Do not use more than 2x leverage - page 3.

Hamza2424

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Quote from: snowpega on January 19, 2024, 10:56:43 AM

Dear instead of that I would say those who are beginner traders.. trading on leverage is a big risk to their funds besides that they should start trading in spot and can learn easily because it has less risk in losing funds although the risk is also included here.

Hmm, still some people prefer high leverage for fast returns. TBH this greed sucks and I've encountered many people who gambled their money on high leverage and in the end as always lost all of them.

Quote from: snowpega on January 19, 2024, 10:56:43 AM

well, haha I also noticed this big trap of TRB where the people who short it at the lower prices have to face big lose, and on the other hand people who long it at higher prices have to face big lose as well Cheesy

Hmm, Hype waves suck haha.. Again, natural trading and risk management always give a safe playing field. In the end of the day over-hyped and over-valued projects should not be considered as reliable for the trading not even on the short timeframe.

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Quote from: Oshosondy on January 15, 2024, 07:35:28 AM

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

Dear instead of that I would say those who are beginner traders.. trading on leverage is a big risk to their funds besides that they should start trading in spot and can learn easily because it has less risk in losing funds although the risk is also included here.

Quote

...... See what happened to TRB recently that fall from almost $700 to $125.

well, haha I also noticed this big trap of TRB where the people who short it at the lower prices have to face big lose, and on the other hand people who long it at higher prices have to face big lose as well Cheesy

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Quote from: JariKriting on January 18, 2024, 11:45:41 AM

if you only use a small leverage it is better and better to trade in spot not in futures. if you really want to enjoy a little challenge in the future it is better to use margin trading which is not a big leverage. if you are looking for safety with a small leverage, it is even safer to trade in spot not in future trading.

thats definitely what should people doing instead of always choosing future trade, spot is always the safest, if coin dump just wait it, if it increase just find right opportunity to dump. its as simple as that yet people are sticking with future trading maybe because they are used to it and maybe they want to take advantage of some small leverage which aren't gonna be giving profit but honestly even if its 2x leverage its already two time of our initial capitals so it does make sense though why people are still sticking with future trading because we can get double the profit but with double the risks.
personally i always stay with spot trading though since im already used to it also sometime we can follow some staking program when we are stuck with some loss.

Quote from: 2Pizza410000BTC on January 18, 2024, 06:45:23 PM

In my opinion it is better to use low leverage in trading platform because with low leverage your risk of losing in trading is much less. Those who use 10x 25x 50x 75x leverage have a higher risk of their assets. So I would always say it is better to use low leverage even if the trading platform has low profit. However, 2X can be used up to a maximum of 10X. Using more than this means increasing the risk of your assets on the trading platform.

50x and more leverage are definitely just trying to give away our money, yes the market can grow high but also remember that if the market just dipped a bit we lost our money, its as simple as that.

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Quote from: God bless u on January 18, 2024, 02:04:58 PM

Yes, you are absolutely right, because the more leverage you give, the more chances of getting credit in your loan, the less leverage you have, the safe your money will be. The money will Safe from being liquidate,

So I will also prefer that the person who has most of the leverage should keep it low, then whatever we have, we will continue our trading with safety and our profit will be confirm instead of loss from liquidation

There is nothing wrong with leveraging but sometimes some persons do misuse the ability for them to leverage.
Leverage is a way for us to increase the amount of funds we are using to enter the market. Once we understand the brain behind leveraging, we are not going to have problem on the right way to leverage. Many have leverage ld and have made money from the market while others had ended up in loses.

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Quote from: Oshosondy on January 15, 2024, 07:35:28 AM

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.

In my opinion it is better to use low leverage in trading platform because with low leverage your risk of losing in trading is much less. Those who use 10x 25x 50x 75x leverage have a higher risk of their assets. So I would always say it is better to use low leverage even if the trading platform has low profit. However, 2X can be used up to a maximum of 10X. Using more than this means increasing the risk of your assets on the trading platform.

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Quote from: TookDk on January 17, 2024, 10:00:11 AM

Leverage is not important, risk management is important.

It makes no sense to talk about leverage in a context where trade-risk in relation to your account size and position-size is not mentioned.

Agree, totally non-sense if the size and risk is not being considered. If you this post by Vitalik, 'don't use greater than 2x leverage' if you got $30 in your account would you even dare to follow him?

Quote from: TookDk on January 17, 2024, 10:00:11 AM

Once you have calculated those two parameters, then can you evaluate if your leverage is too high.

I'm not sure how to calculate to know if your leverage is high, too high, too low, or just right enough. I guess this is pretty subjective for one to know.

Quote from: TookDk on January 17, 2024, 10:00:11 AM

Leverage is just a tool, nothing more.

Hmm, I guess yeah, that's just what it is. It is a tool we need to know how to use, and use wisely.

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Yes, you are absolutely right, because the more leverage you give, the more chances of getting credit in your loan, the less leverage you have, the safe your money will be. The money will Safe from being liquidate,

So I will also prefer that the person who has most of the leverage should keep it low, then whatever we have, we will continue our trading with safety and our profit will be confirm instead of loss from liquidation

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2x leverage is more risky but I used 20x leverage hoping for extra profit. It was a big wrong decision for me at the time because I lost a lot of money due to it several times. With such a high risk I would be satisfied with a small profit but when losses occurred I would remind myself how much I was risking my capital for a small profit. After losing huge amounts several times I learned that I shouldn't be trading futures with such high risk. When I didn't have the money to trade I figured spot trading would make a small profit if needed but I would never get involved in futures trading again. There may be temporary loss of money in spot trading but there is no possibility of total loss of money and since then I have given more importance to spot trading.

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if you only use a small leverage it is better and better to trade in spot not in futures. if you really want to enjoy a little challenge in the future it is better to use margin trading which is not a big leverage. if you are looking for safety with a small leverage, it is even safer to trade in spot not in future trading.

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Just spending funding fees only when trading in future with 2x leverage, usually minimum leverage I used in trading future under 10x and looks better to earn much profit than 2x leverage. I think if leverage around 2x better trade on spot and not required have to pay funding fee each 8 hours and depend with kinds of coins trading get pay more higher fees.
Indeed coins movement drastically up or down its depend on how careful our research and not problem with some coins suddenly up and down significant in short time just as TRB coins last several days. Price drastically up from $150 to $500 but in short time return back to lower price more drastically until $130.

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Before people use leverage in futures trading, they should understand that the risk of losing is greater. They must be able to accept this risk by adjusting it to the funds they use.

And whatever leverage they use, they must be aware of the risks. They don't need to use large leverage if they don't want anything bad to happen. You can continue as long as you are ready for whatever will happen with your futures trading. But if not, it's best not to use futures trading because the risk is greater than spot trading.

That is why if people do not have experience or ability in trading, they should not try futures trading. They can learn to use spot trading while learning more about trading, including analysis. If their skills have improved, they can use futures trading but must use the leverage they can afford.

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Quote from: leonair on January 17, 2024, 02:12:56 PM

Quote from: cute nmp on January 15, 2024, 04:10:18 PM

Totally agreed .Its very risky for any traders to over leverage when opening positions will be much better to accumulate small profits than go for a huge one and get liquidated easily ,I have lost so much over-leveraging during my days as a new trader with time i have since learnt my lessons and refrain from such bad trading habits.

When one trades with high leverage the chances of liquidation are high because when you go to trade with a $100 budget and use 10x leverage it will trade an amount equal to $1000 and if the price of your chosen coin is up 10% or Down and if it is against your entry you will lose your $100 and the trade will be cancelled. There if you take 2x leverage then the price of that coin has to change by 50% for you to liquidate. High leverage means more profit and more loss. So it is better to use less leverage to be less risk

high leverage exist for people that don't have high capital but want to get big profit, the risk involved is i think understandable, after all when we can get the opportunity to profit as if we are investing 10x of our capital thats definitely not happening without future trading, but then again as you said it will definitely have a risk, even more so with those people that i've seen frequently using 25x leverage is if it was nothing the slightest flash dump could definitely liquidate their money it just nuts.

but overall its a fair game if you know how to take advantage of it properly the thing with most of people is that they don't even have idea about the coin they are investing but still go with high leverage just in case they are proffiting big from it not knowing that the opposite scenario could definitely something thats gonna happen instead.

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Quote from: cute nmp on January 15, 2024, 04:10:18 PM

Totally agreed .Its very risky for any traders to over leverage when opening positions will be much better to accumulate small profits than go for a huge one and get liquidated easily ,I have lost so much over-leveraging during my days as a new trader with time i have since learnt my lessons and refrain from such bad trading habits.

When one trades with high leverage the chances of liquidation are high because when you go to trade with a $100 budget and use 10x leverage it will trade an amount equal to $1000 and if the price of your chosen coin is up 10% or Down and if it is against your entry you will lose your $100 and the trade will be cancelled. There if you take 2x leverage then the price of that coin has to change by 50% for you to liquidate. High leverage means more profit and more loss. So it is better to use less leverage to be less risk

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If it wasn't Vitalik, would you be discussing this?

He has a lot of money and also he forgets that each person has their own decision to determine which one is the best to choose. 10x leverage is dangerous, but some people like it because they think they will get more money if the market direction matches predictions. 2 years ago I became a person who likes playing with the futures market and high leverage.
I myself admit that I have lost and experienced liquidation in high leverage futures trading on Binance. But I am ready for the risks I will face. Regret is inevitable, but it is my decision, I must be able to make it a valuable lesson.

Right now I only focus on trading on the spot market, which means I only use 1x leverage. However, my action was not because Vitalik was giving advice, but was the result of my experience when experiencing losses on the futures market.

Quote from: Oshosondy on January 15, 2024, 07:35:28 AM

This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.

Can't that only happen if an asset experiences a drastic decline to just $0.00 which can cause the 1x leverage to be liquidated?

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Leverage is one of the most misunderstood concepts within trading.

Leverage is not important, risk management is important.

It makes no sense to talk about leverage in a context where trade-risk in relation to your account size and position-size is not mentioned.
Once you have calculated those two parameters, then can you evaluate if your leverage is too high.

Leverage is just a tool, nothing more.

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Quote from: Oshosondy on January 15, 2024, 07:35:28 AM

I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.

Don't use >2x leverage. Just don't.

It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.

I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.

This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.

When it comes to advises and suggestions then it wont really be that bad that you would really be trying out to hear out on what others been saying specially into those known figures here on this space
then it not bad to take some advises but we know that people are really that having that curiosity and do really loves on experimenting things on which even if they are aware on whats the risked involved
on which they would really be tending to make use of high leverage instead of less ones or those common suggested because it is really just that normal for people to have that kind of behavior on which
we do really love on seeing huge profits instead of small ones then we are really not that patient when it comes to trading on which there are ones who cant really just that wait
and would really be making use of those huge leverage on which we know that it isnt really that recommended.

There are really just those people do really love to throw up some bucks and there are ones who cant really just able to control their emotions and let their greed
do controls them and ended up miserable because of wrong decisions.

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The reason he says this is because there is everyday when there is some liquidation event and you see tons and tons of people blowing up their accounts because they over leveraged.

I doubt anyone actually trades successfully Long term with any leverage greater than 10x. When people use 100x, especially on an alt coin then I wouldn’t be surprised if they didn’t get liquidated sometime in the first few hours. That and your fees are charged with the leverage and taken from your account which isn’t leveraged with fees so your liquidation is actually closer than 1% price moves.

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I always said that we may go with any level of leverage but purely proportional to our risk-reward ratio, which means higher leverage is all that bad neither. Basically by 2x leverage, you are doubling your losses and income depending if you are right or not. I do not think that it would be easy to get liquidated if you do double when you have calculated position according to your available funds, you would probably get out a lot earlier and not really let it be like that. However, at the end of the day, we are talking about a situation that would be understandable, it is not a big deal so it wouldn't be too much of a risk.

I hope that 2x would gain traction too, not that 100x stuff, those are insane people who use it that much, that would mean that if you are wrong even for a slight second, all your money would be gone, that's insane. I agree with 2x, I would be fine with 5x but I wouldn't even approve 10x, even that is being commonly available in most exchanges these days.

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Quote from: Natsuu on January 16, 2024, 09:00:14 AM

Vitalik's saying keep it chill with less than 2x leverage is pretty wise. But, you know, it depends on the crypto because some like TRB can go wild even at 1x. Just gotta be smart about balancing risk and keeping your assets safe.

He tweeted that if you use leverage, don't go with more than 2x leverage but his advice is much stronger, just don't. Don't use leverage is his ultimate advice which I agree with him on this.

Because leverage is very addictive and many times, we can become uncontrolled with it. We can initially limit our leverage taking at only 2x but if things change in the market and with our positions, we might break the plan and change to higher leverages. This will be changes to our nightmare.

No ways we can be sure that we won't break plan so if we can just don't use it initially, it will be better.

Topic: Do not use more than 2x leverage - page 3. (Read 562 times)