Leverage in Crypto: 10x, 75x or 125x? The Multiplication Game and Liquidation

Everyone dreams of turning $100 into millions. Leverage promises exactly that—but it also promises to lose it all in seconds. Here is the reality of trading with 10x, 75x, and 125x.

The Seductive Calculation

With $100 of initial capital:

• 10x: You control $1,000
• 75x: You control $7,500
• 125x: You control $12,500

If you gain a 1% movement, the results:

• 10x → +$100 gain
• 75x → +$750 gain
• 125x → +$1,250 profit

It seems irresistible. But wait.

The Reverse of the Coin

The same 1% movement against you:

• 10x: You lose 10% of your capital
• 75x: Automatic liquidation (drop of only 1.33%)
• 125x: Instant liquidation with a drop of 0.8%

That's the trap. With 125x, a market whisper wipes you out. With 75x, a simple wick liquidates you. Even 10x can drain your account before you blink.

Why Expert Traders Continue to Choose Low Levels

Most professionals operate with a maximum of 2x-5x. Why? Because they know that true profit does not come from one explosive trade, but from many profitable trades. Extreme leverage promises you a devastating win, but almost always delivers a definitive loss.

The Non-Negotiable Rules

1. Stop-loss is mandatory - Define where you exit before entering
2. Maximum risk 1-2% per trade - Never your entire account in one move
3. Start low - 2x is better than 125x while you learn
4. Know Your Liquidation Level - Calculate exactly where you get liquidated

Verdict

High leverage is not a shortcut to wealth; it is a shortcut to bankruptcy. If you need 125x to make money, you probably shouldn't be trading with leverage. Start with 10x or less, master risk management, and only then consider higher levels—if you really need to.