Exchanges turning trading to gambling

Wapfika

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Quote from: _act_ on November 19, 2024, 07:09:57 AM

Have you noticed premarket on some exchanges? Not only that but also there is premarket in derivative exchanges now where you can use high leverage. Encouraging people to use high leverage which could result to trading asset liquidation.

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

Exchange wants to milk their user as much as possible by offering high risk products and put some bullshit excuse such as reminder notification that they are trading high volatility assets.

I think crypto exchange should be regulated and removed this kind of gambling like offer since they are capitalizing to the greediness of crypto traders in exchange for a quick profit.

There’s a lot of traders already lose their life saving in pursuit with this kind of high risk trading.

Bournesparks

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Quote from: _act_ on Today at 07:17:32 AM

Quote from: Bournesparks on Today at 06:02:20 AM

Tbh if an exchange has 200X leverage like mexc. It's your choice use it or not. It's a bait yes but if you understand trading. You'd fancy it without being burnt. The key is knowing how to trade..

You do not understand what this discussion is about. You can read what other people posted before you post. That is how newbies can easily learn on this forum. My discussion is not about the use of leverage to trade, it is about the use of leverage to trade in premarket. Premarket means the coin has not be listed.

Mexc has not started premarket. I only saw it on Bybit. But this is not the discussion also.

Oh I see..must have missed it. I haven't heard of leverage in pre market. And my opinion would be that's to risky..I like to control my trading environment hence that's a no for me.

_act_

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Quote from: Bournesparks on Today at 06:02:20 AM

Tbh if an exchange has 200X leverage like mexc. It's your choice use it or not. It's a bait yes but if you understand trading. You'd fancy it without being burnt. The key is knowing how to trade..

You do not understand what this discussion is about. You can read what other people posted before you post. That is how newbies can easily learn on this forum. My discussion is not about the use of leverage to trade, it is about the use of leverage to trade in premarket. Premarket means the coin has not be listed.

Mexc has not started premarket. I only saw it on Bybit. But this is not the discussion also.

Bournesparks

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Quote from: _act_ on November 19, 2024, 07:09:57 AM

Have you noticed premarket on some exchanges? Not only that but also there is premarket in derivative exchanges now where you can use high leverage. Encouraging people to use high leverage which could result to trading asset liquidation.

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

Tbh if an exchange has 200X leverage like mexc. It's your choice use it or not. It's a bait yes but if you understand trading. You'd fancy it without being burnt. The key is knowing how to trade..

joniboini

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Quote from: YOSHIE on November 20, 2024, 08:43:27 AM

Talking about analysis, generally many users use technical analysis techniques, at least we will know the support and resistance points, where we will understand where to sell, exit or buy, this can help us in dealing with leverage, even though high leverage is no guarantee of profit, but at least using the exit feature will help us a little about market developments.

Is using technical analysis on meme tokens with a short life reliable though? I'm unsure if we can see the same pump when we enter the bear market. To be fair I don't think any trend is going to survive the bear market when it hits, but pump & dump tokens easily get overhyped because the bull market allows any tokens to pump. I remember I got an airdrop worth thousands of dollars from some random projects in the past, yet they never made it past the "building" phase until now.

I do agree that regardless of how people view pre-market listing, the fact is that there is a demand for it. I have seen people asking to buy unlisted tokens for years now, not surprising to see exchanges provide this risky platform for them.

YOSHIE

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Quote from: _act_ on November 19, 2024, 07:09:57 AM

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

Maybe for me leverage trading, I don't think that the exchange implements features like gambling, but I would rather say leverage is one of the trading activities or activities that have a high risk value, For this reason, before we carry out leverage activities, we must have a fairly mature plan, at least we can overcome the potential for exponential losses and also several other risk policies.

Talking about analysis, generally many users use technical analysis techniques, at least we will know the support and resistance points, where we will understand where to sell, exit or buy, this can help us in dealing with leverage, even though high leverage is no guarantee of profit, but at least using the exit feature will help us a little about market developments.

Russlenat

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Quote from: logfiles on November 19, 2024, 06:40:03 PM

Everything is almost a total gamble now, from the random meme coins getting listed both on spot and derivatives markets to those premarket coins as you said. The exchanges don't care, all they are looking at are t the trading volumes, more traders and profits through trading fees.
The good thing is they display a pop-up warning about the dangers of trading in such assets in the exchanges I have used. Should a user go past the warning, trade and make losses, then that's on him/her.

That cannot be denied, just look at this meme coin for example.

Quote from: ?? on ??

Date   Price (USD)   Notable Events
Nov 2023   $0.001555   Launch price
Dec 2023   $0.30   First major surge
Jan 2024   $0.08   Price drop after initial hype
Mar 2024   $4.90   All-time high reached
Nov 2024   $3.76   Current price with steady growth

If you check the profit, you’ll see they made a fortune from that coin, But look at the bigger picture, it’s clear they were gambling from the start....We know that meme coins are known for their pump-and-dump reputation, so it’s always a risky game. However, at the end of the day, it’s up to us traders to decide, do we treat it like an investment or just play it like gambling?

hugeblack

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Both agree that they are high-risk investments but differ in how they work. Your chances of making a profit from trading seem greater than gambling, while the gains from gambling services are greater than exchanges (in terms of fees and direct gains). In general, if you do not understand what you are doing, you may make profits from trading but you will definitely make losses from leverage and gambling.

Darker45

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Trading and gambling overlap at a certain point. They aren't mutually exclusive. Every time you take a position, you assume that the price would either rise or fall but you aren't certain of it. You take it anyway.

We're convinced in different degrees as to which direction the price would go next. Those who are strongly convinced that the price would take a certain direction but don't have much money to risk, leverage is available for them. For as long as those who use such a tool is aware of the risks, I think it's perfectly all right. Traders have different risk tolerance, but at least those risk-takers among us are provided with the tools they need.

It seems the more instruments the market has, the more fun. Individual needs of traders are catered this way. Pre-market is of the same page as pre-ICO, whitelist, and the like. They're for the early birds. I remember those days when crypto exchanges allow users to trade tokens and coins that have yet to be opened for sale.

logfiles

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Everything is almost a total gamble now, from the random meme coins getting listed both on spot and derivatives markets to those premarket coins as you said. The exchanges don't care, all they are looking at are t the trading volumes, more traders and profits through trading fees.
The good thing is they display a pop-up warning about the dangers of trading in such assets in the exchanges I have used. Should a user go past the warning, trade and make losses, then that's on him/her.

BitMaxz

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That's totally gamble and very risky; it's not building up yet any patterns that we usually check as signals when analyzing the current trend, but this premarket since most of the new memes/tokens or altcoins investing in these new projects are totally gamble.

Unless you are a risk taker, I know some people who do risk a percentage of their capital to try their luck with these new projects. Look at those who invest in Pepe. They risk their money to invest in this meme, which is totally a gamble, but the result is positive, and until now it still gives them a positive result for those who are still holding Pepe.

Invest or risk only what you can afford to lose in the premarket. If you want to trade, go with spot trading, which is safer than trading in the premarket, where we do not know whether there will be an uptrend or a downtrend.

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The exchanges want to be as attractive as possible to users do they set those high leverage and while there is the risk of asset liquidation, there is also the risk the exchange faces of a user actually making a good trade and winning a significant amount. Most traders should opt for lower leverage with less risk.

Quote from: _act_ on November 19, 2024, 07:09:57 AM

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

There always has been an element of gambling in trading and this includes all forms of trading; stocks, bonds, forex etc. You have tools to help guide your trades but in the end you're just making predictions.

EarnOnVictor

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Quote from: _act_ on November 19, 2024, 07:09:57 AM

Have you noticed premarket on some exchanges? Not only that but also there is premarket in derivative exchanges now where you can use high leverage. Encouraging people to use high leverage which could result to trading asset liquidation.

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

I understand your concern but don't forget that this is a matter of choice, if you are presented with the options of high and low risks, it is your choice to opt for either of the two. The exchanges offering high leverage also offer low ones, anyone who doesn't know how to handle the high leverage should steer clear of it. You may see it as a trap but some people still use it to make more money, and as I write now, I know a few strategies to trade high leverage, so it depends on the trader and we should not use the losing view to always judge everything. There will always be a thin line between trading and gambling which will linger with or without the use of high leverage. It all depends on how you understand and handle trading which will naturally sort where you belong between the two (trader or gambler).

_act_

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Have you noticed premarket on some exchanges? Not only that but also there is premarket in derivative exchanges now where you can use high leverage. Encouraging people to use high leverage which could result to trading asset liquidation.

I think this is just a form of gambling and not trading because no one can know the right direction the price of a new coin is moving to using analyses.

Topic: Exchanges turning trading to gambling (Read 137 times)