Beginner's Trap:
Why many beginners lose money in Futures.
Crypto influencers on Twitter and YouTube will show you massive 1000% ROI screenshots from futures trading. What they rarely show you are the losses, and how quickly high leverage can wipe out an account.
Archived article · Last reviewed April 2026 · By the xtexe.com editorial team. Exchange rules change often — check the official site before you act.
High leverage in a highly volatile market is extremely risky.
Cryptocurrency is one of the most volatile asset classes. Bitcoin can move 10% in a single day, and smaller altcoins can fall even faster.
When you trade with 10x leverage, a mere 10% drop in the asset's price means you lose 100% of your money (Liquidation). In crypto, a 10% drop is not unusual.
A Simpler Strategy: Spot DCA
Many long-term investors avoid futures altogether and use Dollar Cost Averaging (DCA) in the Spot market.
- Spot Trading: You actually own the asset. If Bitcoin drops 50%, you still own 1 Bitcoin and there is no forced liquidation, although the value of your holdings can still fall. Past performance does not guarantee future results.
- DCA (Dollar Cost Averaging): Buying a fixed dollar amount of crypto every week or month, regardless of the price. This removes emotion and averages out the extreme volatility.