Mengapa Leverage Penyakit Crypto

Summary

In this video, Kalim from the Crypto Academy discusses why using leverage in cryptocurrency trading can be harmful. He explains how leverage can negatively impact both beginner and experienced traders' psychology, making them overly focused on profit and loss rather than the market's movements. Kalim emphasizes the dangers of liquidations, market manipulation by exchanges, and the systemic risks leverage introduces to the crypto ecosystem. He encourages safer trading strategies, such as spot trading and gradual investments in Bitcoin and altcoins, to reduce risks and ensure long-term success without relying on leverage.

Takeaways

• 😀 Leverage in crypto trading is seen as a harmful addiction, especially for beginners, as it can lead to significant psychological stress and financial loss.
• 😀 Beginners may be attracted to leverage because it promises the potential for massive profits, but it also comes with high risk and the potential for liquidation if prices move unfavorably.
• 😀 Using leverage can cause traders to focus too much on profits (PNL), leading them to neglect proper risk management like stop loss or cut loss strategies.
• 😀 Many new traders become addicted to watching their profits and losses, losing sight of the essential skill of analyzing charts and making informed decisions.
• 😀 Trading without leverage (spot trading) is less stressful and can help avoid the psychological strain and distractions caused by frequent profit/loss monitoring.
• 😀 Successful crypto billionaires often invest in Bitcoin and other assets using spot trading strategies rather than using leverage for quick, speculative trades.
• 😀 Leveraged trading can artificially inflate asset prices, creating price swings that may not reflect true market demand or value.
• 😀 Price manipulation via leverage can lead to market volatility, causing sharp price movements and liquidation events, especially for altcoins.
• 😀 Many crypto exchanges benefit from traders using leverage, as they profit from liquidations, often having access to traders' stop-loss positions.
• 😀 The use of leverage in crypto can lead to systemic risks, with leveraged positions contributing to large market crashes, as seen in past crypto exchange failures (e.g., FTX, Alameda).
• 😀 For those new to crypto, it is advised to avoid leverage, stick with spot trading, and focus on long-term investment strategies rather than trying to time short-term market fluctuations.

Q & A

Why does the speaker view leverage as a 'disease' in crypto?

The speaker considers leverage a 'disease' because it can be highly addictive, especially for beginner traders. It distorts the trading experience by focusing on quick, high-reward outcomes, leading to psychological damage and increased risk of significant losses.

What is the potential danger when trading with leverage?

The potential danger of trading with leverage is the risk of liquidation. If the market moves against the trader, even by a small percentage, the trader could lose their entire position and portfolio, especially if using cross-margin trading.

What impact does leverage have on the market price?

Leverage can artificially inflate asset prices by allowing traders to borrow more funds than they own. This can cause the price of assets like Bitcoin to rise or fall more significantly than they would without leverage, resulting in extreme price movements.

How does leverage affect the psychology of traders?

Trading with leverage can cause traders to become overly focused on their profit and loss (PnL), rather than the technical aspects of the market. This creates a cycle of stress, panic, and addictive behavior, affecting their overall decision-making process.

What is the advantage of trading without leverage according to the speaker?

Trading without leverage allows traders to focus on long-term growth and stability. By investing in spot assets like Bitcoin, traders can avoid the stress of daily fluctuations, have more control over their portfolio, and reduce the likelihood of liquidation events.

What can lead to significant losses when using leverage, especially in altcoin trading?

Altcoin trading with leverage is particularly risky because altcoins are influenced by many factors, including Bitcoin's price, external market conditions, and institutional policies. This increases the chances of large price swings, leading to liquidation events and significant losses.

Why do crypto exchanges encourage leverage trading?

Crypto exchanges may encourage leverage trading because they profit from liquidation events. When traders' positions are liquidated, exchanges earn a portion of the liquidation fee, increasing their revenue. This incentivizes exchanges to push traders into risky leverage positions.

How does leverage contribute to systemic risks in the crypto ecosystem?

Leverage creates systemic risks by encouraging excessive risk-taking, leading to the collapse of major crypto institutions when their leveraged positions are liquidated. These collapses, like those seen with FTX and Celsius, can trigger broader market downturns and prolonged bear markets.

What is the 'take profit' strategy mentioned for Bitcoin holders?

The 'take profit' strategy involves selling a portion of Bitcoin holdings when it reaches a certain price point, particularly when the market hits a psychological level (like $100,000). This helps secure profits before a potential market correction or liquidation event.

What is the speaker's advice for beginners in crypto trading?

The speaker advises beginners to avoid leverage trading and focus on spot trading with gradual entry and exit strategies. This approach is safer, reducing stress and the risk of liquidation, while promoting long-term portfolio growth.