Cross Margin is recipe for disaster. Stop copying dumb youtubers

Cryptocurrency News and Public Mining Pools

Cross Margin is recipe for disaster. Stop copying dumb youtubers

It honestly annoys me how every crypto YouTuber claiming “10+ years of experience” still keeps using cross margin, then cries about their SL not triggering at the right price. Like bro, this has been happening since the BitMEX days — how do you still not get it? During every flash crash, SLs fail and exchanges lag or freeze. Even in the recent crash, most people including youtube gurus wouldn’t have been wiped out completely, if their stop-losses actually triggered properly.

Cross margin basically uses your entire wallet balance to keep your positions alive. Sounds convenient, but it’s a disaster waiting to happen — especially in crypto. Even if you set a stop-loss, it might not trigger properly during a flash crash. Prices can nuke way past your SL before it even activates, and instead of taking a small loss, your whole balance ends up getting liquidated.

What’s worse is if you’ve got multiple positions open — and just one of them crashes hard — cross margin will still use your entire wallet to keep that one position afloat. When it inevitably gets liquidated, it can wipe out most (or even all) of your funds in one go. And you wont be left with funds to keep ur other trades open.

(used Chatgpt to structure it)

submitted by /u/cool_monster01
[link] [comments]