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For many users of these exchanges their entire interest in crypto is speculation/trading, which requires them to store their crypto with an exchange so they can
by jeffreyrogers 4y ago
For many users of these exchanges their entire interest in crypto is speculation/trading, which requires them to store their crypto with an exchange so they can trade it because the costs associated with transferring to and from the exchange repeatedly would be prohibitive.
- rrdharan 4y agoTrading requires this, but pure long-$coin speculation does not.
- dannylandau 4y agoYou hit the nail on the head here. That's the main crux of the matter.
- w3ll_w3ll_w3ll 4y agoIf they are in just for speculating/trading, they could trade ETFs denominated in BTC or ETH on regulated banks.
- vkou 4y agoRegulated banks don't let you trade ETFs of various shitcoins.
- CrazyStat 4y agoWith high leverage, too.
- PaulHoule 4y agoThose don’t track well.
- wmf 4y agoWhy not go all the way and have cash-settled futures that track random numbers?
- JumpCrisscross 4y ago> Why not go all the way and have cash-settled futures that track random numbers? Ha, this is becoming my go-to definition of the lottery.
- chx 4y agoYou are so close All current crypto"currencies" which use transaction fees (which is practically all of them) are negative sum games and thus are scams. This is so simple and people waste billions on not understanding it.
- fshbbdssbbgdd 4y agoMoney in general has transaction costs - even cash decays every time it changes hands. Is it all a negative sum game? It seems that in order to make that claim, you need to make some comparison between the value produced and the costs incurred. IMO, crypto is pretty scammy but there is some value (note that crypto is most popular in countries with unstable economies and corrupt governments). A crypto that’s optimized for lower transaction fees could be net positive.
- supernewton 4y agoMoney in general are traded for productive goods and services, not other kinds of money. That's why it's not negative sum. If you had a bunch of people trading between USD and GBP amd EUR and doing nothing else, that would be negative sum and look an awful like what people do with cryptocurrency.
- Yiin 4y agoI'm probably missing some critical part in my comparison, but crypto trading sounds awful lot like trading in stock markets.
- JumpCrisscross 4y ago> missing some critical part in my comparison Companies can sell stock to fund useful activity.
- landemva 4y agoThe past decade companies have sold debt to raise funds to repurchase stock to drive up stock price so senior management can meet their KPI and get a larger bonus. This is useful activity for society because senior management deserves more money and they work really hard to earn it. /s
- trompetenaccoun 4y agoI don't know any pro traders who use Binance but there might be some. Binance is popular with crypto kiddies, small time traders and they're also very strong in less developed countries that aren't served by any other major exchanges. People buying cryptocurrencies to escape high inflation or political risk. Basically a lot of newbies who aren't too aware that Binance is shady despite its size. But it's a diverse user base, they're not all active traders.
- yieldcrv 4y agoAMMs have solved this. The competition is amongst AMMs solving this better than they currently do. The need of custodial exchanges for trading is done. They can be just fiat onramps now as long as liquidity improves on AMMs.
- nl 4y agoYou can speculate fine on decentralized exchanges.