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2025-06-04
12:03
Why You Should Not Borrow Money to Invest: Key Risks for Crypto Traders Explained

According to Compounding Quality (@QCompounding), traders are strongly advised not to borrow money to invest, as leveraging capital can significantly increase the risk of liquidation and amplified losses during volatile crypto market swings (source: @QCompounding, June 4, 2025). This guidance is crucial for cryptocurrency investors, where high volatility and unpredictable price movements can quickly erode borrowed funds, leading to forced liquidations and margin calls. Adhering to this risk management principle can help safeguard capital and ensure long-term trading sustainability in the digital asset markets.

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