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  • CGEX Will Shut Down Its Service In September

    CGEX Will Shut Down Its Service In September

    2 min read

    CGEX Will Shut Down Its Service
    CGEX (Coinone Global Exchange) will shut down its service

    CGEX (Coinone Global Exchange) will shut down its service in mid-September. This Malta-based crypto exchange started by main South Korean exchange Coinone, will end its service. CGEX started in October 2018. 

    According to an announcement on August 12, the exchange will shut down services at 2:00 a.m. UTC on September, 18 after only one year of working.

    Is CGEX facing setbacks?

    CGEX placed an assistance termination notice on the front page of its website. They mentioned that has decided that they can’t maintain service further.

    CGEX Will Shut Down Its Service

    In the announcement, CGEX informed its clients that all assets on user accounts have to be withdrawn by the closing date. The additional withdrawals will not be available after that date. They stated that the personal user data, along with transaction details, will be erased with the closing of service.

    Before shut down

    CGEX’s shut down follows after notice of temporary termination of trading and transaction services on the platform. Actually, on June 17, CGEX first stated that they would temporarily stop trading and deposit services to “prepare for a new paradigm change in cryptocurrency exchanges”. At the time they planned to launch a new trading platform. The exchange told that the new CGEX would be launched in Q3 2019.

    This shutdown is expected for a long time. Two months ago, the exchange suddenly halted trading operations. Well, this event isn’t new or unusual. Many exchanges have the same problem from time to time. But surprise arose when CGEX recommended their users to withdraw their holdings to avoid whatever possible losses.  The former pause was temporary, but this new statement looks like the end of CGEX. This exchange has advised its clients to get their actions in order before the end. 

    After the exchange closure, clients will not have the possibility to log in. Also, withdrawals and deposits will be unavailable. The client’s personal records will also be destroyed. Still, some will be kept which is an obligation to legal demands.

    More news about similar issues

    Major crypto exchange BitMEX announced yesterday (August, 19) that it will restrict access to its platform in Seychelles, Hong Kong, and Bermuda. This action came, as they announced, to ensure the security of funds and the stability of the exchange.

    The exchange restricted access from countries of its parent company, HDR Global Trading Limited. BitMex insists that this is a proactive step and noted, “This change will have no financial impact on the business and will affect very few people.”

    BitMEX noted that closing trading is part of a broader initiative, an effort to provide transparency to this field as it shifts to be more regulated. BitMEX is the second-largest cryptocurrency exchange. A BitMEX’s  24-hour trade volume is over $2.5 billion, according to CoinMarketCap.

    Also, Binance DEX, developed by crypto exchange Binance, blocked web interface access to users based in 29 countries.

    Who is next?

  • Europe’s banks will end Eonia the current interest rate benchmark

    Europe’s banks will end Eonia the current interest rate benchmark

    2 min read

    Eonia will not be interest rate benchmark

    A body advising ECB has warned the European Central Bank to be prepared to end Eonia interest rate benchmark. Eonia is currently used to price more than €24tn of derivatives, loans, and bonds, a body advising the European Central Bank has warned.

    To prevent markets to become more confusing and legal conflicting, it is necessary to shift away from the Eonia interest rate benchmark. That stated the head of the ECB’s working group supervising the transition for the Financial Times.

    Eonia involved in scandals

    Current interest rate benchmark Eonia caused plenty of scandals and market manipulations.  The consequence is ruined confidence in how the current benchmark is calculated.

    Eonia will not be interest rate benchmark

    Instead of Eonia, the €STR (ester) benchmark will be placed from the beginning of October. 

    “I am worried about complacency among market participants, especially as regards the change in the timing of the publication of Eonia, which takes place already on October 2 and creates very significant operational challenges,” said Steven van Rijswijk, the chief risk officer at Dutch bank ING.

    In July ECB Banking Supervision announced a letter to CEOs of important financial organizations about the global benchmark changes. That is mandated by FSB. The letter seeks insurance that companies’ senior managers and boards recognize the risks connected with the global benchmark changes. Also, it was asking them to take relevant steps to secure a stable change to alternative or reformed benchmark rates. All that before the deadline, previously settled for the end of 2021.

    The ECB letter also pointed out that some modifications in the methodology for relevant benchmark rates will be added in October 2019. 

    In the financial crisis peaks, banks were punished billions of dollars.

    Some bankers were sentenced for manipulating interest rate benchmarks like Libor, Euribor and Eonia. The majority of the benchmarks are replaced or completely restored.

    Europe has already hesitated the Eonia replacement for several years. That’s why slowdowns in other countries like the US and UK in securing the shift. Along with switching to the new €STR standard, market participants would have to adapt to a timing change. The new transition rate will be published by the ECB at 9:15 am UK time not the prior evening as it was since now.

    For the next two years, both €STR and the transition Eonia rate will be published alongside. Eonia will be totally removed at the start of 2022. The transition rate will be priced at an 8.5 basis point discount to Eonia.

    The transition could influence the financial organizations for the value of derivatives and other products. The working group had written to the International Accounting Standards Board, which is supposed to decide on the case in the upcoming months.

    “Millions of contracts need to be changed,” said Mr van Rijswijk. “That will cost quite a bit of money.” He calculated that institutions need to adjust their IT systems and correct data, procedures, and structures.

  • Who is Satoshi Nakamoto?

    Who is Satoshi Nakamoto?

    Who is Satoshi Nakamoto?

     

    Who is Satoshi Nakamoto? This is the beginning of the fairytale.

    Who is Satoshi Nakamoto?

     

    What Nakamoto revealed about himself in Part 1 of “My Reveal” is disappointing. 

    This revelation announced with fanfares and bongos but looks like another marketing campaign. First of all, it is structured as billion call-to-trust-me campaigns or buy-this-shit-because-I-know-you-are-stupid.

    This self-declared Satoshi Nakamoto overpromised. And the most interesting part of all this, no one in the crypto ecosystem isn’t surprised. 

    We still don’t know his/her real name nor we can see the photo. Will it come with Part 3? Or maybe never? 

    This “big reveal” is more a “big lie” because we are still far away from knowing who is hidden under the name of Satoshi Nakamoto.

    All we know is that his nickname is Shaikho and that is Pakistani name. He kidded that he’ll reveal his real-life identity on August 20.

    That should be Part 3? Right?

    Who is Satoshi Nakamoto?

    Let’s see what this Satoshi Nakamoto revealed about himself.

    Under the title “My Reveal”,  this “Satoshi” gave his alleged origin story, some fairytale about the Bitcoin’s name background. Now, we know his ideology (a very important matter for Bitcoin’s existence, indeed). Oh, yes! This person, or whoever created that blogpost, pointed the relationship to Bitcoin pioneer Hal Finney (already known fact, so nothing new).

    “Satoshi” now allegedly lives in the U.K. and he is the son of a banker who had worked at a Pakistani multinational bank. And his name is unknown too.

    Some of his/her claims are so similar to the declarations of Craig Wright, the other self-proclaimed Nakamoto.

    For example this part from “My Reveal”:

    “Today, when Bitcoin is understood by the advances of technology, but at the same time is being hijacked by greed, I feel I have a duty to work hard and make my creation better and take its vision to the next level.”

    And this so romantic tale about how Bitcoin got its name. That has to touch our souls, right?

    Take a look at the logic behind this reveal. Cryptocurrency analyst Ledger Status noted that as Satoshi was a master of logic, and the only way he would truly reveal himself is by signing the Bitcoin genesis block.

     

    Also, the @BTC Twitter handle stated that “Anyone that tells you they are Satoshi Nakamoto is a scammer”.

    Do you remember how a very alike “reveal” happened but was nothing more than a stupid marketing campaign?

    On Friday, a lot of paid press releases were issued arising from a company named Satoshi Nakamoto Renaissance Holdings. A company’s big “reveal” happened on Sunday, August 18. 

    And we got it. Part 1 of “My Reveal” by still self-proclaimed Satoshi Nakamoto. We yet don’t have any reliable evidence that it is he or she, the creator of Bitcoin. 

    We are suspecting that part 2 will be something better and provide us a closer insight at who Satoshi Nakamoto is. First of all, we have one simple question: How he/she has lost access to the coins and cannot move them?

    What if all this is another marketing campaign with the foggy goal? Maybe some money-need can be behind this. What do you think?

    Okay, we will wait for the end of this fairytale. Maybe, they’ll be happily married.

     

  • The Truth About Forex Trading

    The Truth About Forex Trading

    4 min read

    (Updated November 2021)

    Traders-Paradise got (and still get) a lot of emails with the questions: What is the truth about Forex trading? or Can you tell me the truth about Forex? or Tell me, please, is Forex profitable or it is a myth?

    Okay, people, it’s time to tell you things that nobody will ever tell in one place. 

    First of all, the vast websites you visited searching for the answer to the question above, are sites with some Forex offers. Doesn’t matter if it is a brokerage, exchanges, system, signal providers, strategies, platforms. They all have one common interest: to present you only THE BEST. Their goal is to sell you their products. There is nothing bad in their goals and intentions, but you must be aware that some things will always stay covered and hidden from you. Until you build your own experiences. 

    We are giving you the shortcuts because all of us were struggling while we were novices in Forex trading. Actually, our struggle begins before we enter the Forex trading. Just thinking, measuring, asking, searching is struggle itself. And, still, you will find several sites or people ready to tell you the truth about Forex trading. Just because there are some characteristics to trading that the majority will never like to talk about.

    And yes, those features of Forex trading are ugly. Some are evil and scary. But Traders-Paradise’s opinion is that we have to talk about everything, doesn’t matter if it is nice and affirmative or ugly and not-so-nice subjects.  

    We will share what we know to answer you what is the truth about Forex trading. 

    Just to give you a clear path to decide if Forex trading is for you or not. The benefits you already know, you can make a fortune trading Forex but we want to show you the other side of the same medal. One thing you must keep in your mind: none of us is going to tell you to give up. 

    Based on our personal experiences, the most common misconception is that you have to be some math geek if you want to trade Forex. Yes, it is beneficial if you can understand the math behind your trades but you don’t need to be genius for that. This has to be said, a lot of very successful traders never even started high education. Have you ever heard about some Forex trading college or university? Of course not. Because if you want to be a successful Forex trader you must have particular skills. You don’t need a diploma. Speaking about those skills, for the profitable Forex trader is more useful to be a strong personality, not to get panicked when trades go in an unexpected direction. If you are nervous and without self-confidence, then Forex trading isn’t for you.  

    Yes, numerous and complex trading strategies are out there. 

    The Truth About Forex Trading

    And indicators, charts. OMG, Forex is for Nikola Tesla, not for me! 

    Just stay calm! The ability of self-control is more important. Forex markets are endless tension. Your nerves are what is really in a count, not your math knowledge. 

    Traders-Paradise will reveal you a secret. The winning traders very often practice one trading system. They learned that system, tested it on some demo account for several months, started the real Forex trades and VOILA! Their result is verified, the system is working, they have profit, so why change anything?

    The other thing we would like to share with you is the fact that in Forex trading your entry and exit points are irrelevant. Sound like a blasphemy, right? Imagine us, we are laughing! Because it is the truth about Forex trading. How the mentioned points are important if you can place your trade while sitting in a restaurant with your friends or walking. All you have to do is to take your phone in your hand and start to trade, whenever you want. Sound crazy? 

    Wait, there are more!

    We have heard so many times that humans generally are not good at trading. 

    The truth is that some are better. 

    Being a successful trader doesn’t mean that someone is naturally predisposed for that. That isn’t something the mother will give you with a birth. 

    What you have to do is to start thinking that you have to fight with the market. Just like in flight or fight situation. Imagine that the market wants to still all the money you placed there. 

    What does your brain tell you? Flight! 

    No, never if the Forex trading is for you. Your brain should command you – FIGHT! While you are sitting in front of your computer, you have to be the fighter. Or you will gain the loss. Whoever loses a profit, gets a loss. (That is wise, we should spread this sentence all over the world.)

    When we are pushing the buttons to place our trades, actually we are pulling the triggers. On our brain’s command. And here is the trick. Our brains will send us variously commands. That’s why you must have a plan. It is a battlefield, you cannot just run around and shoot. That’s when you are afraid or you are disoriented. 

    To have winning trades you must have a logical plan while trading Forex. If you don’t, you are 100% losers.

    One of the biggest lies about Forex trading is that some traders keep 100% successful trades. 

    No one can ever guarantee 100% success rate, no person and no algorithmic application

    This truth about Forex trading you will find nowhere else: 

    Do you know how some brokers or signal providers, or strategy sellers want you to believe that they have a magic weapon for the markets? That’s a lie. They are lying to you. Trading isn’t so easy.

    It may take years until you be able to gain a permanent profit from trading. Our aim is not to frighten you, but this is the truth. You will need months and years of analysis, testing and error corrections to be professional traders.

    The biggest truth about Forex trading is that you don’t need superior software or multiple trading screen setups to be a prosperous trader. This is something that no one will tell you. Especially trading websites. All you need is a device with full access to some free charting app. 

    Remember, the most powerful tool in your trading armory is your brain, not trading software. Some very simple and cheap but user-friendly software can provide you more benefits than a robust one. Remember this. 

    Traders-Paradise revealed you the most hidden secrets about Forex trading and told you the whole truth and nothing but the truth.

    Happy trading from Traders-Paradise Team!

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  • Tom next what is it – explanation with examples

    Tom next what is it – explanation with examples

    3 min read

    by Gorica Gligorijevic

    Tom next is a short-term transaction in foreign exchange when you buy and sell currency together over two separate days. Actually, it is a business day we are talking about. One day is tomorrow in the sense of one business day. The following day in sense of two business days from today is known as the spot date.

    The main aim of this transaction is the traders and investors keep their position and are not forced to exercise real delivery. 

    So, suppose you already know that in the Forex market, each transaction carries an attached value date. That is the date when buying or selling activities will hit their value. The value date happens 2 business days after the transaction is executed. The profit or loss generated by the buying and selling is settled into a particular account.

    To be more clear, when you take a position in a currency it is expected that you will deliver the currency in two days. But, a lot of Forex traders are gambling and don’t even think of taking delivery on the currency. 

    That is the point where tom next comes to the scene.

    If you open and close a position in the same business day, the value dates will be identical for every transaction. Your positions will not be carried over into the next day. Your payment has already been accomplished and will complete on the same value date.

    In currency trade, delivery happens two days after the date of the transaction. Tom next trade occurs because the majority of currency traders want their positions to be rolled-over daily. Their goal is not taking delivery.

    The purpose of tom next is to restrict traders from having to take delivery of currency and keep their forex positions open to the next day.

    Like stocks, forex trades end when the trader takes delivery of the asset. In forex, the delivery day is two days after any transaction. That is the spot date, but tom-next can be applied to prolong the trade after this date. So, the position will be extended by using tom next and you’ll be able to swap any overnight positions for an equal contract that begins the next day. The difference between these two arrangements is the tom next adjustment rate.

    So, this simultaneous transaction is a Forex swap. 

    Depending on what currency you hold, you’ll be charged or earn a premium. If you are holding high yielding currencies you will roll it over at a more pleasant rate (minimum is the best) because of the interest rate differential. This differential is the cost of “carry”. 

    For example, if two currencies have the same interest rates, they will be swapped at an identical rate. 

    If you choose not to roll over your position you will be forced to take delivery of that currency. Well, this is unusual, so the tom next transaction is basically the prolongation of your position.

    The policy of rolling a position over is more valuable in commodities trading. If it is not finished, you will be left with the delivery of the underlying assets. 

    Tom next what is it - explanation with examplesHow does it work?

    Your broker will swap or rollover your position for a new deal that starts the next day. The final result is an adjustment, higher or under, to the opening price for your position on the next day. You will see a tiny difference in the opening price from one day to another day.

    Your broker will debit or credit your trading account depending on the change in interest rate. Let’s say you are long with a currency with a higher interest rate.

    What your broker will do?

    Your broker may credit your account with interest payments. However, if you are long with a currency with a lower interest rate,  your broker will pay interest payments from your account.

    A tom next will not be applied if you close the position the same day before 17:00 EST. How? There is no overnight delivery involved.

    How do you calculate tom next?

    The calculation is based on the closing level of the former position, and the change in interest. Swap points plus any interest on your unrealized profit or loss will produce the change on your account.

    Rollovers that appear on Wednesday will have an added two days worth of interest. You know, for the weekends the banks are not working, so the broker will automatically credit or debit your account. 

    Tom next example

    For example, you are long USD/EUR at rollover and the average entry price is 120.00. In this case, you select to hold your position. Let’s say, just for the purpose of this example, the quote for the tom next swap points received from the bank is 0.025 – 0.012.

    What will happen? Do you remember, this is a simultaneous transaction?  

    A rollover, your broker will sell and buy USD, and at the same time buy and sell EUR. The final result is that you get a bid rate of 0.012 in your favor. The average price of your position will diminish by the number of Tom-next swap points.

    The  adjusted price of your position will be 

    120.00-0.012 =119.988

    Tom next adjustment is used to calculating the overnight funding charge on your trading position. You have to pay it if you want to keep your trade open for more than one business day.

    The rates can be changed on a daily basis because they are based on the underlying market price.

    If you want to buy a currency with a higher interest rate, you will get an interest payment. Hence, if you choose to buy a currency with a lower interest rate, you will pay interest. This payment is known as the cost of carry.

    You might also like:

    >>> Best Trading Strategy Without Indicators In Forex

    >>> How to Use Technical Indicators to Analyze Stocks?

    >>> MACD Indicator – Moving Average Convergence Divergence

    >>> Indicator Trading And How To Use It

    >>> P/E Ratio An Quick Method to Value a Stock

     

  • Satoshi Nakamoto to Reveal Identity

    Satoshi Nakamoto to Reveal Identity

    Satoshi Nakamoto to Reveal Identity
    Who is a real Satoshi Nakamoto?

    By Traders-Paradise Team

    Who is Satoshi Nakamoto? What is the origin of the iconic pseudonym? Who is behind it? How Bitcoin got this name?

    Curiosity will probably be satisfied soon. All we have to do is to wait for the next several hours. And to check www.SatoshiNRH.com where Nakamoto plans to reveal his/her or group’s identity under the topic “My reveal”. Also, the address where you can check it and read it is www.ivymclemore.com.

    Satoshi Nakamoto’s silence will be broken on Sunday, August 18,  at 4 pm EDT (Eastern time zone).
    The promise or decision came after 10 years of anonymity and creating one of the biggest mysteries in the past decade.

    Our source claims that Nakamoto will reveal his real identity but in this three-part series he will reveal his education, origins, professional education. Also, it will be interesting to find out why his 980,000 bitcoins are still untouched. 

    All about Satoshi Nakamoto

    Nakamoto will explain the role of his dedication to Chaldean numerology and how that influenced his decision to create Bitcoin.

    The enigma is why he decided to reveal all these things including his identity today, August 18, on the day when he registered bitcoin.org  through AnonymousSpeech.com. But he promised he will explain
    The grand finale or culmination of the revelation of this secretiveness should happen on Tuesday in the third part. That will be an introduction of Tabula Rasa, Nakamoto’s vision for Bitcoin’s rebirth all along with the full announcement of his identity.

    So, let’s say the first two parts on Sunday and Monday, are for warming the curiosity.

    According to Ivy McLemore & Associates:

    “Indicative of the compelling evidence he presents in each part of the series, Nakamoto will illustrate the role that ciphers and encryption-related to his devotion to Chaldean numerology played in many decisions in his creation of Bitcoin.”

    Satoshi Nakamoto to Reveal Identity
    Bitcoin code

    So, we will see.

    We found interesting reactions to this news. Forums are burning, social networks too. Everyone has some top secret info. We will point just a few of them:

    “Satoshi” is most likely a state, intel or oligarch level private entity that will never be revealed and is likely not just one individual considering the bitcoin paper release coincided with the Great Recession.
    Great Recession cliff was 15 Sept 2008.

    Bitcoin paper was first published on 31 October 2008.

    Even if “Satoshi” was to do a transaction I’d figure the person would be a front person for that entity anyways. The engineers that built it for this entity are already probably suicided or intel themselves.”

    “The fact the entity hired a PR firm and has the sole goal of pushing a new company/product, even if it were the real person, means it is not the real person.” 

    BTW, this is clever, “Ivy McLemore & Associates” is a marketing agency.

    Never mind, the only several hours are between our questions and his answers.

    Traders-Paradise will also follow @SatoshiNRH on Twitter.

    And we will all know if this is a marketing trick or real reveal of a mysterious identity the father of Bitcoin.

     

  • Crypto Hacker, Decline – Crypto Market is Facing Difficulties

    Crypto Hacker, Decline – Crypto Market is Facing Difficulties

    2 min read

     

    Crypto Market is Facing Difficulties

    According to News BTC: “the total crypto market cap declined to $242.0B and is currently correcting higher. Bitcoin price is currently correcting higher and is trading above the $10,200 level. BCH price stayed above the $300 support and it is currently near the $310 level. The EOS price is currently consolidating above the key $3.500 support area. Stellar (XLM) price is slowly recovering higher towards the $0.0700 and $0.0720 resistance levels. Tron (TRX) price is trading in a strong downtrend below $0.0200 and $0.0180.”

    Bitcoin and the crypto market cap are recovering towards key resistances. Almost all cryptocurrencies are trading in a major downtrend.

    But our attention is on hacking the cryptocurrency exchange Binance.

    The crypto hacker behind personal user data supposedly stolen from crypto exchange Binance is planning to publish additional material. So, we can expect a new wave of leaking data.

    Crypto hacker was playing his abnormal game in a series of tweets today, on August 16. A Twitter profile is known as Bnatov Platon tweeted an outline of Binance Know-Your-Customer (KYC) data supposedly he or she holds. 

     

     

    crypto hacker

     

     

    This was followed by other tweets.

    crypto hacker

     

    Crypto hacker is making jokes

    You will notice there is no timeframe for these screenshots but hacker or someone in his beneath showed Telegram chats with the person named as a member of Binance’s customer service team. There is no evidence that KYC images are collected from Binance. 

    The tone and arrogance in crypto hacker’s tweets are impressive.  Bnatov Platon with handle @BnatovP joined the Twitter this month. With one purpose, obviously. To show how vulnerable private data is in some crypto exchange. Or on the internet overall. 

    But speaking about this particular case, as Cointelegraph reported at the beginning of August, Binance rejected any agreement to its user data. They were arguing the person behind the alleged robbery was a scam. 

    The Binance had one statement at that time:

    “At the present time, no evidence has been supplied that indicates any KYC images have been obtained from Binance, as these images do not contain the digital watermark imprinted by our system.” 

    The Binance also noticed that the images all seem to be dated from February of 2018. Why is this important?  At that time Binance had engaged a third-party KYC service provider to handle requests at that time. 

    Among other problems with hackers and scammers, this one is especially rude. Well, guys, someday, someone will catch you! As always do.

  • Short Selling For Profit

    Short Selling For Profit

    Short Selling For The Profit
    What to do with stocks when the price starts to decline? Bet that a stock will fall more.

    By Guy Avtalyon

    Short selling for profit is a trading strategy that attempts to profit from an expected decrease in the price of a security. Basically, a short-seller wants to sell at a higher price and buy at lower.

    How does short selling for profit work? 

    Let’s you are a trader and you have some information that some stock will decrease in value by the expiration date. Ofc, you don’t hold that stock but you can borrow it from a broker. For example, you borrow 100 stocks at $10 market price. And you open the position, meaning you want to sell them at market price by their expiration date. And you succeed. Then you close your short position and sell your borrowed stocks for $1,000. But before you give back that 100 stocks to your broker you are betting that their price will decrease in value before the expiration day. That happens. Now, you are buying these stocks at a lower price, it is called covering the short position. 

    Let’s say, the price of your borrowed stocks declines at $6 each. 

    You sold them at $1,000, bought them at $600. Return 100 stocks to the broker and you pocket $400.

    (100x$10) – (100x$6) = $400

    The risk in this kind of trading is literally unlimited because the price may rise and rise to infinity. 

    But, the profit can be huge, also. The previous example showed a short-selling for profit. Well, by using short selling you may gain loss too.

    Example of making loss while using short selling.

    The vice versa case is when stock price increase in value during the time while you are holding them.

    Let’s say their market price rose at $14 each and you are holding 1oo stocks. The equitation will be

    $1,000 – $1,400 = – $400

    You borrowed those stocks at a $10 market price. But despite your expectations, the price increased which means you made a wrong bet. But you have an obligation to return those to the broker, hence you have to buy them back at that higher price. In this transaction, your loss is $400.

    Short selling for profit is a method for traders to benefit from a drop in a stock’s price.

    Short selling is only possible by borrowing stocks. The problem is they are not always available because when they are you may be faced with a crowd of other traders that already massively trade them. 

    Is short selling for profit risky?

    The short-selling for profit can be risky and questionable. When a huge number of traders choose to short some stocks, their actions will make a great influence on the stock price. With such big traders’ interest, the price will decline sharply. That is not a good situation for companies. Their market value decreases. Sometimes the markets forbid short-selling, especially during the economic crisis.

    As I said, short selling is risky for plenty of reasons. You can make a great loss if the stock price increases instead to decrease.

    The other reason is that the sharp increase in selected stock may cause traders to cover the position all at once. Moreover, short-covering usually force the price to go up. Then you have a situation that more and more short-sellers are covering their positions and such stock is grasped in a so-called short squeeze. So, like a chain of unfortunate events, right?

    The main purpose of short selling for profit is when you borrow the stocks from the broker to sell them instantly and buy them back at a lower price. And return them to the broker. When the whole process is finished you should profit from the difference in stock price.

    Risks of short selling

    Short selling involves a magnified risk. When you buy a stock you can lose only the money that you have invested. For example, if you bought one share at $300, the maximum you could lose is $300. Stocks can fall to $0 and that is the maximum, there is no stock that may fall below zero. The maximum in your potential loss will stop at your initial capital invested.
    In short selling, you can potentially lose an infinite amount of money. Stock can increase its value for an infinite time to an inconstant price. So, you’ll have an infinite loss.
    For example, let’s say you enter a short-selling at $200, and suddenly the stock price increases by 300% to $800. You’re obliged to buy the stock back and return them at $800, essentially losing 400% of your capital. actually, you are in incredible debt.

    Just be careful when you bet against stock price.

  • PlusToken The Biggest Scam In The Second Part of 2019

    PlusToken The Biggest Scam In The Second Part of 2019

    3 min read

    PlusToken The Biggest Scam

    PlusToken was a classic Ponzi Scheme. Its operations were held in Korea, but also in the Chinese market. How Traders-Paradise is sure it was a Ponzi scheme? 

    PlusToken was founded in 2018 and announced high returns at various discount percentages for most active members. What does it mean? To really have the right on rebate, members were obliged to bring more and more newcomers and then would climb to the higher levels. A classic Ponzi. 

    At the beginning of this year, those criminals declared to have more than 10 million members.

    OMG, how many naive people! Greedy? Just a false number? Everything is possible. The fact is that those scammers snatched $3 billion from their members. But despite the fact they escaped from the law, their website is still alive as much as their social networks accounts. 

    Okay, they didn’t have enough time to wipe off everything. More important is to save the neck and fat wallet.

     

    PlusToken The Biggest Scam
    “Mr. Leo”, the co-founder of PlusToken

    PlusToken scammed about 10 million investors of $3 billion. 

    Actually, withdrawals on PlusToken started to stumble in June. 

    The scammers declared some technical problems as the reason. For everyone with less greed, promises given from these scammers should sound impossible to be executed. What did they promise? Nothing! No investment strategy, no valuable information, only 6 to 18% returns per month plus referral commission.

    Recent research exposed PlusToken as scammers, who were acting outside the internationally used crypto social media. They were a lonely player succeeded to raise billions. On the illegal way. The police in China took some action but it wasn’t finished with arrests or investigation. 

    The criminals with an offer of exceptional earnings succeeded to fill their own wallets with a Bitcoins.

    Dovey Wan, the co-founder of Primitive Crypto and one of the more influential Twitter accounts, brought the PlusToken story to the attention of a wider audience. 

    How do they stay so long unrevealed?

    The essential reason is lack of communication and the existence of rivalry between Western and Chinese crypto-fans and exchanges.  

    The PlusToken actions were mostly ignored. The other reasons could be using different social media or the presence of language barriers. That held Asian investors to the hell. 

    These scammers were not modest.

    Only a few weeks ago just a few days before their escape, PlusToken announced that it’s expecting to have over 10 million members to the end of 2019. Two or three months earlier they said to have 3 million users. It is obvious that they boosted those numbers because they never showed any relevant evidence for those words. Moreover, they operated under the radar, you cannot find so many details or information about the people behind this scam. As we mentioned, at the beginning of this article, some co-founder is mysterious Mr. Lee. 

    Take a look at the image above again.

    When the scam was revealed messaging platforms reveals members who said they’ve lost up to $5,000. If you take a look at some tweets you will find some members from China who had contacted Hunan province police. How all of this will end is still unclear, but something has to be said: never be greed, use the proven exchanges and wallets with an excellent reputation. Every time when you notice that someone is offering you enormous returns, run away from such.

    At any time you can check if some exchange is good in Traders-Paradise’s WALL OF FAME
    The scammers are in our WALL OF SHAME