So I’ve got $500 sitting in this exchange, and now they’re flashing this countdown for perpetual trading:
Only 10 hours, 40 minutes, and 40 seconds left. With my $500, that pushes me into 150x leverage or maybe a bit less, but still crazy high leverage on loads of trades.
What’s the exchange really pushing for? Seems like they just wanna see my funds get liquidated for their own profit.
They’re kidding themselves if they think I’m gonna bite on some lucky draw that I probably won’t benefit from.
As far as I know, the exchange is just doing it for marketing, and this strategy is to keep you in trading, the offer may not be open to every trader on that exchange, but open to a selected few traders who may have met up with that trading competition to win the ground amount.
This level of offer is mostly open to big bag traders, considering their total wagered the exchange is sure that a few of those traders will definitely meet up with that 150x leverage but not for weak one-traders I mean real whales.
Those who have good knowledge of portfolio management and I shunk left over balance to risk and manage their position with, otherwise, small balance traders like yourself could definitely get liquidated in a short period of time participating in that trading prize hunt.
The exchange is doing just what every other exchange will do, because it is business to them, and your loss is their gain.
There are people who are falling for this deceit; it requires an extra level of discipline for you to stop yourself from being tempted.
Proper marketing strategy, which is to add a sense of urgency to force some people to make a decision faster without thinking.
Some traders will attempt to trade more and win the lucky draw and makes them compete with others to have their position on lucky draw. They don't care with other things as their target is just the lucky draw.
That promotion will raise attention from traders and they willing to win it especially if the prize is big. They could breaks their own rules in trading just to chase the prize.
Exchanges wants to make more profits so they will launch interesting promotions. If you aren't interested, just skip and trade as usual.
IMO, that just part of the exchange promotional offer, nothing more. since this is just an offer, i don't see anything wrong with it. If you can't meet the requirements, you can skip it. this can be considered as something wrong with that exchange, if that exchange requires and forces you to trade $75,000 to open your account. as far as exchange never do that, it's okay, you can skip that promotion, just like a salesperson come to you offering a product and you don't need it, you can refused his offer.
You have a very good advise overall that traders should not fall into such exchange trap, but I do not consider this not to be in the category of marketing because the exchange is not new as a trader that is trading on an exchange is already trading on the exchange and not a new traders that they want to lure into using their exchanges. And also no new coin mentioned than USDT. So they are not marketing anything, but they want to make more money from the traders they are sending such information to. Any trader that is tempted has high probability of losing his money.
This exchange Looks like MEXC, I am not surprised I actually experienced this kind of offers there and most importantly on bybit too. If one is having a new account there. It is even more which has made me to think that they actually trick newbies more into this offers and I think the reason why new accounts get this offers is because they might have found out that older accounts hardly fall for this trick.
Its a section on bybit called token splash or reward hub I have forgotten, this lucky draws are just lies because its hard to be winner after spending or rather losing lots of funds on the exchange due to fees or lose trades. If they were genuine the timing would be reasonable.
This is just a common strategy that a lot of exchange are using right now to make their customer continue trading, a lot of people usually fall for them and they cannot stop until they exhaust their money. I usually dont fall for things like this whenever Im done trading I stop and I dont continue anymore no matter the bonus they want to give me I will not continue because I know its just a strategy to keep me on and when you continue trading you will definitely may end up losing all the money you have made so far for that month. It is good you have decided not to fall for it .
Its an interesting point of view if you think that today most of investement has become something more to a Casino than a Wall street Market.
There are basic forms of gambling, maybe could it be seen as an evolution of our time, people believe to become rich overnight" gambling all in".
Doesn't really matter if this can be done with their money, life, relatives...
If you reach transaction volume based that market requirement do you received fund in spot wallet or offering the future bonuses only? I don't think interested joining this kinds offering from market exactly get sad ending later. Usually I got bonuses trading offer at Binance exchange and the fund sending to spot wallet by trading at spot market with lower transaction volume, last week I earn bonuses $10 and maximum transaction at spot trading under $20.
Too risk exactly the trading must be in future and I doubt you can't manage well to earn bonuses because future trading too risk than trade at spot, you must check how much transaction volume requiring before joining that offering.
An offer that aims to encourage users of their trading platform to win a lucky draw. If it is a competition event, it would be interesting to see the prizes to be won. But if it is just a lottery, many traders would ignore the offer, seeing the large number.
I think it is a promotion for the exchange platform. Even if the prize is a lucky draw, it would be interesting if they provided information on the prizes that can be won.
This definitely is a liquidation trap that is dressed up and presented as an opportunity. It may just be a usual business tactics by the exchange to a more perculiar customer, but I am sure it won't end well if you allow your greed take the better side of you.
The best bet to last longer and be just as profitable is to survive all this noise by ignoring it, stick to the low leverage you are used to and of all, trust your gut when it says something smells foul, as is this case.
It's obvious that the exchange wants you to keep trading no matter you made profits or not, because exchanges make money from the trading profits, not by the profit/loss so as long as you keep trading, they just keep deducting the fee, which is the whole reason. And it is not deceiving, it's just an attractive marketing to trap the traders who think that they may actually win something even if they enter the draw. And going with $500 to complete 75K itself an impossible task but if you got $75K then you can does that with single and less risky trade.
1 lucky draw chance and generate a volume of $75k that's no a huge amount to be honest if it is to generate in Futures but it will be time-consuming and if our amount is small, we might have to trade a lot of time and it can cost us in the form of fees. If they are allowing us to generate this volume on any pair, then it makes sense but if they are demanding to trade only in selected pairs, then it is highly risky because they can ask you to trade in some meme coin or highly risky token, and by the time you hit buy or sell, it could cost you money in terms of loss haha.
So avoid it at all cost, I have not joined any single one of these competitions, although there was a time when Binance had alpha program running where people had to generate volume in order to increase their chances of winning, and I did no even joined it because it was waste of time imo.
The fact that it's a lucky draw and how they are telling people to trade with huge leverage is something else .
Knowing the state of exchanges, lucky draw could very well mean $1 USDT if you are lucky . I've never had any luck with lucky draw or any freebies like this.
One thing for sure though. I'm immune to any promotional campaign that gives a lucky draw for trading gazillion of dollars because I know I would probably get 1 dogecoin .
Pretty much normal for most exchange to encourage users to trade more either on spots or future trading. For me its not deceiving but a marketing strategy for them to lurre users. Anyway thats not complusary for any users only if they tried to register or do the task. I dont see any deceitful deed there but just an agressive approach towards users.
They want you to pump their metrics for a chump change. The same way they keep making trading competition almost every week.
Without it, nobody will be motivated to push their volume way beyond their usual daily volume. Just a common strategy to keep their exchange from being labeled a ghost town.
Not necessarily the liquidation, though; the exchange wants your trading fees. It doesn't care if you trade 75,000 USDT once or 750 USDT 100 times as a scalp trader or open a 10x position of 7,500 USDT. All they are looking at are the trading fees that will come out of opening and closing the position. In fact, on the contrary, unlike casinos, the longer you keep using the exchange without blowing up their accounts, the happier they are because they are assured of daily or weekly trading fees from you.
So such promotions are aimed at ensuring that you keep trading with them.
Yes, because volume is still needed and many promotions are done to make the volume increase every day and that way the Platform continues to run and profits are also increasing.
It doesn't have to be $500, even less than that if you hold it on the Exchange there will always be an offer to double the money with the various programs that are already provided.
There are more users who continue to be active to transact or just play and complete missions in the competitions that are held,
so that the ads made succeed in making people stay and continue to transact.
Some exchanges will notice their costumers who didn't trading that's why usually those exchanges will be warn to the costumers to encourage trading their money and seems they didn't care whether the costumer funds will be liquidation or even profit because they says the exchanges made to facilities the people to trading so, this is based on my experience too that several years ago i was put my funds to the exchanges which i wouldn't mention it but when i want to withdraw my funds suddently they have been freeze my funds and the reason is because the exchanges wasn't designed to store people funds and if i want my money back they were encourage me to trading more not just save it into the exchanges