At 3 a.m., another trading account has been wiped out. This is not a internet joke, but a story that repeats every day in the crypto trading market.

Over the past few years in the crypto world, I have seen too many legends of overnight riches. But honestly, I hear more about tragedies of overnight liquidation. Take the recent incident—around Christmas, a major exchange experienced a flash crash, with Bitcoin plunging from $87,600 to $24,100 in just under seven minutes before bouncing back. During those seven minutes, 781,000 traders were liquidated, and $136 million in contract funds disappeared.

Looking further back to the crash in October 2025, the total liquidation amount across the entire network within 24 hours reached $19.2 billion, with 1.648 million users being liquidated simultaneously. Among them, the largest single liquidation was $7.3746 million—how many lives were changed behind that number?

High leverage is like a poison. It can give you instant pleasure and illusions, but ultimately, it often kills you. Many people haven't understood one fact: a high win rate does not necessarily mean making money. If you trade 10 times, winning $1,000 nine times—sounds like a 90% win rate, right? But if you lose $20,000 on the tenth trade, you end up losing $11,000 overall. Leverage amplifies not only gains but also greed and fear in people's hearts.

I've seen three common pitfalls: first is the gambler mentality of "buying more as the price drops." Only the market itself knows its bottom; your guesses are often wishful thinking. One additional purchase might keep you alive, two might let you escape with luck, but no one can guarantee a third. This is the truth of the leveraged world.