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How much leverage do you actually use when trading crypto?
Curious what leverage people here actually use on crypto trades. I see everything from 2x all the way up to 50x or 100x, but those higher numbers seem pretty wild unless the position is extremely small. Do you choose leverage based on the market conditions, your stop-loss, or just your overall risk tolerance?
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Re: How much leverage do you actually use when trading crypt
For me, the leverage number by itself doesn't really tell the whole story. Position size matters just as much because you can take a smaller position with higher leverage and still control your overall risk. This guide explains the relationship between leverage, margin and liquidation pretty well: https://evedex.com/en/blog/crypto-leverage-trading/. That's probably a better way to think about it than simply asking whether 10x or 20x is "safe."
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