Tesla CEO Elon Musk highlighted some of the dangers and pitfalls of leveraged Dogecoin trading, praising a long thread posted by Twitter user Mishaboar.
good thread
— Elon Musk (@elonmusk) November 27, 2021
Mishaboar stated that some crypto owners started to seek help after their margin accounts were liquidated. Therefore, he stressed that it is important to educate people about high-risk leveraged trading. He opposed the notion that “gambling” is an integral part of crypto.
The prolific member of the Dogecoin community added that only experienced traders can try themselves at margin trading, but they still have to beat the big institutional players.
Also, as is known, the cryptocurrency market is largely unregulated, so it is prone to manipulation. Mishaboar gave an analogy for margin trading:
“He’s playing Russian roulette against the guy who made the gun and knows exactly where the bullet is in.”
Two major crypto exchanges, Binance and FTX, had to significantly reduce maximum leverage earlier this year due to regulatory scrutiny. However, there are numerous trading platforms available that allow their clients to place extremely risky bets.
Dogecoin struggles to gain momentum
Alongside these, on November 26, Dogecoin slumped to $0.1864, its lowest level since July 23, amid a violent crypto sell-off.
According to data from Coinglass, $1.88 million of Dogecoin longs have been liquidated in the past 24 hours. The popular meme coin is down 72% from its record high in May.
At the time of writing, DOGE is trading at $0.1997.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.