The post New Analysis Reveals the Line Between Safe and Dangerous Leveraged Crypto Trading appeared on BitcoinEthereumNews.com.

Disclaimer: The information presented in this article is part of a sponsored/press release/paid content, intended solely for promotional purposes. Readers are advised to exercise caution and conduct their own research before taking any action related to the content on this page or the company. Coin Edition is not responsible for any losses or damages incurred as a result of or in connection with the utilization of content, products, or services mentioned. Outcome Labs, a pioneering force in the decentralized derivatives marketplace, is proud to unveil its latest groundbreaking analysis on the crypto derivatives liquidation crisis. This study, driven by the mantra “Do Not Get Rekt,” sheds light on the often-overlooked risks associated with leveraged crypto trading, aiming to arm traders with the knowledge they need to navigate these volatile waters safely. In a surprising revelation, Outcome Labs has identified a significant gap in the existing research landscape: no prior studies have comprehensively examined the probability of getting REKT in leveraged crypto trading. Leveraged trading, often viewed as a quick path to outsized returns, comes with the lurking danger of complete capital loss—a risk that many traders underestimate. To address this, the Outcome Labs team conducted an extensive analysis of eight years of daily Bitcoin price data. The results were startling: the risk of liquidation increases exponentially as leverage or holding periods extend, even for traders who believe they have mitigated risks through short-term strategies. “Traders using 25X leverage face a 25% chance of losing 100% of their funds within just 24 hours,” stated Pete Harrigan, Founder of Outcome Trading. This stark statistic underscores the critical need for effective risk management strategies in the crypto trading world. Harrigan further elaborated, “Over a series of 50 trades, the probability of losing all capital surges once leverage exceeds 5x.” This is a crucial insight…

---

Filed under: News - @ September 2, 2024 11:23 am