Analysts Warn Against Using High Leverage in Crypto Trading

Analysts from Lookonchain have warned traders against using excessive leverage when trading cryptocurrencies.

Following the recent sharp market downturn, which caught both beginners and seasoned traders off guard, several major investors suffered heavy losses. Among them:

• Machi Big Brother, who had an unrealized profit of $44.8 million before the market drop, ended up with a loss of $14.9 million.

• A trader who previously made 14 consecutive profitable trades, earning $33 million, lost $30.2 million.

• James Winn, who initially grew his capital to $87 million, later suffered a loss of $21.9 million.

According to analysts, these traders fell victim to greed — chasing quick profits, they used excessive leverage, and the sudden market decline triggered mass liquidations of their futures positions.
Experts at Lookonchain advise traders to assess their risk realistically and avoid overusing leverage.

Whale Trading Results

Despite his losses, James Winn has not abandoned his risky strategy.
He opened a short position on Bitcoin in the futures market using 40x leverage when BTC traded at $106,340.
Currently, Bitcoin is priced at $103,290, giving him an unrealized profit of $71,559.

However, when taking into account all trades made from his Hyperliquid account since the beginning of the year, his total net result remains a loss of $21.9 million.

See also: "Binance retail traders and ETF investors increase pressure on Bitcoin"

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