People who opt leverage for making an investment in Crypto's make me furious. You need to be very frugal while investing and especially cryptocurrencies as they are highly volatile. People Garble when they see such a volatile market ,they make mistakes ,they are not able to control their emotions and finally they invest when market is being bearish.
There are many ways to make better investments
- Avoiding risky investments if you are not having any knowledge because risk comes from lack of knowledge.
- Investing as much you can afford to loose.
- Using Stop loss.
- Keeping Patience.
Why leverage seems stupidity
Why people are borrowing money to make investments in cryptocurrencies ? The reason is they have highly persuaded by the investors who have highly gained. Gingerbreadfutters a reddit user had posted in May 2017 that he is going to obtain Equity loan , is a type of loan in which the equity of the borrower’s home is used as collateral. At that time Bitcoin was trading around $1600 and his target was $10,000 to purchase a new house. However, the community criticized gingerbreadfutters’ extremely risky and foolish strategy to invest in Bitcoins but the fact "Who knew's the future". Now Gingerbreadfutters might became a millionaire if he sold his Bitcoin at $10,000. Although, his decision was accurate but it was 2017 ,now the time has changed ,the Bubble seems to burst. If he was criticized at that time then what should be done with the man who is thinking today to borrow money and invest in Bitcoins.