The sad truth is that a lot of fake news, fake messages and other fraudulent and offensive materials are circulating on the net, which makes it difficult for investors to know what information is legitimate and who they can trust. While trading can be fun and exciting, it can also lead to emotional or financial stress, especially when many dishonest parties are manipulating the market.
Although there are always bad guys, traders can be careful when applying the principles of responsible trading. Responsible trading requires investors to maintain control of their trading, know when they are in the right position to take risks and take responsibility for their actions. As a responsible trader, investors never take risky trades without researching or investing money they cannot afford to lose.
For this reason, Binance continues to pay attention to the ongoing development of industry regulations to prevent attackers from harming honest investors. As a significant player in the cryptocurrency industry, Binance has also faced the challenge of providing market leadership.
Over the past year, this has included developing ongoing partnerships with law enforcement and security firms to help improve cybersecurity measures across the crypto industry as a whole. The exchange has also continued to build on its internal Anti-Money Laundering (AML) detection and analysis functions and has taken several other steps to demonstrate its commitment to responsible trading.
Although the topic may not be the focus of some consumers, recent news is that these precautions are essential at a time when they are more necessary than ever. Binance remains committed to identifying these grievances and providing as much support as possible.
Why Responsible Trade Is Important
Some common examples of misinformation are that attackers pretend to be the same exchange and share incorrect information that can negatively affect a user’s account, such as using a wrong link in an email to lure users into entering login information.
Other common problems are associated with pumping and dumping circuits. Bad players who own large assets in a particular cryptocurrency will spread false information to drive up the price; When prices rise, it encourages other traders to “buy before it is too late”. This becomes harmful when new investors go bankrupt and put their savings to work just to make assets collapse before their eyes.
Of course, the most recent example is Fancycat, an international cybercrime organization responsible for more than $500 million in ransom crimes. Many of these criminals have often resorted to cryptocurrency exchanges to funnel their income safely without ever being caught by the authorities.
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Although these are very different examples, solving these problems is one thing. Responsible trade.
So far, Binance has taken some additional steps to ensure responsible trading. between them:
Restrict new users of the platform (accounts opened in the last 60 days) to a maximum of 20 times
Confirm plans to become a regulated financial institution, as well as ensure local licensing and compliance
Restricting access to derivative financial instruments in the financial position
Restrict the creation of new API keys to verified accounts only to ensure safe and fair trading for market participants.
Be the first cryptocurrency exchange to implement a responsible trading program
Upon closer examination of the responsible trading program, three main areas become clear. They practice self-discipline, constantly learn and protect traders’ assets. In practice, these actions include:
Measures to reduce impulsive trading actions, such as when a trader suffers a series of errors or losses, the platform will provide automatic reminders of the risks associated with trading.
Cooling features for users to temporarily disable derivatives trading opportunities if they need additional support to practice self-discipline.
Price Protection is a feature that prevents users from suffering from market manipulation by activating stop losses or profit when attackers manipulate the system.