1. 70–89% of Retail Traders Lose Money on Leverage Platforms According to studies by regulatory bodies like the UK’s FCA and ESMA, up to 89% of retail clients lose money trading leveraged products—including crypto derivatives. Exchanges don’t publish these numbers voluntarily—they’re forced to.
2. Exchanges Profit More When You Lose Crypto exchanges make money from:
Liquidation fees
Spread manipulation
Internal market-making desks
Funding rate imbalances
The more volatility, the more they earn. This is why sudden wicks and fakeouts are so common.
3. Price Wicks Are Algorithmically Targeted Many crypto exchanges use internal liquidity engines. These engines “see” stop losses and liquidation levels. When too many are clustered, wicks occur—fast, sudden, and “coincidentally” accurate.
4. There’s No Real Market Depth Unlike traditional markets, crypto lacks robust regulation and real-time oversight. Many “order books” are populated with fake liquidity, bots, or internal spoofing to mislead traders.
5. Exchanges Design UX to Trigger Addiction Loops
Flashy PnL dashboards
Reward systems
“Close trade in profit” dopamine hits
Conclusion: Retail traders aren’t just up against the market—they’re trading inside a game engineered by exchanges to extract their capital, trade after trade. The system isn't broken. It's working exactly as it was designed—just not for you