2026-01-20 00:23:49

Leverage is like a kitchen knife—used correctly, it’s very handy; a slight tremor and it can cause bloodshed.

These days, my inbox is again filled with questions about perpetual contract leverage multiples. I’ve been answering this question for five years, from bull markets to bear markets. Both beginners and veterans can stumble over it.

Let me tell you a real story. Last week, a crypto friend of mine told me he usually trades with 30x to 50x leverage. I asked him, why not just go for 100x directly? He rolled his eyes and said, "It blows up too fast, I don’t have time to run." I really couldn’t help but laugh—using leverage is essentially walking a tightrope. 50x is like slowly cutting meat, while 100x is like cutting through tangled threads all at once. The only difference is the market’s reaction time—one has a few seconds, the other less than half a second.

Where does it hurt the most? It’s not that you misread the market. It’s that you saw the right direction, but because you used too much leverage, a small fluctuation washed you out. Then you watch the market run wildly in your predicted direction—now that’s a feeling worse than losing money.

**Leverage, in simple terms, is a math problem—not a test of who’s braver.**

The most attractive thing about perpetual contracts is that they have no expiration date—you can hold as long as you don’t get liquidated. It sounds flexible and free, but there are hidden currents: you can add positions at any time, chase profits when you’re up, hold on stubbornly when you’re down, and if you’re not careful, you can get trapped.

What exactly is leverage? To put it simply, it’s using margin to control a larger amount of funds. For example, if Bitcoin is at $47,000, opening a 1-contract long with 100x leverage requires only $5 margin; at 30x, it’s $16; at 1x, it’s $470.

Here’s the problem: 100x looks cool, but if Bitcoin drops 1% (which is $470), your $5 margin is gone instantly. That’s why 100x leverage is the poison of gamblers. Choosing leverage isn’t really about testing courage; it’s a mathematical calculation.

BTC-4,04%

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NotFinancialAdvice

· 01-20 00:54

When you realize you're being squeezed out in the right direction, it truly feels worse than death... I have a friend who experienced this exactly, watching his position get washed out right in front of his eyes. The difference between 50x and 100x is whether you can react in time, essentially it's about how much escape time you leave yourself. Perpetual contracts are just a trap; without an expiration date, the so-called freedom actually means you keep adding to your position and keep losing. The key is that many people can't tell whether this is a math problem or gambling, and as a result, they all end up ruined.

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PonziWhisperer

· 01-20 00:53

Being right but still getting washed out—that's the most despairing... I've experienced it myself, and now seeing 100x leverage makes me tremble.

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gm_or_ngmi

· 01-20 00:53

Even 50x can explode, so how can you still ask how to play at 100x. Getting liquidated after the correct prediction, I really understand that despair. Perpetual contracts are just a gentle trap. It's a math problem, but gamblers will never be able to calculate it clearly. Small fluctuations directly lead to liquidation, this is the true face of high leverage. The moment you chase in, you've already lost. 5U margin is just like playing.

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0xSunnyDay

· 01-20 00:35

Getting the direction right but still being washed out, this is the most frustrating thing, even more painful than a direct liquidation. --- 100x leverage is just gambling that the exchange won't cut the internet cable, hilarious. --- 30x or 50x leverage, still nitpicking here; just opening at 1x is more comfortable, even sleep quality improves. --- Anyway, we're all just fish being fed in the end, so why bother about the multiplier? --- The truth is, no one can predict volatility precisely; the higher the leverage, the faster you die. It's that simple. --- That guy is right, 50x and 100x are just differences in reaction time; it's all a game of cutting losses. --- Math problem? Come on, this is a psychological game—greedy when you win, betting when you lose. --- Perpetual contracts are just the exchange's money-printing machine; we're all just leeks. --- Getting the direction right but still being washed out, I totally understand this feeling. Right now, I’m just holding on at 1x and refusing to let go. --- A 100x explosion is purely a trap designed by the exchange.

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BuyTheTop

· 01-20 00:30

Seeing the right direction but still getting washed out, this feeling is truly incredible... I've experienced it myself. --- Exactly, 100x leverage is purely playing Russian roulette. --- So the problem isn't leverage itself, but the lack of courage to cut losses. --- Perpetual contracts are just bottomless pits; a single liquidation and you're doomed. --- $5U liquidation vs. $470U full position, no matter how you count it, it's gambling. --- The worst part isn't losing money, but watching your orders get swept away helplessly. --- Still think 30x leverage is slow; people's greed is truly insatiable. --- The key is that most people simply can't figure out this calculation. --- I've been there too; sometimes, being right results in the biggest losses. Now I only dare to use 5x.

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