Why does everyone hate on leverage trading? It is a solid strategy if you know how to use it.

Every time I mention that I use perpetual futures markets to leverage trade BTC and ETH, people down vote me and tell me I’m gambling.

Here is how I use the GMX market to grow my Bitcoin and ETH with leverage trades that do not have liquidation risk.

For this example let’s say I’m using 1 BTC

BTC has had a nice run up and recently started looking like it’s selling off a bit.

• I take my 1 BtC and open a short sell for 1 BTC @$64,000 (for example, assume that was the price on the day I decided to start this position)
• The collateral for this $64,000 short sell is 1 BTC

(If the price of BTC pumps, the price of my collateral pumps with it and my margin for the short stays unchanged. There is no way to get liquidated. Even BTC pumps 200% in one minute, my short will be covered.)

• While I hold the short, long traders pay funding fees to short sellers and I earn 5-40% Apr on the BtC payed in BtC. The range depends on open long interest.

A position like this will always be worth $64,000 no matter that happens to the price of bitcoin.

If the BTC price pumps then my position is still worth $64,000 it’s just gonna be less Bitcoin units. If BTC dumps I still have $64,000 but now denominated as more Bitcoin units.

So I’m able to lock in my USD value while earning more BTC from funding while not having any risk of liquidation. Why is this a gamble?

On top of all that, GMX pays ARB tokens are kick back for my trading volume so I get to farm those too. Help me understand why people hate leverage traders here?