how much leverage is safe in crypto??

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how much leverage is safe in crypto??

coming back to actively trading after a break and trying to get my risk settings right before i size up

1.) is there an actual sane number for leverage, or is 2-3x the realistic ceiling for most people?

2.) does it matter more than position size, or is the leverage number kind of a distraction from just sizing right?

3.) for anyone who’s survived a few cycles, what rule actually keeps you from blowing up?

thanks

Dilshan Tharindu Perera Answered question
0

You get killed in a black swan event. This already happened last October, people got liquidated from 1.1x leverage.

Its already risky enough to own crypto, dont add this to it as you have no competitive advantage.

The interest rate is also huge giving you losses when price is stable in addition to the losses when it goes down.

Dilshan Tharindu Perera Answered question
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