The sad reality is that a lot of fake news, scam letters and other fraudulent and defamatory materials are circulating the web, making information technology difficult for investors to know what information is legitimate and who they can trust. While trading can exist fun and heady, it tin can also pb to emotional or financial stress, particularly when many quack parties manipulate the market.

Although bad people will always be, traders tin exercise caution by leveraging the principles of responsible trading. Responsible trading requires investors to execute control over their trades, knowing when they are in a suitable position to take on risks and taking accountability for their actions. By acting every bit a responsible trader, investors never take risky positions without enquiry or invest funds they cannot beget to lose.

For this reason, Binance continues to focus on the ongoing evolution of their industry's regulatory framework to help discourage bad actors from harming honest investors. Being a significant player in the cryptocurrency manufacture, Binance has also taken it upon itself to provide leadership to the market.

Over the past year, this has involved the evolution of ongoing partnerships with law enforcement and security firms to help better cybersecurity measures across the broader cryptocurrency manufacture. The commutation has also continued to ramp upward its in-house anti-money laundering (AML) detection and analytics capabilities and taken several additional actions to prove its delivery to responsible trading.

Although the topic might not be top of mind to some consumers, recent news would suggest these precautions are coming at a time more necessary than ever before. Binance continues to remain their resolve to bring to light these injustices and provide support however possible.

Why responsible trading matters

Some common examples of falsified information come down to bad actors pretending to be the commutation itself and sharing information that is untrue and tin negatively impact a user's account, such every bit using a imitation link in an email to encourage users to provide their login information.

Other common concerns center effectually pump and dump schemes. Bad actors with a big holding in a given cryptocurrency will spread false data to drive up the price; as prices increase, they encourage other traders to "buy before it'south too late." This becomes harmful when new investors go all in and invest their life savings away, only to accept the asset crash before their eyes.

Of course, a final instance is credible with Fancycat, the international organization of cybercriminals responsible for over $500 million worth of ransomware crime. Many of these criminals often looked to cryptocurrency exchanges to safely funnel their earnings without being caught past the authorities.

More insights on Binance here

Although very different examples, addressing these concerns comes down to 1 thing. Responsible trading.

A demonstration of commitment

To date, Binance has taken some boosted steps to ensure responsible trading is maintained. Amongst them are:

  • Limiting new platform users (accounts opened in the last 60 days) to maximum leverage of 20x

  • Confirming plans to go a regulated financial institution, in addition to ensuring local licensing and compliance is maintained

  • Restricting access to derivatives products in the fiscal hub

  • Limiting new API key creation to verified accounts only to ensure safe and off-white trading for market participants

  • Becoming the first and only cryptocurrency substitution to introduce a responsible trading plan

Upon taking a closer expect at the responsible trading plan, 3 cardinal focus areas are apparent. They are practicing self-field of study, continually educating themselves, and protecting traders' assets. In do, these procedures include:

  • Measures to limit impulsive trading actions, such as when a trader suffers a losing streak or loss, the platform will provide automated reminders of the risks involved in trading

  • Cooling-off features for users to temporarily disable derivative trading abilities if they would similar additional back up in exercising cocky-discipline

  • Toll protection, a feature that prevents users from getting hurt past marketplace manipulation by triggering stop-losses or take-profits when bad actors are manipulating the system

The team hopes that by sharing their learnings and any proactive measures they take, they can help steer their industry forward, now and long into the futurity.

Disclaimer. Cointelegraph does not endorse any content or product on this folio. While we aim at providing you with all important data that we could obtain, readers should practice their ain research before taking any deportment related to the visitor and carry full responsibility for their decisions, nor can this commodity be considered as investment advice.