What is Position Lock in Crypto Trading (Will Crypto Trading Freeze Your Account?)

08/15/2023 21:26 • Tech Ticker • 101 views

What is Position Lock in crypto trading? In crypto trading, many so-called trading strategies are actually based on a specific price. For example, our usual long or short strategies require a position as a basis. This position is our entry point. After selling the corresponding cryptocurrency in the market, we can obtain a certain percentage of profit, ensuring that our position will not be targeted by others. This strategy also gives more options to some traders and makes it easier for them to enter the market. However, due to the complexity of this operation, some investors may not have enough time to observe and analyze the chosen price, so they often have to wait for other times to make judgments and manage risks.

Will Crypto Trading Freeze Your Account?

In the cryptocurrency circle, there are few activities other than trading stocks.

According to the Financial Times, more than 2 million users have purchased and traded digital currencies through WeChat and Alipay this year.

The most typical is the participation of domestic investors in activities like “Bitcoin mining”.

However, due to the risk of virtual asset violations and some special circumstances, many people have encountered situations where their bank accounts are frozen. So under what circumstances will someone who buys Bitcoin or other tokens have their account frozen? Let’s take a look with Planet Jun (WeChat public account: o-daily).

1. What are the reasons for an exchange’s freeze? First, we know that banks do not strictly implement customer real-name management. Second, to ensure the security of personal information and property, most companies do not open accounts or keep transfer records for anyone. Lastly, for ordinary consumers, they generally do not use this method to evade regulation. So many institutions require users to provide private keys to enhance security, and they cannot authorize others to use their funds at will. The third reason is that the cryptocurrency industry itself is an emerging market. With more and more traditional enterprises joining and expanding its scale, people generally believe that blockchain technology can serve the public.

2. Why are so many funds frozen? In fact, most people choose to exchange legal currency or cryptocurrencies in regular exchanges, but the amount involved may be very small. For example, some platforms may be charged with related fees and business licenses in order to continue operating. Therefore, when a project wants to sell a certain amount of BTC/ETH from this website and withdraw these cryptocurrencies to another address, their account will be locked, and they have no qualifications to apply for bankruptcy protection. Of course, some projects hope to raise more investments at a higher price, but they still cannot receive all the profits in the end. In short, as long as you can keep your money in a hot wallet, you can easily avoid being traced.

3. “Hacker attacks” and “pump and dump” activities are no longer considered criminal activities, but “benchmark scoring arbitrage” is still a focus of attention for many people.

4. Why does freezing occur? On the one hand, it is because they are worried that they have not received any information from the police. On the other hand, they want to prevent the possibility of money laundering. It is also a consideration of the new regulations recently issued by the National Internet Information Office, which not only aims to prevent frequent occurrences of telecom network fraud, illegal sale of token vouchers, and other illegal and irregular activities, but also to ensure the security of their own assets and personal property.

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What is Position Lock in Crypto Trading (Will Crypto Trading Freeze Your Account?)

Will Crypto Trading Freeze Your Account?

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