It is advisable for beginners to refrain from engaging in leveraged tokens tr...

tarun

I would like to share a cautionary experience regarding leveraged tokens in Mexc exchange, specifically Doge5L and Eth5L. Despite investing $35, I was surprised to find that my investment had almost diminished to zero. Although the price of ETH had increased from $1750 to around $1870, my assets continued to decline over a period of 4-5 months. While Doge and Eth experienced some upward movement, the leveraged tokens performed poorly. As a result, I strongly advise beginners not to hold leveraged tokens for the long term. Instead, I recommend exploring futures trading with lower leverage as a potentially more favorable option.

Kunal

Token trading should be approached with caution due to its susceptibility to market manipulation and lack of underlying fundamentals. The value fluctuations of tokens primarily stem from hype and manipulation rather than their intrinsic utility. It is advisable to exercise restraint when it comes to leveraged trading, with experienced traders focusing on modest leverage ratios such as 2x or 3x for established assets like Bitcoin.

Aryan

Trading with Mintable tokens is riskier than trading with Proof of Work coins. Mintable tokens can be created by developers, leading to potential inflation and decreasing prices over time. In contrast, Proof of Work coins can only be mined and have a more stable supply. However, trading with leveraged tokens introduces even greater risk than Spot trading with tokens. If you hold tokens, you may experience losses due to their decreasing value. Trading leveraged tokens with a Short position can be dangerous due to market fluctuations, while trading with a Long position can result in losses from market fear, token crashes, or unexpected events.

jatin

The use of leverage tokens, which are designed for high volatility, is typically favored by individuals seeking significant fluctuations in their investments. Comparatively, futures are considered less volatile than leverage tokens. Long-term investments with leverage tokens are commonly associated with amateur investors.