Leveraged Trading is a Scam? & Crypto News

Hey everyone, it's Michael and welcome back to Vox Mining. It's been almost two weeks since we last met and wow, there's a lot happening in the cryptocurrency scene. So I thought what better video to make today than an update on all that's happening, including things related to the whole leverage trading scandal. Right now this is blowing up. There's various YouTubers being called out for promoting leverage trading and people kind of drawing this analogy to almost BitConnect slash selling cocaine. We also have a lot of volatility in the markets. Right now Bitcoin is at 7,300. We also have a few good developments happening. One is in France. They're trying to encourage the development of a digital euro. And finally, we got Microsoft. They're joining the whole crypto scene by issuing out rewards that are based on the Ethereum blockchain. They're issuing out essentially non-fungible tokens. You can see this big smile on my face because I've been looking at this for the past two years now and having big companies really stepping in and saying this is valuable technology really validates what we've been doing all in this space. So guys, welcome back to this channel. Make sure you're subscribed if you haven't subscribed so already. And if you haven't, make sure you click that notification bell. YouTube really upgraded their algorithms or something like that. So right now that bell really matters. Anyways, if you do, you'll be updated with the latest cryptocurrency news and insights in the space. And as a final disclaimer, everything here is my personal opinion, not financial advice. Let's get started. So starting off with cryptocurrency markets, we got Bitcoin at $7,350 right now. These few days, it's been swinging quite a bit. And there's a lot of fear on the market that it could dip potentially lower. And I think the best way to view this is that we're perfectly at a price discovery point. There's a lot of balances between why crypto can grow in the future. For example, the hard current trade war, limit financial limitations and restrictions in individual countries. These can all mean an opportunity for crypto. But at the same time, there's a lot of negativity in this space as well. Kind of people viewing, you know, where is this going to go in 10, 20 years? Can Bitcoin really scale? And can we really get that adoption that we need? The other factor affecting price volatility is the lower and lower organic liquidity in the market. So if you guys don't know about this already, even though we see these large reported volumes of like 22 billion US dollars worth of Bitcoin traded each day on CoinMarketCap, we can discount a large portion of that to either market making or watch trading. So this is just inflated volumes reported by exchanges. There's been a lot of efforts to combat this. But as it stands, there is a lot. For example, if you just look at this report from a crypto browser, they're claiming that 93% of coin market caps reported volume for Litecoin is fake. We're going to see this more and more as something that we're going to realize is that exchanges try to report as much trade volume as possible, even though organic volume, the people really actually trading, that's on the decline. Especially right now, because we're in the depths of the bear market, people are just, you know, just huddling or speaking silently. And there's something that I've discovered myself here. I've been traveling a little bit around Bali, talking to people. And a lot of people I meet, they own crypto in 2017. They stopped trading right now. But that doesn't mean they lost complete interest. And this is something that we should look for, like revised, renewed interest rather. Is that a market that I'm looking for rather than, say, just plain looking at trade volumes every day? Because that's decreasing. And that also explains why we have this volatility between almost like 8K down to 7K back to 8K again. Volatility is going to be there, especially when volumes are low. Now, acting on this volatility are traders. So recently, there is a whole controversy on YouTube regarding people, YouTubers, and influencers. I hate that word. Promoting trading, leverage trading platforms. The idea that it can take trading to the next level, go 50x, 100x leverage. Potentially a 1% change in Bitcoin can cause you to lose everything or double up. Now, this idea is expressed really well by CryptoLove. He made this hilarious comic here comparing the BitConnect shells to the new Bybit shells. So we've got like Sunny Decree, The Moon, CryptoZombie, Ivan on Tag, all talking, generating referral links for Bybit. So why this analogy is being made is because there are ridiculous referral bonuses. So basically, if you click that link from the referral link and you start trading, a large portion of those trading fees can go to the original person, especially if you trade a lot and potentially lose a lot of money. So what really brought me on to this was a discussion with a very concerned blockchain brand. He's taking the viewpoint that because these influencers are having huge incentives to promote people to essentially leverage trade. I mean, if you search Bybit right now, you can see tutorials on how to use Bybit, buy, use it, or, you know, $100 a day. Make $6,000 on Bybit, you know, basically, essentially promising huge profits by following perhaps a few simple trading techniques. And in many senses, the chances that people do make money from trading, that's actually going to be quite small because actually trading is very much a zero sum game. Your gain is someone's loss and someone's gain is your loss. And I don't want to be too preachy for this video. I think you guys are all grown up enough to understand the risks associated with leverage trading, especially since one of my very early videos, we looked at the Ethereum flash crash, an event that took Ethereum down from $100 to almost $0.05 in a space of a few seconds, just because orders went a little bit crazy on GDEX. And situations like that can happen again. And they can totally wreck a trade because after those few seconds are over, after the flash crash is over, everything just kind of resumes, but your money's gone. So personally, for me, I don't really use leverage trading. You guys know my setup. I've always been dollar cost averaging into a hot account. And if I ever do need to trade, I've always just used trading exchanges, like putting money in when I need the trade to happen, never leaning too long. You can see how cautious I am here. And also, if I ever do leverage, it's always within controlled limits and with stopped limits just to protect myself from losses. At the end of the day, I think the best way to describe it is this. You can be so sure of yourself about certain trends, TA analysis, but TA isn't 100% perfect. So being a good trader is also about being very humble and have a lot of humility. So if you do make a bad call or misread, or if the charts themselves don't behave as predicted, then you can always have the opportunity to back out of a bad trade. So maybe you're right 55%, 60% of the time. The other 40% of the time, you know when to exit and you exit automatically. So you don't totally get right. Next up, following up with the news. So Microsoft, they recently announced that they're going to start issuing out non-fungible tokens that are living on the Ethereum platform to reward Azure users. So these are Azure content creators that write articles or support Microsoft Azure development. And Microsoft will directly give them these non-fungible tokens. So NGIN has been for the past year building out a whole platform to support non-fungible tokens. And for me, what my interest here is, is that non-fungible tokens can play a key role in the gaming sector. Reason being is that it gives players full, complete ownership of assets. So for example, these little badgers here. Now next up, we travel to France. So France, they're very interested in deploying their own digital currency. So we've heard this before. We heard Russia talking about the digital ruble. China's launching a coin called DCEP, which is their national digital currency. France, after blocking Libra, they're going to do their own digital currency. So this trend has been going on, and I don't view it as a negative trend, namely because by deploying such a method, it exposes people to how to even store digital currency safely. Because this problem is probably the biggest barrier to adoption. Because just because you can teach your grandma how to set up a Bitcoin wallet, it's much harder to teach your grandma how to actually back it up safely. And in the event of failure, like say their phone dies, how to recover those keys. So something that I see here is the opportunity here for general public to get on more exposure. And the fact that they're developing this means that there's going to be future on-ramps from Viet to crypto. And this is why I've always been viewing this as a positive thing. Next up, HEX. So Richard Hart's new coin project is generating a lot of hype. People have been throwing Ethereum at it ironically. And I view it as the most strangest project of them all. Namely because Richard Hart, he's been a Bitcoin maximus for the longest time. And now it seems like he's creating his own coin. He's supporting Ethereum. Yeah, I guess crypto can really change very quickly. And people can change their views very fast for their own benefit, of course. At the end of the day, here's the way I view it. There's always going to be guarantees for free money out there in crypto. I mean, the way HEX is designed is that it's meant to give away free coins to anyone who holds Bitcoin, etc. And that's why there is hype. The moment someone gets coins, they are passionate about it. For me personally, for a currency to be valuable, I think it has to be more than just a Bitcoin clone or an Ethereum token. It's got to have some form of additional value. I'm a kind of firm believer in the 10x rule. It's got to be 10x better than anything else out there in order to succeed. And I don't know, I just didn't see that much in HEX. So agree with me, disagree with me, leave a comment down below what you think about HEX. And guys, that wraps up today's episode. I would love to have some questions as well. And guys, for me personally, I've been traveling here in Bali. And Bali's got a really great crypto scene. And I would love to kind of invite people on here. So we got Jeff from Uptrend. We got Arcane Bear and Sunny Rivers. There's also Sasha Nguyen from BIG. And he's been really great in both the business development scene and in the crypto scene as well. So if you guys have any cool discussion, suggestions that you guys want to ask questions about, I would love to do some more videos with the community here. So shoot them down below. And of course, guys, make sure you subscribe to this channel for more videos. I'll be trying to make a few more here now that I got everything set up and the lighting's great and everything. So make sure you click that little subscribe button down below. Notification bell. See you next video. Bye.