After my project becomes top, I plan to allow only spot trading of the project token. I think 95% of people will lose all their money trading with leverage. Psychologically, most users who have lost all their money never return to the coin. They don't want to remember. But if a person, even if he left, lost some of his money on spot trading, then he will return and look at the chart. That is, he remains a fan of the project.
So why let users lose money when trading with leverage. This is their choice, this is the wrong answer. You don't want your 18 year old son to lose all his money in a game like this. You won't let him do it. Of course, this is beneficial for exchanges, large volumes mean large commissions + swaps (+ hunt for stop losses). Yes, it gives liquidity to the project. But it allows naive people to lose money trading with leverage. I don't understand the meaning of leverage in cryptocurrencies. This is not oil going to the buyer in a tanker, but the seller is afraid of a price drop and opens a short position for two weeks, hedging the risk of a price decrease.
So the question is, if you support trading with leverage, then how do you tell the user that he needs to take the risk of losing a titmouse, which he definitely has in his hands, in an attempt to catch a crane that is in the sky?
Would you say that the inclusion of leveraged games would have earned the founder more respect?
That is not something you can technically control. So this not a useful question/ discussion.
No thanks, we're too smart guys.
Giving control to an exchange means you're at their mercy when it comes to spreads, liquidity, and market behavior. Even with leverage, the risks can stack up fast, especially if volatility spikes. Automated strategies can help, but they need solid risk management. www.forexflexea.com has been useful for tweaking parameters and adjusting on the fly without needing constant manual intervention, which helps a lot when things get unpredictable.
That’s a great and very relevant question — especially in today’s volatile markets. Allowing leveraged trading on a stock exchange (or any exchange, for that matter) doesn’t automatically mean your project will be "torn to pieces," but it does come with serious risks that need to be managed carefully.
The Reality of Leverage on Exchanges:
Leverage allows traders to borrow funds to increase their exposure. While this can amplify profits, it also magnifies losses, especially in markets with low liquidity or high volatility.
If your project token or asset is introduced on an exchange with leverage, and there’s not enough liquidity, volume, or market depth, aggressive shorting or long squeezes could lead to price manipulation — which can severely impact investor confidence and project reputation.
Lessons from Crypto Exchange Development:
In the world of crypto exchange development, we often see these challenges when new tokens are introduced with leverage trading enabled too early. Here’s what developers and project owners typically consider:
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Staggered Rollouts: Many crypto projects first launch spot trading and allow the market to stabilize before offering margin or leverage features.
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Risk Controls: Well-designed exchanges implement circuit breakers, liquidation safeguards, and margin limits to prevent extreme volatility from destroying a project’s value.
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Community Trust: If users feel the token is easily manipulated due to leverage mechanics, it can lead to negative sentiment — especially in the crypto space where community trust is everything.
What You Can Do:
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If you’re planning to launch on an exchange (stock or crypto), ensure there's enough liquidity and trading interest before enabling leverage.
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Work with exchange partners that provide transparent trading data and risk mitigation tools.
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Focus on fundamentals and long-term project vision — not just short-term price action driven by leverage.
Final Thought:
Leverage is a powerful tool, but without proper risk management, it can indeed expose your project to unnecessary speculation. Whether you're building on traditional finance rails or engaged in crypto exchange development, the key is control and timing.
Hope that helps clarify things! Happy to expand on risk strategies or share examples if you’re launching a token or building a platform.