Topic: Why exchanges constantly expose you to the risk of losing your capital. - page 2. (Read 730 times)
April 09, 2019, 07:08:53 AM
I know that the stock market has security and offers optimal favor for traders. But in the crypto market, the exchanges work 24/24 and they don't have time to edit. Besides, this is also a decentralized market and all elephants can manipulate prices right on exchange without having to worry about legal issues. therefore, exchange managers do not need to set up an anti-manipulation system.
April 09, 2019, 06:37:20 AM
In order for your theory to work,the exchange must have really low liquidity(low amount of buy/sell orders).
The market buy order should use the average market price of the coin(which is a sum of all buy/sell orders of that particular coin)at that time,not the x100 order of some douchebag.
Anyway,most of the crypto exchanges don't care wether or not their users are losing money due to this bug.You,as a crypto trader,have to know that you are using every crypto trading platform at your own risk.
The market buy order should use the average market price of the coin(which is a sum of all buy/sell orders of that particular coin)at that time,not the x100 order of some douchebag.
Anyway,most of the crypto exchanges don't care wether or not their users are losing money due to this bug.You,as a crypto trader,have to know that you are using every crypto trading platform at your own risk.
Listing on binance always create huge amount of orders. I'm talking about trade opening process in which exchange is fulfilling orders order by order instead of with fixed price. Celer listing was crazy. 400% amplitude in first minute. That's not because of low liquidity. Thousands of bitcoin was traded there.
March 29, 2019, 06:34:29 PM
The risk of losing capital is not the fault of the exchanger,
what if the exchange sites is scam ? Isnt it thier fault on why you lost your capital ? Some exchange claims to be that their hack and lost all the funds but users didnt know that it was an inside job .
on the other hand you still got a point because not all exchanges are scam or have been hacked and if ever you loose your funds its obvious that that is already your own fault because you maybe impatient or just lacking of knowledge on what you are doing
March 29, 2019, 12:10:51 PM
The risk of losing capital is not the fault of the exchanger, I experience trading on several large or small exchanger and from that experience who know that the risk is that other traders make unequal requests and offers, or even sometimes they don't dare to buy tokens because the prospect is not good, and with these conditions your capital is threatened with loss
March 29, 2019, 12:12:46 AM
Generally, everyone wants to profit in their ways, including the owners of the exchanges that you included here. I guess if they made it like they only have that coin and they listed it, it's a sure chance that they will profit from those trades, that's how it goes. The exchanges win, and users that try to trade it will lose money. They don't really care too much, and they want the fees. That's my understanding about it though. They are running a business.
March 29, 2019, 12:10:13 AM
Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.
Have you ever heard of "Pump and Dump"? On newly listed coin? If you manage to hear it then that's the answer.
Its not pump and dump. Its finalizing orders order by order instead of with fixed price set by traders during fixing (like on stock market). You know how its done now?
1- Exchange opens setting orders
2- first user create sell order at x100 just for fun
3- second user create market buy order
4- third user create sell order at x1.2 for small profit
5 - fourth user created market buy order (0.01 sec after guy from point 3)
6- ......
n - n user created sell order at 0.8 of last price on other exchange
There are n-1 orders on market. And they hanging for moment that exchange will open trades.
Then exchange opens trading and is finalizing orders order by order. Means that guy from point 3 will buy with 100x price (because that the only wall that is on market that his buy order can hit in) and guy who made exactly same order type 0.01 sec after will buy at x1.2 price (because currently that's the lowest price available). That's ok for you? Or that's the stupidest way to open trades during listing and its done like that only to scam users.
In order for your theory to work,the exchange must have really low liquidity(low amount of buy/sell orders).
The market buy order should use the average market price of the coin(which is a sum of all buy/sell orders of that particular coin)at that time,not the x100 order of some douchebag.
Anyway,most of the crypto exchanges don't care wether or not their users are losing money due to this bug.You,as a crypto trader,have to know that you are using every crypto trading platform at your own risk.
March 28, 2019, 11:18:53 PM
crypto is a fast moving industry. A new announcement could send the price of a coin rocketing to the moon. Imagine when the SEC finally says yes!
right, with the positive news, volatile will be high, and cause the price to move very significantly. and of course this is what traders like very much, because they can make a lot of profitBut unfortunately, if we compare the good news and the bad news, there still too many bad news in out there that is available to make people afraid to invest. The bad news always says about the negativity of investing in crypto and some time was work, people sell their coins because they are scared to get a lose. But in the other time, when people can get another source of the same news, they don't panic and can stay calm while they still trade without any effect.
March 28, 2019, 02:33:00 AM
crypto is a fast moving industry. A new announcement could send the price of a coin rocketing to the moon. Imagine when the SEC finally says yes!
right, with the positive news, volatile will be high, and cause the price to move very significantly. and of course this is what traders like very much, because they can make a lot of profit 
March 27, 2019, 01:03:44 PM
How much will exchange lose by implementing price fixing during coin listing? Volume of first minute of trading was equal to 6000 BTC. I bet that all trades with more than x2 price of 10 min average (2x 700 sat), that would not be fulfilled was less than 1000 btc. Transaction fee with BNB discount is equal to 0.075 % for buyer and same for seller so we have 0.15%. We have 1.5 BTC. Is that really that much for binance compared with evident give a f... about customers?
That's not really much for them but why should they care while they already a top #1 exchange? Being first and having a good volume is already passively brings them a lot of traders.Exchanges do not really care about their customers, if true, the number of cryptocurrencies will be less than 100 coins, there is no need to create more than 1000 repeated coins with such financial models copied from each other.
An exchange is just a place to exchange one coin to another one. They list only coins, that will bring them enough volume and which devs will pay more. With a good volume exchange doesn't seem to be interested in picking coins that are unique and have their special usage. But if they will they should probably start trading only BTC.Yes, I strongly believe that exchanges only provide facilities to everyone in their own way, like it or not we also sometimes need it for the purpose of withdrawing money or whatever, I think they also don't want to know, just they always want to know progress investors and the future progress of crypto by providing very high service to everyone, if when they succeed in protecting all investors there they get added value, whatever it is, so in this situation we are mutually beneficial.
Losses and benefits have become a risk for everyone and how we can handle the problem now, I hope for all exchanges there is no other element that can endanger all parties and it is no longer a secret but it has become a habit that can sometimes make people confused when facing situations like this.
March 27, 2019, 12:44:16 PM
crypto is a fast moving industry. A new announcement could send the price of a coin rocketing to the moon. Imagine when the SEC finally says yes!
March 27, 2019, 12:18:24 PM
I believe those first buys and sells are not really exchanges problem. I mean when you put a new coin on listing there is usually two chances, one is the coin is already listed somewhere else and if you can see the price there you should definitely buy/sell around the same amount, I have seen people buy a coin at around 35 cents when it was listed at 16-17 cents somewhere else already, those people who buy and sell could either be bots or volume bots of the exchange and that is why it should not be cared but even if they are traders than its their own fault to buy and sell at those levels, normally thanks to arbitrage the price should be fixed to the equal numbers after a while. That is why I think the first moments are just out of exchanges hands if you ask me.
March 27, 2019, 05:42:46 AM
still all of that will depend on investors or traders who go there to increase the purchase volume and then the graph increases, even in the early minutes. and how can the exchange party prevent it? and it will certainly continue, whether the volume will increase or decrease.
March 27, 2019, 05:34:28 AM
How much will exchange lose by implementing price fixing during coin listing? Volume of first minute of trading was equal to 6000 BTC. I bet that all trades with more than x2 price of 10 min average (2x 700 sat), that would not be fulfilled was less than 1000 btc. Transaction fee with BNB discount is equal to 0.075 % for buyer and same for seller so we have 0.15%. We have 1.5 BTC. Is that really that much for binance compared with evident give a f... about customers?
That's not really much for them but why should they care while they already a top #1 exchange? Being first and having a good volume is already passively brings them a lot of traders.Exchanges do not really care about their customers, if true, the number of cryptocurrencies will be less than 100 coins, there is no need to create more than 1000 repeated coins with such financial models copied from each other.
An exchange is just a place to exchange one coin to another one. They list only coins, that will bring them enough volume and which devs will pay more. With a good volume exchange doesn't seem to be interested in picking coins that are unique and have their special usage. But if they will they should probably start trading only BTC. March 27, 2019, 04:51:03 AM
I don't think that this is necessarily an issue.
Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.
Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.
I guess they don't know that when they place market buy order without order book fulfilled they might buy coin for 3000 sat instead of 700 sat. If they knew that they won't do that. How they could know what's in order book if order book is not visible before opening trades.
There is nothing the exchange can do to stop this anyhow. They provide the orderbook and the trading engine, and nothing else. They can't manipulate the pricing of the orders, or revert orders from previous instances, because it's not their right or obligation to do so.
Its called price fixing and its happening during every session on stock market. Before opening trades they have orders like:Code:
sell
999
998
997
995
650
630
600
200
at any price
buy
at any price
850
840
830
820
700
500
200
During fixing exchange calculate crash price at for example 700 sat and fulfill sell orders with 200 600 630 650 sell prices giving custommers even better price (they sold for 700 not 200-650) and 850, 840, 830, 820 and 700 from buy orders (better price too). Rest of orders are waiting in order books and may be fulfilled during trading. Thats how fixing works. Provides best price for custommers while opening trades. Not random how its now.999
998
997
995
650
630
600
200
at any price
buy
at any price
850
840
830
820
700
500
200
March 27, 2019, 04:10:28 AM
I don't think that this is necessarily an issue.
Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.
There is nothing the exchange can do to stop this anyhow. They provide the orderbook and the trading engine, and nothing else. They can't manipulate the pricing of the orders, or revert orders from previous instances, because it's not their right or obligation to do so.
Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.
There is nothing the exchange can do to stop this anyhow. They provide the orderbook and the trading engine, and nothing else. They can't manipulate the pricing of the orders, or revert orders from previous instances, because it's not their right or obligation to do so.
March 27, 2019, 03:30:17 AM
Just the way how exchanges opens trades is random and unhealthy for customers.
Or you think that an exchange that is open for business will restrict numbers of orders so as to have empathy on customers? I don't think they will do that, they will allow customers to express their selves on their decision in making orders. That is my understanding on this.
How much will exchange lose by implementing price fixing during coin listing? Volume of first minute of trading was equal to 6000 BTC. I bet that all trades with more than x2 price of 10 min average (2x 700 sat), that would not be fulfilled was less than 1000 btc. Transaction fee with BNB discount is equal to 0.075 % for buyer and same for seller so we have 0.15%. We have 1.5 BTC. Is that really that much for binance compared with evident give a f... about customers?
Those 1000 btc is even too much. In my opinion with price fixing listing would look more professional and would bring more investors. Also, traders seeing price change during fixing would move their orders to be fulfilled.
Prices may varies with the market demands and also its market volume. It is usually happen that after listing a certain coins will definitely turn down as many will easily sell their coins in low price which it is dragging the price to the bottom.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.
It's not about that. Celer (25.03.2019 binance listing) ICO price was close to 160 sat. Binance opens trades with 3000 sat price because at that price they finalized first trade by finalizing them order by order...
It's not about supply and demand. Its pure random. Read my post:
You know how its done now?
...
...
March 26, 2019, 11:40:21 AM
Exchanges do not really care about their customers, if true, the number of cryptocurrencies will be less than 100 coins, there is no need to create more than 1000 repeated coins with such financial models copied from each other.
Orders to sell and buy are often controlled to take advantage of the ambition of some people and then scam them to unload the price again.
Do not forget that there are armies of bots that are selling/buying in models make the loss a huge loss.
Also, the market operates 24/7 making the opportunity to manipulate between platforms "South Korean and American exchange platforms."
Orders to sell and buy are often controlled to take advantage of the ambition of some people and then scam them to unload the price again.
Do not forget that there are armies of bots that are selling/buying in models make the loss a huge loss.
Also, the market operates 24/7 making the opportunity to manipulate between platforms "South Korean and American exchange platforms."
March 26, 2019, 08:43:30 AM
Prices may varies with the market demands and also its market volume. It is usually happen that after listing a certain coins will definitely turn down as many will easily sell their coins in low price which it is dragging the price to the bottom.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.
March 26, 2019, 08:24:04 AM
Just the way how exchanges opens trades is random and unhealthy for customers.
Or you think that an exchange that is open for business will restrict numbers of orders so as to have empathy on customers? I don't think they will do that, they will allow customers to express their selves on their decision in making orders. That is my understanding on this.
March 26, 2019, 03:34:32 AM
I'm not talking about first listing after ico. Well that too but I'm mostly talking about any listing. Even if coins was listed on other exchange before. Just the way how exchanges opens trades is random and unhealthy for customers.
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