Gate App Options Now Live! Test and Win Big
📅 Event Period: September 30, 2025 – October 17, 2025
- Submit valid feedback to receive 10–100 USDT.
- Complete at least 10,000 USDT in cumulative options trading volume to participate.
👉 Register now :https://www.gate.com/campaigns/2063
Details: https://www.gate.com/zh-tw/announcements/article/47455
In the crypto assets market, margin trading has attracted the attention of many investors. A regular job that earns 10,000 yuan a month can be instantly surpassed in high leverage futures trading. For example, with a principal of 10,000 yuan and 100x leverage, just a 1% price fluctuation can yield a 100% return, equivalent to a month's salary.
However, this high-risk, high-reward trading method also brings significant challenges. In extreme market conditions, the Fluctuation in the Crypto Assets market can reach 1-2% within a second, and small tokens can experience drastic fluctuations of several percentage points in a short period. Even market leaders like Bitcoin can see a decline of 3-4% within minutes.
The most fascinating aspect of Margin Trading is its compound interest effect. A return from 10,000 to 20,000 is a 100% gain, and similarly, a return from 20,000 to 40,000 is also a 100% gain. This geometric growth has led many investors to see the potential for quick wealth. However, this rate of growth also applies to losses, and a small misstep could lead to a rapid evaporation of the principal.
In this society that pursues quick success, many people are unwilling to slowly accumulate wealth and choose to seek high returns through high leverage. Some may achieve rapid capital growth in a short period, but the hidden risks behind it are often overlooked.
For most investors, a robust investment strategy may be more suitable for long-term wealth accumulation. While high Margin Trading is tempting, it can also lead to significant financial losses. Before entering this market, investors need to fully understand the risks, manage their funds well, and maintain rational thinking.
The high fluctuation of the crypto assets market is both an opportunity and a challenge. Regardless of the investment method chosen, one should make careful decisions based on their risk tolerance and investment goals.