Markets and Exchanges

There are many markets in the world where people can be creators, producers, consumers, or investors.

One market is about houses, one is about cars, there are food markets, goods markets, materials markets, education markets, research markets, services markets, tools markets, technology markets, software markets, etc.

We have a market for anything humans produce and consume.

Markets can be about physical things, services, or information.

Now, online exchanges or brokers are all about serving us technological tools that enable us to exchange currencies (symbols of value store) and tools to gamble easier on the movement of markets (tools for β€œspeculation”).

But the movement of most markets are not based on reality, they're artificial.

Crypto exchanges are writing software services that tax people's ignorance and aversion to taking unnecessary risks. They cannot be trusted for trading or storing large amounts of currency long term. We have wallet apps that can do that safely now, or simply writing your crypto account and secret key with a pen on paper will do a better job sometimes.

Being unexperienced

99% of all players lose all their money eventually by trading them on brokers or exchanges.

The reality of exchanges and brokers is that they are the only ones making constant profits by taking a commission for every deposit, exchange, trade, and withdrawal.

Big players also known as β€œwhales” also make tons of money by manipulating the markets with unbelievable amounts of liquidity at their disposal. In crypto markets, this is seen as crazy volatility by most people, but those who educated themselves in this regard know that it's not the right explanation for what actually happens.

The cause of that volatility is: whales accumulating and dumping crypto currencies like they are doing with every other market.

Some of those whales are the Exchanges themselves. They cannot be trusted!

This causes traders to lose their positions and eventually lose all the money they deposited.

If you are unexperienced: Exchanges should be used only for EXCHANGING!

Being smart

So, now that we understand what exchanges are for, let's talk about smart and experienced people that only invest in currencies or assets long term.

Financially smart people are not in the β€œbusiness” of opening trade positions with leverage (a factor of multiplication for risk/reward).

Smart investors are people that will eventually have more value from their currency or assets they invested in, due to appreciation of the currency/asset over time. In other words, according to the new market consensus that will exist in a few years, or should I say the new demand, the currency or asset has now doubled, tripled, or multiplied its price many times over.

This is why we often hear the phrase "Bitcoin is better than gold".

Leaving your cryptocurrency untouched for a few years in a safe wallet is a typical investment scenario where you HOLD onto your cryptocurrency and only withdraw (exchange it) into another currency to buy/get something for yourself to enjoy (a product, tools, cars, real estate, etc).

Although you can exchange your cryptocurrency and tokens for fiat money, many sellers nowadays accept the most common cryptocurrencies as valid forms of payment, so exchanging to fiat is not needed in many cases nowadays.

You simply transfer your crypto currency from your wallet to theirs using simple mobile crypto wallet apps.

You should only need an exchange when you want to convert your assets from one currency to another and then you need to store that currency or asset long-term in your own wallet where you control the secret key to the account, not the exchange.

You should not keep your money in the exchange wallet/account just as you don't keep your paper money in any physical exchange location after you've made an exchange (like with any street fiat currency exchange).

Exchanging/swapping currencies can be well used for informed investments (storing of value in a deflationary system with at least one proven revolutionary utility or characteristic) or for charity, as non-profit organizations or initiatives don't have to account for that money and don't have to pay taxes that only sustain a corrupt system.

Exchanging currencies should be done for:

  • Payment of services, products, or information.

  • Investing in projects, groups, organizations (including GRAT token).

  • Donating or crowd-funding the objectives, activities, or initiatives of individuals, groups, or organizations.

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