20x Leverage No Liquidation | Crypto Trading Secrets Make Millionaires in 2025 (BITUNIX)

My Financial Friend

Introduction to Leverage Trading

Leverage trading is a high-risk strategy that allows traders to buy more crypto than they can afford with their own money. It can result in significant profits, but also comes with a high risk of liquidation.

What is Liquidation?

Liquidation occurs when the price of a cryptocurrency falls below a certain threshold, causing the trader to lose their entire position.

Reducing the Risk of Liquidation

To reduce the risk of liquidation, traders can:

  • Use lower leverage (e.g., 3-5x instead of 10-20x)
  • Add margin to their trade to reduce the liquidation price
  • Put stop losses on their trades to limit potential losses
  • Use partial or trailing stop losses to lock in profits
  • Start with a small percentage of their portfolio and gradually increase their investment

Example of Leverage Trading

The speaker provides an example of a 5x leverage trade on Bitcoin, where they opened a long position at $101,100 and had a liquidation price of around $76,000.

Adjusting Risk Parameters

Traders can adjust their risk parameters by:

  • Adding margin to their trade
  • Putting stop losses on their trades
  • Using take profits to lock in profits
  • Adjusting their leverage level

Importance of Understanding Risk

The speaker emphasizes the importance of understanding risk and starting with a small percentage of one's portfolio when engaging in leverage trading.

Additional Tips

  • Traders should be cautious when using high leverage and should not use it with the majority of their portfolio.
  • Leverage trading can be beneficial for experienced traders who understand the risks and can manage them effectively.
  • It's essential to start with a small amount and gradually increase investment over time.