A big player got schooled on the Ethereum contract. Yesterday, they were floating a profit of 1.1 million, but in the blink of an eye, they were down 400,000—markets never show mercy. Using 25x leverage to go long on ETH, the liquidation line was right at 2978. Any slight market shake, and the account could be wiped out in an instant.

What’s even more heartbreaking is that this guy also placed a long position on HYPE, with an unrealized loss of 180,000. The feeling of double leverage pressure, just thinking about it, hurts.

Contract trading, in simple terms, is about amplifying gains with leverage, but it also magnifies losses. Profits that once doubled can be wiped out in a single correction, or even turn into losses. This is not alarmist talk; it’s the reality played out every day in the market.

A word of caution: high leverage is not a money-making magic wand; it’s a double-edged sword. Proper stop-loss planning, controlling leverage levels, and not following the herd into bottom-fishing are fundamental skills that are crucial for protecting your principal. Stories of big players crashing happen every day, and as small retail investors, we must stay vigilant.

Currently, ETH and BNB are still oscillating back and forth. Should we enter now or wait and see? You need to have a plan.