These days, the number of people asking about leverage multiples in perpetual contracts is exploding, across all trading levels—from beginners to seasoned traders, many have fallen into traps. Today, I’ll explain this thoroughly.

First, let’s say the harsh truth: leverage is not a printing press; in plain terms, it’s a double-edged sword. When used properly, it amplifies your gains; a slight mistake can wipe you out completely.

Perpetual contracts have no expiration date and, in theory, can be held infinitely without liquidation. It sounds highly flexible. But this freedom is precisely a trap—every time you want to add to your position, aiming to double your profits, or hold on through losses, the risk accumulates. When leverage is maxed out, your mind is only filled with profit calculations, and the risk is pushed to the back of your mind.

Recently, I was chatting with a crypto friend who’s been trading for over ten years. He said he often uses 30 to 50x leverage. I teased him, asking why not go straight to 100x. He rolled his eyes: “100x liquidation is too fast, I don’t even have time to run.” I found it funny—essentially, leverage trading is walking a tightrope. 50x is like slowly cutting meat, while 100x is a direct slash. The only difference is how many seconds the market gives you to react.

Take BTC as an example: 30x leverage can’t handle 16% swings; 50x can only tolerate 10%; at 100x, only 5% tolerance. 1x is as safe as putting money in the bank but earns very slowly; 100x is fierce, but a small fluctuation can wipe you out instantly. There’s no gentle middle ground.

The real reason accounts get blown up isn’t because the leverage is too high, but because traders keep blindly adding to positions and don’t realize their margin is running out. Trying to leverage a few hundred dollars to make tens of thousands, then getting wiped out by a market shake. Ironically, sometimes you get the direction right, but because your leverage is too high, small fluctuations shake you out. You see the market move in your predicted direction but can’t do anything.

In my opinion, the most important rule in trading perpetual contracts is to leave some room for your account to breathe. The margin must withstand normal market fluctuations—that’s the baseline. I’ve summarized three life-saving rules, ingrained in your mind:

**First: Use isolated margin only, never cross margin.** Cross margin is like tying your entire fortune to a bomb—one sudden move and it’s all over.

**Second: Always set a stop-loss when opening a position.** No stop-loss means racing against the liquidation countdown—inevitably, something will go wrong.

**Third: Don’t be greedy with your targets.** With 5,000 bucks, aim to make 50 to 100 bucks a day, and grow slowly with compound interest. That’s more reliable than dreaming of tenfold or even thousandfold gains in one shot.

Honestly, leverage amplifies not the market itself, but human greed and self-discipline. Those who can truly control risk at 100x are far safer than reckless traders at 5x. Perpetual contracts aren’t about who’s braver; they’re about who can survive longer—solid risk management is what allows you to walk away with a smile.

I personally stick to real trading, no gimmicks. If you also want to avoid these pitfalls and earn steadily, don’t wander blindly in the crypto world. Keep up with the rhythm, use scientific logic, and make steady profits—that’s the right way.