Post
Topic
Board Trading Discussion
Re: Do not use more than 2x leverage
by
EarnOnVictor
on 26/01/2024, 06:51:04 UTC
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.
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 Vitalik Buterin should keep his advice to himself, people have the right to their money and they can use it as they like depending on their risk affinity. Even as he prefers that people do not use more than 2x, many people will prefer to stick to 1x, while some will use way more than 2x depending on the money they have in their accounts. He can't tell me to have $50 in my account and still stick to his uninformed advice of using the leverage of 2x. How much will I be making with that amount if the market is not so encouraging in movements? If I do not want to invest, I will know I am idle of it instead of wasting my time and energy over it.

This is not to mention those who have a lower amount of dollars in their crypto accounts. This is why I think his advice is just nonsense and rich-incline as trading advice should not be general. Investment advice should be based on factors, and in this case, if he is wise, he would have added an account size to it to be more constructive to justify his advice. You can think of it, if you have $5 in your crypto account, can you still follow his advice? We plan trading and investment based on our expertise and the amount we have, for me, it can't be general.