Many people think that using leverage can quickly double their investment, but those who truly understand know that this thing is a double-edged sword.

Are you leveraging 2x? If the market drops by 50%, you'll go to zero. Sounds okay? Then take a look at what follows:

With 5x leverage, a 20% drop will lead to liquidation. With 10x leverage, a 10% retracement means you have to say goodbye. At 20x leverage, a 5% fluctuation can leave you bankrupt.

Here comes the exaggeration: With 30x leverage, you can only withstand a 3.33% drop, with 50x there's only a 2% margin for error, and what about 100x? If the market just sneezes (1%), your position is gone.

The cryptocurrency market is inherently volatile, with many coins easily experiencing a daily fluctuation of 5%-10%. High leverage is not unusable, but you need to be clear about what you are playing with—this is not investing; it's dancing on the edge of a knife. Risk control is always more important than profit.