Elon Musk Supports View That Dogecoin Hodlers Need To Be Wary Of Leveraged Trading

Elon Musk Supports View That Dogecoin Hodlers Need To Be Wary Of Leveraged Trading

Tesla Inc. TSLA CEO Elon Musk recently responded to a tweet that called attention to the dangers and pitfalls of leveraged Dogecoin DOGE/USD trading. Musk was reacting to a post by Twitter user Mishaboar. 

Mishaboar tweeted that some holders of the meme cryptocurrency started asking for help after their margin accounts got liquidated. 

He mentioned that educating people about risky leveraged trading was important, and compared taking on the additional risk to adding gasoline to the fire.

"Experienced traders and those with vast amounts of liquidity can try their chance at gambling with this. But believe me, many are not as "experienced" as they think they are," Mishaboar tweeted. "You are against organizations and institutional investors that have a lot more information than you do."

Mishaboar wrote, "These tools are already dangerous in traditional markets. However, in the crypto market, which is vastly unregulated, the risks and unfairness are multiplied x100."

"Again: it is playing Russian roulette against the guy who made the gun and knows exactly which chamber holds the bullet," he added.

Musk reacted to the tweet and said, "Good thread." 

Last week Musk backed another perspective on Dogecoin, saying it should break its dependence on centralized exchanges like Robinhood Markets Inc. HOOD and Binance

Binance and Robinhood are some of the cryptocurrency exchanges that support Dogecoin. These exchanges allow users to buy and sell coins using fiat or other cryptocurrencies.

Related Link: Whales Are Buying Dogecoin, The Meme Crypto Ranks Among The Most Actively Used Smart Contracts

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