How Leverage Turns $250 into $1,480
40sShows the exciting profit potential of crypto leverage, making viewers want to learn the strategy.
▶ Play ClipAI Summary
Crypto Gorilla walks through trading perpetuals (perps) on Kalshi, a US-regulated exchange, using a demo account with fake money. He covers account setup, funding, opening a leveraged Bitcoin position, setting take-profit and stop-loss orders, closing the trade, and withdrawing funds.
Chapters
[00:01]
Intro & Kalshi sponsorship
Kalshi is presented as the first US-regulated exchange to trade perpetuals. The presenter uses a demo version with fake money because he is not a US citizen or based in the US.
[00:28]
Account creation
Download the app or log into the website. Create an account with email, password, phone number, and provide identity details: name, date of birth, home address, and SSN or ITIN.
[00:56]
Funding the account
Fund via Apple Pay, card, bank account, or crypto. The presenter chooses card and deposits $2,000 in demo money.
[01:22]
Opening a perps account
Click 'new to perps', open an account, and answer the questions. Then select a market (e.g., Bitcoin) and decide the direction: up or down.
[02:04]
Entering a trade with leverage
Enter the amount ($250) and use the leverage slider. On Bitcoin, up to 6x leverage is available, making the position size about $1,488 after fees.
[02:33]
Liquidation risk
With Bitcoin near $64,600 and 6x leverage, a drop to about $61,760 would liquidate the position, losing the full $250. Reducing leverage lowers the liquidation price.
[03:23]
Setting take profit
A take-profit order auto-exits the trade at a target. Example: a 5% rise to under $68,000 would yield about $84 in profit.
[03:51]
Setting stop loss
A stop-loss cuts losses automatically. Example: a 2% drop would lose only $35 instead of the entire $250.
[04:34]
Closing a position
To exit, click 'close', select the amount, and swipe right. The position closes instantly.
[05:04]
Withdrawing funds
Go to the portfolio page, click 'manage funds', then 'withdraw', and choose to send to a bank account or back to a card.
Kalshi's perps trading is designed to be beginner-friendly, but leverage cuts both ways — always set take-profit and stop-loss orders to avoid getting completely liquidated.
Mentioned in this Video
Tutorial Checklist
1
00:28
Download the Kalshi app or go to the website. Create an account with email, password, phone number, and identity info (name, DOB, address, SSN/ITIN).
3
01:22
Open a perps account from the homepage ('new to perps'), answer the questions, and select the market (e.g., Bitcoin) and direction (up/down).
4
02:04
Enter the trade amount and adjust the leverage slider (up to 6x for Bitcoin) to size the position.
Study Flashcards (10)
What is Kalshi described as in the video?
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What is Kalshi described as in the video?
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The first ever US regulated exchange to trade perpetuals.
00:01
Why is the presenter using a demo version of Kalshi?
easy
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Why is the presenter using a demo version of Kalshi?
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Because he is not a US citizen or based in the US, so he uses fake money.
00:16
What personal information is required to create a Kalshi account?
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What personal information is required to create a Kalshi account?
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Name, date of birth, home address, and SSN or ITIN.
00:42
What funding options are available on Kalshi?
easy
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What funding options are available on Kalshi?
easy
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Apple Pay, card, bank account, and crypto.
00:56
What is the maximum leverage available for Bitcoin perps on Kalshi in the video?
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What is the maximum leverage available for Bitcoin perps on Kalshi in the video?
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6x.
02:04
If you trade $250 with 6x leverage and Bitcoin doubles, approximately how much profit would you make?
medium
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If you trade $250 with 6x leverage and Bitcoin doubles, approximately how much profit would you make?
medium
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About $1,480 (after fees).
02:17
At what approximate Bitcoin price would a $250 long position with 6x leverage be liquidated when BTC is around $64,600?
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At what approximate Bitcoin price would a $250 long position with 6x leverage be liquidated when BTC is around $64,600?
medium
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Approximately $61,760.
02:45
What are the two suggested order types to manage risk?
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What are the two suggested order types to manage risk?
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Take profit and stop loss.
03:23
If you set a take profit 5% above entry on a $1,488 position, roughly how much profit do you lock in?
medium
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If you set a take profit 5% above entry on a $1,488 position, roughly how much profit do you lock in?
medium
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About $84.
03:35
How do you withdraw funds from Kalshi?
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How do you withdraw funds from Kalshi?
easy
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Go to the portfolio page, click 'manage funds', then 'withdraw', and choose bank account or card.
05:04
💡 Key Takeaways
💡
Regulated crypto perps platform
Kalshi positions itself as the first US-regulated exchange for perps, adding a layer of legitimacy often missing in crypto trading.
00:01
📊
Leverage multiplies gains
A concrete example: $250 at 6x leverage becomes a $1,488 position, and a 2x Bitcoin move yields roughly $1,480 in profit.
02:17
📊
Liquidation is the catch
At 6x leverage, a drop of only about 4.4% to $61,760 wipes out the entire $250 trade, showing how dangerous leverage is.
02:45
🔧
Automate exits with TP/SL
Setting take-profit and stop-loss orders prevents emotional decisions and protects against full liquidation.
03:23Full Transcript
[00:01] trade perpetuals using Kalshi, which is the first ever US regulated exchange to welcome back to another Crypto Gorilla video. As usual, I am not you how to use this tool, but you're responsible for every single trade you
[00:16] make. Special shout out to Kalshi for sponsoring today's video. And because I am not a US citizen or based in the US, I'm going to be using a demo version of the Kalshi app with fake money, but it functions just the same as the real app.
[00:28] and let's jump right into it. So step the App Store or log into the website. I will put a referral link in the downloaded the app, you're going to need to create an account. So enter your
[00:42] email, a strong password, your phone number, and because Kalshi is a regulated app, you are going to need to provide them with some information. The name, your date of birth, your home address, and finally your SSN or ITIN.
[00:56] Once that's complete, you are able to fund your account to start trading. You have a ton of options, Apple Pay, your card, your bank account, crypto. Go ahead and choose the one that suits you best. I'm going to do card. So here,
[01:08] let's just go ahead and deposit $2,000. Again, I'm using fake money. I'm going to have to add a card, hit pay, it's going to process the deposit, and voila, my money has arrived. So here we are on the homepage of Kalshi. It is an amazing
[01:22] prediction market, but today we're interested in perps. Now we need to fund that, we need to open an account. So let's click on new to perps on the homepage, and from here we can click on open account. It's going to ask us some
[01:37] questions, so go ahead and answer those to the best of your abilities. Click on to the best of your abilities. Click on done, and our account is now open. I'm Bitcoin, so let's click on that. And then we need to decide on the direction
[01:50] going to go up, pick up. If you think it's going to go down, pick down. Up to you. I'm going to go with up. Next we enter the amount we want to enter the trade with. So, let's say $250. But, what I could do is I could extend
[02:04] the size of my trade by using leverage. By using this leverage slider here, you could see on Bitcoin, I could take up to 6x leverage. So, after fees, the 6x leverage. So, after fees, the position size of my $250 is actually
[02:17] $1,488. So, if Bitcoin were to 2x, rather than making $250, I would actually make $1,480 approximately in profits. That is the power of leverage. However, there is a
[02:33] risk, and that is getting liquidated. Right now, Bitcoin is trading at roughly $64,600. If the price were to go the reverse direction of my trade, I'm saying it's going to go up. So, if it goes down to
[02:45] $61,760 approximately, it's constantly changing based on the price and the leverage I'm using. You could see if I use less leverage, that price goes lower and lower. So, at 2.5, that price is around
[02:58] $44,000. So, let's go all the way. It's a riskier trade because I'm trading with a bigger position. It is just under $62,000. If that hits, I lose my $250.
[03:10] the trade, you would simply swipe to the right, and it's going to immediately open up your trade. Now, there's two things I suggest doing. Let's just click the continue button. It's going to automatically prompt us. The first is to
[03:23] set a take profit level. This is automatically going to exit my position for me when I'm in profit when it hits this level. So, if I'm sleeping, if I'm at the gym, it doesn't matter, it's going to sell. So, let's just say if the
[03:35] price of Bitcoin goes up by 5%. So, it's going to hit just under $68,000, I will make $84 in profit. So, let's go ahead and click set target. The next thing I suggest doing is setting a stop loss. So, let's go a little bit lower here. Uh
[03:51] if Bitcoin were to go down by 2% because it's trading the opposite direction of my trade, I don't want to get liquidated and lose my entire $250. Here what it's doing is it's cutting my losses short and I'm only going to lose $35. So,
[04:06] let's go ahead and click set target and just like that, I have set all those thanks here. I get a little bonus because I traded $50. Again, for me it's not real money. If you traded $50, you get $25 in bonuses. I'm going to click
[04:21] on keep trading. And if we click back on Bitcoin, we could see at the bottom my position. So, I have a 6x leverage position open. I could see I'm currently up I'm down $2. It's constantly changing, right? With the price of
[04:34] Bitcoin. Now, let's pretend I was up $100 and I want to exit the position. with the profits, I can just click on close. I could select an amount, so I the right. And just like that, my position is
[04:50] closed. I took a small loss. No big deal, it's better than losing my entire $250. And that's it. That's how easy it is to trade perps using Kalshi. Now, the final question I know I'm going to get is how do I cash out? Very simple, go
[05:04] back to the portfolio page. Once again, click on manage funds. And from here, instead of transfer or deposit, you would click on withdraw. And then you could decide if you want to go to your bank account, send it back to a card,
[05:17] easy. And that does it for today's tutorial. I hope you found it helpful. button. Hit the subscribe button while you're down there. Help me get to 100k leave them in the comment section down below. I will answer you even if it's
[05:31] link down there if you want to help out my channel, be sure to use it. Thank you video. Peace.
