Why Traditional Financial Institutions Suck And Steemit Rocks
In January this year, 2017, while surfing the internet, I discovered a forex trading platform, Kapital.rs . Registration and transfer of funds from my bank account to my 'real trading account' (not demo account) on Kapital's trading platform didn't take more than a couple of hours.
Challenge To Withdraw Money
Eight (8) months after registration, I've not placed a single trade, since I wouldn't want to make a costly mistake, from not fully understanding the instruction and as a result lose all the money. For about a month now, I've been trying to withdraw my money from the platform, following instructions of the technical support officer, without success. So, I had to tell her that I was going to locate their office and be there for them to help me through the process to enable me get my money back. Initially she hesitated with the excuse that such services they don't render to customers, but I insisted on going to their office and finally got an appointment.
Video recorded on my way to their office
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One Hundred Euros Invested In Steemit From January Till Date
The fact of having to go through all these hassles to get 100 euros which has now been depleted to 91,50 euros, made me to start thinking. The question on my mind has been what if I had invested 100 euros in steemit as steem power since January till date (8 months)? How much would that be worth now? Congratulations to @demotruk on his newly purchased car from steemit investment profits!!! Probably, I would have been among those enjoying the dividends of steemit from that time until now. Make no mistake about it. I've been investing in steemit since I joined in March until now (5 months). I am delaying gratification for something that I believe will soon be worthwhile.
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Traditional financial institutions may suck compared to a fully decentralised one but i'm not sure if its the same as comparing a forex trading platform/forex brokerage service to steemit(a partially decentralised system). Many forex brokers are unregulated which makes it easier for them to manipulate the markets in their favor(price fixing), to ensure that you lose. I'd be very careful with all forex brokers including the regulated ones. In short, most of the forex brokers (and all of binary option brokers) are just a bunch of scam services aimed at stealing your money in the name of trading although forex trading itself is very risky (highly speculative). There are other traditional institutions however, such as the banks which, well, its obvious so what go into that.... but my point is while you do not have full control over your funds (to do whatever you want) , your funds are protected. The downward side of a decentralised system is that when your funds are lost or stolen or any mishap occurs, it is gone forever. Scammers are now also free from the rule of law.
Now if we are just comparing forex trading services to steemit. Hell yes they suck compared to steemit! One reason is that it is less risky and you are more likely to make a good profit from investing in steem power coupled with smart blogging. You also won't have to go through this stressful processes or have someone give excuses when it is time to get your funds out.
It would be nice though, to have a forex trading platform built on a decentralised system where no third party is involved. This would put us in full control of our funds. At least one risk would be totally elimated --risk of being scammed by these so called "forex brokers".
I am really thankful, @cryptonfused, that you have stated the name for those people- forex brokers. My thinking is that the brokerage firm or company is a financial institution. Your objective analysis of forex brokers and steemit is just very sound. Particularly, I like ...''investing in steem power coupled with smart blogging'' . Second to the last statement, ''to have a forex trading platform built on a decentralised system where no third party is involved'' is a beautiful business idea that has great potentials. I really appreciate your contribution and support. Steem on!!!
I traded in forex with leverage when I was first out of high school. Very stressful and I was often left not making a cent after the platform and the bank (from the loan) got their share. Quite a few forex companies have since been shut down for being frauds. They know it's high-risk high reward and most people lose their money. So a few of them never placed people’s trades and just let them “lose” the money but kept it. It's very risky dealing with these types of company’s. The one I was using got sued a few dozen times because they were profiting off the margin of the loan bank rates but never disclosed it as part of the cost. I never looked into how those cases went but I assume not well. They also failed to disclose a lot of other fees.
When I closed my account a few years back they took $30 for “fees” and then the bank took another $20 for a bank wire. The bank and platform alone made over $300 off my trading for most of a year. I was down about $80 after all was said and done between my starting balance and what I deposited to a bank. I’m just thankful I got some of the money back as most of anyone that I made friends with while trading lost everything.
It was an interesting time in my life and I was not prepared for it that was for sure. I was 100% miserable every day. I only had a small amount of money as well so I over leverage my trades needing to make something happen so I could justify the time being spent and be able to live off it. More times than not I’d get a margin call. All my trades would start to liquidate themselves to cover my losses in a bad position.
To this day I still struggle even wanting to touch a trade. Every time when I did back many years ago I always got it wrong even when I “read” and “understood” everything right. Turns out people had access to see how much money was being placed on buy and sell orders. I did not so they know how big the floors and the ceiling were and gained an advantage. At least with cryptocurrencies, you get to see that information. I still don’t feel anywhere qualified to trade but I am slowly trying dip my toes back into the waters.
Trading Forex always looked so interesting to me even more so with the insane amount of leverage you were allowed back then. I had some really crazy days and then months of me just wanting out of it after loss after loss. At least I was younger back then and could deal with the long term stress of trying to make a living off of that.
I’m glad you at least you some of your money back. Have a wonderful weekend!
Well said Ma'am, I hope you could get your money eventually.
Thanks for reading and listening @oluwatobiloba! I hope so too, because I need that money for very important things now. Cheers.
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I have stopped using bank for any other thing than to withdraw or send money to my local exchange website just to buy cryptos. I seriously started using bitcoin as a means of exchanging currency when my bank, charges as much as 39dollars for as low as 150dollars transaction. The first time I gave bitcoin a trail I knew i wasn't going to use the traditional financial institution again. The point is the displeasure and disappointment from our financial institutions both the forex trading ones and the banks are on the increase. Two of my friends who have been ignoring my preaching on cryptos, sent money internationally. After a week it wasnt delivered, the bank then refunded based on the exchange rate on the day of the refund, making them to loose 20% of the original value. That was when they gave their life to crypto. Lol. Soon, the financial institutions will need to adjust and meet up with the technology so as not too be in loss soonest. Sorry for this long comment. Your message touched me.
I really appreciate your contribution, @turpsy. Yes, withdraw or send just to buy cryptos is only what the banks are good for these days. A lot of people have been disappointed with banks and other financial systems for long. It's only that they've not known of other alternative means like crytocurencies and even when they do know, it's really complicated for them to understand blockchain technology and how it works. Regarding remittances, I can't remember when last I did that with any bank. I introduce them to cryptos and if they catch the vision, they get the money! I like the clause '' That was when they gave their life to crypto''. Hehe...Thanks for your contribution.