Not even Warren Buffett would do this” – The mistake crypto traders keep making
In a world where fortunes are made in minutes, it's tempting to bet it all. Crypto Twitter is full of screenshots showing 10x gains, 'legendary' trades, and 'moons' that turned $1,000 into $100,000 overnight. But behind the scenes? There's a silent killer of portfolios — and it's not the market. It's margin trading.
And guess what?
Warren Buffett — the guy worth over $100 billion — refuses to touch this. Never.
What is margin trading and why do people love it?
Margin trading allows you to borrow money to operate positions larger than you could with just your own funds. Sounds incredible, right? Larger trades mean larger gains. But also...
Larger losses. Fast.
In cryptocurrencies, where prices can swing 20% in a few hours, trading on margin is like trying to ride a bull... on roller skates... with your eyes closed.
Buffett's timeless warning
“It’s madness to risk what you have and need for something you don’t need.” — Warren Buffett
Let that sink in.
Buffett has access to the best deals, the most powerful financial tools in the world — and still refuses to use margin. If it's too risky for a billionaire with decades of experience, why would it be safe for the average trader using the latest meme coin?
Real talk: margin isn't bad, but it's not for everyone
There are traders who use margin effectively. They are experienced, calculating, and usually have strict risk management rules. But most traders? They become greedy. They chase pumps. And then... they get liquidated.
Your $500 trade turns into a -100% story in seconds.
Want to trade like Buffett?
Instead, try this:
• Build, don't risk. Use strategies that grow your portfolio slowly and safely.
• Stay in the spot market. Spot trading and staking are powerful when combined with patience.
• Use margin like a scalpel, not like a sword. If you need to use it, learn the risks and keep leverage low.
• Protect your capital. You can't trade tomorrow if your performance is bad today.