Spot buying, where you own an asset outright, eliminates liquidation risk that leverage traders face. The main risk is picking a scam, which is rarer than getting liquidated. You can still see 10-15× returns without the downside danger.
Chapters
The position is the sauce, bro. I'm telling you, it takes the dimension of everything that's good about trading in one place. I'll explain. Write this down. Number one, it is a spot buy. If you look up what that means, what that means is you actually obtain and hold the asset. It is not— there is no chance of liquidation, which in other trades, even when you buy a house, I don't know if you guys know this, If you buy a house, there's a chance of liquidation. You can get liquidated, meaning if the house market crashes and it goes too low, you can lose your entire house. With spot buying, there is no risk of liquidation. It's yours. So there is risk. It doesn't mean that there's riskless. There is risk, but the difference is instead of you having liquidation risk, the other risk is that you can invest in a scam. Investing in a scam is much harder to do than getting liquidated. It is much easier to get liquidated. It depends on the asset class, but in general, it is much easier to get liquidated than it is to invest in a scan. That means that the risk is, is so low. It's so low in comparison to every other trade, but the upside is similar to a leveraged trade. You can get a 10-15x on a position spot buy. It's crazy. That means that you dampen the low side risk substantially, but you kept the upside.