Dogecoin Influencer Issues Warning Against These Types Of Trading Strategies: 'You Risk Losing It All'

Influential Dogecoin DOGE/USD figure Mishaboar has issued a warning to DOGE holders about the potential risks of leverage and derivatives in cryptocurrency, particularly in the face of expected market volatility.

What Happened: On Wednesday, Mishaboar took to Twitter to caution Dogecoin holders about the dangers of leverage and derivatives in the crypto market.

“Dear #Dogecoin, if there’s one piece of advice you should take from my feed, it is to stay away from leverage and derivatives in crypto. This applies at any time, but in the upcoming weeks, extreme volatility might make this an even more dangerous game. You risk losing it all,” he tweeted.

See Also: Bitcoin, Ethereum, Dogecoin Rise As BTC Halving Draws Near: Analyst Says King Crypto Likely To See $300K

In a separate tweet, Mishaboar further explained his stance, stating, “Because while crypto trading is already incredibly risky, leverage and derivatives compound that risk to a level that is for most unacceptable. It is playing in a casino against the very owners of the casino, within their block boxes, and against market makers that have tools and liquidity at their disposal you do not have.”

Why It Matters: Mishaboar’s warning comes in the wake of similar advice from other crypto experts. Renowned cryptocurrency expert, Raoul Pal, recently cautioned crypto enthusiasts to stay humble, reminding them that overconfidence could lead to catastrophic outcomes.

Pal also warned that leveraging in a volatile asset like cryptocurrency could be a “ticket to bankruptcy,” particularly in light of recent market liquidations.

Price Action: Dogecoin traded 3.8% higher at $0.20 at the time of writing, according to Benzinga Pro data.

Read Next: What’s Going On With ‘Dogecoin Killer’ Shiba Inu?

Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Market News and Data brought to you by Benzinga APIs
Posted In: CryptocurrencyNewsderivativesDogeLeverageMishaboarShivdeep Dhaliwal
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!