Don’t keep all your eggs in one basket. The same logic applies to your crypto.
As example Bitget’s recent hack and withdrawal freeze made the point. The exchange said users’ funds were covered, but they still couldn’t move them elsewhere while withdrawals were paused. Your balance might be there, but your freedom to use it isn’t.
Our approach: long-term capital in a properly secured self-custody wallet, trading funds on a CEX. Binance, OKX, Bybit, the name doesn’t change the rule. Just remember that holding your own keys also means handling their security and backups yourself.
And this is where access to higher leverage can actually be useful.
No, this isn’t an invitation to gamble at 100x. 😁
The idea is the opposite. Decide your position size and planned risk first. For the same position size, higher leverage reduces the initial margin required, which can mean keeping less working capital on the exchange.
That’s capital efficiency: less collateral tied up in the same trade, not an excuse to place a bigger bet.
There’s a trade-off, though: less collateral also means a smaller buffer before liquidation. Choose leverage around your stop and margin requirements, not the biggest number available on the slider.
Use exchanges to execute trades, not to store your entire portfolio.❗️