Nice break out and retest on Bitcoin. 200MA on the 30 minute BTC / XBT chart has supported us 4 times now. Bearish if it breaks, but this looks like it wants to push up. There is a massive seller on Binance selling 300-400 BTC every time we hit 12k$ though, so stay cautious
What would happen if sovereign governments gave bitcoin a gold peg?
This is a totally theoretical post, but I believe it is a really interesting idea and would love to get the Internet's feedback on it, and what you think the ripple effects would be in the scenario described. Am very interested in writing this up and republishing it widely so it can be read by monetary policymakers in all major developed countries - if you know anyone like that, pass it on. In a move that would act like a bridge to a pre-Bretton Woods type of gold peg, (here is a great paper on a history of this in the US: https://fas.org/sgp/crs/misc/R41887.pdf) sovereign governments with gold holdings could (again, it is a theoretical idea - I am saying they COULD do this NOT that anyone or any country is doing this that I know of) establish open market operations to purchase bitcoins (partly as a diversification strategy) using their physical gold holdings at a fixed peg rate of 5 ounces per bitcoin. The reason I say 5 is because the current chart here seems to suggest that somewhat of a convergence to 5 oz is already occurring: https://www.xe.com/currencycharts/?from=XBT&to=XAU&view=10Y If any government did this and offered to buy physically delivered bitcoins from private holders of bitcoin (no other coins just BTC) in exchange for private delivery of physical gold, then the standard governmental unit of physical gold (held in places like Fort Knox) - known as the Good Delivery Bar which is 400oz of gold - could be procured by any holder of 80 or more coins in a secure and sanctioned exchange with the government in question - the most impactful of course would be if the US did this. My theory is that any time the exchange rate mechanisms in the forex or crypto markets violated the peg, there would be arbitrage opportunities that would bring the peg back in line. It would not only stabilize BTC, but the stabilization might spread via the 24/7 exchange rate mechanism in the crypto market to stabilize many cryptos that are still somewhat worthy experimental stores of value. Depending on the strength, credit, and depth of gold holdings of whatever governments engaged in this, it would seem that such a strategy could transform bitcoin into a new type of sound money, and also signal that owning bitcoin and gold is a priority of governments as well as their citizens. The gold standard was powerful both because it was tethered to something of limited quantity in the earth's crust with unique properties, but also because pre-Bretton Woods gold standards acted very much like a peg - and the government honored the peg no matter what. So in some sense it was still the "faith and credit of the government" that made that peg work so famously. I was partly inspired by this recent award-winning documentary www.inmoneywetrust.org in formulating this idea, and partly by my own academic interest in cryptocurrency. I believe bitcoin, above all others, because of its deflationary nature and algorithmically fixed quantity, is powerful all in itself - but with a peg from a real government to a real precious metal that many governments do in fact hoard (for whatever reason) - it could become both an international currency, and a form of truly sound money backed by governments' physical gold reserves and a legal or policy commitment to a peg of 5 ounces to 1 bitcoin. What do you all think would happen if a major government or many major governments did this? Remember the idea is to convince monetary policymakers in governments to willingly and openly bypass completely the fiat currencies of their governments and to make no informational commitment to those free-floating fiat markets for forex - so the bitcoins transacted for in the peg wouldn't be bought with dollars or yen or anything that could be printed by fiat. This would simply be a convertibility guarantee by major governments that 1 bitcoin, transferred to the Treasury by a private citizen or business (again so the Treasury could diversify holdings of sound money), would be convertible and be guaranteed to be convertible to 5 oz of physical, deliverable gold bullion (or 80 bitcoins per bar). Here is a list of the largest physical gold holders on earth who could theoretically engage in this type of operation: https://www.investopedia.com/ask/answers/040715/what-countries-have-largest-gold-reserves.asp Thanks Reddit! Looking forward to your thoughts! Alex Kaufman
Prime Advantage Crypto Margin Trading Exchange audits
Prime Advantage immediately got one of the significant players in the cryptographic money exchanging world in any event, surpassing significant players like BitMex and other huge digital currency trades. The fundamental point of Prime Advantage is to tackle issues that different trades have, for example, delayed KYC forms for endorsement, personal times, short liquidity, exchanging issues for bombing markets, request type/types that are restricted, not incredible UE, and obviously transcending trade expenses. At Prime Advantage you can get extraordinary influence, helpful UI, broad liquidity and exchange volumes. Influence at Prime Advantage Experienced brokers will in general quest fundamentally for one element – influence. Most trades offer such an element yet it is exceptionally constrained considering exchanging digital forms of money. The influence rate at Prime Advantage is 1:100. I don't get this' meaning? For $1, you are getting purchasing as well as selling power that is worth $100. This at last gives you a passage to a greater market position – the chance to make more benefits and separately misfortunes. At Prime Advantage influence is a key component. At the site you can locate an exhaustive clarification with respect to use and it is an extraordinary assistance for the individuals who don't totally get it. Prime Advantage is an extraordinary decision of crypto edge exchanging trade for both begginer and propelled dealers. Edge Trade on Prime Advantage There is a clarification including a BTC/USD model. In it, you expect Bitcoin costs $10,000 for every unit, and the cost went up by 5 % all through your venture. On the off chance that you are utilizing no influence trade, you could have 10 bitcoins for $100,000 On the off chance that the value rose with 5 %, one BTC will be $10,500 so in the event that you choose to sell your 10 BTCs you will have $5,000 benefit from your underlying venture of $100,000. In spite of that, in the event that you make this exchange at Prime Advantage with the 1:100 influence, you just compensation 1 % of $100,000 which is just $1,000 ahead of time. This means you will even now benefit $5,000 however you will just contribute $1,000. At the Prime Advantage stage you can find out about the benefits of influence exchanging which incorporates the opportunity to up your benefits, let loose your money to utilize it for different speculations and furthermore gain at whatever point there is a market fall. There is additionally an advantageous influence number cruncher on PrimeXBT, so you can make sense of your purchasing power dependent on your accessible capital. The main thing you need to consider is that while influence is expanding the potential benefits it additionally builds the potential misfortunes. That is the reason you must be extremely cautious when you utilize the maximum influence that is offered at PrimeXBT. Nonetheless, the accomplished and sure merchants thing that influence is one of the incredibly valuable instruments. The most effective method to Profit From Movements Of The Markets You may definitely realize that the digital money showcase isn't continually expanding and that is the reason PrimeXBT is offering strategies for circumstances when the market moves. You can exchange the mainstream monetary standards and simultaneously supporting possessions that exist or benefitting from rallies and market decays. With Prime Advantage you may go short or long. Going long is purchasing and going short is selling. Going long methods you purchase BTC and when the estimation of BTC expands your record esteem ascends also. At the point when the cost of BTC drops down – your record esteem diminishes. Going short implies that you can open a position and its worth will go up if the estimation of BTC diminishes. Exchanging at Prime Advantage But doing short/long exchanges and having influence 1:100, Prime Advantage additionally has incredibly easy to use and adjustable interface and furthermore underpins a few screens. The digital currency stage is sheltered and solid likewise overly quick. It is incredible in any event, for amateurs yet additionally incorporates instruments that an expert dealer would appreciate. There are numerous helpful diagram apparatuses including various sorts of outlines, many drawing instruments just as an alternative to exchange straightforwardly by means of the graph. The exchange charges and commission rates at Prime Advantage are low. Additionally there are tight crypto spreads. Prime Advantage Platform For Trading Тhere is a live stage exchanging review at PrimXBT so you can encounter how everything functions in advance. A bit of leeway is that this see is incredibly like the real form. One of the distinctions is that there is a mark Positions at the base of review screen. With the live Prime Advantage record you will see positions list with segments: images, positions ID, date and time, present costs, benefit take, misfortune stop, etc. As this see alternative isn't account related, it is obscured and over you can discover the register or sign in choices. All things considered Prime Advantage is the thing that you anticipated that it should be on the grounds that it is very like the exchange pages handy financial specialists are acclimated. On the left top screen side you can see the money sets list including USD/LTC, USD/BTC, USD/ETH, USD/EOS, USD/XRP. You can see the value offer, change and approach costs for each pair. The figures are shaded in red, green and white. Green demonstrates increments and red shows diminishes. At the point when you click on a couple you will see the purchase/sell screen for this crypto pair. The purchasing/selling costs and the low and the high for the pair will be accessible moreover. Under this segment, to one side of the exchanging screen, there is the Order Book. It shows data for any digital currency pair you as of late browsed the upper left is part to buys and deals. But the costs and amounts list, the Order book likewise offers the chance to see visual diagrams portrayal in red and green. It is exceptionally advantageous as you can see the progressing patterns. There is an outline at the exchange page's primary segment, which sits on the privilege of the crypto list and the request book. At the upper left of this outline you can see the money pair that is spoken to. This can be balanced when you click the container where the pair is recorded and type the new crypto paithere is likewise an auto fill alternative/or when you click on the cryptographic money pair situated in the left of the posting crypto area. Prime Advantage Reviews The default graph at Prime Advantage is a candle one. It is red and green demonstrating costs vertically and time on a level plane. Pointing over the graph show the specific time and date, high and low, open/close and the worth. The time length can be expanded or diminished when you change the diagram time which is under the fundamental outline. The majority of the settings are found at the highest point of this graph. There is a menu by means of which you can make candle interim change. Default time is set to 5 min. however, there is the alternative to change to 1, 15, 30 min. or on the other hand pick a day, seven days, or a month. Left of this you can discover a possibility for exchanging the candle diagram to charts – line or bar. Additionally there are possibilities for line of sight. Brokers can browse long and short or from various markers, instruments and lines including pattern lines and channels, apparatuses, for example, Fibonacci Rays and some more. For experienced merchants there is a segment called Studies which can be gotten to from a test tube symbol right of the referenced choices above and left of area Studies. You have a decision of numerous examinations accessible or to include your own investigation. You can utilize 5 at once. The techniques for exchanging at PrimeXBT are two. At the left half of the page you may tap on the pair you picked and fill the data in the case that springs up. Then again you have the choice to utilize a segment at the left top diagram corner, under the pair's name. Expenses and Limits at PrimeXBT The stage has 2 kinds of expenses, fund for the time being and exchanging. As instruments consider an utilized item you need to back the worth exchanged through for the time being money. This financing relies upon the hidden resource's liquidity. Assuming, be that as it may, you open or close utilized situations in a similar exchange day, you are excluded from financing for the time being choice. Prime Advantage Price The constraint of introduction is confining the size of an alternate position each customer can have with the stage PrimeXBT. The exchange stage won't let brokers putting orders surpassing this breaking point whenever did. This limitation is set up by the division of hazard the executives of Prime Advantage and is relying upon significant components like the liquidity of the instrument, instability and couple of other market and exchanging conditions. End As we as a whole realize the exchanging space for digital forms of money is a jam-packed one and Prime Advantage has made one firm contribution. Prime Advantage exchange stage is very simple for use, has low commission expenses, spreads are tight and the influence is advertise driving at 1:100. Albeit another trade Prime Advantage end up being one of the growing ones and furthermore with an extraordinary notoriety in the digital money exchanging world. Obviously, as this is a trade that offers influence, make certain to continue with it mindfully in the event that you haven't attempted this sort of exchanging previously. It is exceptionally simple to destroy things and end up with liquidation and loss of the cryptographic money you own, particularly on the off chance that you are utilizing transcending influence sum. https://www.primeadvantageapp.com/ https://www.instagram.com/primeadvantageapp/ https://twitter.com/primeadvantages https://www.pinterest.co.uk/primeadvantageapp/ https://www.facebook.com/primeadvantageapp/ https://www.facebook.com/events/559916687976351/
In order to create an account on BitMEX, users first have to register with the website. Registration only requires an email address, the email address must be a genuine address as users will receive an email to confirm registration in order to verify the account. Once users are registered, there are no trading limits. Traders must be at least 18 years of age to sign up. https://preview.redd.it/0v13qoil3cc41.jpg?width=808&format=pjpg&auto=webp&s=e6134bc089c4e352dce10d754dc84ff11a4c7994 However, it should be noted that BitMEX does not accept any US-based traders and will use IP checks to verify that users are not in the US. While some US users have bypassed this with the use of a VPN, it is not recommended that US individuals sign up to the BitMEX service, especially given the fact that alternative exchanges are available to service US customers that function within the US legal framework. How to Use BitMEX BitMEX allows users to trade cryptocurrencies against a number of fiat currencies, namely the US Dollar, the Japanese Yen and the Chinese Yuan. BitMEX allows users to trade a number of different cryptocurrencies, namely Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, Monero, Ripple, Tezos and Zcash. The trading platform on BitMEX is very intuitive and easy to use for those familiar with similar markets. However, it is not for the beginner. The interface does look a little dated when compared to newer exchanges like Binance and Kucoin’s. Once users have signed up to the platform, they should click on Trade, and all the trading instruments will be displayed beneath. Clicking on the particular instrument opens the orderbook, recent trades, and the order slip on the left. The order book shows three columns – the bid value for the underlying asset, the quantity of the order, and the total USD value of all orders, both short and long. The widgets on the trading platform can be changed according to the user’s viewing preferences, allowing users to have full control on what is displayed. It also has a built in feature that provides for TradingView charting. This offers a wide range of charting tool and is considered to be an improvement on many of the offering available from many of its competitors. https://preview.redd.it/fabg1nxo3cc41.jpg?width=808&format=pjpg&auto=webp&s=6d939889c3eac15ab1e78ec37a8ccd13fc5e0573 Once trades are made, all orders can be easily viewed in the trading platform interface. There are tabs where users can select their Active Orders, see the Stops that are in place, check the Orders Filled (total or partially) and the trade history. On the Active Orders and Stops tabs, traders can cancel any order, by clicking the “Cancel” button. Users also see all currently open positions, with an analysis if it is in the black or red. BitMEX uses a method called auto-deleveraging which BitMEX uses to ensure that liquidated positions are able to be closed even in a volatile market. Auto-deleveraging means that if a position bankrupts without available liquidity, the positive side of the position deleverages, in order of profitability and leverage, the highest leveraged position first in queue. Traders are always shown where they sit in the auto-deleveraging queue, if such is needed. Although the BitMEX platform is optimized for mobile, it only has an Android app (which is not official). There is no iOS app available at present. However, it is recommended that users use it on the desktop if possible. BitMEX offers a variety of order types for users:
Limit Order (the order is fulfilled if the given price is achieved);
Market Order (the order is executed at current market price);
Stop Limit Order (like a stop order, but allows users to set the price of the Order once the Stop Price is triggered);
Stop Market Order (this is a stop order that does not enter the order book, remain unseen until the market reaches the trigger);
Trailing Stop Order (it is similar to a Stop Market order, but here users set a trailing value that is used to place the market order);
Take Profit Limit Order (this can be used, similarly to a Stop Order, to set a target price on a position. In this case, it is in respect of making gains, rather than cutting losses);
Take Profit Market Order (same as the previous type, but in this case, the order triggered will be a market order, and not a limit one)
The exchange offers margin trading in all of the cryptocurrencies displayed on the website. It also offers to trade with futures and derivatives – swaps.
Futures and Swaps
A futures contract is an agreement to buy or sell a given asset in the future at a predetermined price. On BitMEX, users can leverage up to 100x on certain contracts. Perpetual swaps are similar to futures, except that there is no expiry date for them and no settlement. Additionally, they trade close to the underlying reference Index Price, unlike futures, which may diverge substantially from the Index Price. BitMEX also offers Binary series contracts, which are prediction-based contracts which can only settle at either 0 or 100. In essence, the Binary series contracts are a more complicated way of making a bet on a given event. The only Binary series betting instrument currently available is related to the next 1mb block on the Bitcoin blockchain. Binary series contracts are traded with no leverage, a 0% maker fee, a 0.25% taker fee and 0.25% settlement fee.
BitMEX allows its traders to leverage their position on the platform. Leverage is the ability to place orders that are bigger than the users’ existing balance. This could lead to a higher profit in comparison when placing an order with only the wallet balance. Trading in such conditions is called “Margin Trading.” There are two types of Margin Trading: Isolated and Cross-Margin. The former allows the user to select the amount of money in their wallet that should be used to hold their position after an order is placed. However, the latter provides that all of the money in the users’ wallet can be used to hold their position, and therefore should be treated with extreme caution. https://preview.redd.it/eg4qk9qr3cc41.jpg?width=808&format=pjpg&auto=webp&s=c3ca8cdf654330ce53e8138d774e72155acf0e7e The BitMEX platform allows users to set their leverage level by using the leverage slider. A maximum leverage of 1:100 is available (on Bitcoin and Bitcoin Cash). This is quite a high level of leverage for cryptocurrencies, with the average offered by other exchanges rarely exceeding 1:20.
BitMEX does not charge fees on deposits or withdrawals. However, when withdrawing Bitcoin, the minimum Network fee is based on blockchain load. The only costs therefore are those of the banks or the cryptocurrency networks. As noted previously, BitMEX only accepts deposits in Bitcoin and therefore Bitcoin serves as collateral on trading contracts, regardless of whether or not the trade involves Bitcoin. The minimum deposit is 0.001 BTC. There are no limits on withdrawals, but withdrawals can also be in Bitcoin only. To make a withdrawal, all that users need to do is insert the amount to withdraw and the wallet address to complete the transfer. https://preview.redd.it/xj1kbuew3cc41.jpg?width=808&format=pjpg&auto=webp&s=68056f2247001c63e89c880cfbb75b2f3616e8fe Deposits can be made 24/7 but withdrawals are processed by hand at a recurring time once per day. The hand processed withdrawals are intended to increase the security levels of users’ funds by providing extra time (and email notice) to cancel any fraudulent withdrawal requests, as well as bypassing the use of automated systems & hot wallets which may be more prone to compromise.
BitMEX operates as a crypto to crypto exchange and makes use of a Bitcoin-in/Bitcoin-out structure. Therefore, platform users are currently unable to use fiat currencies for any payments or transfers, however, a plus side of this is that there are no limits for trading and the exchange incorporates trading pairs linked to the US Dollar (XBT), Japanese Yen (XBJ), and Chinese Yuan (XBC). BitMEX supports the following cryptocurrencies:
Bitcoin Cash (BCH)
Ethereum Classic (ETC)
Ripple Token (XRP)
EOS Token (EOS)
BitMEX also offers leverage options on the following coins:
5x: Zcash (ZEC)
20x : Ripple (XRP),Bitcoin Cash (BCH), Cardano (ADA), EOS Token (EOS), Tron (TRX)
HDR Global Trading, the company which owns BitMEX, has recently announced a partnership with Trading Technologies International, Inc. (TT), a leading international high-performance trading software provider. The TT platform is designed specifically for professional traders, brokers, and market-access providers, and incorporates a wide variety of trading tools and analytical indicators that allow even the most advanced traders to customize the software to suit their unique trading styles. The TT platform also provides traders with global market access and trade execution through its privately managed infrastructure and the partnership will see BitMEX users gaining access to the trading tools on all BitMEX products, including the popular XBT/USD Perpetual Swap pairing. https://preview.redd.it/qcqunaby3cc41.png?width=672&format=png&auto=webp&s=b77b45ac2b44a9af30a4985e3d9dbafc9bbdb77c
The BitMEX Insurance Fund
The ability to trade on leverage is one of the exchange’s main selling points and offering leverage and providing the opportunity for traders to trade against each other may result in a situation where the winners do not receive all of their expected profits. As a result of the amounts of leverage involved, it’s possible that the losers may not have enough margin in their positions to pay the winners. Traditional exchanges like the Chicago Mercantile Exchange (CME) offset this problem by utilizing multiple layers of protection and cryptocurrency trading platforms offering leverage cannot currently match the levels of protection provided to winning traders. In addition, cryptocurrency exchanges offering leveraged trades propose a capped downside and unlimited upside on a highly volatile asset with the caveat being that on occasion, there may not be enough funds in the system to pay out the winners. To help solve this problem, BitMEX has developed an insurance fund system, and when a trader has an open leveraged position, their position is forcefully closed or liquidated when their maintenance margin is too low. Here, a trader’s profit and loss does not reflect the actual price their position was closed on the market, and with BitMEX when a trader is liquidated, their equity associated with the position drops down to zero. In the following example, the trader has taken a 100x long position. In the event that the mark price of Bitcoin falls to $3,980 (by 0.5%), then the position gets liquidated with the 100 Bitcoin position needing to be sold on the market. This means that it does not matter what price this trade executes at, namely if it’s $3,995 or $3,000, as from the view of the liquidated trader, regardless of the price, they lose all the equity they had in their position, and lose the entire one Bitcoin. https://preview.redd.it/wel3rka04cc41.png?width=669&format=png&auto=webp&s=3f93dac2d3b40aa842d281384113d2e26f25947e Assuming there is a fully liquid market, the bid/ask spread should be tighter than the maintenance margin. Here, liquidations manifest as contributions to the insurance fund (e.g. if the maintenance margin is 50bps, but the market is 1bp wide), and the insurance fund should rise by close to the same amount as the maintenance margin when a position is liquidated. In this scenario, as long as healthy liquid markets persist, the insurance fund should continue its steady growth. The following graphs further illustrate the example, and in the first chart, market conditions are healthy with a narrow bid/ask spread (just $2) at the time of liquidation. Here, the closing trade occurs at a higher price than the bankruptcy price (the price where the margin balance is zero) and the insurance fund benefits. Illustrative example of an insurance contribution – Long 100x with 1 BTC collateral https://preview.redd.it/is89ep924cc41.png?width=699&format=png&auto=webp&s=f0419c68fe88703e594c121b5b742c963c7e2229 (Note: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments. The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,978, representing $1 of slippage compared to the $3,979 bid price at the time of liquidation.) The second chart shows a wide bid/ask spread at the time of liquidation, here, the closing trade takes place at a lower price than the bankruptcy price, and the insurance fund is used to make sure that winning traders receive their expected profits. This works to stabilize the potential for returns as there is no guarantee that healthy market conditions can continue, especially during periods of heightened price volatility. During these periods, it’s actually possible that the insurance fund can be used up than it is built up. Illustrative example of an insurance depletion – Long 100x with 1 BTC collateral https://preview.redd.it/vb4mj3n54cc41.png?width=707&format=png&auto=webp&s=0c63b7c99ae1c114d8e3b947fb490e9144dfe61b (Notes: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments. The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,800, representing $20 of slippage compared to the $3,820 bid price at the time of liquidation.) The exchange declared in February 2019, that the BitMEX insurance fund retained close to 21,000 Bitcoin (around $70 million based on Bitcoin spot prices at the time). This figure represents just 0.007% of BitMEX’s notional annual trading volume, which has been quoted as being approximately $1 trillion. This is higher than the insurance funds as a proportion of trading volume of the CME, and therefore, winning traders on BitMEX are exposed to much larger risks than CME traders as:
BitMEX does not have clearing members with large balance sheets and traders are directly exposed to each other.
BitMEX does not demand payments from traders with negative account balances.
The underlying instruments on BitMEX are more volatile than the more traditional instruments available on CME.
Therefore, with the insurance fund remaining capitalized, the system effectively with participants who get liquidated paying for liquidations, or a losers pay for losers mechanism. This system may appear controversial as first, though some may argue that there is a degree of uniformity to it. It’s also worth noting that the exchange also makes use of Auto Deleveraging which means that on occasion, leveraged positions in profit can still be reduced during certain time periods if a liquidated order cannot be executed in the market. More adventurous traders should note that while the insurance fund holds 21,000 Bitcoin, worth approximately 0.1% of the total Bitcoin supply, BitMEX still doesn’t offer the same level of guarantees to winning traders that are provided by more traditional leveraged trading platforms. Given the inherent volatility of the cryptocurrency market, there remains some possibility that the fund gets drained down to zero despite its current size. This may result in more successful traders lacking confidence in the platform and choosing to limit their exposure in the event of BitMEX being unable to compensate winning traders.
How suitable is BitMEX for Beginners?
BitMEX generates high Bitcoin trading levels, and also attracts good levels of volume across other crypto-to-crypto transfers. This helps to maintain a buzz around the exchange, and BitMEX also employs relatively low trading fees, and is available round the world (except to US inhabitants). This helps to attract the attention of people new to the process of trading on leverage and when getting started on the platform there are 5 main navigation Tabs to get used to:
**Trade:**The trading dashboard of BitMEX. This tab allows you to select your preferred trading instrument, and choose leverage, as well as place and cancel orders. You can also see your position information and view key information in the contract details.
**Account:**Here, all your account information is displayed including available Bitcoin margin balances, deposits and withdrawals, and trade history.
**Contracts:**This tab covers further instrument information including funding history, contract sizes; leverage offered expiry, underlying reference Price Index data, and other key features.
**References:**This resource centre allows you to learn about futures, perpetual contracts, position marking, and liquidation.
**API:**From here you can set up an API connection with BitMEX, and utilize the REST API and WebSocket API.
BitMEX also employs 24/7 customer support and the team can also be contacted on their Twitter and Reddit accounts. In addition, BitMEX provides a variety of educational resources including an FAQ section, Futures guides, Perpetual Contracts guides, and further resources in the “References” account tab. For users looking for more in depth analysis, the BitMEX blog produces high level descriptions of a number of subjects and has garnered a good reputation among the cryptocurrency community. Most importantly, the exchange also maintains a testnet platform, built on top of testnet Bitcoin, which allows anyone to try out programs and strategies before moving on to the live exchange. This is crucial as despite the wealth of resources available, BitMEX is not really suitable for beginners, and margin trading, futures contracts and swaps are best left to experienced, professional or institutional traders. Margin trading and choosing to engage in leveraged activity are risky processes and even more advanced traders can describe the process as a high risk and high reward “game”. New entrants to the sector should spend a considerable amount of time learning about margin trading and testing out strategies before considering whether to open a live account.
Is BitMEX Safe?
BitMEX is widely considered to have strong levels of security. The platform uses multi-signature deposits and withdrawal schemes which can only be used by BitMEX partners. BitMEX also utilises Amazon Web Services to protect the servers with text messages and two-factor authentication, as well as hardware tokens. BitMEX also has a system for risk checks, which requires that the sum of all account holdings on the website must be zero. If it’s not, all trading is immediately halted. As noted previously, withdrawals are all individually hand-checked by employees, and private keys are never stored in the cloud. Deposit addresses are externally verified to make sure that they contain matching keys. If they do not, there is an immediate system shutdown. https://preview.redd.it/t04qs3484cc41.jpg?width=808&format=pjpg&auto=webp&s=a3b106cbc9116713dcdd5e908c00b555fd704ee6 In addition, the BitMEX trading platform is written in kdb+, a database and toolset popular amongst major banks in high frequency trading applications. The BitMEX engine appears to be faster and more reliable than some of its competitors, such as Poloniex and Bittrex. They have email notifications, and PGP encryption is used for all communication. The exchange hasn’t been hacked in the past.
How Secure is the platform?
As previously mentioned, BitMEX is considered to be a safe exchange and incorporates a number of security protocols that are becoming standard among the sector’s leading exchanges. In addition to making use of Amazon Web Services’ cloud security, all the exchange’s systems can only be accessed after passing through multiple forms of authentication, and individual systems are only able to communicate with each other across approved and monitored channels. Communication is also further secured as the exchange provides optional PGP encryption for all automated emails, and users can insert their PGP public key into the form inside their accounts. Once set up, BitMEX will encrypt and sign all the automated emails sent by you or to your account by the [[email protected]](mailto:[email protected]) email address. Users can also initiate secure conversations with the support team by using the email address and public key on the Technical Contact, and the team have made their automated system’s PGP key available for verification in their Security Section. The platform’s trading engine is written in kdb+, a database and toolset used by leading financial institutions in high-frequency trading applications, and the speed and reliability of the engine is also used to perform a full risk check after every order placement, trade, settlement, deposit, and withdrawal. All accounts in the system must consistently sum to zero, and if this does not happen then trading on the platform is immediately halted for all users. With regards to wallet security, BitMEX makes use of a multisignature deposit and withdrawal scheme, and all exchange addresses are multisignature by default with all storage being kept offline. Private keys are not stored on any cloud servers and deep cold storage is used for the majority of funds. Furthermore, all deposit addresses sent by the BitMEX system are verified by an external service that works to ensure that they contain the keys controlled by the founders, and in the event that the public keys differ, the system is immediately shut down and trading halted. The exchange’s security practices also see that every withdrawal is audited by hand by a minimum of two employees before being sent out.
BitMEX Customer Support
The trading platform has a 24/7 support on multiple channels, including email, ticket systems and social media. The typical response time from the customer support team is about one hour, and feedback on the customer support generally suggest that the customer service responses are helpful and are not restricted to automated responses. https://preview.redd.it/8k81zl0a4cc41.jpg?width=808&format=pjpg&auto=webp&s=e30e5b7ca93d2931f49e2dc84025f2fda386eab1 The BitMEX also offers a knowledge base and FAQs which, although they are not necessarily always helpful, may assist and direct users towards the necessary channels to obtain assistance. BitMEX also offers trading guides which can be accessed here
There would appear to be few complaints online about BitMEX, with most issues relating to technical matters or about the complexities of using the website. Older complaints also appeared to include issues relating to low liquidity, but this no longer appears to be an issue. BitMEX is clearly not a platform that is not intended for the amateur investor. The interface is complex and therefore it can be very difficult for users to get used to the platform and to even navigate the website. However, the platform does provide a wide range of tools and once users have experience of the platform they will appreciate the wide range of information that the platform provides. Visit BitMEX
setup an account on coinbase.com, buy your coins, walk away until next year or later, fees are ~1.5% which is $1.5 USD for a $100 USD of coin
note coinbase does have an option to buy via credit card instead of a bank account, fees are ~4% when you do that, your credit card company may charge more if it considers it a cash transfer
Guide for Not Noobs
-setup an account on coinbase.com, move dollars into your account, setup an account on gdax.com (same company, same login), move your cash from coinbase to gdax, buy your coins on GDAX at Market, fees are cheaper 0.25% versus 1.5% -consider buying alternative coins supported by coinbase
-all of the above but use GDAX's Limit/Buy, zero fees, but you have to wait for the market to dip below your buy price
More Money Available
-setup several Limit/Buy orders at different price points to capture dips when you are away
More Control but More Complex
-it's possible coinbase could go out of business, move some or most of your coins to a personal hardware wallet like a Trezor or Ledger Nano S, made in Czech Republic and France respectively -consider using other exchanges with different fees and coin support -consider buying other alternative coins supported by other exchanges
You Are Very Responsible
-create a paper wallet, put it in a safe, be warned it's like a visual bearer instrument, if you lose it or someone takes a picture of it...it's gone, but you have complete control over your money/asset
DO NOT EVER
-buy more than you can lose, it's early wild west days, the market could easily come crashing down -panic sell, the market fluctuates regularly by 20%, thus far it has ALWAYS recovered, people that try to sell during a fall/dip and buy at the bottom usually miss time it and lose -store your keys on your computer or phone unless its small amount, these are the two most vulnerable routes to hacking and simple hardware failure resulting in loss -attempt to daytrade and time the best prices unless your real life job is day trading -get addicted to watching the market, pay attention watch for dips, but don't let it crowd out your work or free time -keep a LOT of cash or coin in an exchange, it is very easy to mistype and buy or sell far more than you meant to, exchanges can disappear with your coins -buy a hardware wallet from anyone other than the company who makes it, i.e. do not buy one on Amazon, it is possible some third person hacked it and could steal your coin
-limit sells until the far future when market volatility is down, flash crashes have happened and recovered, if you had all your coin in limit sells it would be gone -margin trade unless your real life job is day trading -stop buys or stop sells unless your real life job is day trading
-hold your coins, your coin may be worth x10 or more in value in the future, e.g. if bitcoin replaced gold, bitcoin would be worth ~x70 the current value -buy small amounts over time DCA, this might not seem intuitive but it spreads your risk out, reduces risk of buying at all time highs (ATH) and more likely to catch lows (dips), a fluctuation of $100 in price is small if the eventual value is worth x10 or more in the future -keep a small amount of cash on an exchange always, when there is a lot of traffic/trading which happens during dips, you are much more likely to be able to make trades on an exchange rather than with your own wallet
-if you don't have your coin in your own wallet, it's not your coin. this is not a problem until you have a lot of value and you want to keep it safe from a bankruptcy, unscrupulous people/exchanges, or unforeseen acts. if it's a small amount compared to your income it's an acceptable risk, if not then move it to a wallet -in the days of fake news not everything you read is true, in fact there are armies of people shilling for 'pick a random coin'; some are malicious, some uninformed, and some willfully uninformed -if your value starts to become large, dig deep into how your asset/currencies work just like you would for any other purchase, understanding how it works helps you understand if it will be a success, e.g. understand the difference between PoW vs PoS or what a hard fork is -some coins especially newer ones are scams, a good indication of if it is not a scam is how long the coin has been around -most bitcoin hard forks so far have not been successful with some exceptions -btc is the accepted short-name for bitcoin on most (but not all) exchanges, xbt is also common in EUR-land
-holding your own coin requires personal responsibility, it is easy to lose and not be able to recover it if you are not careful -again, do not buy more coin than you can lose -transaction speeds which are slow are a serious problem in bitcoin scaling -there is less innovation and more argument going on in bitcoin than some other coins, bitcoin is large enough that consensus is difficult, future change is less likely than with some other coins, there are other side solutions to bitcoins problems that may not require bitcoin to change much -bitcoin.org IS the generally accepted bitcoin website, NOT bitcoin.com -important other risks compiled by themetalfriend -coinbase has insurance up to $250k USD for you USD Wallet which DOES NOT cover your bitcoins or other crypto currencies, they claim to have separate insurance for your crypto currency but it is unclear how much
there are a lot of memes -hodl, GameKyuubi mistyped hold and it spread -to the moon, where everyone hopes the price will go -coin on a rollercoaster, it is highly volitile market you will see this during fluctuations -this is gentlemen, via Liquid_child , here -lambo/roadster, a car people want to buy when they get rich -the cost of pizza, early days someone bought a pizza for 10,000btc which is worth over ~80million USD today -tesla/vehicle with a bitcoin chart, cytranic posted a picture that spread -intersting guide by stos313 , here. I do not agree with everything but it has a lot of useful information.
Edit: Adding in user comments. Edit: Crosslinking to a more Beginner Version. Edit: Note in an earlier edit of this guide I said. note that most of the development on bitcoin is by employees of one company, it is open source but their priorities may not align with the community This is not true. Blockstream appears to have a high representation but not an overwhelming amount. You can compare blockstream's employee page and bitcoin's commits in the last year. Thank you to lclc_ , trilli0nn , and Holographiks for pointing this out. See this for a detailed break down. Edit: Clarification that FDIC insurance does NOT cover crypto currency/assets. Edit: Clarity on who owns bitcoin.org
Good Luck and Hodl.
Please comment if your experience is different. Or call out things I missed.
The Great Bitcoin Bull Market Of 2017 by Trace Mayer
By: Trace Mayer, host of The Bitcoin Knowledge Podcast. Originally posted here with images and Youtube videos. I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back. Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate! Therefore, this article will be pretty lengthy and meticulous. BACKGROUND As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments. I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC! On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:
As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences. With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell? FUNDAMENTALS Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel. The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages. SECURITY The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed. At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied). This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m. This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000. Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day. Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage. When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin. These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way. With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!
SPECULATION For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers. Bitcoin is both a Giffen good and a Veblen good. A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect. Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand. There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable. (http://www.runtogold.com/images/lost-bitcoins-1.jpg) (http://www.runtogold.com/images/lost-bitcoins-2.jpg) And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage. According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not. For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin. Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you. In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away. RETAIL There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017. Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin. If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts. What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available. After all, it takes some time and practical experience to learn how to safely secure one's private keys. To do so, I highly recommendBitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware). WALL STREET There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017. LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization. The CME Group announced they will begin trading in Q4 2017 Bitcoin futures. The CBOE announced they will begin trading Bitcoin futures soon. By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable. This price discovery could be the most wild thing anyone has ever experienced in financial markets. THE GREAT CREDIT CONTRACTION The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets. (http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg) Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset? BITCOIN'S RISK PROFILE At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit). But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk. Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B. And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography! This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen. Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity. To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes. (http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png) TRANSACTIONS Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve. On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017. Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls? As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again. Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move. There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day. (http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png) What I like about transaction fees is that they somewhat reveal the financial health of the network. The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee. The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it. I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA. DEVELOPERS Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want. The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is. However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses. Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem. Nevertheless, the Bitcoin ecosystem is healthier than ever before. (http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg) SETTLEMENT CURRENCY There are no significant global reserve settlement currency use cases for Bitcoin yet. Perhaps the closest is Blockstream's Strong Federations via Liquid. PRICE There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth. Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand. Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics! (http://www.runtogold.com/images/bitcoin-speculation.jpg) On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030. On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus." On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000". Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition. I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC. Interestingly, the people who understand it the best seem to think its financial dominance is destiny. Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State. Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend. (http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png) Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market. The 200 day moving average is around $4,001 and rising about $30 per day. So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications. (http://www.runtogold.com/images/bitcoin-price-pro-forma.png) Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction. We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose? As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world. CONCLUSION Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017. The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled. The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon. While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright. Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do! But perhaps there is a larger lesson to be learned here. Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts. Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin. Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go? After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it! What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
The week has started and was led by the only title and header around all economic news which is “US-China trade wars”. US-China trade wars in general had its effect on all markets, including cryptocurrency. The United States wants to tighten cryptocurrency use and claimed that it’s been used by smugglers and drug-dealers and pointed out that most of the transactions are made in China. This week BTC tried to break $10500 on Monday, August 26th and was rejected, the price then was floating between $10400-10300 and continued the correction down to $10027. Uncertainty in the BTC has ended when the price hit $10400 again and showed a massive drop to $9366. We will point out several reasons of this week’s drop. The drop could be a result of an update in the US when rumors on crypto-currency taxation became real. Several notes sent by the IRS to crypto-currency holders pushed some investors to get rid of the BTC and led to a major sell. The Wright and Kleiman case brings another reason to worry about. If Kleiman family surely inheritedbillions of $worth of Bitcoin, then they should declare IRSthe quantity and pay state taxes. Most probably, when these BTC’s received if they exist, the Kleiman family will sell them, which will result another drop-down of BTC. CME Exchange’s futurescontracts forBitcoin is expiring today, though the Exchange showed a record-high $515Mdaily trading volume in May, futures expiry date gave extra-strength to sellers. The price by the time published is traded at $9608 per BTC, from the technical point of view the price still has to find greater grounds for another massive jump. https://preview.redd.it/8f0tliwapnj31.png?width=1468&format=png&auto=webp&s=64a5214d8a583bd7b7f3dcdd5f3de63290697050 Though we can see that a double-bottom pattern in 1-hour chart and most likely BTC will test $9750 https://preview.redd.it/vib20xqcpnj31.png?width=1468&format=png&auto=webp&s=06b1a9de59c8c76ecc447b5e2b0a8d506a79c12b CME Exchange will continue to offer Bitcoin futures which is a positive sign for the cryptocurrency and announcement of the release of ICE-backed Bakkt Bitcoin futuresin September 23 could be that pump to get the price above $10K.
Now let’s move to Forex market
The pair to watch this week and the next week isEURUSD. Economy of Germany which EU's locomotive and other countries are cars, has showed a slight 0.1% decrease in the second quarter of 2019 related to the previous quarter. We can never deny the fact that the EU union with all its economy and power of its currency is completely dependent to the economic well-being of Germany. If the third quarter of this year doesn't show mercy to Germany's economy or Germany doesn't change policies to not only stabilize but improve the economy, the EU should prepare well for recession. Not only economic state of Germany but rumors and news and overall hype over Brexit and Italy's economic crisisare considered to bea sinker of Euro against USD. For Euro to gain powerand for EURUSD to show an uptrend again, firstly all rumors and preparations on recession should be reduced to nothing and EU states should do the needful to prevent the new economic crisis. This week’s economic data from Germany was not positive, IFO Business Climatewasbelow forecasted 95.1 and 94.3 was announced, German GDP was -0.1. These were news which weakened the European currency, although the worst scenario was yet to come. Thursday, August 29 Germany made an announced on the unemployment, and the number was four times higher than on the previous unemployment change, 4K. Since the announcement EURUSD was showing downwards movement and plummeted to 1.0990 If no signs of progress are shown next week, especially if the German Manufacturing PMI numbers don’t show positive, the price will continue downtrend to 1.0950 and find the next support at 1.0850 https://preview.redd.it/cso52ruepnj31.png?width=1468&format=png&auto=webp&s=21e4bdfed18b0bcce872b8714efa4d5d8fdc8b71 The political tension between EU and UK, US and Chinalast week showed us more-or-less unpredictable movements in US, China, HK, EU, UK stock market indices. Since the “trade-war” begun and US applying higher tariffs on Chinese goods and China taking counter-action the only gainers of these back-to-back pokes were Gold and Silver. Gold showed one more time that it’s the most trusted asset to invest. The price hit $1555 highs this week and is now showing signs of short-term correction being traded at $1526. Major Investment institutions such as UBS and Citigroup look positive on Goldsnew summit ascents. Mainly UBS has stated that the next week the price could reach $1600. From the technical point we can see that the price is trying to break the barrier at 1530, and is still unlucky. https://preview.redd.it/huvtsyugpnj31.png?width=1468&format=png&auto=webp&s=9ccae0383301cabe7b0b479bde81b72cee5aa81c This could mean that if the support at $1520 is broken, the correction will continue to $1515 and $1507. If the downtrend is impulsive the price will reach $1494, where it will find support and another upwards move shall be expected. https://preview.redd.it/oyzz33oipnj31.png?width=1468&format=png&auto=webp&s=1ae2f71cb0fece2770bcff716bd59d39e7a9245d At the other hand, confirmation of Gold’s uptrend move will be breaking of resistance at $1530 where the price shall face a mile-stone of resistances at 1545-1563-1571. From the Global prospective we should follow the upcoming Manufacturing PMI’s announcements of Germany and the US, US Non-Farm payrolls and Unemployment rates. Pay a very close attention to announcements of these three states Australia, UK and Canada, as well.Report prepared by analysts from PrimeXBT.
I've got shaken out so hard so many times on xbt/alts after btc made a move - just to see that the alt coin then took the assumed direction, that I am wondering if I always should first make my mind up about the direction of xbtusd, and then take only opposite directed trades on btc/alts. Well, now when I did on a bitcoin / bitcoin cash trade it did not work out at all either. While btc dropped and came back up again, bitcoin cash just dropped along with it. Anyway, I can't make my mind up of the btc-alt price relations. Btc drop = alts up short term but down long-term? and btc up = alts down short term but up long term? I really cannot wrap my head around this after days of reading and thinking about it. How do you guys trade bitcoin/altcoin and bitcoin/USD at the same time? Or doesn't it all matter because whatever bitcoin/alt you look at, it is already priced in? Or you just don't trade both markets at all?! Is it a good idea to check the bitcoin dominance chart to determine to go long or short on alts that day? Need to learn a shit ton still. Starting to get a bit desperate. So, thanks for any well meant input! Really appreciate it.
Hey all, I was watching bloomberg in the background as usual and bitcoin has been on a lot recently. I've always liked bloomberg as the last respectable major news source (no CNN/Fox/etc) for political coverage, and always good market and macro news to track. Anyway, they did a short special with bitcoin today, so I was interested to hear the coverage. Here's my transcription: Interview [Hosted by Julie Hyman and Mark Barton] Mark: A steep slide in bitcoin seems to be over today, since last week the community opting not to increase blocksize which speeds up transactions, which sent some investors to a bigger block alternative (XBT 1 wk $7.8k - $5.6k chart) with bitcoin dropping 29% from its peak on Wednesday morning, it's been climbing back up. [introducing Ed robinson, European tech reporter] Mark: It's not for the faint hearted - trading bitcoin, is it? Ed: No indeed, and we've known that for some time, but these last few days have been hyper volatile. Mark: And it's been hyper volatile with bitcoin cash. So tell us just what bitcoin cash is, and why it's taken center stage in the last week or so. Ed: Bitcoin Cash is a new entrant that forked off the original bitcoin in August, and what the bitcoin community is trying to do right now is to solve this problem of scalability. They need bitcoin to process transactions faster, they need them to process more volume in transactions, and this is key to its growth. So there is a community that created bigger block sizes, and by that i mean it can process more transactions faster than the traditional bitcoin, and they hived off and formed this new entity called bitcoin cash. Julie: but...it- so uh.. wh... hahaha. I'm just trying to wrap my head around all this. But bitcoin cash is still bitcoin right? It's just... a different way of trading it? Is it an entirely new cryptocurrency? Ed: Well right, it's - they're two sides of the same coin. Bitcoin cash is processing (that's the blockchain, the underlying database software) that's processing transactions in a different way than the original bitcoin. So that's why we've had what's called a fork - that's the separation between the two, but by and large between the two - i mean they're now traded as separate coins (you can buy each separately), but they really amount to the same thing. Julie: Uh, all of this gets to the same thing which really gets to one of the central challenges with bitcoin which Lionel Leblanc points out in his column today, that it's governance by committee. you have this community that decided to hive off, and the decisions for bitcoin are made by community. How does this work for example if there were to be a split of bitcoin, i mean who makes these decisions? Ed: It's unprecedented. It is governance by community. It reminds me of "The Well" - "The Well" was this ancient chatroom that was set up in northern California before the internet took hold. It's a very organic, community-driven style of decision making. As you can imagine, debate flourishes in this kind of format. But ultimately what we see is that the science wins out. Bitcoin has established itself as a viable currency or entity (cf note below), so they're working with something that is functional, but there's all manner of different opinions and debates taking place. Mark: Which is reflected in this chart since June. We've has 3 sizable declines, 39%, 39%, and 29% as of this morning. But every time, it seems to be viewed as a buying opportunity? Ed: That's what it's shown so far - if you look at the middle one, that's when china outlawed initial coin offerings, a lot of investors freaked out and said "OMG there's gonna be this massive crackdown," there was a lot of selling... it didn't last very long did it? The next leg up was very fast, 80% over 6 days off the September lows. Mark: That's it for now, thanks... interview ends and they move on Note: Fast forward 20 minutes as I type this, bitcoin is indeed being mentioned along with the USD-JPY trade and high-yield bonds as a legitimate asset transmitting market information (risk appetite in this case).
How-to & FAQ for holding Bitcoin and Ethereum in an RRSP/TFSA
A few months ago I came across a way to hold crypto in my RRSP/TFSA and have been answering questions about how to do that in comments, DM's, and Skype consults. I figured it would be helpful to put together one big comprehensive FAQ. Cryptocurrency is treated as a commodity by the CRA and you must pay capital gains taxes on any profits if held outside a TFSA. If bitcoin goes to $1m as some are predicting, the Canadian government is going to be taxing a huge windfall in capital gains taxes. BACKGROUND Bitcoin & other crypto cannot be held directly in a RRSP/TFSA, and there are no eligible ETF's in North America yet. However, the ETN COINXBT which trades on the Stockholm Stock Exchange in Sweden (Nasdaq Stockholm) is eligible. ABOUT COINXBT COINXBT holds bitcoin directly and its price per share is based on a 0.005 multiple of the current bitcoin price. For example, if the current price of bitcoin is $10000USD, a share of COINXBT will be worth $50USD (ie: $493 Swedish Kroner) Company's website and full prospectus at: https://xbtprovider.com/ Price quote / chart: https://www.bloomberg.com/quote/COINXBT:SS HOW-TO TRADE Only some Canadian brokerages allow you to trade on eligible international exchanges in your TFSA. Some do not. Typically placing trades on international exchanges online is not an option and must be made over the phone broker-assisted at a much higher cost than typical North American securities. CANADIAN BROKERS I've called pretty much every brokerage to inquire if international securities can be held in a TFSA and what the fee is to transact. You may want to call yourself to see if policies have changed, but here's a summary:
National Bank: $75 per trade + $0.06 per share (confirmed works)
TD: Fee dependent on amount traded. Up to $5K is $187, $80K would be $520 per trade (confirmed works)
CIBC: $250 minimum, based on trade amount. $50K would be about $350 to buy and $350 to sell (confirmed works)
Scotia iTrade: $250 CAD per trade CAD, unlimited shares & order size (should work)
BMO Investorline: Fee-based on total trade amount. $50K would be $325 to buy $225 to sell, $50-$60K would be $350 to buy $240 to sell (should work)
Not available, or not available in RRSP/TFSA:
Interactive Brokers, can trade it, but not in RRSP/TFSA
HSBC (has access to almost every exchange other than Stockholm)
FAQ's Are you sure it's legal? I'm quite sure it's illegal.
I used National Bank Direct Brokerage. The fee's came out to $75 per trade + $0.06 per share. For example, the commission for a trade I did for 885 shares of COINXBT was $75 + $53.10 for a total of $128.10. Canadian funds were used to make the purchase and there were no forex fees for converting to Swedish Kroner (SEK)
How do I make a trade once I'm ready?
Call your brokerage and say you want to place a trade on the Stockholm stock exchange. You may be forwarded to a person that specializes in that, and eventually to a broker that deals with placing order on international exchanges. Tell them the symbol to trade is COINXBT and the name of the ETN is "Bitcoin Tracker One".
How do I calculate the number of shares to trade to max out my TFSA?
The price of COINXBT is in SEK. In my case using NB I took my balance minus anticipated fees divided by the current price to see how many shares I could buy. For example: For a $10,000 TFSA, current COINXBT price = $554.77SEK (84.27CAD), would be 117 shares at a cost of $9859.59 + $82.02 commission for a total of $9941.61CAD
Market or Limit order?
The first time I placed an order for COINXBT I tried to place a limit order a little below the market price. Over the next week the price of bitcoin ran up a lot and didn't come down. I ended up buying a lot higher. Since then I've been placing limit orders slightly above the current price or just market orders so that they go through right away. I've had no issues doing it either way.
When can I trade? Is it only possible to make the trade while the Swedish market is open and the TSX are open at the same time? Or can you place the order at any time of day?
XBT Provider has said they will monitor forks for 3-months and then decide what action to take. In the case of Bitcoin Cash, they sold the forked coins and distributed it as a dividend to anyone that held ETN shares on the fork date.
What about other cryptocurrencies?
An ethereum ETN was recently launched: COINETH that also trades on the Stockholm exchange. https://www.bloomberg.com/quote/COINETH:SS Other than that, I am not aware of any other eligible crypto securities that can be held in a RRSP/TFSA
How is the price of COINXBT determined?
It's based on the average price of the top 3 exchanges
Why not just buy GBTC?
GBTC is traded on the OTC exchange in the US and is not RRSP/TFSA eligible
Why can't I place a trade online myself?
For now, there are no crypto ETF's on North American exchanges. They have been in the works for years in the US, but no approvals yet. Evolve funds recently said they plan to launch a Canadian Bitcoin ETF. Trading COINXBT is a bit of a hassle, but you're getting in ahead of everyone else that are not willing to put in the time/effort. Once the Canadian/US ETF launches, it will probably be worth it to sell COINXBT and switch to the North American one which should be easy to trade online just like other ETF's.
Feedback If you've managed to get crypto into your RRSP/TFSA in any other ways than listed above please do leave a comment and I'll update the post. Thanks!
Kraken - Bitcoin Cash and a Critical Alert for Margin Traders
On August 1 2017 at 12:20 pm UTC a small community of Bitcoin users is planning a hard fork from Bitcoin to an alternative protocol called “Bitcoin Cash” (BCH). Bitcoin Cash is expected to be a minority chain, with the vast majority of the Bitcoin community remaining on the chain that activates Segregated Witness and, later on, a possible increase to 2MB blocks. Although the Bitcoin Cash fork is expected to be minor, it may be successful. Provided that unforeseen circumstances do not make it prohibitively unsafe or difficult for us to do so, Kraken will support Bitcoin Cash as follows:
All Kraken clients holding Bitcoin (XBT) balances at the time of the fork will be credited with an equal amount of Bitcoin Cash (BCH)
All Kraken clients borrowing Bitcoin (XBT) for margin trades at the time of the fork will be debited an equal amount of Bitcoin Cash (BCH)
After the fork Kraken will enable BCH deposits and withdrawals (with replay protection enabled)
After the fork Kraken will enable BCH trading in the following pairs: BCH/XBT, BCH/USD, BCH/EUR ( Kraken-owned Cryptowat.ch will support BCH charts and trading
BCH margin trading may be added at a later date if it survives and trade volume is robust
What Kraken Clients Need to Know about the Hard Fork Bitcoin funding will be halted at 11 am UTC on August 1 - do not deposit during the fork Kraken will halt XBT funding at 11 am UTC and safely secure funds during the fork. Funding will be re-enabled after the outcome of the fork is clear and the network is safe. Trading will continue across the fork XBT trading is expected to continue as normal across the fork, however there may be a brief interruption for the listing of new pairs and adjustment of balances. Long XBT margin positions held across the fork will result in a BCH credit If you hold a 10 XBT long position across the fork, it will carry over and can be closed at any time in the usual way. However, you will also receive a 10 BCH credit to your balance corresponding to the margin position.
example 1: margin buy (long) 10 XBT/USD = +10 BCH (long xbt, short usd)
example 2: margin sell (short) 10 ETH/XBT = +10 BCH (short eth, long xbt)
Short XBT margin positions held across the fork will result in a BCH debit If you hold a 10 XBT short position across the fork, it will carry over and can be closed at any time in the usual way. However, please note that you will also be responsible for a 10 BCH debit (negative balance) on your account that must be corrected by either buying or depositing 10 BCH. Why the negative balance? Kraken sources the XBT to finance margin trading from individual lenders and we are preserving the value for these lenders that may lie in the BCH forked from their funds. This means that traders who borrow XBT across the fork to short must also pay back the BCH that forks from this XBT. Any account with a negative BCH balance will be placed on withdrawal lock until the balance is corrected.
example 1: margin sell (short) 10 XBT/USD = -10 BCH (short xbt, long usd)
example 2: margin buy (long) 10 ETH/XBT = -10 BCH (long eth, short xbt)
Margin traders should be very cautious across the fork Margin traders are advised to be very cautious across the fork, by either reducing their position sizes or closing out entirely before the fork. In addition to the special provisions described above, margin traders should plan for the possibility of extreme volatility and unfavorable forced liquidations surrounding the fork. As always, margin traders are strongly encouraged to set stops rather than rely on perfect accessibility to the exchange. A word of caution for everyone Kraken makes no promises/guarantees/warranties on the outcome of the fork. We will make our best effort handle things in a way that benefits the most clients, but clients should manage their own wallets/coins if they want perfect control. Kraken will not be held responsible for any circumstances that result in the loss of BCH. Follow us on social media for updates during the fork
If you are wondering why Cboe futures are $1200 over spot price, or want to hear why that is a problem
After the futures opened last night, I have been doing some thinking and research, and it is fairly concerning to me, so thought I would share. First of all, here is the situation: the January future is, at this time, $1200 over the price on GDAX. Now the naive view is that this is because people expect the price to go up by that much over the next month, that is what a future is right? But no, this is incorrect, and here is why: There is a very simple arbitrage opportunity in this situation, called cash and carry. How it works, is you sell one future contract, and at the same time buy one bitcoin. As mentioned the price difference between these two is $1200. Then you hold both of those through to the settlement date, and at that point sell your bitcoin. The price you get from your bitcoin sell will be exactly* the same price you settle the future at, by definition. So you have made $1200 without taking any trade risk**. Now clearly I would like to take advantage of this free money, but I can't because I can't find anyplace that will let retail investors short sell the future contract. This is a problem because as we know, institutional investors are reluctant to hold actual bitcoin, so they can't run this arbitrage. So, there is no one to take the other side of these trades, and hence there is a tendency for the price to only go up, as there are buyers, but no one selling at the market price***. This is the same situation we were in before, where it is easy to go long bitcoin, but nearly impossible to go short. Or put another way, the very best recipe for a bubble. In conclusion, I believe the futures to be mispriced (high), and that is not helping the bubblish tenancies of bitcoin at this time. Footnotes: * There is risk of volatility at the settlement time, and if you don't time your sell for the exact time of the settlement, you may get a different price ** The trade caries no risk, but there is risk elsewhere, settlement volatility as above, counterparty risk, and potentially needing to provide a lot of cash to cover the short if the price goes up. Note that doesn't mean you are going to loose on the trade, just that you may have to supply a lot of cash until you can settle, which would reduce your yield. And if you run out of cash, then ouch. *** Yes there are sellers, we know, because there has to be a match on both sides for the contract to be sold. But those are short sellers betting on price going down, not this riskless arbitrage I am talking about. Those people are only selling at this higher price, because they are taking actual risk. This is where the mispriced outcome comes from. Edit: See also Matt Levine at Bloomberg, who wrote a piece calling out exactly what I describe above.
Each 10% gain in a day causes a halt so it stopped at 16500 and now 18000. Next breaker is at 19500 then the tricky part to crack up to 21000 EDIT: looks like trading has resumed and onwards it marches to 18100 now Also this market is not very saturated and has quite wide bid and ask spreads. More players in that market will smooth things out. http://www.cboe.com/delayedquote/advanced-charts?ticker=XBT%2fF8 Also note these futures contracts are settled in cash not bitcoins.
Hey everyone! I took the weekend off to spend time for my daughters 7th birthday. My wife and I took her to Six Flags, got her ears pierced (OMG) We had a great weekend. On to the meat now. My last analysis, I stated how we were in a range. We stayed in that range with a 1 cent range. .215 to about .205. I stated how the .20 level was a significant buying opportunity. Today is the realization of that opportunity. In a few short hours it went from .208 to .228 which represents a good 10% bump. On a 10,000 xrp holding, you have added 1,000 units I am not fully sure if there is any significant news as the reason why its going up, but I did say to expect some volatile swings going into Sept 12th. With the breakout today it broke through all of the barriers on the way up. If you look at the 1 minute charts, you can see the creation of new levels of support. .218 and .222 . There is no indication of support above this zone. at .2275 it peaked and looks to be coming down to the .2255 range. If this is a small support zone, it may pop back up and test .23. I do not see it breaking the .23 zone. I think the best place for it to go is back to the .22 area, coming down off the highs. This could be a good time to take some profits if you had bought in around the .205 area, and look for a re-entry in the .22 or even .21 zone if it retreats that far. Its still too early to tell exactly what way its going. It could continue an upward trend. However, right now, it seems there isn't a whole lot of reason for it to continue to break past the .23 area. It may just be investors getting in cheap before the 12th. My opinion is, if you bought in in the .20 range, close half of your position and book the profit. Watch the trends (or wait for my next comment) to see what action to take next. If you had bought in the .21-.215 range, you can book a profit here and wait for a retest of that range to get back in. This will increase your holding of xrp. I will follow up later, and remember, the Korean time is in about 4 hours. They could come in and extend the upswing, or close out positions. It is a good indicator to follow the Bitcoin prices as well. Any significant drops will likely drag down the Alt coins prices too. Current XBT price is; $4350.
Bitcoin to US Dollar Chart. This XBT/USD Chart lets you see this pair's currency rate history for up to 10 years! XE uses highly accurate, live mid-market rates. XBT to USD Chart. 16 Jul 2020 09:10 UTC - 17 Jul 2020 09:10 UTC. XBT/USD close:9098.65122 low:9061.82886 high:9140.20805 Hey guys! Here is update for Daily Price action on Bitcoin. What to expect from the breakout of Triangle. In my opinion we should expect some fakeout breakout before the move. So I determined 2 key levels for the Bitcoin in 10 000 — 8600 range. Here is the clear view on the chart as pic: In video you can find why i think... Find real-time XBT - Bitcoin/US Dollar stock quotes, company profile, news and forecasts from CNN Business. Bitcoin Tracker One XBT Provider (BITCOIN-XBT.ST) Add to watchlist. Stockholm - Stockholm Real Time Price. Currency in SEK Bitcoin Price (BTC). Price chart, trade volume, market cap, and more. Discover new cryptocurrencies to add to your portfolio.
Bitcoin Live Btc Price Liquidation Watch: July 16 2020 ...
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