In the cryptocurrency market, Bitcoin leverage trading has always attracted much attention. When the leverage ratio is as high as 100 times, investors experience victory and defeat like a roller coaster. This article will delve into several points of Bitcoin leverage ratio 100 times, revealing the stories and lessons.

 The charm and risks of leverage trading

Leverage trading is a way to increase investment positions with borrowed funds, which can bring high returns, but also comes with high risks. In the Bitcoin market, a leverage ratio of up to 100 times means that investors can control huge positions with very little capital. This aggressive trading strategy has attracted many speculators who hope to make quick profits through leverage trading.

 Mania and collapse: several points of liquidation cases

 1. Black Friday

On Friday, a week when Bitcoin prices fluctuated violently, many investors chose high-leverage trading. When Bitcoin prices plummeted in a few hours, those investors who could not bear the pressure were liquidated. Their accounts were instantly cleared, like a crash on Black Friday.

 2. The double-edged sword of leverage

Some investors chose 100x leverage when Bitcoin soared, saw the market trend, and became rich overnight. However, when the market pulled back, their positions were immediately liquidated, resulting in painful losses. Leveraged trading is like a double-edged sword, soaring for a while and lonely for a while.

 3. A thrilling trading night

After an important news was released, the price of Bitcoin fluctuated sharply, and many investors chose high-leverage trading. However, the market changed very quickly, and those investors who failed to close their positions in time were eventually forced to accept the painful ending of liquidation. This night was a thrilling trading night.

 Investors' reflections and lessons

The liquidation of several points of Bitcoin leverage ratio 100 times sounded the alarm for investors. Although high-leverage trading is tempting, it is full of risks. Investors should carefully choose the leverage ratio, reasonably diversify risks, and not be greedy for temporary profits and ignore the uncertainty of the market.

 Don't be greedy, rational investment is crucial

In the Bitcoin market, greed is often the enemy of investors. Although high-leverage trading can bring high returns, it is also accompanied by high risks. Investors should remain rational, formulate rigorous trading strategies, avoid blindly following the trend, so as not to fall into misunderstandings and eventually lead to a tragic explosion.

 Conclusion

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At what point will Bitcoin's 100x leverage cause a liquidation? Seeing this question, I believe many investors are confused. Before answering, the editor of Coin Circle will first tell you about Bitcoin leverage. As we all know, there is a trading method in Bitcoin trading called Bitcoin contract trading, and leverage is a tool in contract trading. It can be said that leverage is a tool to magnify investors' profits, so it is very popular with investors. At present, Bitcoin leverage trading has 5x leverage, 10x leverage, etc. Of course, the Bitcoin 100x leverage mentioned in this article also exists. So, at what point will Bitcoin's 100x leverage cause a liquidation? The editor of Coin Circle will give you a detailed analysis below.

 At what point will Bitcoin's 100x leverage cause a liquidation?

Bitcoin liquidation usually refers to the customer's loss exceeding his own funds after overdrawing investment. Because Bitcoin trading implements leveraged trading, when the customer's loss is greater than the margin in your account, it is a liquidation. After the liquidation, if the margin fee cannot be replenished in time, the dealer will implement forced liquidation. The remaining funds after the company's forced liquidation are the total funds minus your losses. Generally, there is still a part of the funds left, which will be returned to the customer's account later. In view of several situations where a position may be liquidated, here are some tips on how to prevent it:

1. Control positions according to personal funds

For example: if you have 10,000 US dollars, use 50 times leverage, and open a position at most 20 lots each time, so the risk resistance is more than 900 points, and the risk level is about 10%. If you use 100 times leverage for a heavy position and open 40 lots, then the risk resistance is less than 100 points, and the risk level is more than 90%.

2. Strictly set stop-profit and stop-loss

Every time you trade Bitcoin, you should strictly set stop-profit and stop-loss, combine the investment income with the risk, and formulate an investment blueprint for the transaction. The investment market is always changing. Even the most professional analysts cannot grasp the accuracy of the transaction to 100%. Therefore, as buyers, we should use the weapons in our hands to control the sovereignty of the transaction within our control.

3. Control the number of transactions

The market is ruthless, and it specifically punishes those who trade recklessly according to their emotions. Professional speculators are often called "cold killers" because they are not swayed by emotions, follow the market, and trade strictly according to the signals sent by the system, while amateur investors are often emotional, do not distinguish between the important and the unimportant, and do it blindly. Therefore, investment should not be blindly placed. We should enter the market at the right price and leave the market at the appropriate price according to the trend of the Bitcoin market and personal funds. Only calm trading can be the biggest winner.

 How to use Bitcoin leverage?

1. Go long (buy up)

Here, take BTC/USDT leverage trading as an example (USDT is benchmarked against the US dollar, 1USDT=1 US dollar) to introduce how to use Bitcoin leverage. Assuming that the current price of Bitcoin is 10,000 US dollars, and you predict that the price will rise in the near future, you can choose to go long at this time.

If you only have 10,000 USDT principal, and the platform has 3x leverage, you can borrow another 20,000 USDT from the trading platform, so that the principal is now 30,000 USDT; if it is 5x leverage, you can borrow 40,000 USDT, and 10x leverage is 90,000 USDT
and so on.

Use 30,000 USDT to buy 3 Bitcoins, and then sell them when the price reaches 20,000 USDT, and you will get 60,000 USDT of Bitcoin. After deducting 10,000 USDT of principal and 20,000 USDT of loan, you will make a profit of 30,000 USDT.

If you do not use leveraged trading, and directly go to spot trading (coin-to-coin trading) to buy 1 Bitcoin with 10,000 USDT, you can only make a profit of 10,000 USDT.

Of course, if you make a mistake and Bitcoin falls to 5,000 USDT, coin-to-coin trading will only lose 5,000 USDT, while leveraged trading will lose 15,000 USDT.

2. Short selling (buy short)

Still taking BTC/USDT
3x leverage trading as an example, the current price of Bitcoin is 20,000 USDT per Bitcoin. If you think the price of Bitcoin will drop to 10,000 USDT, and you have a principal of 10,000 USDT, you can borrow 1 Bitcoin from the platform (shorting can only borrow the currency you choose to short), sell it when the price of Bitcoin is 20,000 USDT, and then buy it back to the platform when the price of Bitcoin is 10,000 USDT, so that you can make a profit of 10,000 USDT.

For investors who play Bitcoin leveraged trading, the most important thing is to learn how to stop loss, because stop loss is the best way to control risk. Investors set a mandatory stop loss for themselves, for example, 10% or 15% of the principal is lost, no matter whether it rises or falls later, the position is closed unconditionally. As for the specific proportion of the principal lost, it can be based on your own tolerance or certain principles.

The explosion of several points of Bitcoin leverage ratio 100 times tells us that the investment market is like a war without gunpowder, and the winners are often those cautious and rational investors. On the road to pursuing profits, don't be blinded by greed, and invest rationally to win. I hope every investor will overcome all obstacles in the market and finally get the ideal harvest.