Retail vs Leverage: An Unfair Fight ■●■
Leverage can absolutely make crypto look rigged 😅
Leverage amplifies moves.
In crypto, tons of traders use 10x–100x leverage. That means:
Small price moves → massive liquidations
Liquidations → forced buying or selling
Forced trades → sudden pumps or crashes
Liquidation cascades are real.
When a key level breaks, exchanges auto-close positions, which pushes price further in that direction. That’s why crypto moves look violent and “unnatural.”
Whales can exploit this.
Big players know where leverage is stacked. They can:
Push price into liquidation zones
Trigger cascades
Profit from the chaos
So yeah — that part is kinda dirty.
Where it’s not fully cheating ❌
Margin trading doesn’t create direction out of thin air.
It only accelerates moves that already have:
sentiment
liquidity
catalysts (news, macro, flows)
Spot demand still matters.
Long-term trends (BTC going from $3k → $60k, ETH adoption, etc.) didn’t come from leverage — they came from real capital buying spot.
Leverage cuts both ways.
Overleveraged longs get nuked in dumps.
Overleveraged shorts get obliterated in squeezes.
Nobody “wins” consistently unless they’re disciplined or very big.
The real issue 🔥
Crypto isn’t cheating — it’s over-financialized too early.
You’ve got:
thin liquidity
24/7 global trading
insane leverage
unregulated exchanges
That combo turns the market into a liquidation machine instead of a price-discovery tool.
Bottom line
Is crypto unfair to retail? Often, yes.
Does leverage distort price? Absolutely.
Does margin trading fully control direction? No — but it hijacks volatility.
