Futures and Derivative Trading Has Hurt Crypto Trading

Disclaimer: This is my opinion but I have heard this come up more than once and think is a good reminder.When I talk about this I like to point out the incredible growth in BTC before futures or derivative trading. Now I’m not talking about the run up to $20k but $200 to $2-3K. That was an organic growth in buy-in and interest in crypto. Once futures and derivative trading is introduced bitcoin follows pretty reliable patterns of growth and recession centered around future prices. Also, it’s pretty well established that whales have created a pretty reliable income stream through opening short positions, selling a couple thousand BTC to induce panic selling, ride the price down a few thousand then closing the short while simultaneously opening long positions ride the recovery back up and rinse and repeat. Your average trader has minimal opportunity at windfalls on BTC like there used to be.I also like to point out that this is the similar belief held about the US Equity market. It’s well known that derivative trading is a way for the wealthy to make more money.

Submitted November 22, 2019 at 09:18PM

No comments:

Post a Comment