Leverage
Leverage means trading with borrowed funds to control a larger position than your capital alone would allow. It magnifies both gains and losses.
Leverage is the use of borrowed money to take a position larger than your own capital would support. With five times leverage, for example, a given amount of capital controls five times as much of an asset. If the trade moves in your favour, the gain is multiplied. If it moves against you, the loss is multiplied just as fast.
The danger of leverage is not only larger losses but forced ones. When a leveraged position moves against you far enough, the exchange can close it automatically to protect the borrowed funds, a liquidation. That can turn a temporary dip, one a patient holder would have survived, into a permanent loss.
Crypto Wealth does not use leverage at all. It is spot only: no margin, no futures, no liquidations. For a long-term investor, that constraint is intentional. The goal is to capture multi-day trends in assets you actually own, with risk that stays understandable, rather than to amplify exposure and hope the timing is perfect.
