If you can build up a decent enough position to spot trade, that is the best for risk management.
Seems like you maybe didn't read the post because I specifically cite the ability to use leverage to avoid counterparty risk. By having everything sitting in a spot position you are risking 100% of the funds to systemic failure.
I read it, I always read. I just gave my opinion and don't necessarily agree with you on that because with leverage you are adding in counter party risk, where when I am trading spot, it's me and the market that I am trading, only counter party risk is the DEX itself. When you are using leverage on a centralized exchange, you are using the exchanges money. When using leverage I only use a very small amount of my account in a trade. I use a bigger amount on a spot trade, but I am cool holding the assets I am trading for a bit if I need to. When I was leverage trading, it was mostly on crap coins that I wouldn't want to hold for any length of time so it was a small position with a short stop loss because those were the ones I would catch bigger scalps on. If you don't have much money to trade with, you will get eaten up in exchange fees when playing high leverage and need to take that into account when figuring out your P/L on the trade.
EDIT: I missed the part on my first read where you were talking about trading from cold storage... Here's the thing, if you are trading on a DEX, you don't have the issues you are talking about being at the mercy of the exchange. You have the funds in your wallet. Now you have to use a wrapped version of BTC for this, and that is where you can put part of your stack into a protocol like AAVE using WBTC and trading there using collateralized leverage.
Ah yes well theoretically a DEX should have near zero counterparty risk so you got me there. Although a bit more for liquidity providers.
Also MEXC has like 0% trading fees I'm not even sure how they make money.
I haven't even traded there. Seems like another exchange I would have to pull my money from in a hurry if they decided to cut off US users, lol.
US traders are already cut off so technically the threat is enforcing KYC.
I just sidestep it with VPN for now.
I don't really view this as a threat considering how easy it has been to exit Binance, Mandala, Kukoin, etc, without losing anything.
You should check out apollox.finance on BSC and now you can use Ethereum, if you want to deal with those gas fees...
But it's an on-chain exchange. The V1, you deposit your funds to a smart contract then you can trade it on the order book exchange, similar to how DYDX works. Then they have their V2 which is all on-chain trading using liquidity pools, but you can still long and short. They have different modes which are fun to play with. You have to use a VPN though. It's the same exchange system that Pancakeswap's perpetual exchange is built on. But with V2, you keep your funds in your wallet, but you have to pay exchange fees and network gas, that's the only downside, so I would suggest V1 for smaller accounts.
That's where I was doing my leverage trading for over a year before I moved into what I am doing now on Aave.
I might have to look into things like this in 2025 but for now I'm not active enough to explore all the things.
Although I do need an alternative for HBD in case the debt-ratio gets dangerous.
Do you know any stable coins that aren't garbage that pay yield?
I am getting a variable percent on USDT, USDC, and DAI on AAVE. Just depends on the market demand for the coin. Like earlier on my USDT supply I was getting around 17%, right now it's 11% based on supply and demand on the protocol. The thing that attracts me is that I can use it as collateral for loans, and I can trade it while I am supplying it. Can't do shit with HBD when you are earning yield accept look at it, lol.