Here's a Good Reminder to Not Use Leverage When Investing in Cryptocurrencies
On Dec. 4, popular cryptocurrency Bitcoin (CRYPTO: BTC) dropped by thousands of dollars in a matter of hours -- an event referred to as a flash crash. Other popular cryptocurrencies like Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), and Cardano (CRYPTO: ADA) also fell sharply during this time. And while there were likely a variety of factors that sparked the flash crash, much of it was fueled by investors who were forced to liquidate their investments because they were using leverage.
Fool analyst Eric Bleeker brought this topic up recently on Motley Fool Backstage Pass. In this video, recorded on Dec. 8, Eric talks to Bernd Schmid, the lead advisor of Motley Fool's cryptocurrency service Digital Explorers. And Bernd reminds viewers that there's no need to use leverage especially with investments like cryptocurrencies that have historically performed so well.
Source Fool.com
