Why exchanges constantly expose you to the risk of losing your capital.

[Crypdon]

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!

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[rizkyhiw]

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.

[breathlessz]

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

[michellee]

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

But 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.

[davis196]

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.

[crwth]

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.

[ginobitcoiner]

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

[shesheboy]

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  

[Tytanowy Janusz]

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.

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.

[Greed Dev]

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.

[Tytanowy Janusz]

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.

This is not anti-manipulation system. Thats anty random price buy system. I've explained that.

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.

I'm talking about listing... not regular trading.

[Siti Nurbaya]

It seems that it returns to the team and also requests, so coins are on the list and unable to compete so we are likely to lose capital. This is the risk that we experience, for this we must be able to see an active team and find ways to maintain its value. That situation keeps us optimistic or makes a decision to throw away.

[webtricks]

So wheel is already invested. Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

The pictures shared by you are of coin listing on Binance. Binance hardly lists any new coin which isn't already trading on any other exchange. Almost all new listing are already trading on other exchanges which could easily be seen from CoinMarketCap. I don't think investors are so dumb that they don't see the existing price of coin before putting buy order on Binance. Only explanation could be price manipulation! Many investors try to create simultaneous buy and sell orders in order to inflate the starting price, then dump their whole holdings and exit the market. It is common practice in unregulated market. There is nothing an exchange could and should do. When the value of cryptocurrencies is non-intrinsic, why does exchange limit it?

[Adriano2010]

This also happen on stocks markets, but the exchange don't bind us to invest in a coin, is our choice and we can't be 100% sure that a coin will bring us fast profit, so is our choice where we invest money.

[Tytanowy Janusz]

So wheel is already invested. Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

The pictures shared by you are of coin listing on Binance. Binance hardly lists any new coin which isn't already trading on any other exchange. Almost all new listing are already trading on other exchanges which could easily be seen from CoinMarketCap. I don't think investors are so dumb that they don't see the existing price of coin before putting buy order on Binance. Only explanation could be price manipulation! Many investors try to create simultaneous buy and sell orders in order to inflate the starting price, then dump their whole holdings and exit the market. It is common practice in unregulated market. There is nothing an exchange could and should do. When the value of cryptocurrencies is non-intrinsic, why does exchange limit it?

That's not price manipulation. When you look on celer you can see that first candle is big red one with small bottom candlewick. It means that first trade was made with price 3000 sat. Every other was made below of that. How to manipulate price to do that? You would have to put huge buy order before trade opening to set fixed price that high but instantly you will be the most scammed person because you will be the only one buying that high. The only explanation of that is that there was no price fixing and exchange fulfil orders order by order matching market buy orders without limit price with x100 sell orders made for fun.

[el kaka22]

The cryptocurrency world has been built upon the idea that we will not have regulations and the free market will decide whats what instead of really relying on the fact that governments do whats "best for the country" and so forth, which means if there is a new listing and people decide to sell it for cheap that means the coin is definitely not worth it and people want the profits and not be part of the project.

Think about it, if a project was so good why would anyone sell it the first second they could? They wouldn't sell it but instead buy more if the project was good, however since most of the projects are bad than the investor just wants to be part of the people who sell early and make a big profit, that's all. There is only one solution and thats not making bad projects.

[Kimonoe]

This also happen on stocks markets, but the exchange don't bind us to invest in a coin, is our choice and we can't be 100% sure that a coin will bring us fast profit, so is our choice where we invest money.

Cryptocurrency trading is how we manage opportunities, with enormous risks, so it is very dangerous for those who are unfamiliar. therefore we learn in theory, and then practice on the market

[Crypto Girl]

And that is also why many are selling on the first listing which they thought is the bounty hunters fault.

They should really look into this.
This could also stop the dumps that is happening in exchange for just a little amount of USD. That way the trust to crypto currencies could also be back.
We are losing supporters, better make a way to get them back.

Bounty hunters do always took the blame when it comes to first listing and then the price dumps.
About on the thing you do said,being optimistic to get them back isnt bad but doing it is the most hardest part.

That somehow the reality though if we look thorough, investors are one who first have their token and bounty hunters will just follow, while the allocation just have at least 1% of the total supply, so who really dump?
Moreover, I agree with the OP and in the contrary that many dump their token, perhaps trading sites isn't the one to point out. I believe as long as the project is solid and good no matter how many people dump their token, the demand will carried out.

[sana54210]

The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

I think you’re right, they all just want to make people lose so they can make their own money. But whatever, we ourselves too have to be careful and  know what exchanges to make use of. Some exchanges are not really that reliable and they just look for ways to trick their customers and use them in making money themselves. When we look back to other markets after crypto related exchanges, these kinds of practices are being done for decades and small traders are suffering a lot as exchanges trap them to eat up their capital.

One simple solution must be, along with cryptos, there will be no need to be trading actively like rushing for a coin once it will be getting listed or anything similar to that. Just buy and hold what ever coins/tokens which are satisfying our selection criteria and after months of hold we may achieve what we could do through active trading. Yes, patience is the key and solution here.

[fiulpro]

But don't you think this is better ?
We do have full responsibility about what we do at the same time we should be given full control about what we do and don't do , they can also make some rules to actually help , but this is really something that won't work.
The main idea of this market is freedom ! That we don't even have with our money , I don't think exchanges should come forward and intervene with the situation , it's us who should think about this , carefully buying and selling is what we can do and that's it !
I don't think we should blame the exchanges for this
It's our fault.