Why are those idiot exchanges more attractive?

In the cryptocurrency circle, in addition to the well-known Binance and OK exchanges, there are many so-called "informal" or "idiot" exchanges in the market. These platforms often attract some investors because of their special attributes.

These informal exchanges often offer higher transaction fees, but also promise to give investors high rebate commissions. This "taking advantage" mentality makes some investors easily attracted to these platforms under the sales promotion of salesmen. However, behind this high rebate, there are often higher risks.

These exchanges usually offer extremely high leverage multiples, such as 150 times, 200 times or even higher. They take advantage of investors' pursuit of getting rich quickly and advocate that high leverage can easily grasp market trends and achieve overnight wealth. But such leverage multiples undoubtedly magnify investment risks. Once the market fluctuates, investors may face huge losses.

The entry threshold of these informal exchanges is usually low, and some do not even require strict identity verification. Although this provides convenience for investors, it also provides a hotbed for illegal activities and fraud.

Investors need to be wary that these informal exchanges often have many risks. For example, if the network cable is suddenly unplugged during the transaction, the position cannot be closed in time, the account is illegally operated, etc. These risks may cause investors to suffer heavy losses or even lose their principal.

Although informal exchanges may offer some seemingly attractive offers and opportunities, investors should still be cautious when choosing a trading platform. In order to protect their own rights and interests, it is recommended to choose a formal exchange with a good reputation and strict supervision for trading.

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