How are we being deceived by crypto exchanges? Plus a free Telegram bot with forecasts and price notifications for cryptocurrency pairs
Today we will dive into two important issues. First, lets discuss how crypto exchanges work, in particular their copy trading methods, and how they can mislead users. Secondly, we will tell you how to get a free Telegram bot to track cryptocurrency prices and set notifications for the trading pairs you are interested in.
How does copy trading work and where are the hidden pitfalls?
Copy trading is a tool offered by many crypto exchanges that allows you to automatically copy trades of professional traders. The principle is simple: a trader enters into a transaction, and his actions are repeated on your account. For example, if a trader uses 5% of his capital, you will automatically invest the same percentage.
However, many users do not understand that crypto exchanges can create conditions under which you lose even with the visible profit of a trader. This happens for several reasons:
1. Focus on successful transactions. Crypto exchanges and traders show high profit percentages, but they reflect only the result of a single transaction, not the overall balance. For example, you connect to a trader with $100. On the first day, he loses 10%, leaving you with $90. The next day, he earns 5%, and your balance increases to $94.5. Despite this, you pay commissions to both the exchange and the trader, and as a result, in two days your balance turns out to be lower than the original one.
2. Not accounting for the overall balance. Exchanges do not take into account your start-up capital. This means that you share profits only on successful trades, but you bear the losses entirely on yourself. Thus, even if the trader leads you into the negative, the exchange continues to earn through commissions.
3. Hiding unprofitable trades. Many traders have a practice of not closing unprofitable trades so that they are not displayed in statistics. This creates the illusion that the trader earns more often than he loses.
A new approach to copy trading
One of the interesting solutions to this problem is the CopyTrader platform, which uses a new approach to copying transactions. Unlike traditional exchanges, here traders are required to take into account the total balance of the user, and not earn on a separate transaction. How it works:
- Accounting for the initial balance. If you connect to a trader with $100 and your balance goes into the negative, the trader must bring you into the plus before starting to receive his commission from the profit.
- Subscribe to the trader. Traders receive a stable income from monthly subscriptions (the cost of the subscription is set by the trader himself), which encourages them to trade high-quality. Thus, they do not depend on the number of transactions, but focus more on stable profitability for their subscribers.
This approach is beneficial for both traders and investors: the trader receives a stable income, and the investor receives transparency and honesty.
Free Telegram Bot for Crypto Traders
Forecaster: https://t.me/forecaster_robot
Now to the most interesting thing — we offer a free Telegram bot that allows you to set notifications for any cryptocurrency pairs. For example, you can select a Bitcoin/USDT pair and specify the desired price. When the price reaches this value, the bot will send you a notification. This feature, which other services offer for money, is available to you for free.
In addition to notifications, the bot also provides forecasts on the price movement of cryptocurrencies. Our algorithm analyzes the market and suggests the most likely scenarios of price movement. However, like any forecasting system, the bot only evaluates the probability of events, and does not guarantee the result. We always encourage users to independently analyze information and make decisions based on their own understanding of the market.
Forecasts are accompanied by key information: the current price, forecast time, target and risk level. We emphasize the importance of a conscious approach to investments, especially in high-risk assets, which can bring both significant profits and significant losses.
Summing up the results
Today we have analyzed how crypto exchanges can mislead users when copying transactions and what both exchanges and traders earn from. We also presented an alternative approach from CopyTrader, which takes into account the overall balance of the user and creates a more transparent system.
And finally, the free Telegram bot is a great tool for those who want to track cryptocurrency prices easily and for free and receive forecasts. Just set the price levels for the pairs of interest and wait for real-time notifications.
Do not forget that any system is just a tool, and the final decisions are always yours. Trade consciously and good luck to you in the world of cryptocurrencies!
