๐จ๐จ SPOT OR LEVERAGE? LESSONS FROM 4 YEARS IN THE MARKET๐จ
๐ธ Losses, Wisdom, and Harsh Truths...
I've been a spot investor in the crypto world for nearly 4 years. During this time, one of the biggest lessons Iโve learned is how little I knew about leveraged trading โ and how that lack of knowledge cost me, even in spot markets.
Spot trading teaches patience, understanding the project, and disciplined risk management. However, *leveraged trading* is a whole different game โ it requires precision, strategy, and deep market understanding.
๐ For instance, with 10x leverage, just a 10% move against your position can *liquidate* your entire capital.
This makes leverage a *double-edged sword* โ it can multiply profits, but also *amplify losses* just as fast.
โ ๏ธ Why Is Leverage So Risky?
1. *Quick Liquidation Risk:* Even small price swings can wipe out your position.
2. *Psychological Pressure:* Constant monitoring and fear of loss can lead to emotional, poor decisions.
3. *Higher Fees:* More frequent trades and funding costs eat into profits.
4. *Poor Risk Management:* Without proper stop-losses or leverage control, beginners can lose everything fast.
๐ If you're losing in spot markets due to lack of strategy, leverage will only magnify those mistakes.
๐ But if you learn from your losses and focus on building knowledge, spot can still help you grow with patience and discipline.
โ If you're new or lack experience:
Start slow. Focus on charts, learn technicals and fundamentals, and *avoid leverage until youโre ready*.
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๐ก *In short:*
Every investment method requires its own mindset. Knowledge first, strategy second. Trading blindly is the most expensive lesson of all.
๐ *Disclaimer: This is not financial advice.*
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