@findbunker

Leverage trading allows investors to borrow funds to amplify potential profits, but it also increases the risk of significant losses. In cryptocurrency markets, where volatility is high, leverage can lead to rapid liquidation if the market moves against the trader’s position. For example, using 10x leverage means that a 10% loss could wipe out an entire position. The risks are magnified because crypto markets are prone to sharp price swings. Additionally, leverage can tempt traders to take excessive risks, potentially leading to large financial losses or even bankruptcy. Traders should be cautious and use stop-loss orders to mitigate risks when engaging in leveraged positions.

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