I am referring to Vitalik Buterin, one of the ethereum founders post on Twitter that states that people should not use more than 2x leverage.
Don't use >2x leverage. Just don't.It is one of the things he listed as a financial advice. As a trader, what do you think about it? We set some money aside for trading and as for me I still use up to 2.5x leverage for bitcoin to open a long position.
I think using this low leverage is good for traders. But investors should not use leverage at all. Investors should even supposed not to leave coins on exchanges but moved the coins to a noncustodial wallet.
This is also not applicable to many coins that are very volatile in a way that 1x leverage can even lead to liquidation of asset. See what happened to TRB recently that fall from almost $700 to $125.
Its not really that a good recommendation when it comes on not to use more that 2x leverage but we know that people are naturally greedy on which it isnt really shocking that their normal threshold
would be sitting around 10x or even 20x leverage on which we know that this one could really be pertain out to be gambling but since you are able to applying out some analysis then it wont really be
completely be that considered to be gambling on which it isnt really shocking that there would really be those people who would really be testing out this kind of option on which they do know
that once they do hit up the right prediction then expect profits to be something more comparing when you do make spot on having 1x-2x on which this has been the typical or in default.
Its not really that bad on taking up such advise on which i do see its relevance but well each person does have their own choice on which it would really be having that
kind of preference on how we would really be gonna handling ourselves.