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RE: Market Watch: I Have Returned!

in LeoFinance • 5 years ago

I had a little bit of experience using MakerDAO and minting DAI with ETH collateral.
If you're using Binance they have a tutorial/quiz you have to pass in order to even be allowed to do it.

At the end of the day it's all about collateral value vs debt incurred.
If your collateral value ever drops to how much you owe back (debt) it gets liquidated and you lose everything.
Not recommended for the faint of heart.

Basic principals:

  • If you want to go long borrow a stable coin and dump it for Bitcoin (or another crypto)
  • If you want to go short borrow crypto and dump it for stable coins.
5 years ago in LeoFinance by
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         5 years ago 

        Borrowing against the assets you've put in. Hoping the value of your collateral doesn't dip below liquidation levels. I know snippets about it just by reading trading stories. I dig your basic principles on going long vs short. Thank you.

        Humm. I'm so torn. On one hand, I'm not much of a gambler, I've read lots of articles that say "just buy and HODL, don't be stupid" and I have a pretty good understanding when I don't understand something. All that combined leads me to not venture into those waters.

        But then I read this article by kevinnag58 and I recognize that might be an act of risk aversion.

        Not recommended for the faint of heart

        That very well could be me. That said, knowledge is always useful. Thank you.

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               5 years ago 

              As a rule of thumb your gut feeling is 100% correct.
              It is foolish to increase risk/reward given the most risky asset class there is.
              I would only recommend margin trading Bitcoin (if anything), as it is the easiest crypto to predict.

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