How Crypto Derivatives Exchanges Destroy Profitability
Win The Crypto Game: Invest Instead Of Gambling
Are you fed up losing money with your choices in the crypto market and feel you are fighting elephants for peanuts?
We try to make it work but fail to achieve exceptional results. Yet, we often read success stories claiming vast fortunes.
Well, this is not exactly how it works. Usually, all these stories are fabrications intending to instill FOMO (Fear Of Missing Out) and create exit liquidity for the token operators.
Only by coincidence a crypto investor will encounter the token (e.g. Shiba Inu) that will deliver extreme returns before it’s too late.
Certainly, there are moments in this market where almost every crypto will “pump” and make 40–50% in a day, whereas it will also drop a day later, even during what is supposed to be a bull cycle due to excessive trading, manipulation, and volatility.
We tend to make mistakes with our participation in this market, but we also tend to repeat them.
Moreover, some external factors lead us to bad decisions, so statistically, if we eradicate these factors and change some habits, the outcome will be more profitable.
The glorification of trading (with high leverage) presents one of the worst effects in the crypto industry.
Quit Gambling (Trading Derivatives)
Photo By “ToNic-Pics” On Pixabay
I know firsthand the difficulties of overcoming an addiction.
Do something that will be exciting and fulfilling, but less damaging to your financial and psychological conditions.
Do something different that generates enough adrenaline rush and self-gratification without financially damaging yourself.
I started playing games when I quit. RPGs and Action games that demanded too much time concentrated on PVP fights that replaced the excitement. I kept thinking of gambling, but not as much as I expected. This was my escape. Perhaps start streaming if you think you got good in a game. That could also work.
Just don’t waste your money on trading. If you invest when prices are down a lot (80% as of now), odds are in your favor.
Derivatives exchanges are just online gambling platforms masqueraded as a serious professional trading room, luring unaware individuals by sponsoring influencers to promote them.
You can take a break and go on a vacation for a few weeks (or months). Start backpacking or whatever. Get it out of your system. You will be financially and mentally better.
The best investing approach is to withdraw your crypto, purchase a $50–100 ledger (hardware wallet), and store your private keys for the long run. If you plan to use cryptocurrencies for payments, have some in a (non-custodial) mobile wallet.
Soon cryptocurrency will become accepted widely in every region. Groups like GoCrypto and Bitpay are attempting to make it possible. Some cryptocurrency communities include various initiatives to expand the accepting merchant networks.
Although, gambling on your crypto (or fiat money) by betting on short-term fluctuations is the worst way to treat an opportunity that comes once in a lifetime.
Ask yourself who you are betting against when you day-trade
Bankroll management is perhaps the only thing to extract from gambling and apply in crypto.
The lose-lose gambling action only produces an expensive adrenaline rush. Derivatives exchanges offering this highly addicting action prevail in crypto, and the trading platforms are ravaging the profitability of investors.
If you trade cryptocurrencies with perpetual futures and leverage, consider how many day-traders lose money in this, your odds, your experience, and the tools at your disposal.
Seriously pay attention and stop acting foolishly. More than 90% of day-traders lose money no matter the market (forex, commodities, crypto).
Even the Bitmex guy called you a degenerate (more than once):
The exploitation of gambling addicts is immoral and always condemned in gambling cycles. Gamblers do not exploit addicts but help them escape their addiction. These are people at horrible crossroads in their life.
Yet, this guy (and a few more) make a fortune by ruthlessly exploiting human vulnerabilities while also bragging about it and exposing the true colors of their character.
Consider it before applauding what these people Tweet or publish on their social media or Medium accounts.
Leveraged trading at Bitmex (and other crypto exchanges) is banned in the US, the UK, and many other jurisdictions for a reason. Everyone loses money, class action lawsuits follow, the prices are manipulated, and this type of trading is extremely addicting.
90% of traders lose money in the long run.
Not great odds, yet the Cryptoverse is full of influencer traders and promoters of scam exchanges that will leave you wondering what happened to your money.
Avoid all these platforms: Bybit, Binance, Bitmex, Deribit, and anything else forcing you to gamble money instead of proper investing.
Changing this habit will fundamentally help you achieve better profitability in the long run.
If you want to make money and still trade with leverage, you shouldn’t even consider reading this article.
If you still want to trade and consider you have enough experience, then also consider who you will be betting against:
Besides the fact that as an amateur trader you can’t beat these guys, this video also explains the structure of cryptocurrency transactions. The overwhelming majority are transactions of arbitrage traders, coins transferred between exchanges, while the real-life adoption of cryptocurrency as a payment method is limited.
The crypto fortress is built on speculation, not adoption for its use case.
This comment caught my attention.
I’m not entirely sure what the purpose of YouTube user “Gminer” was. Perhaps this was one of the paid comments from troll factories in Ghana, but there is also a chance this comment was organic coming from an addicted trader that was excited watching Sam Bankman-Fried’s team at work.
Are you someone like this guy thinking you got a chance when day-trading crypto?
Do you think you can beat those with overwhelming resources and technical conditions to make faster and better decisions? You can do that once or twice. The third time you will suffer vast losses that eat your profit and leave you wondering what happened. The next time you empty your account, looking to refill.
Conclusion
Quit passing your wealth to exchange operators. Sam Bankman-Fried, CZ, and Arthur Hayes are getting rich by your mistakes.
The only way to win this game (day-trading) is by not playing the game.
These crypto billionaires reached there exploiting traders, or mostly, people thinking they could trade. They exploit the fish swimming oblivious of the sharks around them.
Traders will never win in this game.
None of the crypto-traders on YouTube and Twitter will teach you anything.
They will all sell weak trading courses and make you as bad a trader as them.
Have you wondered why they are selling trading courses teaching you how to trade?
If they were as successful as they make it seem, they would hide their strategies instead of selling them to their audience.
They don’t make money from trading, that’s why they sell you their courses and referrals. These guys make money selling snake oil.
If you still believe you will be a profitable trader, then you should probably ask a professional trader in the stock market to explain your odds of succeeding. A stock market trader, though, because, in crypto, no day-trader profits in the long run.
The house always wins, so don’t expect to profit at the expense of exchanges or the sharks in this market.
Cover Photo by “Peter-Lomas” , on Pixabay
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I'm saying this for a long time that this is just like another type of gambling where at the end of the day we lose our money. But people are always into making quick money than doing day trading.