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The Leverage Trap: A Painful Lesson in Risk

Posted October 17, 2025

Greg Guenthner

By Greg Guenthner

The Leverage Trap: A Painful Lesson in Risk

I like to think that nothing surprises me anymore.

But I was genuinely shocked to see the stories of crypto traders who were flattened during last Friday’s liquidity event.

The internet is full of stories about traders getting liquidated left and right.

We’re talking about seven-figure trading accounts that went to zero — in a matter of minutes — because traders were over-leveraged on altcoins that tanked last Friday.

Here’s the deal.

On some platforms like Kraken or CoinFutures, you can get 50x, even 100x leverage on your trades.

Naturally, that kind of firepower leads to some very bad behavior. And it can get you into a lot of trouble.

In light of these events, I want to talk about risk and some of the highly suspicious investment vehicles that could be hitting the market soon.

Specifically, I want to talk about leverage. Because even in a rip-roaring bull market like the one we’re in now, you have to know how to protect yourself.

If you don’t trade responsibly, you can end up in a ton of trouble. I cover it all in the video below.

After you’re done watching the video, drop me a line and let me know what you think.

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