Beware of Crypto Scams: How to Spot Fake Traders and Manipulative Influencers
The crypto market can be incredibly volatile. Prices can skyrocket or plummet for various reasons, and sometimes it feels like the explanations given are just noise. Here’s a breakdown of what often happens and why you need to be cautious:
- Market Pumping: When the market goes up, you'll hear it's due to ETFs, a bull run, or other positive news. 🎉 - Market Dumping: When the market drops, people blame events like Mt. Gox, regulations from various countries, or claim it's all a grand manipulation scheme. 😱 - Market Rebounding: If prices bounce back even slightly, the same people who were just pessimistic suddenly predict enormous gains by the end of the year.🚀
The Reality
This cycle of explanations and predictions isn't new. It's been around since the early days of crypto and even before that in traditional markets. If you're new to crypto or even a veteran with little trading knowledge, you might get caught up in this noise and lose money, regardless of whether you go long or short.
The Social Media Trap
Social media manipulation is a powerful tool, and it’s widely used. Don't be fooled by influencers with thousands of followers. Many of these followers are from the last bull run and are now inactive because they lost money in 2021 by following these so-called experts.
Red Flags to Watch Out For:
- Overconfidence: If someone is always certain about the market's direction, be skeptical. - Frequent Changes in Predictions: If an influencer switches from bullish to bearish rapidly, they’re likely just chasing the trend. - High-Leverage Trades: Promoting high-leverage trades is a common tactic to lure inexperienced traders. This often leads to significant losses.
What You Should Do
1. Educate Yourself: Instead of relying on influencers, invest time in learning about the market. Understand the historical trends and the reasons behind market movements. 2. Analyze Past Predictions: Look at the past predictions of these influencers, especially during the 2021 period. Compare their bullish and bearish posts to the actual market outcomes. 3. Stay Cautious: Avoid high-leverage trading unless you are very experienced. The potential losses can be devastating. 4. Diversify Sources: Get information from multiple reliable sources. Don’t put all your trust in one influencer or trader.
Remember, many of these "experts" are just trying to profit from your trades through affiliate links or other means. Protect your investments by being critical, doing your research, and making informed decisions.
Also, STAY AWAY from guys who are willing to help you and send you a contact via WhatzApp or Tellgram.
It's alarming how many people on platforms like Binance Square have little to no knowledge about trading futures or spot markets yet still follow so-called "pro traders." Let me share some insights to help you avoid falling victim to these scammers. The Fake "Pro Traders" 😆😆 Many people create fake accounts with names like X-Trade Pro, Ben The Trader, ProTrader747, and so on. These are fictional names I said, I will not tell their real names. These individuals aren't sharing trading signals to help you; they do it expecting tips if you profit from their posts. The reality is, these "pro traders" often copy signals from external groups (e.g., Telegram) and pass them off as their own. The Trap 🙈🙈 I’ve seen numerous people get liquidated and lament their losses because the price moved in the opposite direction of the signal. Here's why: 99.99% of posts on Binance Square are copied or stolen from other people or groups. Some posts may be helpful, but most are designed to make you buy something that benefits the poster financially. Spotting the Scammers 🔍🔍 One guy, with 90k followers, has been copying and pasting posts for years. People thank him for his "great signals" and tip him when they profit. But his real intention is to earn money from these tips by sharing content he neither created nor analyzed. Their True Motive 😈😈 These scammers don't have their own money deposited; they earn from the tips you give them. They often post screenshots of huge profits, pretending they made those trades. In reality, these screenshots are years old and belong to other traders. Protect Yourself 🪬🪬 1. Stop Following Fakes: Do your own research (DYOR) and verify the legitimacy of the traders you follow. 2. Avoid High Leverage: High leverage (30-125x) can quickly deplete your funds. Instead, use a maximum of 3-5x leverage and risk no more than 20% of your capital on a single trade. 3. Use Stop Losses: Always use stop-loss (SL) orders to protect your capital in case the market moves against you. A Real-Life Example 🫠🙈 I saw a trader who used 50x leverage with a $50 margin and ended up with a $5000 loss because he didn't use a stop loss and followed a bad signal. This is a common scenario, and many have experienced similar losses. Conclusion 📔🗒️ I’m not sharing signals to attract followers. My goal is to warn you that Binance Square is rife with scammers, copy-paste content, fake news, and misleading signals. Always do your own research and trade responsibly. Always DYOR - Do Your Own Research ✅✅ #DYOR $BTC $ETH
$BTC and $ETH going down again after a predictable rebound. Yet $SOL is still holding on due to ETF hype.
This is a really good short opportunity. Current price is 153, I've been shorting at 3x for days. Average entry price is now 149.
As we have observed from Ethereum ETF, this is all sell the news. Especially if it's Solana. Not only is the approval not even guaranteed, even if it does there is very little chance of a major pump.
Solana ETF really feels like a stretch. I have always been negative about Solana, been shorting it forever making money, and this time the hype is back.
Just don't go too high leverage because we can't tell when the hype will end. But surely this price level will be broken down eventually, possibly to 120.
Hello! I am Short Maestro. I decided to make a new series, Futures Trading 101. Basic/Intermediate/Advanced knowledge that you MUST know to trade Futures.
Surprisingly, most traders do not even know intermediate, or basic knowledge I will be posting. Why? Because they never read the fine print! There are help pages, provided by Binance literally accessible right from the trading menu. There is "Binance Academy", which also explains 99% of the basic features. But let's be real, most of you seeing this never even bothered to take a look. For example, if you are questioning what actually happens when you get liquidated, or how leveraged trading works. "Who is borrowing me this money if I go long?" "What actually happens when I Short a coin? Why do I make money when price goes down? huh?" << Is this you? Don't worry, better late than never. This series is exactly for people like you. Today, on the first post of the series, I will be explaining Funding Fees, easy to understand, but detailed enough to know everything you need to know. This is free, so if you are interested keep reading.
Ok, so what is Funding Fee? It's this thing right here. (Actually, this is the Funding Rate, which determines the Funding Fee.)
Perpetual futures are a type of derivative contract that allows traders to speculate on the price movements of an underlying asset, without having to own or deliver the asset. Unlike traditional futures contracts, which have a fixed expiration date and settlement price, perpetual futures have no expiry and are constantly adjusted by a mechanism called the funding rate. CRYPTOCURRENCY DERIVATIVES: CRYPTOCURRENCY PERPETUAL CONTRACTS , Ken Kapner
So.. what does "Perpetual" imply here? No expiry date. Huh, seems amazing for speculation.. but also has many issues, probably. And that issue is: The perpetual futures price may not match the spot market price. Also, since longs (leveraging , or betting on the coin increasing in price) essentially borrow money to buy their coins, they need to pay interest rates. This is why the default funding rate is 0.01%. Even if the underlying asset's price is the same as futures price, longs still pay shorts. Because Binance assumes that borrowing FIAT currency is more expensive than borrowing crypto. Which is true.
How is funding rate calculated? The complex equation is not necessary to memorize, just understand that higher (positive) funding rate means there are more longs than shorts, and the futures price is higher than spot price. Longs pay short. And vice versa for negative funding fee. Shorts pay long. Most coins with the highest market cap, such as BTC, ETC, almost always have positive funding rate. Except BNB. This thing has negative funding rate, which makes this a good opportunity to go long... (Will explain later) Anyways, this means longs pay shorts, every 8 hours (Some trading pairs use 4 hours). The funding fee is paid almost exactly as the timer is 0, with around 1 min of delay. This means that if you close your position immediately before the funding fee countdown, you actually don't pay or receive the funding fee. Note that the 1min delay needs to be taken into account. How much is 0.01% though? That's not really a lot... Also, 0.01% of what exactly? My investment capital? Or the price of the asset? Nope. The fee is calculated based on your position size, not your margin size. Because every day is 24 hours, (obviously) and funding fee is 8 hours, that's 3 funding fee payment per day. Assume 0.03% funding fee/day, and then you have to multiply it with YOUR LEVERAGE. So, if 5x, that is 0.15% per day. Now that suddenly feels like real business. Yeah, it isn't a joke anymore.
0.15% per day? That's.. 54.75% per year. So longs, with 5x leverage, at 0.01% funding rate (Default), needs to pay 54.75% of their investment margin (The real money put into the position) yearly! This is one of the major reasons I go short. I get paid 54.75% per year! Even if the market pumps, but pumps very slowly with awkwardly high funding fee, I get passive income. And even if my unrealized PNL for the short position is still minus, I can get more than the loss just by waiting. Some extreme example, if you shorted BTC at.. like 30k, about 2 years ago, and have a liquidation price of around 100k, you actually made more money than your unrealized PNL by now. Just by funding fee alone! Of course, this doesn't matter if you get liquidated first. Another reason to go low leverage.. which is something I mention every day. Even better, if market dumps, I make profit BOTH from the short position itself AND funding fee. Wow! Or I can reduce the loss from the short position and make decent profit overall. So essentially, these longs are giving me money every 8 hours by breathing air. Funding fee literally drains your money. Or pumps your bank account. This is why longs are usually pressured to sell. They can't afford to hold, especially if funding fee is higher than default. For example, when BTC reached ATH of 74k, funding rate was around... 0.1%. That's 10x more than the default. By shorting BTC at 5x, I legit got 0.5% of my investment every 8 hours. 1.5% per day. I invested $100k, so... that's $1500 per day by breathing air. Who pays for it? The longs who are still going long at 74k. (They all got liquidated in the end, after paying all that funding fee lmao)
So, this "Funding Fee" obviously provides significantly higher yield than any bank interest.. They give you like what, 7% yearly? Maybe higher if you got better deals but still, it's a joke. Or Bonds, like US Treasury Bonds. They don't generate 0.15% per day. This funding fee system is a great way to generate passive income, and also make lots of money with the position itself if you have skills. Another thing to mention is, you can close the position at any time, so your money is not locked unlike bonds or certain savings accounts for banks. Depends on countries, but certain banks don't let you withdraw money from your savings account until expiry date, or else you don't get the promised interest rate, etc.. Locked money is the worst money. Now you know how importnat funding rate is. Funding fee really adds up. How to check funding fee? There is a "Funding & Transaction" tab at "PNL Overview" for Futures. Go to Dashboard first if you don't even know where Futures PNL overview is at. You can also see "Transaction Fee Allocation" here... this is another topic, but yeah. You would be surprised to see how much fee you have paid. It's probably almost the same as your entire account balance if you traded for more than a year.
Now, explaning BNB long position I mentioned, BNB has a negative funding fee (Usually). As I write this article it's at a whopping -0.09%! That is a LOT. Negative funding fee means SHORTS PAY LONG. And if you read my posts, you know that I really support BNB. BNB is related to the transaction fee issue which I mentioned above briefly. BNB will go up in price, BNB is basically Binance Token. You see this post on Binance? Then obviously BNB won't be dumping any time soon, or crash. BNB will crash if Binance goes byebye. If Binance goes byebye all our investment is byebye. You have your money and crypto at Binance, so I am confident you also trust Binance, right? YET for some reason, this thing has a massive negative funding rate. So you can go long AND make money while waiting for profit. This is a double deal!! Maybe you should go long on BNB. Not financial advice.
Well, that's it for funding fees. Hopefully this helped. Tip some $$ to support me. I am helping you make money, if I actually did help you make money then yeah... Slip me some.
SUMMARY: Funding fees are a geniuine method of making passive income. They also work the other way around, sucking your money like a black hole to be someone else's passive income. So take it deeply into consideration when trading Futures.
$BTC We are in this really awkward zone where anything can happen. None of my technical analysis works right now. The halving is in 10hours approx. and there are 3 major possible scenarios IMO:
1. BTC dumps to 58k and possibly 55k, liquidaitng all longs (3 Billion USD). Then it pumps to 70k and beyond. 2. BTC pumps to 72k, then dumps to 66k. From there it stagnates, sets up support and gradually pumps. (MOST IDEAL) 3. BTC dumps below 55k, everything is gone, all altcoins go -80%, real doomsday (unlikely)
So most likely is dump>>pump. When BTC starts dumping every other coins will get hit massively. IDK what will happen stay safe.