Investing in Bitcoin with 2× leverage for 2–3 years significantly increases risk and costs.
If you invest $100,000 with 2× leverage, the trade size becomes $200,000, with $100,000 borrowed.
Financing costs can accumulate substantially; based on the stated assumption of 12% annually, they could reach $36,000 over 3 years on the borrowed amount.
There are also trading fees and other costs.
The biggest risk is liquidation if Bitcoin drops sharply, and the liquidation point may approach as financing costs accumulate.
Spot buying does not face liquidation risk and does not carry ongoing borrowing costs.
In short: 2× leverage can amplify profits, but it also amplifies losses and costs—especially when holding for years. Spot buying avoids borrowing and liquidation risks.#bitcoin #BTC #Bitcoin❗ $BTC
If you invest $100,000 with 2× leverage, the trade size becomes $200,000, with $100,000 borrowed.
Financing costs can accumulate substantially; based on the stated assumption of 12% annually, they could reach $36,000 over 3 years on the borrowed amount.
There are also trading fees and other costs.
The biggest risk is liquidation if Bitcoin drops sharply, and the liquidation point may approach as financing costs accumulate.
Spot buying does not face liquidation risk and does not carry ongoing borrowing costs.
In short: 2× leverage can amplify profits, but it also amplifies losses and costs—especially when holding for years. Spot buying avoids borrowing and liquidation risks.#bitcoin #BTC #Bitcoin❗ $BTC
