Every time I hear stories of liquidation, behind them is always a trader who ignored the risks. I have seen too many people walk into the futures market full of expectations, only to leave disappointed. Honestly, this is not a cash machine; it’s more like a magnifying glass for human nature—greed and fear are amplified infinitely under high leverage.

Many traders believe that mastering technical analysis allows them to dominate the market, but what truly determines life or death in this market is reverence for risk. Today, I want to talk about some harsh realities—not to teach you how to make money, but to help you survive longer.

**Volatility is innate; leverage is man-made**

Cryptocurrencies are inherently volatile assets, with sharp price swings commonplace. What about the leverage mechanism in futures trading? It’s like a magnifying glass, amplifying these fluctuations exponentially. For example, with 10x leverage, you can control assets worth 1000 dollars with just 100 dollars. Sounds exciting? The problem is, losses are also calculated based on 1000 dollars. Slight adverse market movements could severely damage your principal. This is not a hypothetical—it's the fundamental risk of futures trading.

**The market never treats everyone equally**

Many people see futures trading as a fair competition, but the reality is much harsher. Exchanges hold the power to influence market information and have the ability to leverage this advantage, using liquidity and information asymmetry to cause ordinary retail traders’ stop-loss orders to be liquidated en masse. You operate on one side, while the market plays on the other.

Choose a platform with a good reputation and regulatory support—that’s the first step to survival. But even then, never forget—controlling risk is much more practical than chasing profits.