• Elon Musk Warns Dogecoin Investors About Leveraged Trading

  • Elon Musk, CEO of Tesla, praised a lengthy thread posted by Twitter user Mishaboar for drawing attention to some of the risks and pitfalls of leveraged Dogecoin trading.

    Mishaboar tweeted that some meme cryptocurrency holders began asking for assistance after their margin accounts were liquidated. As a result, he emphasized the importance of educating people about highly risky leveraged trading, comparing it to adding gasoline to a fire.

    He went on to say that newcomers should not be misled into believing that “gambling” is an essential part of cryptocurrency.

    The prolific Dogecoin community member went on to say that only seasoned traders should try their hand at margin trading, but they still have to outwit large institutional players.

    Furthermore, the cryptocurrency market is largely unregulated, making it vulnerable to manipulation:

    Again, it’s a game of Russian roulette against the guy who built the gun and knows which chamber contains the bullet.

    Due to regulatory scrutiny, Binance and FTX, two major cryptocurrency exchanges, were forced to drastically reduce maximum leverage earlier this year. There are, however, a plethora of trading platforms that allow their customers to place extremely risky bets.

    Dogecoin is struggling to regain traction.

    In the midst of a violent cryptocurrency sell-off, Dogecoin fell to $0.1864, its lowest level since July 23.

    Over the last 24 hours, $1.88 million in Dogecoin longs have been liquidated, according to Coinglass data.

    The original meme coin is down 72% from its all-time high in May.

    Not your keys, and certainly not your Dogecoin.

    Musk also urged his followers to abandon centralized exchanges in order to maintain control over their own private keys.

    This followed the billionaire’s brief Twitter spat with Binance CEO Changpeng Zhao.

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