In this instructional segment, the speaker contrasts leveraged crypto trades, which carry liquidation risk, with spot purchases, where the trader actually owns the asset and cannot be liquidated. He argues that spot buying dramatically reduces downside risk while still offering comparable upside potential—often 10x to 25x returns—similar to leveraged positions. The only remaining risk with spot buying is the possibility of investing in a scam, which he claims is harder to encounter than liquidation. By eliminating liquidation risk, the speaker positions spot buying as a superior strategy that captures the benefits of high upside with substantially lower low‑side risk.
Chapters
So leveraged trades have the chances of getting liquidated. Spot buying doesn't. But the upside is similar. You can get a 25x. You can get a 10, 15x on a position spot buy. It's crazy. That means that you dampened the low side risk substantially, but you kept the upside. Did you hear what I said? You have significantly less low side risk, but you keep the upside. 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. Spot buy. If you look up what that means, what that means is it's spot. You actually obtain and hold the asset. It is not— there is no chance of liquidation. With spot buying, there is no risk of liquidation. You're— 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. So spot buy— 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 leverage trade. Listen to what I'm saying. So leverage trades have the, the chances of getting liquidated. Spot buying doesn't. But the upside are sim— is similar. You can get a 25x, you can get a 10-15x on a, on a, on a position spot buy. It's crazy. That means that you dampen the low side risk substantially, but you kept the upside.
