The backend is once again flooded with messages, all asking how much leverage to open for perpetual contracts—this question has been answered countless times over the years, from bull markets to bear markets. Newbies get wrecked, veteran traders also get caught. To be honest: leverage is not some printing machine; it’s a kitchen knife. When used skillfully, it can cut vegetables; if you're careless, it can cause bloodshed.

Perpetual contracts have no expiration date; as long as you don’t get liquidated, you can hold your position indefinitely. Sounds pretty free, right? But behind this freedom are all traps: you can add positions at any time, chase profits when you’re winning, stubbornly hold on when you’re losing, and leverage can double your gains. The temptation is overwhelming, and the risk is long forgotten.

Recently, I chatted with a trader who said he always plays with 30 to 50 times leverage. I jokingly asked why he doesn’t go for 100x. He rolled his eyes and said, "It blows up too fast; I can’t even run away." That made me laugh—using leverage is essentially walking on a tightrope. 50x is a slow cut, 100x is a quick slash; the only difference is how many seconds the market gives you to react.

Take BTC as an example: 30x leverage can’t handle a 16-point move, 50x can only handle 10 points, and at 100x, it shrinks to 5 points. 1x is as stable as sleeping soundly, but earning slowly to death; 100x is terrifyingly aggressive, but without stop-losses and discipline, your account can be wiped out in seconds.

What truly knocks people out isn’t the high leverage itself, but reckless position increases and margin bottoming out. Holding just a few hundred USDT and trying to leverage thousands in gains—any slight market shake will wipe you out immediately.

The most frustrating situation isn’t when you’re wrong about the direction, but when you’re right about the market, yet because your position is too full, a small fluctuation knocks you out, and you watch the market rise helplessly.

So remember this: perpetual contracts aren’t afraid of high leverage; they’re afraid of leaving no room for your account. The margin must be able to withstand normal market fluctuations—that’s the bottom line, no room for negotiation.

Here are three strict rules I’ve summarized, hoping they get ingrained in your mind:

First, only use isolated margin mode. Using cross margin is like tying your assets to a bomb—detonation is only a matter of time.

Second, set a stop-loss. From the moment you decide to hold on stubbornly, the countdown to liquidation begins.

Third, don’t be too greedy with expected returns. With 5,000 USDT, earning 200 to 300 per day steadily is more satisfying than gambling everything on a single shot, and compound growth is more reliable.

Leverage amplifies not the market’s volatility, but your greed and discipline. A 100x operation that controls risk is much safer than recklessly holding a 5x position. Those who truly survive in this market rely not on high multiples, but on respect for risk.