Rachel Porcello
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Why Crypto Traders Are Set Up to Fail
Many traders enter the cryptocurrency market believing that with skill, strategy, and analysis, they can turn a profit. However, the reality is far harsher—the game is rigged from the start. Crypto exchanges, which control the order books, price feeds, and liquidity, hold all the power. With little to no oversight, they manipulate trades to their advantage, making fair trading nearly impossible. From artificially inflating prices to triggering stop-losses with sudden, unexplained crashes, exchanges ensure that retail traders are always at a disadvantage.
One of the key tools exchanges use to manipulate the market is high-frequency trading (HFT) bots. These bots, often run by the exchanges themselves or their close partners, front-run retail trades by milliseconds, executing orders before the trader’s transaction is finalized. This allows them to adjust prices in real-time, subtly tilting every trade in their favor. Additionally, hidden algorithms create fake liquidity and execute “stop-hunting†tactics, pushing prices just enough to liquidate unsuspecting traders before reverting back to normal levels.
In the end, the crypto market operates like a casino where the house always wins. Unlike traditional stock markets, where regulations provide some level of protection against manipulation, crypto exchanges operate in a largely unregulated space, exploiting traders without consequence. No matter how skilled or knowledgeable a trader is, the overwhelming advantage held by exchanges and their bots makes long-term success nearly impossible. The illusion of profitability keeps new traders entering the market, but the reality remains the same—the odds are stacked against them from the very beginning.
One of the key tools exchanges use to manipulate the market is high-frequency trading (HFT) bots. These bots, often run by the exchanges themselves or their close partners, front-run retail trades by milliseconds, executing orders before the trader’s transaction is finalized. This allows them to adjust prices in real-time, subtly tilting every trade in their favor. Additionally, hidden algorithms create fake liquidity and execute “stop-hunting†tactics, pushing prices just enough to liquidate unsuspecting traders before reverting back to normal levels.
In the end, the crypto market operates like a casino where the house always wins. Unlike traditional stock markets, where regulations provide some level of protection against manipulation, crypto exchanges operate in a largely unregulated space, exploiting traders without consequence. No matter how skilled or knowledgeable a trader is, the overwhelming advantage held by exchanges and their bots makes long-term success nearly impossible. The illusion of profitability keeps new traders entering the market, but the reality remains the same—the odds are stacked against them from the very beginning.
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