That year I made a decision that changed my entire trading career afterwards.

Seven years ago, I had only 6000 USDT in my account, but I stubbornly opened a 50x leverage to trade contracts. Guess what happened? In less than half an hour, half of my assets were gone. Watching the K-line chart full of red, my palms were so sweaty that they soaked the mouse - at that moment, I truly understood that liquidation is never a matter of luck, but a death notice handed to beginners by high leverage.

Over the years, I have seen too many people with the sparkle of "quick wealth" in their eyes, diving headfirst into the futures market. But they never really thought about one thing: what leverage actually is. Many people's understanding is simply "returns multiplied by a factor," but they do not realize that on the other side of the equation is "risk multiplied by an exponent."

Mathematics is cruel. Suppose you lose 90%, to return to your principal, you need to multiply it by 9 times. How difficult is that? Just imagine for yourself. High leverage combined with the volatility of the crypto market can lead to your account going from full to zero in just a few minutes.

**The True Nature of Leverage**

The attractive aspect of contract trading is leverage, but this is also the most dangerous part. It can amplify profits, but it will also magnify risks to unimaginable levels. With 5x leverage, if the coin price rises by 2%, your profit will become 10%—it looks great. However, conversely, if the price falls by 2%, your loss will also be magnified by 5 times, directly turning into -10%.

Many beginners do not truly realize this. The combination of high leverage and the inherent high volatility of cryptocurrencies can cause significant damage in a short period. In simple terms, it's the gambler's mentality encountering a mathematical trap.

The experiences I've gained through hard work and effort, I will share with you today, hoping that you can avoid some detours and steer clear of the pitfalls I encountered back in the day. This is not some complex theory, just the most fundamental survival rules.