Trading BTC with leverage essentially means borrowing money to amplify your position, using a smaller amount of capital to potentially earn larger profits. But this double-edged sword also amplifies losses, and if you're not careful, you could lose everything.

Let's first discuss the core mechanism. The higher the leverage multiple, the more volatile the profit and loss fluctuations become. When your losses reach the platform's margin threshold, the system will trigger a forced liquidation, and your account funds could be wiped out instantly. This is not alarmist talk but the inherent logic of leveraged trading.

Where exactly are the risks? The price volatility of BTC itself is already quite fierce. With leverage added, even a small counter-move can trigger your position to be liquidated. Imagine, a 5% decline at 2x leverage results in a 10% loss of your account. Add in borrowing interest—the longer you hold the position, the more this cost eats into your capital. The combination of time cost and volatility risk is overwhelming for beginners.

How to trade practically without easily getting wrecked? It’s recommended for beginners to start with low leverage (2-5x is advisable), and set strict take-profit and stop-loss levels. Don’t try to go all-in on a single trade. Leave enough margin buffer for yourself so that when the market fluctuates, you still have room to maneuver. Keep a steady mindset, maintain light positions, and enforce strict risk control—if you master these three points, you stand a better chance of surviving longer in leveraged trading.