Yes, using high leverage, such as 1:500, can significantly increase the risk of blowing your trading account, especially when combined with a small account balance. Leverage allows you to control a larger position size with a smaller amount of capital. While this can amplify potential gains, it also magnifies losses. Even a small adverse price movement can result in significant losses, potentially wiping out your account if you're using high leverage. High leverage ties up a significant portion of your account's margin, limiting your ability to take additional trades or adjust your positions. This lack of flexibility can hinder your ability to adapt to changing market conditions or employ risk management techniques effectively.
So to sum it all up ----- high leverage can be a useful if used with proper risk management.