How much leverage should you open for perpetual contracts? I've thought about this question for a long time myself, and I've seen too many people get wiped out because they answered incorrectly. Let me start with some harsh truths: leverage is like a kitchen knife—used correctly for chopping vegetables, it’s fine; but a slight tremor can cause bloodshed.

The biggest temptation of perpetual contracts is that they have no expiration date. As long as you don’t get liquidated, you can hold them indefinitely. Sounds free, but it’s actually a trap. This freedom makes people prone to losing control—wanting to add positions when profitable, trying to hold on tight when losing, and when leverage is increased, the thrill of doubled gains takes over the mind, while risk awareness is long gone.

I know a trader who often uses 30 to 50 times leverage. I asked him why not go for 100x, and he rolled his eyes and said, "It gets liquidated too fast, I don’t have time to escape." This may sound like a joke, but it’s the truth. Using leverage is essentially walking on a tightrope; 50x is like a slow knife cutting meat, 100x is a quick slash. The only difference is how many seconds the market gives you to react.

Let’s do some math with BTC. If you open 30x leverage, you can only withstand about 16 points of fluctuation before liquidation; at 50x, it’s reduced to 10 points; at 100x, it’s down to 5 points. 1x leverage is as stable as a fixed deposit—slow and steady, but earning very little; 100x looks fierce, but without stop-loss and discipline, your account can be wiped out in minutes.

What truly causes liquidation isn’t high leverage itself, but reckless position sizing and operating with minimal margin. You might have a few hundred USDT and try to leverage tens of thousands of dollars’ worth of gains, but a slight market shake can wipe you out. The most heartbreaking part isn’t even going against the trend; it’s when you see the right direction but get shaken out because of excessive leverage, watching the market rise while you’re forced to exit.

Here’s the key point: perpetual contracts aren’t afraid of high leverage, but of not leaving room for your account. Margin must be able to withstand normal fluctuations—that’s the bottom line for survival. Be especially cautious with volatile coins like XRP, SOL, because their price swings are often more intense than BTC.

I’ve summarized three iron rules:

**1. Use only isolated margin; full position is like tying your life to a bomb.** Isolated margin keeps risk manageable for each position; full margin, if it blows, takes everything.

**2. Stop-loss must be set—no exceptions.** The moment you hold a position, the countdown to liquidation begins. Stop-loss is your last line of defense for survival.

**3. Don’t be too greedy with your targets.** For example, with a 3000 USDT capital, earning 300 to 400 daily may not seem much, but compounding it is far more exciting than gambling on a single shot, and it allows you to survive longer.

Leverage amplification isn’t driven by the market itself, but by your greed and execution. A trader who can control risk at 100x leverage is a hundred thousand times safer than someone recklessly holding at 5x. The key isn’t the multiple, but your mindset and discipline.