In the volatile world of cryptocurrency, where fortunes can flip in a heartbeat, one tweet from podcaster Kevin of When Shift Happens Pod has sparked a heated discussion. Posted on October 11, 2025, Kevin shared his hard-earned wisdom on why leveraging in crypto is more illusion than reality. Let's break it down and see what it means for meme token enthusiasts and blockchain practitioners looking to build lasting wealth.

Kevin starts by highlighting a harsh truth: every year, there are typically two major liquidation events that wipe out leveraged positions. Leverage, for those new to the term, is borrowing funds to amplify your trades—think betting big with money that's not entirely yours. It can magnify gains, but as Kevin points out, it devastates during downturns. "You will make a ton of money on paper for a few months, and then lose it all in a few minutes - every year. Twice," he warns. This resonates especially in the meme token space, where pumps and dumps happen faster than you can say "to the moon."

He dismisses the idea that risk management can fully protect you. When coins plummet 50-70% in a single day—a scenario all too common in crypto—everyone gets "REKT," slang for wrecked or ruined financially. Kevin's personal story drives this home: during the March 2020 COVID crash, he lost 80% of his net worth in minutes, all his crypto holdings gone because of leverage. That was his wake-up call, and he's avoided it ever since.

So, what's the antidote? Kevin advocates for a no-leverage approach. Keep 80-90% of your portfolio in the top three coins—likely Bitcoin, Ethereum, and perhaps Solana or another blue-chip. The remaining 10%? That's your play money for gambling on riskier assets like meme tokens, but be prepared to lose it. This strategy aligns well with meme token investing, where hype can drive explosive growth but often leads to rug pulls or fades.

Unfortunately, as Kevin notes, most of us learn this the hard way. Survival is key in crypto: don't blow up your account, don't quit, and play the long game. There's no get-rich-quick scheme here, even in the wild world of memes. It's about endurance and smart allocation.

The tweet didn't go unchallenged. Replies poured in with counterpoints. One user, Innerdevcrypto, argued that leverage can work if used sparingly—with a small portion of your net worth, tight stop-losses (automatic sell orders to limit losses), and only by those who truly know trading. Kevin conceded that pros might handle it, but normies (regular folks) should steer clear.

Another reply from Djani emphasized never quitting, working side jobs, and avoiding even 2x leverage unless you can afford total loss. Duo Nine pushed back with proper risk management, suggesting leveraging only a tiny portfolio slice with low effective leverage. But Kevin stuck to his guns: even that small percentage gets wiped.

In a lighter vein, Marcus shared a meme echoing the classic advice to "buy the dip," albeit in a cheeky, unfiltered way.

This humorous take underscores a common crypto mantra, but Kevin's thread reminds us that without caution, dipping can lead to drowning in debt.

For meme token hunters at Meme Insider, this is a timely reminder. While chasing the next Dogecoin or Pepe can be thrilling, blending Kevin's advice—focus on majors, limit risks—could help you navigate the chaos. Check out more on sustainable strategies in our knowledge base at meme-insider.com.

Back to building that resilient portfolio. What's your take—leverage yay or nay?