"Just hold long enough and leveraged positions recover." Man, I wish that were true. I used to tell myself that while watching my ADA 50x long bleed. But here's the brutal reality: you *can't* hold a leveraged position that's gone against you. A small move, like a 2% dip on 50x leverage, means you're instantly liquidated. Your entire margin is gone. You don't get to wait for recovery. Even if you avoid liquidation, those constant funding fees are eating away at your capital every few hours. Your balance is shrinking, making it impossible for your position to ever reach break-even, even if the spot price eventually does.

What's actually true is that leverage is a debt. It’s designed for quick trades, not patient holding. Once your margin runs out, the house takes it. You’re not holding;...