Does Trading Crypto With Leverage Make Sense?
Massive volatility can bring instant riches and instant ruin to leveraged plays in the crypto market. Here are my thoughts on trading crypto with leverage.
If you’ve ever listened to crypto influencers on YouTube, you have most likely heard the host talk about how they executed a buy or sell leverage trade perfectly. These same influencers share their Blofin or other leverage platform trading referrals and make leverage trading sound so easy.
Sometimes, you follow their ‘not financial advice’ and get rekt on the same trade that they made a killing in. What gives? You’re probably not paying for their added service or community, or you would have traded it perfectly, right? Not exactly.
People who pay extra to join those communities often get rekt like you did. If these communities and signallers were so accurate, they wouldn’t need paying clients. Wouldn’t they make the trades themselves and grow their portfolios exponentially?
The crypto market has a magical way to ‘washout’ leverage traders, whether long or short. This is why decentralized derivative platforms are some of the most profitable protocols. And large exchanges like Binance and Coinbase are eager to add more leverage trading…
