Dogecoin developer and contributor, Mishaboar has warned the Dogecoin community of the risks involved in engaging the cryptocurrency leverages and derivatives market. He explains that the current market is too volatile and unpredictable for investors, cautioning that investors could end up losing badly.
Mishaboar Says “Stay Away” From Crypto Derivatives
In a recent X (formerly Twitter) post, Mishaboar firmly advised Dogecoin investors and traders to stay away from leverage and derivatives in crypto. The developer’s warning comes amidst the growing anticipation within the Dogecoin community, spurred by Coinbase’s recent announcement of a potential listing for Dogecoin futures this April.
Mishaboar has warned DOGE investors to avoid the leverages and derivatives market at all times, but more so in the coming weeks. Responding to an inquiry from community members seeking clarification for his statements, Mishaboar elaborated that cryptocurrency trading is inherently a risky business; however, the leverages and derivatives market had a higher risk level, to the point of it being unacceptable.
“The unfairness and risk you expose yourself to is not worth it in a market where assets are already so volatile,” Mishaboar wrote.
He likened trading in this crypto market to playing in a gambling house where the odds are stacked against traders, highlighting that traders would be essentially playing against the owners of the casino as well as market makers with access to liquidity and other advantages on their side.
Additionally, Mishaboar explained his reasoning for advising traders to steer clear away of the derivatives market during this period. The Dogecoin developer highlighted the upcoming Bitcoin halving event as a catalyst for potential market turbulence, stressing that unpredictability and volatility would significantly elevate risks.
He disclosed that the large influx of liquidity from new markets and conflict of interest from exchanges would also add another layer of complexity in predicting market movements. Moreover, since many players within this market are aiming to utilize Dogecoin to initiate trades, they could be exposed to significant risks that result in them losing all their funds.
Coinbase To List Dogecoin And Pepe Futures This April
In a recent blog post, Coinbase, an American crypto exchange, announced that it was gearing up to list Dogecoin futures in the later stages of April. This development was made in alignment with Coinbase’s expansion strategy to extend their futures contracts to meet the needs of their growing network of traders.
Additionally, the announcement comes at a time when Coinbase launched their new Bitcoin Cash and Litecoin futures contracts. The exchange revealed that expanding its offerings to these cryptocurrencies would improve access to digital asset trading and enable traders to participate with reduced capital within a regulated framework.
In addition to its upcoming Dogecoin futures listing, Coinbase revealed in an X post published on Thursday that it would be adding support for the popular frog-themed meme coin, Pepe (PEPE), in its perpetual futures offerings. These futures labeled 1000PEPE-PERP will be available for trading on April 18 on Coinbase International Exchange and Coinbase Advanced.
DOGE price at $0.198 | Source: DOGEUSDT on Tradingview.com
Featured image from MARCA, chart from Tradingview.com
