0xPilgrimage

Here is an extreme example of pure wreckage from over-trading and over-confidence. James Wynn has lost close to $100m over the last few weeks due to extreme leverage trading Bitcoin.

Leverage trading is the new hotness in crypto; you can make a bet with smaller amounts of money and stretching it, double time. If you set up a trade with a 40x multiplier, it is basically taking your 1 dolla and making 40 dolla. So, if you have your last one-thousand dolla (saved up over many seasons of lawn mowing since grade school) and apply 40x leverage, u now have da ferty-tousand dolla to go ham on teh Bitcoins or teh Pepe.

The risk is that this increased 40x stretch of your limited funds means the margin of error, price fluctuation, is pumped up on HGH and the tiniest bit of price action going the opposite way can liquidate you in the blink of an eye and gudbye to ya one-tousand dolla.

Here is an example: Go Long or Short, oy, decide if you’re betting the price goes up (long) or down (short). If ETH is at $2,000 and you go long with 40x, a 1% price jump to $2,020 means your position’s worth $40,800—a $800 profit. But if it drops 1% to $1,980, you’re down $800, and your margin’s taking a battering.

Long story short, leverage trading is not for teh faint of heart. It's one of the new functions of this cycle and meant to remove your hard-earned wealth.

Good luck!