high failure rate in crypto exchange / broker

Discussion in 'Crypto Assets' started by JKG77, Feb 3, 2020.

  1. JKG77

    JKG77

    I've been looking into various exchanges / brokers where I can trade crypto futures and options. My main concern is their possibility of the failure (i.e, bankruptcy). Many exchanges allow customers to trade futures up to 100x leverage. Such huge leverage poses serious threat to the winning traders. In fact, lots of exchanges clearly indicate that the bankruptcy loss would be socialized among the winning traders.

    What exchanges / brokers are the safest to trade crypto? IB (CME future) is much safer but its margin requirement is on the other side of extreme (way to high)...
     
    murray t turtle and themickey like this.
  2. traider

    traider

    Bitmex, they are one of the largest
     
  3. JKG77

    JKG77

    Bitmex also offers 100x leverage. Although they claims loss won't be socialized, nothing could stop it from going bankrupt. Bitmex also got hacked a few months ago.
     
    murray t turtle likes this.
  4. RedDuke

    RedDuke

    The answer is none. It is unregulated Wild West. Trade at your own risk, and even if you win, your can loose your capital in a hack or fraud. I heard coinbase one of the more reputable ones. But they only offer few coins I think.
     
    murray t turtle likes this.
  5. MrMuppet

    MrMuppet

    One of the challenges of trading crypto is treasury aka. managing couterparty risk and margin levels, handling cash flow and getting funds from A to B quickly.

    Figuring that out should be your first concern. After that it becomes pretty easy.
     
  6. JKG77

    JKG77

    Thanks for confirming there is none.. It's just too risky to trade serious money on those exchanges..
     
    murray t turtle likes this.
  7. RedDuke

    RedDuke

    The main difficulty is getting rid of tethers. When I need to deposit real $ to buy BTC but BinFinance just creates tethers out of thin air and can use them to also buy BTC, no way anyone sane should be touching this shit, apart form pure gamble/entertainment where dollars lost are no big deal.
     
    murray t turtle likes this.
  8. JKG77

    JKG77

    I will stick to buying / selling crypto in wallet or cold storage them.. Too bad cannot use options.
     
  9. MrMuppet

    MrMuppet

    That's just what I said. YOU cannot buy options. If you do your homework, you can do anything you like.
     
  10. JKG77

    JKG77

    Yes thanks mate. Sometimes I also want to bet on vol but that's off the table for now.
     
    #10     Feb 3, 2020