exceeding 10x. High leverage is the realm of quick scalp trading. The greed to “get rich fast” can blind you, leading you to increase leverage. But remember: in gambling, winners are not those with good luck, but those with proper money management.

Set the liquidation price well below support levels, using only the leverage you can afford. This is the way to survive with a ‘wise mind’ rather than a ‘beastly heart’.

👉 [Risk Management] From the liquidation price calculator to the principles of position sizing (adjusting proportions). Master the trading techniques to avoid losses, all in TokenPost Academy’s ‘Stage 6: The Professional’ course.

( Sign up now: )

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

The New York Times reignites the “Satoshi identity mystery”; after Adam Back was targeted, he quickly clarified

Author: Nancy, PANews Satoshi Nakamoto’s real identity remains the mystery that has continued for 17 years in the crypto world. Guesses surrounding this pseudonym have never stopped—candidates ranging from cryptographers to company founders have come and gone, yet there has always been a lack of decisive evidence. Recently, The New York Times published a 10,000-plus-word investigation. Based on multiple comparisons drawn from language style, technical paths, and historical context, it ranked Blockstream CEO Adam Back as the strongest candidate for Satoshi Nakamoto. However, this claim was quickly and explicitly denied by Back himself, and the relevant arguments were widely questioned by the industry as difficult to substantiate. Satoshi Nakamoto identity controversy flares up again; the 10,000-plus-word investigation targets Adam Back In this investigation, New York Times reporter John Carreyrou spent more than a year deeply sorting through decades of archives and the cypherpunk email mailing lists to

区块客20m ago

Morgan Stanley Bitcoin ETF Drives 3-Fold Impact as 16,000 Advisors Open Path to Multi-Billion Demand

Bitcoin demand is set to expand rapidly as Morgan Stanley deploys its 16,000 advisors and launches a low-cost ETF, driving institutional inflows and strengthening crypto’s position in mainstream portfolios. Key Takeaways: Morgan Stanley’s 16,000 advisors unlock major bitcoin demand, driving

Coinpedia4h ago

DWF Labs Co-Founder: The current market is boring, but it hasn’t disappeared—builders or investors still have a lot to do.

DWF Labs co-founder Andrei Grachev said the market is currently in a “boring” phase, with many important activities quietly underway. He advised investors to stay patient and look for a better timing. He emphasized that opportunities still exist in the market—such as holding Bitcoin or participating in altcoins—and urged retail investors to keep learning and remain optimistic.

GateNews5h ago

Researchers propose a transaction scheme for quantum-resistant Bitcoin without needing a fork

Gate News message, on April 12, a researcher proposed a transaction scheme that enables quantum-resilient protection for Bitcoin without requiring a fork. At present, the quantum computing threat to Bitcoin is still at the theoretical level. Meanwhile, tech companies such as Google and Cloudflare have already begun preparing countermeasures and set a target timeline to complete the migration of quantum cryptography after 2029.

GateNews6h ago

Contract whale “sets 10 big targets first” — the short position is up $3.21 million; the BTC short opening price is $71,554.61.

Gate News message, April 12, according to on-chain analyst Ai Yi (@ai_9684xtpa) statistics, the short positions of the contract whale “first set 10 big targets” (@Jason60704294) are currently up $3.21 million. Of this, the BTC short positions are 2,567.49 BTC, with an opening price of $71,554.61, and an unrealized profit of $1.19M; the ETH short positions are 38,465.22 ETH, with an opening price of $2,248.74, and an unrealized profit of $2.03M.

GateNews6h ago
Comment
0/400
No comments