#密码资产动态追踪 Let me talk about the pitfalls in leveraged trading, which many people might have experienced firsthand.

Going long and going short may seem to offer you two-way choices on the surface, but in reality, they are double traps. For example, if you are optimistic about the market and want to go long, you might borrow 90,000 yuan to buy 100,000 yuan worth of coins. But if the coin price drops by 10%, and the exchange system enforces a forced liquidation, your principal is gone. The most heartbreaking part is that if the coin price rebounds afterward, that rebound has nothing to do with you anymore.

Going short is no better. If you expect the price to fall, you borrow 1 coin to sell it for 100,000 yuan, waiting for the price to drop to buy back. But if the coin price rises by 10%, the platform will forcibly buy coins to return to you, and the game ends just like that.

Even more terrifying is the double blow in extreme market conditions. Bitcoin can have a single-day volatility of ±20%, and 10x leverage will lead to liquidation immediately. Or during a flash crash—an instant plunge triggers liquidation, and then the coin price quickly recovers, leaving you no chance to react. Liquidity droughts are also dangerous—trying to close a position but no one is willing to take the other side, watching your position explode helplessly.

Looking at real data reveals how brutal this market can be. During the Luna collapse in 2022, 10 billion USD was liquidated within 24 hours. By March 2023, over 200,000 people had been liquidated in a single day. The relationship between leverage and principal loss is straightforward: with 10x leverage, a 10% price fluctuation can wipe out your entire capital; with 100x leverage, just a 1% move ends the game.

Platforms won't tell you these details upfront—liquidation prices are often closer to your stop-loss line than the theoretical calculation. High leverage interest accumulates over time, eroding your profits. The so-called market price liquidation might execute at the worst possible price at the most critical moment.

Finally, I want to say that in this market, leverage is not really a trading tool; frankly, it's a gambling device. Platforms are not your trading partners; essentially, they act as the house. No matter how tempting the market looks, you must understand these truths clearly.