This is a very important article from #Binance So please read it completely and in detail.
Do #tradingcrypto responsibly, get advice from a Professional Trader.
Excessive trading in #Binance is harmful to health.
Trading is a serious business.
However, novice traders do not approach trading seriously enough.
Most novice traders approach trading with a speculative mindset and do not carefully outline a plan for how they would approach the markets. In fact, some traders are betting without even knowing it.
On the other hand, winning traders are not gamblers. They take responsibility for their actions and control factors that are within their capabilities. When you feel in control, you are ready to act decisively.
Trading must be well planned and deliberate. As professional traders suggest, if you want to make consistent profits, you must trade responsibly.
What is responsible trading?
The beauty of a free market is that everyone can participate in it. When you make a trade, the market will do whatever it wants: it could go up, down, or even sideways. This is completely out of your control.
What you can control is risk and decide how and when to trade, in market conditions that are conducive to your methods and style.
Responsible trading is about having full control over your trades and taking responsibility for your own actions. Trading responsibly requires not spending beyond your means. In other words, don't risk money you can't afford to lose.
The best way to be a responsible trader is to practice. Practice is not perfect, in this case, no one can guarantee you a positive return: the key is to understand and adopt good practices.
Here are some tips and best practices to help you be a more responsible trader:
4 areas for responsible and safe trading
1. Practicing self-discipline.
Self-discipline is the ability to avoid unhealthy excess of anything that may have negative consequences. In trading, this means telling yourself to avoid unhealthy excesses like compulsive trading or gambling.
At Binance, we encourage users to trade responsibly and practice self-discipline, especially when feeling pressured by losses or a losing streak. Our system-generated notifications constantly remind users of the dangers of compulsive trading and the risk involved in trading more complicated products such as derivatives.
2. Continually educate yourself.
Cryptocurrency trading is a big topic that can seem overwhelming to novice traders. The truth is that trading is complicated; There are no short cuts. As such, it is important that users continually educate themselves to stay grounded and competitive.
Binance has continually worked to educate its users on all aspects of cryptocurrency trading, from the underlying technology of cryptocurrencies to the intricacies of the crypto economy. These are freely available from Binance Academy, Binance Research, and numerous product guides, such as the recently published Binance Leveraged Tokens guide.
3. Protecting your capital at all times
Risk management is a core concept that is key to the success of every winning trader. It helps you avoid substantial losses that can lead to losing your entire trading account.
In the Binance trading interface, we have incorporated risk management features, such as stop-loss orders, to help users manage risk on individual trades.
In addition, Binance Futures has also established other security features such as settlement mechanisms and insurance funds to protect users from adverse losses.
For more information on settlement mechanisms and insurance funds: Read more here.
4. Know when to stop
Knowing when to stop and learning to recognize unhealthy trading habits requires being honest with yourself about the risks you take and the type of behavior that accompanies it.
After losing, for example, do you continue trading in an effort to recoup your losses and risk accumulating heavier losses in the process?
As a responsible trader, you should always keep yourself in check and ensure you have procedures in place to avoid the disorder of compulsive trading.
Binance has established several procedures to remind users and avoid impulsive behavior. For example, when a user experiences a losing streak or suffers a large loss, we continually remind them of the risk involved in trading and encourage them to stop trading activities.
Exchanges and Users Share Responsibility
Naturally, the responsibility simply doesn't end with the users. Each exchange is responsible for educating its users, as well as allowing users access to the products. In a sense, because exchanges can easily list new projects or tokens, it is more important for exchanges to ensure that responsible trading principles are instilled in their DNA.
Binance, for example, has ensured that its products are integrated into a comprehensive risk management system that provides a safe and fair trading experience. We offer users the necessary means and tools to:
Prevent trading addiction by establishing trading limits and self-exclusion tools.
Ensure data privacy and security by adding security tools designed with privacy in mind and that users comply with regulatory requirements.
Offer a secure trading environment to users by integrating cybersecurity monitoring capabilities.
Binance supports responsible trading
We are aware of our leadership position in the market. Because users have a good experience with us, we become the largest exchange. As a market leader, we have a great responsibility to educate and protect users.
We continually think of ways to help promote and ensure responsible trading among our users so they can have a good and safe experience. These include:
Our insurance funds. Unlike other insurance funds, Binance insurance funds are used for what they were intended for. On several occasions where market volatility was extreme, our insurance funds were activated to absorb user losses. Recently, it was reported that over 13 million USDT from our Binance Futures Insurance Fund was used to protect users during the May 10 crash. In anticipation of the third Bitcoin Halving, we injected another 30 million USDT into the Fund. No matter how some observers now comment that the halving had not resulted in much volatility. The fact is that we choose to invest proactively to protect our users.
Development of innovative products that achieve a balance for our users. We are also known for the ways we carefully design and structure our products. Our latest products include Binance Leveraged Tokens (BLVT). BLVTs are designed to address the controversial issues of existing leveraged tokens, thereby protecting users from the long-term detrimental impact of traditional LTs. As such, BLVTs are a safer, longer-term investment tool than existing leveraged tokens.
Security platform. As one of the most interesting industries, the cryptocurrency market attracts a lot of attention. Unfortunately, this includes bad actors who will try to find ways to disrupt the market for their benefit. There are often reports of hacking attempts, some successful, others thwarted. What is certain is that no platform or exchange can claim to be 100% hack-proof, so the goal is to ensure that we have complete protection to prevent these attempts. Even as volumes grow day by day, we continue to offer the most stable and fastest correspondence in a secure environment protected from bad actors.
These are just a few examples, and we will continue to improve our innovation and offerings. As a service provider, we think of user-friendly ways to provide a safe and responsible trading platform. As a company, we think about sustainable and responsible practices that benefit our users and the market. As in the case of leveraged tokens, we take an active position to remove a product when the trading volume would generate income for us. Because the decision to make trading responsible and create a safe and conducive environment is a common initiative for everyone.