Friday, January 28

For Elon Musk, operating leveraged cryptocurrencies is “madness”

Billionaire Elon Musk agreed to an explanation that trading Dogecoin and cryptocurrencies leveraged in the market is a high risk situation for investors.

Margin trading and futures trading have become commonplace in the cryptocurrency market in recent months. Many influential people, after making profits, publish that they have traded in these markets and even convey an interesting feeling about this modality.

This strategy when it makes a profit can help traders maximize their earnings, but the reverse is also true. That’s because, when a deal doesn’t go as expected, the loss can be great.

At this point, it is essential for anyone entering the cryptocurrency market to learn basic trading concepts, many of which are already present in the traditional financial market. For hobbyists, these tools can be a big headache.

Elon Musk agrees that trading leveraged cryptocurrencies is madness

The cryptocurrency market already has many trading instruments. One of them is the cash market, the one in which people buy and sell currencies on the market, being the most common in brokerages.

However, in this market some companies already offer a futures and derivatives market. In the traditional financial market, to operate in these environments, traders must be professionals, and in some countries it is even necessary to have certifications depending on the instrument and amount to be traded.

In the cryptocurrency market, this requirement is not present, so the gateway is certainly easier for those who want to venture into these tides full of promise.

But stop Mishaboar, a fan of Dogecoin and following the cryptocurrency market, this scenario has led many investors to lose all their money. Some people even came to him to tell him that they operated leveraged in Dogecoin and lost all their coins.

“Many DOGE holders have written to me today asking for help: they have been receiving notices about liquidating their margin accounts. We must educate to avoid these tools and warn against false friends pushing newcomers to add gasoline to the fire that is the cryptocurrency market.”

He recalled that many newcomers who are coming to the market believe that these instruments are common. In this way, they are already starting to trade with futures or leveraged, without understanding the risks of these tools.

For the Dogecoin cryptocurrency fan, when trading in this market, dealers are going into a frenzy, similar to a game of Russian roulette with the gun manufacturer.

“These tools are already dangerous in traditional markets. In the cryptocurrency market, which is largely unregulated, the risks and injustices are multiplied by 100. Again: it’s playing Russian roulette against the guy who made the gun and knows exactly which chamber the bullet is in.”

Upon seeing the commentary, billionaire Elon Musk recalled that this was a valuable lesson, with people paying attention to these cryptocurrency market risks, such as trading leveraged and in the futures market.

In recent days, Elon Musk has returned to be more present in the Dogecoin community, and he even defended those people who are not able to withdraw their DOGE from Binance, after a problem at the large brokerage.