Topic: Why are Exchanges promoting Trading competitions? (Read 834 times)
Exchanges promoting Trading competitions to me is more like a business strategy employed by those exchanges. A lot of transaction/withdrawal/deposit fees will be in for the exchange. Trading volume will be boosted and so much more to be benefited by the exchange. The token used during the competition tends to gain more popularity and in the process been exposed to potential investors given the competition is on a big and trusted exchange. I think it will be a win-win for both the exchange and the token project. Trading competition is not a bad concept.
The correct way to make crypto grow is by using it, it can be trading or doing transaction,holding for long term is not going to make crypto grow, it's going to make the crypto survive, and the reason exchanges make competition is to advertise their site, but it's good for the crypto and the exchanges, so I support the idea of this trading competition
How you are saying that holding for long term is not going to make crypto grow ? Because as far as I am concerned, when you are holding one particular crypto, the chances for people to dump it will be very less. When more number of people are adopting then obviously that crypto will be having big price levels over the time because everyone is investing and holding and no one will be there to dump it. This is the basic understanding of myself why people are suggesting to go for holding but you are saying completely a different thing.I am also in support of having trading competition because I will be getting chances to win but I'm finding this will NOT be helping crypto but definitely it will help the exchange to be promoted among traders because many traders like myself will be looking for such competition so that we can prove ourselves along with chances of gaining bonus.
The exchanges want to increase their daily or monthly trade volume so they are sometimes making competition for their members and they will give rewards in the form of tokens so indirectly; they help the tokens to survive for the future.
And with the competitions, they also give hope to the traders to hold the token for a long time because the price will increase higher than now.
The effect for the community and the project developers is they can face whatever happens in the market, and they can survive because of help from the exchanges.
But maybe I am wrong because I don't know what exactly their reason to do that.
And with the competitions, they also give hope to the traders to hold the token for a long time because the price will increase higher than now.
The effect for the community and the project developers is they can face whatever happens in the market, and they can survive because of help from the exchanges.
But maybe I am wrong because I don't know what exactly their reason to do that.
The correct way to make crypto grow is by using it, it can be trading or doing transaction,holding for long term is not going to make crypto grow, it's going to make the crypto survive, and the reason exchanges make competition is to advertise their site, but it's good for the crypto and the exchanges, so I support the idea of this trading competition
why do new exchangers do some trade competition on their exchanger?
Of course the answer is that traders are interested in trading on their exchangers.
more and more people are trading and depositing and withdrawing, so the exchanger will get more profits
Of course the answer is that traders are interested in trading on their exchangers.
more and more people are trading and depositing and withdrawing, so the exchanger will get more profits
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
What you don't understand is exchanges doesn't care about the coins/tokens all they care about is making money that is why they encourage trade competitions and giveaways. Exchanges charge commissions for trade, so the higher the trades the higher the money.Exchanges provide some service and they are making profit like that. With promotions they attract new people, more people usually leads to more trades, math is
simple more profit for exchange. Every promotion, marketing costs, the bigger it is more money exchange needs to spend on that. Exchange earns on commission, but
with promotions they return something back to most active traders.
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
What you don't understand is exchanges doesn't care about the coins/tokens all they care about is making money that is why they encourage trade competitions and giveaways. Exchanges charge commissions for trade, so the higher the trades the higher the money.
Liquidity is an important factor when it comes to asset,be it stocks,cryptos or commodity.If people are no willing to buy such then there is really no value in them,No brainer that there are promos ran across exchanges to keep them afloat.
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
yes because more trading more market cap add. when people not interested about some coin it fall. because they are not trade so much with that coin. that's why crypto company promoting there coin or tokens to make new investor and more traders.
The idea I think is to impress future investors of the volume in the exchange. It doesn't matter whether its because of the contest but due to it they win people's trust, they gain users as well and the marketing of their exchange. Competition will always make users register and all these could result the exchange to get listed on coinmarketcap.
There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?
There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?
Exchanges had some other profit with them by promoting trading that's why they are promoting all kind of things so trading will be more for profitable way only so we cannot do without any other promotion or other things it needs but it does not bleed when something is negative otherwise all good.
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
It is one of the marketing strategy if ever there are some of the exchange platform doing this type of methods. Probably, through this they could get more investors/traders to use their trading platform and also getting new altcoins that would like to use their exchange platform as well.
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
The entire market is built in such a way to cater for everybody's need depending on which goal you set to achieve. If everybody decides to hold, it then means there won't be a market and the price would not be determined. When this don't happen, exchange sites would not even exist or survive because its from the trading activities that they are able to cover their own cost of operation. While its not totally good for the market to be entire about trading, its about finding a balance where every party will carve a niche and everyone would be happy about it.
The idea I think is to impress future investors of the volume in the exchange. It doesn't matter whether its because of the contest but due to it they win people's trust, they gain users as well and the marketing of their exchange. Competition will always make users register and all these could result the exchange to get listed on coinmarketcap.
There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?
There will only be negative consequences if the exchange cheat which of course why would they do that when competition's purpose is to promote?
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
How exactly is that a bad thing? Everyone is fighting for what’s theirs. These exchanges are into business, so they are doing what they are supposed to do which is to convince a lot of people and get investors to invest their money on their platform. You would also do the same if you were part of it.Moreover, there are different types of trading competitions. Some exchanges are conducting on volume based and some others are conducting based on number of trades. If you notice both are significantly impacting one particular trading pair if your concerns are true. So, we cannot say anything about trading competitions will be giving negative consequences alone when people will be trading for the reason of competitions.
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
its main purpose was to make a profit for the exchange. By the volume they make of course and if the volume high enough, everyone will flock into it, therefore enrich the volume once again.
I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.
Doesn't much impact? Trading competitions wont really exist if they wont really make such impact.These exchangers do accept a certain project and launch competitions to gain volume and same goes for popularity. Its a win-win situation for them actually.This is why we are seeing competitions like this.
I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.
I am not sure what people will do in a trading competition, if they keep buying different different coins and tokens then it will give short term impact but if they buy and then sell then there will be no impact on price levels but they can still show more volume for the sake of competitions. I have seen many forex exchanges are conducting sclaping based trading competitions which is purely for showing high volume and price will never get impacted much.It will give an impact, for sure. At least in the short term. It could increase the daily volume and no exception with the price. The token/coin being promoted will get attention as well.
If exchange is about listing on few assets for the competitions then those assets will be on top on daily volumes. Usually for example, bitterex show top volume coins in moving banners and I am sure that will attract more attentions from traders and investors but not sure a competition driven will do the same or not. 
One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
It will give an impact, for sure. At least in the short term. It could increase the daily volume and no exception with the price. The token/coin being promoted will get attention as well. But if we talk about the impact for the long term, it will need a bunch of measurements. The developer behind the project for sure will play the big role for the future of their tokens. If they are good enough then the chance to exist in the long term will be there. Otherwise their projects will be forgotten. I think the community and developers are very welcoming with such competition. It gives a good marketing, they don't need to worry!
I personally love exchanges and in particular Binance to offer such kind of competitions and other promotions. Exchanges depend on the amount of traders using their platform and the volume that we, traders, are producing.
We all know that exchanges earn a lot of money on our back. But seeing an exchange like Binance that offers for example a referral program, trading competition and other very nice promos, convinces me that they are here to serve us in the best possible way. If we compare this with exchanges like Poloniex and bittrex they do nothing to please their customers and this results in a huge loss of users and a huge drop in their daily volume.
So I would say to run a successful and competitive exchange these days they are almost obligated to offer such things. There is no better promo than free money to give away. At least they give away to the community and there users. So I can only cheer for that
We all know that exchanges earn a lot of money on our back. But seeing an exchange like Binance that offers for example a referral program, trading competition and other very nice promos, convinces me that they are here to serve us in the best possible way. If we compare this with exchanges like Poloniex and bittrex they do nothing to please their customers and this results in a huge loss of users and a huge drop in their daily volume.
So I would say to run a successful and competitive exchange these days they are almost obligated to offer such things. There is no better promo than free money to give away. At least they give away to the community and there users. So I can only cheer for that
I see no problem with trading competitions, these people are the day traders. There are other investors who are long term holders and will be holding the coins. I believe if the project is good, it will attract long term holders. The trading competitions should not have much impact.
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