Liquidity and Fees When Trading | Bitcointalksearch.org

Nwada001

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Quote from: Outhue on July 15, 2023, 04:55:37 AM

A less popular crypto exchange can fake it's liquidity, it's just a number and it can be faked easily, also this exchange is not even close to low-rated ones like Coinsbit, this Stormgain is unknown, and probably a scam too, stay away from such exchange, use coinmarketcap link that @ImThour dropped, that's the official link to CMC exchanges list and ranks, and as you can see Stormgain is nowhere to be found, it means out of millions of crypto traders and buyers, only 3-15 people know about Stormgain and that includes the team of the exchange themselves, be very careful.

StormGain is on CoinMarketCap; the link was included in the first comment dropped on this thread.
https://coinmarketcap.com/exchanges/stormgain/
But being in coinmarketcap alone does not mean the exchange is 100% legit. Coinmarketcap is owned by a business entity, and any exchange can pay them to add their name to whatever data is submitted. The system is not decentralized, and as such, we can't check how transparent it is. There is a lot of volume and order book manipulation happening around the exchanges these days.

joniboini

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I wonder why OP seems so keen to try a relatively obscure exchange/service instead of using the popular one. OP, you also look for a copy-trading service and its review in the last few days. I guess you want to maximize your profits by reducing the fees you paid, while also making it quite easy to do so. If a risk of security doesn't discourage you from trying them, I believe you should at least calculate just how much fees you are saving and check if that's really worth the trouble.

jrrsparkles

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Quote from: david678345 on July 14, 2023, 04:27:05 PM

I wanted to give a try to a new exchange but Im not sure that exchange has enough liquidity... What are the most reliable ways to check liquidity in one exchange.

That exchange is Stormgain...they offer no commission for trading and a profit share of 10% is taken only from profitable trades...

Do you think I would have spread/liquidity issues if I trade btc in that exchange? Im not really good at seeing that by reading the order book..also Im not sure if they might have a fake order book?

Are there any other exchanges with same business model where they only take fees from profitable trades?

After some digging all I can find is mixed review about the platform on bitcointalk (Any thoughts of Stormgain cloud mining? as well as on reddit (Storm gain, real or scam?)

IMO, they claim to offer cloud mining service with the computing power of users which is obviously false statement so I will never trust any platform which is blatantly lying so their reported volume also can't be true cause it shows 1000+BTC as 24 hour trading volume on coin tracking sites.

Don't deposit any money or you can't get any help after the money get into their custody.

Outhue

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A less popular crypto exchange can fake it's liquidity, it's just a number and it can be faked easily, also this exchange is not even close to low-rated ones like Coinsbit, this Stormgain is unknown, and probably a scam too, stay away from such exchange, use coinmarketcap link that @ImThour dropped, that's the official link to CMC exchanges list and ranks, and as you can see Stormgain is nowhere to be found, it means out of millions of crypto traders and buyers, only 3-15 people know about Stormgain and that includes the team of the exchange themselves, be very careful.

Heisenberg_Hunter

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Bitcoin is the most traded digital asset in almost every exchange and hence you won't be having liquidity issues for smaller btc trades. But, if your limit is higher in the range of millions then there may be significant risks associated with trading. Firstly, deposit the money you can afford to lose in a smaller exchange such as Stormgain. We never know about their trading practices and trust factors and hence at any point of time, the exchange might fail all of a sudden thereby pulling your funds along with them. One such incident is the failure of QuadrigaCX, which was the largest Canadian exchange to fail when the CEO died all of a sudden.

Some exchanges try to lure the traders by offering juicy profit shares just like this but everytime it is up-to the trader to have trust upon the exchange and start trading. It is realistically easier to increase the trading volume to millions so that the scammers can take over a billion or so when traders start depositing. With the recent development in DEXes it is always better to provide liquidity over there and have a safer trade practice rather than trusting CEXes with increased failure ratios.

hZti

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ITs pretty easy to see the liquidity actually. Just see how quickly the price of the exchange adapts to the price of other large exchange and also see what price they are offering you if you type in a large order. This way you can easily check market depth.

Hamza2424

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Quote from: david678345 on July 14, 2023, 04:27:05 PM

I wanted to give a try to a new exchange but Im not sure that exchange has enough liquidity... What are the most reliable ways to check liquidity in one exchange.

That exchange is Stormgain...they offer no commission for trading and a profit share of 10% is taken only from profitable trades...

Do you think I would have spread/liquidity issues if I trade btc in that exchange? Im not really good at seeing that by reading the order book..also Im not sure if they might have a fake order book?

Are there any other exchanges with same business model where they only take fees from profitable trades?

Hmm, Op wants to give a try to an unknown centralized, well it's unknown in my dictionary. Seems Quite interesting but I really can't recommend it to anyone because there are only 9 coins and 17 pairs a wide-range trader will never ever prefer this exchange also the trust score and the realized data is unknown.

$31,994,581 is the 24-hour trading volume, I will not say this can be any sort of scam project but still as it's really new it is not at all reliable, Op should always prefer the top leading platforms.

For the answer to your second query whether the order book is real or fake buddy its cex because anything can be manipulated and the orders amount you are looking at is not the real-time coins or tokens these are just numbers based on the database.

Husires

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Unless the platform you want to trade on is reliable and highly liquid, it is best to avoid trading on it.

One of the sites that you can check is trustpilot and there are only 42 reviews, assuming that only half of them are real, there are 21 review, when you compare this number with Binance, it has about 4k, so a good platform is supposed to contain 500 reviews as a minimum

www.trustpilot.com/review/stormgain.com

The most honest reviews are negative and unfortunately some of them talk about scams like

Quote from: ImThour on July 15, 2023, 02:46:37 AM

Another option is https://www.coingecko.com/en/exchanges - It will show you Volume of the exchanges in the past 24 hours, non biased.

The problem is that it is difficult to verify these things. Services like Coingecko try to verify the data, but the number of users, complaints and positive ratings is a reflection of liquidity and trading volumes.

ImThour

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Try https://coinmarketcap.com/rankings/exchanges/ and there you will see an option called Average Liquidity.
You can use that to check which exchange had what average liquidity.

Note: This website is owned by Binance, so there maybe some bias in the results.

Another option is https://www.coingecko.com/en/exchanges - It will show you Volume of the exchanges in the past 24 hours, non biased.

Blitzboy

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Stormgain seems to be offering 0% commission and fees only from profitable deals. Nice model. Liquidity and order book manipulation are legitimate concerns. Liquidity checks: a primer. On CoinMarketCap and CoinGecko, "Trade Volume" indicates liquidity. If the price fluctuates a lot, it may indicate a liquidity problem.

Fake order books are suspect. Some disreputable exchanges use "wash trading" to boost volumes. Stick to trusted exchanges like Binance or Coinbase to avoid this. We support Bitcoin's innovative technology and decentralized ideas, right? Look for the catch when something seems too wonderful to be true - nothing is free!

Sim_card

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OP, since this is a new exchange they can manipulate the figures of their liquidity so that people can have confidence in their platform. I haven't heard of this exchange before and I will advise you to use a popular exchange that already made their name. Don't get carried away with the offers that they are giving to traders. We have seen good exchanges that crashed and customers funds was lost,no exchange is after their customers interest but instead they are after customers funds. Make sure you do a proper research on this new exchange to avoid regrets. This exchange offers are too good to be real.

OcTradism

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If you want to consider to use one exchange, you must do your research about their first two things

Total trading volume on that exchange would be high enough daily. If it is very low, you can stop at this checking step.

Total trading volume or liquidity pool on that exchange for the coin, token you want to trade with them. Look at trading volume for that token first and if it is a decentralized exchange, you can look further at its liquidity pool with some third party websites as follows.

https://www.dextools.io/app
https://dex.guru/
https://dexscreener.com/

Liquidity pools on decentralized exchanges can be drug pulled by their project teams so let's be careful with any coin or token which only listed on dex.

yhiaali3

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Quote from: david678345 on July 14, 2023, 04:27:05 PM

That exchange is Stormgain...they offer no commission for trading and a profit share of 10% is taken only from profitable trades...

are you sure? I've never heard of Stormgain nor have I ever heard of an exchange that takes no commission on trading or that they only take 10% of profitable trades?

This is very strange. I am afraid that it is a scam exchange. You should check the exchange well before you deposit your money there. There are many reliable exchanges, but they take a commission on each trades about 0.1-0.50%. This is a small commission.

Also, you should pay attention to some exchanges that do not have liquidity, so if you buy a coin that does not have liquidity, it will be stuck in the coin and you will not be able to sell it.

Sarah Azhari

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Quote from: david678345 on July 14, 2023, 04:27:05 PM

That exchange is Stormgain...they offer no commission for trading and a profit share of 10% is taken only from profitable trades...

A new exchange will use several strategies to get new users. For example, like you mentioned, but for sure before you enter too deep, you should have already understood the risks trade in a new exchange. I know you expect to get free fee trading and a few profit share, but sometimes is not balanced when you lost the money if the exchange goes bankrupt or if the owner brought your money. So if I were you I will hear several pieces of advice here. You have to not ignore any suggestion, so let's just say you are ready to lose your money.

noorman0

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I've seen this exchange in the past, and this is probably their biggest career achievement so far.

At first glance (logout mode), the trading chart for the btc/usdt pair is not too volatile, at CMC it also shows a 24hrs trade of only around 3 BTC. I don't see this as an opportunity even for scalping, and before that you also have to make sure how likely you will be an active trader and profit so that you can cover the 10% profit share comparing to trading fee in regular trading in general.

GreatArkansas

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Quote from: Nwada001 on July 14, 2023, 04:35:06 PM

This is the first time I've come across this exchange name. I ran a quick search, and according to , Stormgain has a 24 hour trading volume of $40,513,005.42, although not all the figures that are seen there can be trusted as most exchanges manipulate their trading volume in order to attract customers.
(....)

Exactly. Even popular exchanges these days could be also manipulating their numbers, especially on volume so people will tell that they are good enough.
So for me, just to beat the odds, go for popular exchanges that is proven already by time, who is already here for the long time.

I don't say that these data from exchanges are not 100% legit, but there could be some of it. Remember, they provide it, there's no decentralized part or transparent that we can see 100% there trading data.

GxSTxV

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For my personal opinion and experience on this field of trading, swapping and exchangers in general the first thing i look to is legitimate and secure platform before anything else. Stormgain seem to have a very bad reputation all over internet and suspected to scam their clients with also very bad support service and here is an example from a tester [1].
I suggest for you to stick with popular platform as they are all centralized and you are not looking for decentralized ones. Such as binance that offers also low fees comparing to others with lower security.

[1]: https://paidfromsurveys.com/stormgain-mining-review#:~:text=However%2C%20as%20you%20can%20see,it%20has%20extremely%20poor%20support.

Dr.Bitcoin_Strange

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OP, I can't begin to question you about the country you are from, but I would advise that if you find it to be a bit of a challenge to understand the exchange because I don't think it's a very popular exchange, then you should use another popular exchange that is allowed in your country. Perhaps I don't think that's the only exchange you can use there.

Also, on CEX, every coin or token has its own liquidity, so if you want to check, you will need to tap on the coin (trading pair: BTC/USD). It could be different for other CEXs.

david678345

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I dont mind paying 10%...I would still get 90%..
Being profitable when scalping is 50X times easier if there are no fees..
Lots of times havent been profitable because of fees when scalping....
is very different if you do scalping or swing trading..

HeRetiK

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Never heard of that exchange, though given the amount of new exchanges that have popped up (and disappeared) over time that doesn't mean much.

Hard to tell how much of the trading volume and order book is fake, but in the optimistic case that the numbers are real, you'll want a spread that's maybe 1% max with positions that are large enough to absorb whatever amount you want to buy or sell (though popular trading pairs with great liquidity like BTC/USD should usually have a spread of less than 0.1%).

Apart from the one you mentioned I'm not aware of any exchanges that only charge for profitable trades, though a lot have a maker/taker fee structure where placing a limit order will incur a lower fee than buying at market. I'm not quite sure whether zero commission with 10% on profits is really worth it, in the end. Even a trade netting you a mere 10% would set you back 1% in comissions which is already way above the usual rate you'll find elsewhere. So in the end it would only be worth it if you expect to lose money, but where would be the fun in that?

Topic: Liquidity and Fees When Trading (Read 169 times)