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Binance crypto exchange outage sparks outrage as traders lose millions

Binance’s policy allows investors to get compensation on trading losses due to system or internal issues but does not cover the “what could have been” situations.

Elon Musk Cosigns Tweet Warning Dogecoin Holders Against Margin Trading

Dogefather Elon Musk has recently cosigned a tweet that warns Dogecoin holders of the dangers of margin trading. This trading method usually used by experienced traders can prove incredibly risky because while there is a lot of profit to be made when a trade goes right, the loss can be devastating when a trade goes::Listen

Dogefather Elon Musk has recently cosigned a tweet that warns Dogecoin holders of the dangers of margin trading. This trading method usually used by experienced traders can prove incredibly risky because while there is a lot of profit to be made when a trade goes right, the loss can be devastating when a trade goes wrong.

This is what prompted a Dogecoin holds and enthusiast to issue warnings about margin trading to the community. Some Dogecoin holders have been recording tremendous losses due to leveraged Dogecoin trading and have taken to Twitter to vent their frustrations. In light of this, Mishaboar, an active voice in the Dogecoin community took to the platform to educate traders about the dangers of this type of trading.

Related Reading | Dogecoin Rival Shiba Inu Becomes First Meme Coin To List In South Korea

Caution With Leveraged Dogecoin Trading

Mishaboar wrote on Twitter that he had received numerous messages from Dogecoin holders regarding some of their trades. These traders had had their margin accounts liquidated and had lost money on what is considered risky trading. Mishaboar noted that a lot of these traders were newbies who did not know how the market worked and was following the advice of friends to carry out these trades.

Dogecoin price chart from TradingView.com

DOGE trading at $0.2 | Source: DOGEUSD on TradingView.com

Additionally, Mishaboar explained further along in the Twitter thread that a lot of new investors believe that they need to use tools like leveraged Dogecoin trading to succeed in the market when they in fact do not.

Since most of these investors are new to the market, they do not fully grasp the dangers associated with carrying out margin trades. Some may not understand market dynamics that would cause their positions to be liquidated, leading to heavy losses on the part of these new investors.

Elon Musk Cosigns Mishaboar’s Message

Mishaboar did not end his message with just new investors. They had also expressed that even experienced traders may not be as “experienced” as they may believe. For these investors, even though they may have more liquidity and experience compared to the average trader, they are still going up against institutional investors with a lot more resources and data than individual traders.

Related Reading | Shiba Inu (SHIB) Crosses 1 Million Holders Milestone

The Dogecoin enthusiast called for caution as they explained that these tools can be dangerous to use in traditional markets. Add in the highly unregulated and volatile crypto market and the dangers of using margin trading grow 100-fold. Basically, the house always wins.

Elon Musk had expressed support for the message that Mishaboar was trying to pass along. Musk who is a well-known personality in the meme coin space took to the platform to voice his support for calls for caution. Underneath Mishaboar’s Twitter thread, Musk had written “Good thread” in approval.

Featured image from Castofly, chart from TradingView.com

Binance crypto exchange outage sparks outrage as traders lose millions

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