A 20% move towards the wrong side of your bet will liquidate your position with 5x lev.
10% with 10x
1% with 100x
This is one of the reason why the crypto markets are so volatile
It is designed to punish the unexperienced and the greedy
He increases his position size, never risking liquidation
However, extra capital is not something that most unexperienced beginner traders have.
They want the gains, and they want it fast.
It allows you to have a little bit of fun. I can risk a thousand dollars to make twenty.
It allows me to increase my risk and reward ratio.
You CANNOT avoid risk in life. Come to terms with it early
If you're living and breathing, you're at risk of not doing so.
In the markets you want to stay alive as long as possible.
As long as you're breathing, you're growing.
If you average 10% gains every month with a starting stack of $1000, you'll have $3100 at the end of the year.
$9800 the second.
$30000 the third.
$100.000 the fourth.
1000 x (1.1) ^ 12 = 3138
3138 x (1.1) ^ 12 = 9848
9848 x (1.1) ^ 12 = 30907
30907 x (1.1) ^ 12 = 97000
Or simply, 1000x (1.1) ^ 48
10% per month is REALLY not that difficult.