Crypto Leverage Trading Resurges Amid Hidden Cost Pitfalls
Retail traders are flocking back to high-leverage crypto products as markets rally, with offshore exchanges offering positions up to 50x. The return of speculative fever comes with an underappreciated drag on performance: layered fee structures that erode margins.
Beyond visible spreads, traders face compounding costs from overnight financing, taker fees, and volatile funding rates—particularly on altcoin pairs. These mechanics create a silent tax that disproportionately impacts frequent traders and those holding positions through volatility.
Platforms continue emphasizing leverage accessibility over cost transparency. Market surges mask the arithmetic reality: most participants lose their edge through fee attrition before price action determines their outcome.
