Why does everyone treat 'leverage' like it's free money in Babble Finance?

I keep seeing people talk about using leverage to boost returns in this community. But nobody mentions the flip side. I ran the numbers on my own account last year. I borrowed $10k at 5% to invest in a Babble pool that promised 12% returns. The pool dropped 8% in 3 months. I ended up owing $500 in interest plus another $800 in unrealized losses before I pulled out. So my question is: are the leverage cheerleaders here actually doing it themselves or just repeating what they heard in a YouTube video? Who here has actually lost money using leverage in Babble and how much?

3 comments

3 Comments

emma_dixon701mo ago

Yep, this whole mindset reminds me of how folks treat diet fads - everyone hypes the quick results but nobody wants to talk about the crash that follows. The people pushing leverage hard are usually the ones selling the shovels, not digging the holes themselves.

lee_reed1mo ago

Digging the holes myself" - that's brutal, I never thought of it like that.

terryw671mo ago

Oh man, you nailed it. I got burned the same way with crypto a few years back - everyone was screaming about easy money and I jumped in without looking. It took me a solid year to dig out of that hole and I still cringe thinking about it.