I have just $500 on an exchange, but the exchange is encouraging me to trade mor

[Dr.Bitcoin_Strange]

I don't participate in this kind of events by centralized exchange especially when it comes to no defined price, the trick here is that even after you manage to trade up to the required amount, that lucky draw chance that you are going to unlock might end up not giving you any significant win, this is like gambling, the lucky draw can give a small profit or zero profit meanwhile you took a huge risk to achieve the draw. This is the strategy that most exchange are using to tempt some low capital traders to lose their money easily.

[Peanutswar]

Exchange keeps doing this kind of event just to make a volatility with the market and also of course promote the use of their platform for active liquidity so if you are kind of active in trading its easier to you to achieve this task but if you know to yourself that you are just a simple trader who wants to make a flip with the market just ignore these promotions, huge capital traders are the one who will just enjoy this event, personally I do rarely check my CEX just if there is a new token release.

[Aanuoluwatofunmi]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

I will only advise that you don't let them push you to what you don't want to do on a normal day, avoid looking at the amount you start to end from it, instead focus more on the risk in perpetual trading, to believe their could be other times and condition that they might include in such offer as the time is limited, if you go for it you mean eventually end up losing your money because this is about future trading and not sports trade.

[arwin100]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

They usually do that to show that you have chance to win those rewards they are trying to present, but its really up to you if you will try your luck to win.

But for me If I don't feel like being pressure to be more competitive doing trades, I will not entertain those promotions sent by exchange to encourage us to trade more. I don't usually participate on this and didn't grab even those less fee trading vouchers to avoid depositing excessive money which also not part of my budget plan.

I find it hard to earn on those contest and usually those people win are the whales which can afford to spend huge for their trades.

[jcojci]

No doubt if exchanges encouraging you to trade more. They thinks that if you trade more and more, you may feels tired and make a mistake which causing you to lose money.

Once you losing money, they make a profit and more traders will giving them profit. So they will launch so many interesting promotions which makes traders chasing the prizes. But you should know yourself and don't chase something that you feels difficult.

[Hamza2424]

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

When you deposit money on exchanges, they start showing you offers to motivate you to trade. They know that you might have deposited for another purpose, like P2P, so they try to push you into trading before you leave. That is why they run these events for both new and existing users.

You do not have to join them because it is voluntary, not compulsory.

They can take your money if you use high leverage like 150x. Also, these kinds of events do not reward everyone. I sometimes doubt that they may favor certain users, maybe even people from their own teams, but it depends on the exchange, whether it is a top-tier platform or a lower-quality one.

[masulum]

No doubt if exchanges encouraging you to trade more. They thinks that if you trade more and more, you may feels tired and make a mistake which causing you to lose money.
-snip-

Bro, just check on the image he shared, the image showing it's a part of promotional offer. if a trader want to get a chance to win a ticket, trader can make a accumulation trading volume at least $75K, this is not to force anyone to complete this offer, it's mean only for trader that have a capability to complete it to join without forcing them. just like if you want to join, complete the task, if not just stay away.

[Odogwu-Blockchain]

They are not deceiving themselves, if you aren't joining, there are thousand of traders who are joining and passing every criteria to enroll in it. But could they have to share some part of the $75k to every trader who join?

They aren't wanting anyone to get liquidated either, if you are confidence of your trading skills, you gain profit, if you aren't, you loss capital.

[tabas]

They want you to trade more and do more volume for them, in return they're going to give you some chances like that lucky draw. I usually ignore these when I see them because I can't do that much volume for that requirement and it's so much. I won't put myself into that hole when I have to pursue and aim for that threshold that they're requiring the participants to fulfill. That's so much to be honest, excluding that $75k USDT. Even a $10k or $1k doing it in certain period of time is going to be stressful and not worth it for its prize.

[Alpen]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

Crypto derivatives trading is dangerous primarily because it’s a "black box." Look at FTX: Sam Bankman-Fried had misappropriated client funds long before the crash. His logic was likely that if clients got liquidated on their own, he’d never have to worry about returning their initial deposits.

Using 150x leverage and increasing your trade frequency is a guaranteed path to losing your deposit. It’s been empirically proven that a trader who makes just one solid trade a day is significantly more successful than a frantic scalper.

On top of that, you have the time pressure factor. That ticking countdown is a psychological trick designed to make you anxious and prone to mistakes.

While all exchanges want high volume, it should be done ethically, like on Cryptomus. No forced leverage or artificial time limits—just a reward system where every trade lets you roll the dice for a chance to add 400 to your balance.

[Oshosondy]

Crypto derivatives trading is dangerous primarily because it’s a "black box." Look at FTX: Sam Bankman-Fried had misappropriated client funds long before the crash. His logic was likely that if clients got liquidated on their own, he’d never have to worry about returning their initial deposits.

I agree with you that using 150x leverage is not good at all because high leverage is the common cause of liquidation of traders money, but do not link it to FTX because exchanges are not centralized to the extent that they are the ones that is gaining all the money traders are losing just like how the gambling sites are. Exchanges make money from trading fee, liquidation closing fee and other means, but they do not make money from almost all the money traders are losing, it is traders that make money from each other.

[Barikui1]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

This is one of those things done by most exchange just to entice you to trade more, knowing fully well that the chances of losing your margin is much higher than the chances of making something out of it, but it's a good thing that you are actually not a newbie that will fall for such tricks because even though it's guarantee, that you will be rewarded with something, it's still a very big risk to take because the countdown is just too close, which might compel you to trade with high leverage that is suicidal or self destruct in trading, so you should do well to ignore it because it's a trap that you may not come out from unscathed if you eventually risk it.

[pawanjain]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

Yes, the exchange is just trying to persuade users to trade more and that's how their business runs.
But on the other hand, it's just giving you a chance to take part in the lucky draw.
There's no assured reward for that and so you are better off not to trade at such high leverage.
Mind you that leverage trading is very risk as you might already know but with 150x leverage, good luck on losing the money.

[SquallLeonhart]

Exchange has not launched this competition just for you. There should be hundreds and thousands of other participants who would already be participating to win the rewards. I don't think exchanges like these would target individuals as they already are dealing with thousands. Anytime you open any exchange, you will always see such competitions going on. I think these competitions are just another promotional way to increase the trading volume. Exchange will always try to get money from you but not by deceiving themselves. Exchanges too need to make profits to keep running, right?

It is never mandatory to participate in such competitions. It depends totally on you if you are interested or want to ignore this. You have $500 as of now so I would recommend you to ignore this competition as you would be increasing risk potential if you participate.

[Youngrebel]

Exchange has not launched this competition just for you. There should be hundreds and thousands of other participants who would already be participating to win the rewards. I don't think exchanges like these would target individuals as they already are dealing with thousands. Anytime you open any exchange, you will always see such competitions going on. I think these competitions are just another promotional way to increase the trading volume. Exchange will always try to get money from you but not by deceiving themselves. Exchanges too need to make profits to keep running, right?

It is never mandatory to participate in such competitions. It depends totally on you if you are interested or want to ignore this. You have $500 as of now so I would recommend you to ignore this competition as you would be increasing risk potential if you participate.

Exchanges do run these competitions mainly as a promotional strategy and to boost trading volume, attract attention, and increase user activity. They are  not targeting individuals, and yes, they make money from fees when people trade more but however, saying they do not deceive can be a bit too generous. The structure of many of these competitions indirectly encourages overtrading, higher risk taking, and sometimes even reckless behavior most especially for smaller traders trying to compete with large accounts. So while it is not a scam but it is definitely designed in a way that benefits the exchange more than the average participant.  Your advice about the $500 is actually the strongest part. With a small account, competitions like this can push you into unnecessary risk just to try to rank or win rewards.

[goldkingcoiner]

I have just $500 on an exchange but the exchange is showing me this on the perpetual trading part of the exchange:



That was the countdown and it remains just 10 hours, 40 minutes and 40 seconds. If I have $500, that means I have to go for 150x leverage or lesser but still very huge leverage on more positions.

What is the exchange trying to encourage? The exchange just want my trading fund to get liquidated just because of their personal gain.

They are deceiving themselves because I do not need any lucky draw that I may not even gain from.

Exactly right.

And furthermore, this should count as gambling. Why are regulators not raining down upon them? You have to stake your money (and lose it, most likely) in order to win "a chance to win something else"

I really cannot justify this kind of shady exchange (although I consider all centralized exchanges shady, corrupt and the worst place to store your money).

Worse than only deceiving themselves, they are using gambling psychology to deceive us.

[LogitechMouse]

Not surprised.

They're trying us traders to be gamblers where we will be going all-in with max leverage just to enter into an event where we have a low chance of winning. This is on MEXC and I've seen it as well, but instead of participating on it, I just simply ignore it because it's not worth it. Imagine spending $500 with x150 leverage just to have a ticket which will give you a very low chance of winning. What if you get liquidated? Will the money be returned by this "ticket" most probably not, and that's why most of the events on MEXC are only for those who are trading huge amounts of money, and not for us average traders.

Well, we can just simply ignore this one and those other events out there. Chasing those might end up in us losing even more money. Just trade with our risk, don't overleverage, and know your limitations.

[AuchanX]

Exchanges sometimes put users at risk for their own profit. Trading high with 150× leverage is a huge risk. Especially if we have limited funds in hand, then we will not have money in hand to trade later. The lucky draw that the exchange offers to its users is a completely unrealistic opportunity in my opinion. It actually creates the possibility of losing trading funds.

[laijsica]

The exchange I use also offers such offers occasionally but I don't pay much attention to them because for traders like us who trade small amounts of money, it would not be possible to meet such a huge amount of leverage or if you were eligible, they would not select you. I think such offers could be a business strategy of the exchanges that have big whales under their belt. Even if the exchanges attract traders with such offers, they may not pay that much.
Exchanges use such strategies to increase profits from transaction commissions and entice you to trade more.

[Alpen]

I agree with you that using 150x leverage is not good at all because high leverage is the common cause of liquidation of traders money, but do not link it to FTX because exchanges are not centralized to the extent that they are the ones that is gaining all the money traders are losing just like how the gambling sites are. Exchanges make money from trading fee, liquidation closing fee and other means, but they do not make money from almost all the money traders are losing, it is traders that make money from each other.

From what I gather, you're aware that FTX stole client funds, yet you're asking me to believe that other exchanges don't take client money? Then explain to me why OKX froze client withdrawals for several months with no explanation whatsoever. Need I remind you about BTC-E? Where are those traders' funds?

Looking at more recent cases — the situation with Turkey's largest exchange, and right now there's a scandal unfolding in Poland. As for the Baltics and Malta, I'd get tired listing all the scams from their exchanges. Hell, just think back to Mt. Gox. That case was never even properly investigated.

So let's sum it up. Exchanges use client funds as if it were their own money. That was proven in a US court in the case against Binance. There was also a trial in Italy against a local exchange, where the mechanism was exposed as well.

You're not trading with real money. They simulate trading in your terminal. And sure, like most traders who use leverage, you end up blowing your deposit. But there were never any real funds on the balance to begin with. The exchange takes the money immediately and uses it however they see fit.

I'm talking specifically about exchanges that trade derivatives.