Regarding the leverage multiples of perpetual contracts, many people have asked me about this. In my ten years in the crypto space, I've seen too many people get wrecked by leverage—beginners, veterans, big players alike. So I need to clarify one thing first: leverage is never a magic money-making device; it’s more like a double-edged sword. When used correctly, it’s an accelerator; when misused, it becomes a meat grinder.

**The True Face of Perpetual Contracts**

The fundamental difference between perpetual contracts and traditional futures is one—no expiration date. As long as you don’t get liquidated or close your position voluntarily, you can theoretically hold forever. This sounds highly flexible: enter when you want, exit when you want, double your position if you wish. But the cost of this freedom is that risks are infinitely amplified.

Recently, I talked to a trader who usually opens positions with 30~50x leverage. I asked him why not go straight to 100x? He said it’s too dangerous and easy to get liquidated. I laughed—anytime you use leverage, you’re essentially dancing on the edge of a knife; the only difference is how much reaction time the market gives you.

**Is the leverage multiple really that important?**

Actually, no. For BTC, whether it’s 30x, 50x, or 100x, the margin, risk, and reward are all proportionally amplified. 1x looks safe but can’t even cover transaction fees; 100x is exciting but, with proper risk control, can be more efficient. The real determinant of success or failure isn’t the multiple itself, but whether you can truly control it. Most liquidations come from position mismatches—using a few hundred USD to leverage a position worth tens of thousands, and after two opposite K-line movements, you’re wiped out. Looking at the right direction afterward is useless.

**The Three Iron Laws of Perpetual Contracts**

The core is risk management. I’ve summarized three rules that must be firmly remembered:

First, only use isolated margin; never use full margin. This is the first line of defense, ensuring that a single loss stays within your manageable range.

Second, set a stop-loss. Holding a position without a stop-loss may seem heroic, but it’s actually the start of disaster. Setting a stop-loss is responsible for yourself.

Third, focus on earning small profits with rhythm. For example, with a capital of 5000 USD, aim to make only 50~100 USD daily, maintaining a monthly return of 20%~40%. This way, compound interest can truly become a powerful tool.

**What does leverage amplify?**

Simply put, leverage is a magnifying glass—it amplifies discipline as well as greed. You’ll find that what often causes liquidation isn’t the market’s volatility but your mindset. Is there an absolute reasonable multiple? No. Only multiples that suit your own ability level. A disciplined person even with 100x leverage is safer than someone with a careless mindset using 5x. The game of perpetual contracts isn’t about gambling on a one-in-ten-thousand chance, but about systematically capturing high-probability opportunities.

Ultimately: the contract itself doesn’t harm people; greed does.