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The Volatile Crypto Market and Warren Buffet's financial Wisdom

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The few months past have seen some remote altcoins doing very well in the world of crypto. This must have made a few investors very happy as well as traders.

One area of interest is the margin and futures/options leveraged trading. These unpredictable prices of digital assets are sure to make this bunch equally happy and miserable at the same time, depending on the side their trades take.

This brings to mind Warren Buffet's Quote once made on CNBC, "My partner Charlie Munger says there are only three ways a smart person can go broke: liquor, ladies, and leverage. Now the truth is - the first two he just added because they started with L - it's leverage."

Source: https://www.cnbc.com/video/2018/02/26/buffett-it-is-crazy-to-borrow-money-on-securities.html

Part of the reason he says this is the folly of risking to lose everything and working again to earn it all back. "It's madness".

I think this advice also applies to Crypto exchanges that offer leveraged trading.

https://finance.yahoo.com/news/warren-buffett-leverage-force-bad-180310643.html