Bitcoin: Be careful trading on Margin
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Now lets get this straight; I don’t care for margin loans. I believe there is something very sinister when it comes to borrowing to trade. Even during Bitcoin’s early days I was very much against margin trading. I’m still against it.
People will gamble. I guess it truly is in our nature. And some people can actually use leverage in a prudent fashion. Yet, avoiding it will probably save your stacks of wealth.
It can also help you sleep at night. In my younger days I remember getting a margin call. It was probably one of my worst experiences as a trader. A life lesson to teach my 18 year old self the truth of the legacy system.
I also learned to cut your position losses and not let them run. Trust me when you are wrong about a trade it is better to move on. Today is no different then yesterday. Margin liquidations can truly move any market.
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Big whales will crush any position in this crypto market. Let this be a word of caution. I no longer trade on margin because there will always be someone with bigger pockets. And they can sustain losses on any position until it ultimately pays off.
I hope that the crypto marketplace can create something different relative to the legacy system. Unfortunately, leverage is peeking it’s ugly head into crypto. And the moves you see in Bitcoin may be a direct effect of leverage liquidation. The rest of the media spin is just noise.
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Bitcoin was not created as a gambling mechanism. Yet, the Wall Street gambling houses would like to recreate the legacy system on the blockchain. My advice to most blockchain users is to earn and not invest. It is easier to manage.
The house will always win. It is a mathematical certainty. Leveraged loans are no different. The promises of easy riches are just too irresistible for most.
Blockchain exists to create wealth for all people. Gambling and siphon of value mechanisms are there to take money from unsuspecting users. And some people are content with this. Yet, I am not.
People are free to do as they wish. Yet, losing money is not fun. And you always hear stories of someone leveraging 50/100 times capital and losing it all. Some will certainly never learn.
So my advice for potential leverage traders is to not do it. It simply is not worth it. Instead, continue earning and stacking your crypto. Earn crypto on LEO finance and Hive.
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Compound your earnings and watch your stacks grow. You will sleep better at night and not worry about the day to day moves. And if you want to gamble go to Vegas. At least when you lose your money you might get a comp.
Cryptocurrency will move there is no denying it. Yet, blockchain must separate from the legacy gambling mechanisms. People should play games in which they can win. Borrowing to trade just increases the probability of loss.
Let’s now focus on what could be as opposed to what used to be. All these legacy shills will soon be left in the dust. Extraction of value schemes and endless fiat debt no longer serve mankind. Now we have a choice for a better way.
Posted Using LeoFinance Beta
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