A crypto whale is now equating crypto exchanges to "rigged poker games" where dealers can actually see all of the players' cards. It was noted that excessive day trading or "gambling" and the use of high leverage are actually quick ways to "get rekt." The crypto whale tells traders to "be careful."
Is Crypto Leveraging Dangerous?
For those trading through crypto exchanges, aside from the more common spot trading, there is another form of trading that could either make or break traders. This is called "leveraging." Looking at the greed-fear index is also an important indicator when investing in cryptocurrency.
Leverage works by multiplying one's trade times fold depending on the type of leverage one chooses. Most of the common leverages being used are 5x and 10x since the use of high leverages can be extremely risky. Mr. Whale is also confirming a bear market, suggesting they would buy $Bitcoin once it hits below the $10K mark.
DYOR on Leverage Trading
Although players have the opportunity to earn more than the money they put in, they also have a chance to lose all of their money as well. Leveraged trading is utilized by professionals to multiply their profits when they are absolutely sure about their trades.
If one trade has the opportunity to earn $1 through leverage, traders can make $5 with a 5x leverage. The potential profit still depends on how much leverage is being put in. It is always important to DYOR or does your own research, especially when day trading.
Crypto Whale Bitcoin Crash
Sometimes, however, holding a certain cryptocurrency could be more profitable than day trading. This, of course, still depends on the asset and entry point of that asset as well. Not all crypto assets increase in price, which is why it is important to first research before investing.
Mr. Whale, the crypto whale that equated crypto exchanges to a rigged poker game, is now urging day traders to be careful. Mr. Whale also noted that an upcoming Bitcoin crash and those holders should "silence the moon boys' ' that are usually extremely bullish on cryptocurrency.
In order to understand how cryptocurrencies move, it is important to monitor them online. This can be done on certain platforms like CoinGecko to see a coin's market cap, its performance, its total volume, and other details.
In order to understand crypto whale movements, follow WhaleBot Alerts on Telegram to know where whales are moving their massive amounts of crypto assets. Understanding whale movements allow investors or traders to follow the whales or at least understand the crypto market.
It is important to note that not all cryptocurrencies might be listed on CoinGecko since some coins are still in their infant stages, and they are usually filtered out before they appear on CoinGecko. This helps eliminate scams, rug pulls, and other malicious coins. Investing in cryptocurrency can be extremely risky, which is why it is important to DYOR or do your own research before investing in anything.
This article is owned by Tech Times
Written by Urian B.