Leverage: The Magical Swing That Throws You Higher (or Off the Cliff)
Imagine This
You’re at the playground.
You’ve got a swing.
Normally, when you push yourself, you go a little bit up.
That’s trading with 1x – your own money, your own strength.
Now imagine your friend says:
“Hey, want to go higher? I’ll give you a super push!”
You go flying.
That’s leverage.
It makes your small push (your $10) move like a giant push ($100, $1,000, or even $10,000).
Cool, right?
Until you realize…
the higher you go,
the harder you hit the ground.
The Math of Magic
Let’s say ETH moves 1%.
Sounds small, yeah?
But look what happens with different levels of “push”:
| Leverage | Price Move (1%) = Profit/Loss |
| 1x | +1% |
| 6x | +6% |
| 10x | +10% |
| 20x | +20% |
| 50x | +50% |
| 100x | +100% |
At 100x, a 1% move your way doubles your money.
A 1% move the other way – poof, your whole swing disappears.
The Trap They Don’t Tell You
Leverage feels like a shortcut to getting rich.
It’s not.
Most people learn this the hard way
the market only needs to move a little against you,
and you’re suddenly out of the game.
It’s not because you’re bad at trading.
It’s because leverage doesn’t forgive mistakes.
It amplifies them.
So when you see that shiny +93% profit flash on your screen, remember:
it’s not luck it’s leverage doing leverage things.
And it cuts both ways.
The Lesson
Leverage is like giving a five-year-old a rocket.
You’ll go higher than anyone else on the playground…
but if you tilt even slightly, you’ll crater before you finish your juice box.
Use it wisely.
Start small.
And remember
sometimes the best traders are the ones who know when not to push too hard.
