How much can I leverage my crypto position and what are the risks?

Leverage allows you to trade with borrowed money, amplifying potential profits—but also losses. Most exchanges offer 2x to 100x leverage, though regulatory limits vary by region. With 10x leverage, a 10% price drop wipes out your entire position. You face liquidation risk: if your position moves against you, the exchange automatically closes it to prevent negative balances. For example, with 50x leverage on Bitcoin, a 2% adverse move liquidates you. Beginners should use minimal leverage (2-5x) or avoid it entirely. Always use stop-loss orders and never risk capital you can't afford to lose. Leverage amplifies both gains and catastrophic losses—most retail traders lose money using high leverage.