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> load some bitcoin in and short with 100x leverage Sounds like a great way to have a crooked exchange make you insolvent very quickly. Be very careful using a

by flingo 6y ago

> load some bitcoin in and short with 100x leverage Sounds like a great way to have a crooked exchange make you insolvent very quickly. Be very careful using any kind of leverage.

dkersten 6y ago
If you don’t trust your exchange not to commit that kind of fraud, then you shouldn’t trade on it at all, as there are many ways they could defraud you even if you trade at 1x. There are plenty of. reasons why I wouldn’t recommend trading at 100x, but “the exchange might commit fraud” isn’t at the top. Still, in the described scenario, where you use a scam and market manipulation, 100x seems like a great tool.
- jb775 6y ago
  Are any of those exchanges based out of the USA? And do any of them not allow USA based customers? My concern is if I made a great trade at 100x and then go to transfer bitcoin and they freeze my account saying I need to provide proof of residency or some BS.
  - dkersten 6y ago
    Most do not allow US customers, but even BitMEX gives you a few days to withdraw your funds after freezing your account if found the be in the US (I’ve been told by people who had their accounts frozen). Some have KYC, sure, but in my experience, many do not and let you withdraw without issue. A lot of people (stupidly, IMHO, but that’s besides the point) trade 100x, its part of many of these exchanges selling points. But if you were pulling the twitter scam, as I described, you would be risking a few $K on this trade in the hopes for making a million or two, while still being able to do the scam they did. Sure, there are risks (such as being able to withdraw at all after using the twitter hack to manipulate the market), but chances are there are plenty of others who will have shorted too so you’d be part of the noise and wait a week before withdrawing. Its not a perfect plan, but its straightforward with the potential to multiply the scammed money.

by flingo 6y ago

> load some bitcoin in and short with 100x leverage Sounds like a great way to have a crooked exchange make you insolvent very quickly. Be very careful using any kind of leverage.

dkersten 6y ago

If you don’t trust your exchange not to commit that kind of fraud, then you shouldn’t trade on it at all, as there are many ways they could defraud you even if you trade at 1x. There are plenty of. reasons why I wouldn’t recommend trading at 100x, but “the exchange might commit fraud” isn’t at the top. Still, in the described scenario, where you use a scam and market manipulation, 100x seems like a great tool.

jb775 6y ago
Are any of those exchanges based out of the USA? And do any of them not allow USA based customers? My concern is if I made a great trade at 100x and then go to transfer bitcoin and they freeze my account saying I need to provide proof of residency or some BS.
- dkersten 6y ago
  Most do not allow US customers, but even BitMEX gives you a few days to withdraw your funds after freezing your account if found the be in the US (I’ve been told by people who had their accounts frozen). Some have KYC, sure, but in my experience, many do not and let you withdraw without issue. A lot of people (stupidly, IMHO, but that’s besides the point) trade 100x, its part of many of these exchanges selling points. But if you were pulling the twitter scam, as I described, you would be risking a few $K on this trade in the hopes for making a million or two, while still being able to do the scam they did. Sure, there are risks (such as being able to withdraw at all after using the twitter hack to manipulate the market), but chances are there are plenty of others who will have shorted too so you’d be part of the noise and wait a week before withdrawing. Its not a perfect plan, but its straightforward with the potential to multiply the scammed money.