Lately, the most frequently heard words in the crypto markets are leverage and perpetual futures. And I see a lot of newcomers jumping into them with the expectation of getting rich quickly. It's logical considering that the crypto market, despite its ups and downs, has always been bullish. It would be hard to find someone who has lost money with Bitcoin if they've held it since it's almost at its all-time high.
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But people are, among other things, impatient and always want more. We also want to be faster. We see those ads about turning a thousand dollars into 10 million in a day and we want to be that person. But leaving aside the fact that this is often just propaganda, the truth is that making money so quickly and with that kind of profitability is very difficult. You could say it's playing in a different league. If you add leverage to that, the risk skyrockets, and it could happen that even if the market does what you think, it doesn't do it when you think it will. That would lead you to the paradox of losing money even if your predictions come true. So think twice before taking these types of positions, no matter how profitable they may be.
Do you use leverage? Has it been profitable for you?
Disclaimer.
This is not a purchase recommendation. I am not a regulated financial analyst. Under no circumstances should this information be construed as a recommendation to buy, sell, or hold a position.
You should be aware of the risks involved in investing and conduct your due research.
The information described here may not be accurate or may change at any time, so you should always check it.