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The basics of crypto-trading: indicators, charts and trend lines

The basics of crypto-trading: indicators, charts and trend lines

The basics of crypto-trading: indicators, charts and trend lines
Halving on the Bitcoin network has become one of the key events in the cryptocurrency market, which has fueled the interest not only of long-standing players, but also has caused the release of new ones. This is evidenced by recent data on the growing demand for crypto assets on top cryptocurrency exchanges such as Bithumb Global. For those who are just getting acquainted with the crypto-market and want to try their hand at trading a new class of assets, we will tell you what tools crypto-exchanges offer and how to use them in crypto-trading.
To start trading cryptocurrencies, you must first select:
• Crypto-wallet — there are several types of crypto-wallets: hot, cold, desktop, mobile and paper. All of them provide different levels of security and convenience. At the same time, the best option for storing cryptocurrencies is the use of two different wallets — hot and cold. So do most large companies working with digital assets.
• Crypto-exchange is a trading platform that will allow you to exchange, buy and sell cryptocurrencies. Such platforms can be centralized (CEX), decentralized (DEX) or hybrid, combining the qualities of CEX and DEX.
• A crypto-portfolio is a collection of crypto-assets collected for profit. It is best to form it in three stages: part of the currency for long-term storage (from 1 year and longer), another part — a medium-term deposit (up to six months) and a deposit for trading for several days or a week. When starting crypto trading, it is advisable to diversify your investment in a deposit for trading, paying attention not only to the potential of a particular coin, but also to the ways of earning that the cryptocurrency market offers. Experts advise at the initial stages to choose assets from the top 10 rating by capitalization.

Terminology

Order — a trader’s request for a cryptocurrency transaction. Orders are divided into market orders — for purchase (Buy) or sale (Sell), and pending — requests for a transaction at a non-market price, waiting for it to be at the right level. Pending orders include:
⁃ Limit — for sale / purchase at a price higher / lower than the current market price
⁃ Stop loss — orders to limit the loss
⁃ Take Profit — Take Profit Order
Market maker and market taker are market participants who create and accept orders. The market maker creates a new transaction request, increases the turnover of the exchange and raises the liquidity of the crypto asset, while the receiving market taker takes the asset out of circulation, lowering its liquidity. In this connection, different commissions are introduced on some crypto exchanges for makers and takers.
Exchange Cup or Order Book — a table with limit orders, which displays the closest sellers and buyers, where sellers’ orders are marked in red, and buyers are marked in green. The columns of the table show the number of cryptocurrencies and the price at which they intend to sell or buy. At the junction of these tables, a spread is formed — the difference in the price of supply and demand. The lower the spread, the more liquid the cryptocurrency. The analysis of the stock market is a leading indicator of the state of the market, since it allows you to predict changes before they happen.
Long and short positions (Long and Short) — the usual “mode” of trading. In the case of a long position, we buy cheaper and sell more. It is believed that the growth of assets in the market is a long process, therefore, work in this direction is also called long. The second option means a short position, that is, a game for a fall. The market believes that the decline in the value of assets occurs quickly, that is, in a short time. Therefore, this position is called “short.”
Exchange chart — shows the change in the price of cryptocurrency over time and is the most important tool for technical analysis. Charts display price changes with a line, bar and candlestick.
Bulls and bears — in the market so-called buyers and sellers. There is an analogy with the nature of animals: buyers always push the price up, creating a demand for something, and it turns out that the price seems to be pushed by horns. In this connection, bulls are optimists, they believe that the prices of the shares they bought will rise, and someday they will sell the asset more expensive than they bought. The bulls in the market are overwhelming (by approximate estimates, up to 80%), long investments are kept on them, and the bull trend means stable growth of stocks and general welfare. Bears, in turn, are sellers who have learned to capitalize on a falling market: they usually try to sell cryptocurrencies faster, often lowering the price of an asset. Concluding a contract for the sale, they fix its value, and then wait until the goods fall in price, close the deal and put the proceeds in their pocket. Bears are interested in a constant reduction in prices and achieve their goal, provoking an increase in supply: open short positions and sell until the price drops to the desired level.
Technical analysis is a set of tools for market forecasting of prices based on the movement of value in the past. In technical analysis, the same tools can be used for different markets and trading pairs with a slight adjustment of indicators. Also, technical tools are equally successfully used on any timeframes — from a minute to a year.
Fundamental analysis — this type of analysis is based on the consideration of financial and production market indicators that may affect the price of a traded instrument. The mood of market players, current and growing trends, indicators of production activity — all this information can give an extensive idea of the potential of the investment object in question. The main disadvantage of the fundamental analysis is that the information provided by him is insufficient to predict the movement of prices in some local areas. It is possible to determine a potentially good company that has excellent financial performance and has real prospects, but it will be impossible to determine the moment of entering a short-term profitable trade with a good indicator of risk to profit ratio.
Pattern — behavioral model / trading setup / market pattern. Patterns are one of the most common methods for analyzing price movements. Each pattern is always based on a certain idea, the simplest and most understandable. There are a lot of trading models, but all of them are derived from the classical model of breakdown or rebound from certain significant price levels.

Basic cryptocurrency trading tools at Bithumb Global

Using the example of a centralized cryptocurrency exchange Bithumb Global, we will analyze the main elements that cryptotraders will encounter in the initial stages of trading. When choosing a cryptocurrency exchange, first of all, you need to pay attention to the presence of:
⁃ Convenient ways to deposit and withdraw funds
⁃ Fiat currency support
⁃ High number of trading pairs
⁃ Information on the current state of cryptocurrency rates
⁃ Cryptocurrency Rate Charts
⁃ Technical indicators
⁃ Different levels of user verification
⁃ Built-in cryptocurrency wallet
⁃ 24/7 tech support
On the Bithumb Global main page, a selection of top trading pairs is offered, where cryptocurrency tickers are listed, their price, exchange rate for the last day, daily trading volume and the asset quotes movement chart.

Top trading pairs at Bithumb Global. Source.
If you select a pair from this list, then Bithumb Global will automatically transfer the user to the Base Version of Spot Trading. Spot trading — the terms of the transaction with cryptocurrency, in which payment is made to both parties immediately.
Here the user can get acquainted with the latest price of an asset, the volume of transactions with it, data on transactions and the minimum and maximum prices for the last day.

Basic Version of Spot Trading on Bithumb Global. Source.
You can select another trading pair in the top menu by hovering over the corresponding button, but the easiest way is to find the desired pair through the search. At the same time, the Professional Version of Spot Trading opens up a wider set of tools for the user, which will be discussed later.

Trading Tools Professional Version Bithumb Global

On the Professional Version, users can use price charts in the form of Candles, which look like a series of vertical lines and display price changes, where the upper point shows the maximum that the price has reached and the lower one — the minimum. If the closing price is lower than the opening, then the candle will be painted red or black, and if higher, then green or white. Knowing the direction of the price movement (body color of the candle), we can say exactly where the closing and opening prices are.

Price chart in the form of Candles at Bithumb Global. Source.
Also in this version of Spot Trading, a price chart is available to users in the form of a Glass, where sellers ‘bids are marked in red and buyers’ bids are marked in green. The analysis of the stock market is a leading indicator of the state of the market, since it allows you to predict changes before they happen. If, for example, a large congestion of sales requests at the upper price limit can be noted, then as soon as the market reaches this limit, a recession will provoke, triggered by a large number of sales.

Price chart in the form of a Glass on Bithumb Global. Source.
Price charts also have different timeframes — from 1 minute to 1 week, which allows you to conduct a more in-depth analysis of the movement of quotes of the selected asset.

Bithumb Global price chart timeframes. Source.
Also in this version of Bithumb Global, various Indicators are available to traders. In total, the cryptocurrency exchange provides about 80 different indicators that will help in the technical analysis of the movement of crypto asset quotes.
Let’s analyze the main indicators available on Bithumb Global:
Volume — allows you to track the number of transactions completed by traders over a specific time interval. Green and red bars are indicators of the volume of transactions: red signals a decrease in volume, green — its growth. By analyzing the volume of transactions against the background of the price movement chart, you can confirm the strength of the trend or reveal its weakness and predict a price reversal. If prices rise and trading volume rises, we observe a bullish trend. An increase in trading volume in the event of a decline in prices indicates a bearish trend.
Moving Average (MA) is just as popular a tool as volume is. The indicator function analyzes the average prices for the selected time interval, which gives a relative idea of the general price trends. If the actual price of cryptocurrency for a long time keeps above the moving average, we can assume that it will continue to grow. Accordingly, a fall below MA is a signal to lower the price of an asset. For more accurate forecasts, it is advisable to use several moving averages based on different time intervals. Moreover, in case of disagreement, it is customary to consider the value of the average based on a longer period of time. If the signals from several moving averages coincide, we can talk about a fairly accurate forecast.
MACD (Moving Average Convergence Divergence) — having trained on one moving average, we will move on to a comprehensive analysis of this indicator. The MACD tool analyzes the convergence and divergence of three moving averages and can signal the beginning of a new trend. MACD also works well on different timeframes and is a fairly simple and popular indicator of technical analysis.
Zig Zag is an auxiliary indicator that analyzes the highest and lowest points of the cryptocurrency exchange rate and allows you to determine the correct entry points into the market. The plus of the indicator is that it eliminates the noise that can distort the forecast of the trend behavior. Minor fluctuations are simply not taken into account: lines connect the highest and lowest points of the price chart directly. The zigzag shows global market movements, but at the same time it only captures these changes in the past, without giving forecasts on the price behavior in the future.
Relative Strength Index (RSI) — shows the greatest efficiency in a sideways trend. With active course dynamics, RSI may produce incorrect data. Such indicators of technical analysis are called oscillators, and they must be used with caution. The indicator’s algorithms analyze price changes and allow you to evaluate the oversold or overbought status of an asset and, therefore, predict the occurrence of a bull or bear trend.
CCI (Commodity Channel Index) — The CCI or Commodity Channel Index, as well as the Relative Strength Index (RSI), helps evaluate overbought or oversold assets. This chart with values from minus 100 to plus 100 is displayed under the current price chart and can be applied on any timeframes. A CCI of more than a hundred means that the asset is overbought, and the price is about to fall, and on the contrary, a CCI below minus one hundred indicates the oversoldness of the asset and the likely increase in its price. This tool also refers to oscillators and is used during a lateral trend when there is no clear idea of how the price will behave in the near future.
ADC and DI — the index of the average direction and direction of movement, signals a change in trend. It looks like three lines on the chart: red — bears, green — bulls, blue (there may be other colors on different platforms) — the strength of the trend. This indicator is fairly reliable on four-hour and day frames. If the trend strength line is within 10−20 points, this indicates that the trend is gaining strength, but if the indicators reach 60−80 points, you should wait for the trend correction. The green and red lines will show who sets the market mood — bulls or bears. If the green line crosses the red line, the trend becomes bullish, and vice versa.

Indicators at Bithumb Global. Source.
Another useful tool available on the Professional Version of Bithumb Global is Trend Lines. It allows you to demonstrate in which direction the price of an asset is moving. The Dow theory, which is the basis of all technical analysis, suggests that no matter how the price behaves, it will always be in a particular trend. If the price behaves relatively evenly and stays in the same range without showing either growth or decline, such a trend is called a side or flat trend.
A growing (“bullish”) trend is characterized by the appearance of a series of ascending highs, with each new peak must be higher than the previous one. Accordingly, the “bearish” downtrend shows points of failure (price low), each subsequent of which will be lower than the previous one.
A trend line can be built on two points of a minimum or maximum, and a third confirming one is mandatory. The more points form a trend line, the more confident and stable the trend itself. The construction points should not be too close to each other in the time frame, otherwise the direction of the trend will not be completely correct. Please note that the uptrend line is plotted below the chart, and the downtrend is above it. The slope on the trend line should also be taken into account — its constancy indicates the stability of the trend. The change in the angle of the trend line is called the acceleration or deceleration of the price movement. The larger the angle, the faster the trend.
A line through price lows is called a support line. As soon as the price reaches it, it finds market support there and, pushing off, again strives upward. The line connecting price highs is called the resistance line.This is the level above which the value of the asset has not yet risen. If the price breaks the support or resistance line, this is a clear signal for a trend violation and a change in trading tactics.

Trendlines at Bithumb Global. Source.

Finally

The above are the basic trading tools available to traders of the Professional Version of the Bithumb Global crypto-exchange. They will help you figure out how to properly analyze the key metrics of cryptocurrency assets so that you can build the most advanced trading strategy. However, this is not the whole range of tools available to Bithumb Global traders. Follow DeCenter materials to learn about the intricacies of cryptocurrency trading on the advanced cryptocurrency exchange.
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Beginner’s Guide to BitMEX

Beginner’s Guide to BitMEX

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Founded by HDR Global Trading Limited (which in turn was founded by former bankers Arthur Hayes, Samuel Reed and Ben Delo) in 2014, BitMEX is a trading platform operating around the world and registered in the Seychelles.
Meaning Bitcoin Mercantile Exchange, BitMEX is one of the largest Bitcoin trading platforms currently operating, with a daily trading volume of over 35,000 BTC and over 540,000 accesses monthly and a trading history of over $34 billion worth of Bitcoin since its inception.

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Unlike many other trading exchanges, BitMEX only accepts deposits through Bitcoin, which can then be used to purchase a variety of other cryptocurrencies. BitMEX specialises in sophisticated financial operations such as margin trading, which is trading with leverage. Like many of the exchanges that operate through cryptocurrencies, BitMEX is currently unregulated in any jurisdiction.
Visit BitMEX

How to Sign Up to BitMEX

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.
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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.
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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 Leverage

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.
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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 Fees

For traditional futures trading, BitMEX has a straightforward fee schedule. As noted, in terms of leverage offered, BitMEX offers up to 100% leverage, with the amount off leverage varying from product to product.
However, it should be noted that trading at the highest leverages is sophisticated and is intended for professional investors that are familiar with speculative trading. The fees and leverage are as follows:
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However, there are additional fees for hidden / iceberg orders. A hidden order pays the taker fee until the entire hidden quantity is completely executed. Then, the order will become normal, and the user will receive the maker rebate for the non-hidden amount.

Deposits and Withdrawals

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.
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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.

Supported Currencies

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 (XBT)
  • Bitcoin Cash (BCH)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Litecoin (LTC)
  • Ripple Token (XRP)
  • Monero (XMR)
  • Dash (DASH)
  • Zcash (ZEC)
  • Cardano (ADA)
  • Tron (TRX)
  • 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)
  • 25x: Monero (XMR)
  • 33x: Litecoin (LTC)
  • 50x: Ethereum (ETH)
  • 100x: Bitcoin (XBT), Bitcoin / Yen (XBJ), Bitcoin / Yuan (XBC)

Trading Technologies International Partnership

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.
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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.
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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
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(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
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(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

Conclusion

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
submitted by bitmex_register to u/bitmex_register [link] [comments]

Regulated ETH Futures? Not So Fast

Noelle Acheson is a veteran of company analysis and CoinDesk’s Director of Research. The opinions expressed in this article are the author’s own.
The following article originally appeared in Institutional Crypto by CoinDesk, a weekly newsletter focused on institutional investment in crypto assets. Sign up for free here.
Earlier this month, Heath Tarbert – the new chairman of the U.S. Commodity Futures Trading Commission (CFTC) – declared that ether, the token of the ethereum blockchain, was a commodity.
This is significant, coming from the regulator of one of the largest derivatives markets in the world. Why? Because it opens the door to the possibility of regulated ether derivatives in the near future. The chairman was even more specific: “I’d say it is likely that you would see a futures contract in the next six months to a year.”
The market got excited because this would enhance the token’s appeal to institutional investors. Derivatives enable hedging, which is a significant part of portfolio management and a solid support for long positions. A lively derivatives market, the reasoning goes, will encourage more investment, which will boost the price, which will encourage more investment, and so on.
Yet, with respect, I believe the chairman is mistaken. We will not see ether futures in significant volume on a regulated U.S. exchange any time soon. If ever.

Reputation risk

Although it’s not just about the lack of demand, let’s look at that first.
Ether futures currently trade on exchanges based outside the U.S., but volumes have been thin relative to the spot market. On BitMEX, Huobi and Deribit, three of the largest crypto platforms that offer ether futures, the average 24-hour volume is less than 10% that of bitcoin, while the equivalent ratio in the spot market is almost 25%.
The difference could be due to ethereum’s relative youth, and the gap could close as the network matures. Or it could be that bitcoin will always be the institutional-grade asset of choice, rendering ether derivative demand too insignificant for major markets to profitably develop.
Either way, demand can be flexible. The real barriers to a successful launch of ether derivatives go much deeper.

Underlying risk

Last week ethereum developers announced the target date for the next system-wide upgrade: December 4. This will be executed via a hard fork, in which the entire ecosystem needs to change – blocks processed on the old version will not be valid on the new. There are several of these coming up.
This introduces an additional element of risk into the market. Earlier this year, an upgrade was delayed just 48 hours before it was due to launch, due to a “critical vulnerability.” And while it is extremely likely that bugs will be found and fixed in time, there is always the “what if?” that risk-takers have to focus on.
Even more worrying for ether derivative watchers is the upcoming consensus algorithm shift. Ethereum currently runs on a proof-of-work consensus algorithm similar to that of bitcoin. It has long been working on a migration to a different system, called proof-of-stake, in which the amount of ether you “stake” gives you the credentials to validate transactions and append new blocks on the blockchain.
This is like changing the motor of your car while it is speeding along the highway. No matter how much testing is done and no matter how many parallel systems are in operation, it’s risky.
True, risk is precisely what derivatives were invented to mitigate – but the creators of derivative products like to have that risk reasonably quantifiable. While derivatives can help investors control risk, they don’t eliminate it; they redistribute it. The extra risk for exchanges will need to be compensated, and uncertainty of this magnitude could make ether derivatives prohibitively expensive.
What’s more, when ethereum hard forks over to its new algorithm, there is always a risk that not all miners will switch. The current ethereum network could continue to exist and perhaps even thrive if enough participants wish it. Which token would derivative contracts track?

Existential risk

Another risk looming over ethereum is that of a network rewind. In 2016, in response to a ~$60 million hack of an ethereum-based application, ethereum’s core participants decided to rewind the blockchain to its pre-hack state, restoring the stolen funds and creating a split in the ecosystem that persists to this day.
This was a few years ago, when ethereum was still young and many believed that such a large hack would stunt its growth prospects – few expect it to be able to successfully execute something similar today. But last weekend, ethereum’s creator Vitalik Buterin posted the following poll on Twitter.
Thankfully, the “never rewind” majority should reassure the market of the blockchain’s integrity and stability. But almost 40% of voters think ethereum should be able to, and the fact that Vitalik is even asking the question is a reminder that it is possible.
Ether may be a “commodity” in the eyes of the CFTC – but, traditionally, commodities can’t change their history or their characteristics. Has the regulator ever approved derivatives based on such a malleable asset? How would you even start ensuring that there is no information asymmetry and the risk is fairly priced in?
But there’s an even more existential question.

Regulatory risk

Ethereum’s proposed algorithm change could lead to a bigger adjustment: ether could stop being a commodity and become a security.
Under proof-of-stake, ether holders can “stake” their tokens in order to influence transaction validation and block creation. In exchange for doing so, they earn an income.
This exchange isn’t dissimilar to how miners earn rewards on a proof-of-work blockchain such as bitcoin. In proof-of-stake, however, the rewards are distributed as annualized interest as opposed to randomized payout making for more regular and predictable returns on ether.
Is this enough to make ether a security rather than a commodity? Maybe.
This would not invalidate any outstanding ether derivatives. It would, however, move them into the joint jurisdiction of the CFTC and the U.S. Securities and Exchange Commission (SEC).
This becomes significant when you compare the two securities regulators’ views towards crypto assets. The CFTC has long championed the innovation behind cryptocurrencies – former chairman Chris Giancarlo is affectionately known in the blockchain sector as “Crypto Dad” – and the new chairman’s recent comments referenced earlier show that he seems to feel the same.
The SEC, on the other hand, has repeatedly blocked the issuance of ETFs based on bitcoin, on the grounds that it is too immature a market. If it thinks bitcoin is not ready, it’s a stretch to conclude it will think differently about ethereum.
This is likely to give any regulated derivative platform pause.

Investment risk

So, given ethereum’s development stage and outlook, as well as little evidence of unsatisfied demand, ether derivatives on a U.S.-based regulated exchange are unlikely any time soon. There are a lot of issues to work out, in a sector that is already giving regulators and infrastructure providers more than enough to worry about.
This shouldn’t affect the phenomenal amount of work underway on the platform. It is, however, likely to affect broad institutional acceptance of ether as an investment asset. Large investors rarely take unidirectional bets.
Does that matter? Not necessarily – development will continue, and ethereum could still end up being a new operating system for the economy. Ether was not created as an investment asset.
Then again, nor was bitcoin. Markets have a way of latching on to and commoditizing ideas, and ethereum may one day become the darling of the alternative investment world. It’s still very young, though, has many teething pains ahead of it, and a while to go before traditional financial infrastructure supports its entrance into the mainstream.
Disclosure: The author holds a small amount of bitcoin and ether.
submitted by chrisj9167 to CryptoKami [link] [comments]

API Flaw - Transaction History

I've already opened a support ticket about this but would like to post here to give more visibility to those who utilize Gemini's API.
As of this writing, Gemini's API docs state this to fetch your trade history:
The problem lies in their advice to perform X+1 and Y+1. Even when using a millisecond timestamp, it is possible for Gemini's trading engine to match more than one trade per millisecond (quite a lot more in fact). If you have multiple open trades resting on the order book that are close together in price, during times of high volatility it may so happen that both your trades get filled in the same millisecond.
Now, if you're fetching your trade history, and the first element in the response payload, contains data for a trade which was executed on the very same millisecond of your NEXT trade, you'll skip fetching data for that next trade if you increase your millisecond value by one for your next request.
Solution: Do NOT increase your timestampms value for your next request by 1, instead, use the same timestampms for the next request. This will result in your next request containing at least one duplicate (which is the first element, from the prior request). Discard any duplicates in the current request from the prior, by comparing tid values for the trades.
Which leads me to my next point: It is also possible, for Gemini's trading engine to execute more than 500 trades in a single millisecond. If you encounter more than 500 trades on the same trading pair, in the same millisecond, you now have no way to get an accurate representation of your full trading history via the /v1/mytrades API endpoint. You're now stuck in a situation where if you request 500 trades for the millisecond this event occurred, all trades returned are of the same millisecond value. If you utilize the same timestampms for the next request, you get the same results as before. Whereas if you increase timestampms value by one, you've encountered a gap in your trading history.
I've reported this to them and am awaiting their response. I'm not sure what they'll come back with. While this is certainly an edge case, it is one that is very easily reproduce-able. At today's prices if we assume Bitcoin is trading at $10,000, all it would take is for someone to script out 501 individual, maker-or-cancel orders for 0.00001 BTC each all at the same price (don't ask why, but for the sake of argument here...). This is only about $50.10 worth of Bitcoin. Because they were executed in a scripted fashion all for the same price, it is highly likely that they're now sitting on the order book right next to each other with little to no orders from other customers between them. Now comes along a taker order from the opposing side of the order book, that is large enough to fill all these orders at once, and you've created this scenario I describe above.
Just thinking out loud here, but if the /v1/mytrades endpoint were to add an optional since_tid parameter to it's valid payload, Gemini could resolve both issues above while eliminating the need to "use the same timestamp as the first element in the payload for the next, and discard duplicates". Since a since_tid parameter could accept a transaction id to respond records for after in addition to the timestamp supplied. Now, for the scenario of "if we have a response where the first element contains data for a trade, that has the same millesecond timestamp as your next trade", we don't have to discard duplicates in the next payload (as the since_tid helped get transactions after what would have been a duplicate). And for the scenario "what if more than 500 transactions occur in the same millisecond", a since_tid parameter would allow you to request the next page for your transaction history, using the same millisecond value, and allow you to specify how far along in that millisecond you need data for.
This was long winded I apologize. For those that read through entirely and followed along, I can now simply say to you: the "Transaction History" page in the web browser interface of exchange.gemini.com/history and exchange.sandbox.gemini.com/history also suffer this same issue, except it is much more easily recreated due to the hard coded page limit of 25. While this page shows the history for orders not individual transactions, this same issue can occur if you have more than 25 orders fill in the same millesecond. Clicking to the next page, will skip data from your order history (I have confirmed this by paging through, and comparing results from the API since this allows for a much larger page size).
Cheers.

Update 2019.08.11

Gemini has responded to me about this and they gave a pretty canned response...
Thank you for reporting this. We are aware of this issue and are exploring potential solutions. Once a solution is in place I will be sure to let you know and we will update our documentation.
I'm trying to continue to follow up with them on how one can get a full picture of their trading history (possibly by emailing them directly for specific timestampms values), as it turns out I have also had this scenario happen to me in production as well. Of course it's possible to download this data in XLSX format from their Web UI, and convert that to CSV, and then parse that out.
But that's why we have APIs... To take the manual work out and reduce error prone manual tasks.
As a side note, they could "update their documentation" today. It's flat out incorrect (the advice to increase the timestampms by one for the next request every time).

Update 2019.08.12

After inquiring if it is possible to receive the full JSON payload for individual timestampms values via email, this was the response:
Again thank you for your feedback. Our engineers are currently working on a solution for this and I will be sure to let you know when it is live. Unfortunately, we are unable to send you your trade data in JSON format. However, you can download your full transaction history here: https://exchange.sandbox.gemini.com/history
Noticing a slight verbiage change here, "currently working on a solution" as opposed to "exploring potential solutions". Hope to see an update on their API Docs in the near future here, glad it sounds like this will be resolved.
submitted by Kobens to Gemini [link] [comments]

Invest in Bitcoin and cryptocurrency: high risk investment, big potential.

Invest in Bitcoin and cryptocurrency: high risk investment, big potential.

https://preview.redd.it/2kk6nqhntdn31.jpg?width=1280&format=pjpg&auto=webp&s=0b067b4f9660b2d05379f2808993936b1dd27b3e
After the bursting of the speculative bubble of Bitcoin and other cryptocurrencies, many investors moved away from this currency. Nevertheless, it is always possible to earn money if you have a taste for risk. The point is to understand that it is possible to grow your investments even when the value drops, and not invest what you can not afford to lose.Summary.Nota Bene: the cryptocurrency trading is to be reserved for those who want to spend a lot of time, to learn, to learn and especially able to keep the head on the shoulders. A matter of experts.On eKonomia, we know that many of our readers, who have money problems, would be tempted to get into the world of trading, and why not in bitcoin and other cryptocurrency. This is most of the time a gross mistake, which we will explain.We believe very strongly in cryptocurrencies, and hope that they will someday replace our fiduciary currencies (euros, dollars), but for now, it is clear that attempts at scams and speculation reign supreme.This article is a highly speculative approach to cryptocurrency trading, here you are!The runaway for cryptosThe entire economic sphere, including investors in traditional sectors, has been interested in cryptocurrencies when they have demonstrated their unparalleled potential for returns. By taking the train at the right time, some have indeed multiplied their investment by 10 or more, all in less than a year. This is where the banks, the states and the media began to take an interest in this sector, which is as little known as it is lucrative. Regulations and smear campaigns were then put in place to dissuade investors from placing their money elsewhere than in the traditional sectors of the economy.The rapid fall of Bitcoin, following the bursting of the bubble, helped to support the demonstration, thus dissuading the neophytes to look further into the issue. In fact, it is not so simple because it is quite possible to take advantage of a bear market, as well as a bull market. As you can see, some have multiplied by 10 in one direction, then in the other. However, where gains are maximal and fast, so are the losses.To convince myself of the volatility of cryptocurrencies, I invite you to regularly check CoinMarketCap. I go there every day, and seeing a motto take 10 or 20% in a day is something banal, just like losing 10 or 20%!A Japanese candlestick, a graphic used in technical analysis. If its gibberish for you, then you measure the length of training you have to do before you start trading, let alone the cryptos!What about todays potential of cryptocurrency in terms of placement?There is no ready-made answer to the meaning of the evolution of the latter, but the possibilities of taking advantage of it remain intact. To understand how these investments work, we need on the one hand a global vision of the cryptocurrencies themselves, and on the other hand an understanding of the risk which remains the counterpart of the potential of gains.The risks associated with investing in cryptocurrencies.One of the main risks of investing in a cryptocurrency is its outright disappearance. Many small cryptocurrencies, alt coins (alternative to Bitcoin) have indeed a limited life. They do not find takers on the market and their disaffection leads either to their disappearance or to the stagnation of their prices. Regarding major currencies, starting with Bitcoin, their disappearance seems more than unlikely.Trusted third parties, ie platforms that buy, sell or trade in digital currency markets are also a crux of the problem. The case of MTGox, whose bankruptcy has resulted in the disappearance of thousands of accounts and therefore the placement of all its users, is one of the most glaring examples. Whoever says trusted third party also says security, and security remains a major problem in the cryptocurrency sector.One way to minimize the risk is to store your own cryptocurrency on a wallet, a virtual wallet protected by a complex password. However, any security has its flaws, and cybercriminals redouble their ingenuity to achieve their goals. Thus, scams are multiplying on social networks for example. Pseudo specialists offer juicy placements or advice, their only goal remaining to steal people naive enough to trust them.The opinion of specialists in finance.The classic actors of finance will tell you (practically) all: investing in cryptocurrencies is a bad idea. For example, the banker will offer much safer investments with attractive earning potential. It is sometimes these same specialists who were enthusiastic before the bursting of the internet bubble. The use of a stock portfolio gives them money, so it is quite normal that they try to sell their products.It is also obvious that these people discover the cryptocurrency and that as long as they will not have a product to offer on which they can take a margin, they will advise against this sector of investment. In addition, one can also think that if their expertise on the sector was so brilliant, they would certainly not work anymore as financial advisers.What solutions to invest in cryptocurrency by minimizing risks?On the other side of the Atlantic, where we are more reactive on the opportunities, the banks have already set up futures linked to the Bitcoin course. Here, the product is safe from the risk of hacking, theft and is completely regulated. Because this is the problem for the institutional actors of finance, cryptocurrencies are deregulated and non-centralized: no central bank decides the market, it self-regulates itself, according to the very principle of the hand invisible, so dear to capitalism.If the share of technical protection is ensured, it is amusing to note that this is done through futures, product that does not exclude the intrinsic risk part of trading. Trading Futures requires the opening of a dedicated account to intervene on the US market. The gains realized will be taxed as capital gains.CFD trading on Bitcoin.CFD brokers did not wait to invest in the cryptos market. These professionals know that there are good investments to make, despite the risks. For a common person, it is tempting to get into it too, but we must not forget that it is necessary, before throwing himself into the arena, to have at least fairly advanced skills in trading.CFDs or Contracts For Difference thus make it possible to invest in an asset (currency pair, index, share, commodity ...) through a contract defined upwards or downwards. In fact, the investor does not own the asset, just the contract. When he resells his contract, it is the difference between the purchase price and the selling price which constitutes the gain or loss.This type of financial product has several advantages:The trader can use a leverage effect. A lever x10 on a CFD at 100 € is worth 1000 € for an investment that remains 100 € The brokers are regulated by European organizations.Finally, before becoming an apprentice trader, I recommend a video of the excellent Thami Kabbaj. He explains the reasons that lead us to lose money.Do not invest money in trading until the tools are fully mastered! All the interest of using a trading simulation platform is there, there is no easy money, there has never been, and even less on the stock market.For further.The opinion of eKonomia.Cryptocurrency trading, yes, but only after a very good training.Attention: we remind our readers that trading should be reserved for very well-trained people, who know exactly what they are doing. Too many people shout at the scam because of significant money losses, when they simply did not master the tools of trading. The advantage of demonstration accounts is there, it allows everyone to learn, take the time to embark on these risky investments, but with great potential.Again, never invest what you can not afford to lose!I quote Vestle.fr:86% of retail investors accounts lose money by trading on CFDs with Vestle. You should evaluate if you can afford to take the risk of losing your money.So there is no easy money. The very sharp rise of Bitcoin in 2018 attracted a lot of people who were not prepared for the world of finance, let alone cryptocurrency, by definition very volatile. The fall of the cryptocurrency has confirmed, those who knew what was happening have won on all fronts: by betting on the rise at the right time, then down. We understand that the nerve of war is above all information, and to be aware of what is happening on the markets.Before venturing into trading, it is better to train and spend a lot of time thanks to a platform for simulations. Keeping in mind that while its easy to keep a cool head when there is no risk, investing your savings for real can make very bad decisions. not on the rational.Leverage allows considerable gains, but also considerable losses, hence the importance of training, if only to learn how to implement stop loss ...What did you think of this article?Compare the best credit offers for free.All our a>Read also on eKonomia.Investing with Bondora, inter-home loan In a world where bank interest rates are at a standstill, lending between individuals has a bright future. The Estonian investment platform Bondora thus offers high returns, thanks to credits available to all.Physical gold: a viable investment as well as a reliable investment In a crisis, buying gold in bullion, bars or coins is a reflex. Gold gives absolute security to the one who possesses it, sheltered from the vagaries of the world of finance, war or inflation. Profitability is not the main objective, even if sometimes good capital gains can be made. To talk to us about it, we called on Godot & Fils experts.Investing in coins: numismatics, safe haven? To save money, buying old coins is an alternative to banks. In the face of crises, it is better to invest in gold coins rather than libret A. To talk about it, we called upon the experts of Godot & Fils, long-standing specialists in numismatics and precious metals.Lending and borrowing in bitcoin: P2P credit The use of bitcoin cryptocurrency makes it possible to get rid of banks. Bitcoin credit is becoming more popular, thus avoiding bank charges. However, the high speculation that this virtual currency raises does not make it possible to establish a necessary climate of confidence on very long-term loans.eKonomia - credit comparator - advocates the financial extension, advising and explaining all you need to know about money, savings or credit, so that everyone can make the right decisions when it comes to budget and savings.A credit commits you and must be repaid. Check your repayment capacity before you commit. The responsibility of the eKonomia authors can not be accepted in the event of a bad financial decision resulting from the information published online.The eKonomia credit comparator is offered by AssurAgency. N ° ORIAS: 14001578.© In Aciem Unipessoal Lda 2019, all rights reserved Rua de Tânger, No. 1226, 3eq 4150-721 PORTO, PORTUGAL. +33.6 51 78 37 93 (FR)
submitted by hussainarif to u/hussainarif [link] [comments]

My recent wire experience

Want to relay my recent experience to help other canucks entering the cryptocurrency scene. I wanted to invest 100K in both main coins and some alt coins. Depositing that amount can’t be done using ETF/bank-transfeetc. – the only reasonably quick way is to wire funds. For wires, most exchanges have a percentage based deposit fee – something that makes absolutely no sense to me. Whether you wire 1K or 1MM, the amount of work for the exchange is identical, so it should be a flat fee. Deciding on an exchange is more complicated than that though: each one has their own rules for minimums/maximums, trading fees, supported coins, holding periods, and withdrawal fees. They also can vary greatly on the amount of time verification takes. One thing to note is that pretty much all exchanges don’t charge a fee for inbound crypto transfers.
2 months ago I signed up for 10 exchanges (Coinbase/GDAX, Binance, Coinsquare, Kraken, ezBTC, QuadrigaCX, Bitfinex, Gemeni, Bittrex, Poloniex) and was verified on 7 of them (I’m still in queue for Gemeni, Bittrex, and Poloniex). Verification times gave me what I thought was a decent indicator of the level and quality of support I would receive.
Of these exchanges, some have what I believe to be relatively high trading fees (Gemeni .25%, Bittrex, .25%, ezBTC .30%, QuadrigaCX .50%) vs lower maketaker fees (GDAX 0/.3%, Binance .1/.1%, Gitfinex .1/.2%, Coinsquare .1/.2%, Kraken .16/.26%). Still others have high percentage based wire fees. And finally, there’s a big disparity between withdrawal fees: free on some exchanes, vs fixed rate based on the coin for others, vs Coinsquare’s insane fixed 0.0025 BTC regardless of what coin or the amount being withdrawn.
So here are some observations on the exchanges. Please note that the below is not a reflection on any of the people who work at the exchanges. I’m sure they are working as hard as they can and are doing their best. It’s just my experience. It’s also not financial advice. Also, I’m only human so feel free to offer corrections or better advice.
Coinsquare: amazingly fast verification time, and for very large deposits seems to likely be the best option as they will let you speak to a human being by phone and will waive the deposit fee (I didn’t know this until later though). I excluded them because of their high 0.5% percentage based deposit fee and their crazy high withdrawal fee. They also only have support for 6 coins.
QuadrigaCX: I had a terrible initial experience with QuadrigaCX’s support, so I immediately excluded them. They have high trading fees and there are many complaints of support tickets being ignored or having extremely lengthy wait times. They have a crazy high 1% percentage based CAD wire fee, but offer free USD wires. Note that they only support wires for large amounts.
GDAX/Coinbase: Loads of good reviews, but only has support for 4 coins. Seems like they also don’t have a fee for crypto withdrawals. You also can’t seem to wire CAD or USD funds directly to GDAX. I think you may have to wire USD funds to Coinbase and then transfer them over to GDAX (for free).
Kraken: I created an account but the verification page just appeared blank for me. After a few days, their support team got back to me telling me that they had a bug and that I needed to create a new account using a different email address and try again. That worked. I decided to use them as they seemed like the best all-around alternative. I was impressed with their support response (they gave me an answer that worked and responded in days as opposed to weeks), they offer a no-fee inbound CAD wire, support 16 coins, and have low (though not free) crypto withdrawal fees. They have also been around a while and have a good reputation (They were picked to handle MtGox claims). Wiring funds to them was a hair-raising experience though. You basically need to send your funds to an unknown bank in Tokyo, Japan. Kraken also has two slightly different sets of wire instructions: one that is on their website, and the other that their support folks send out. Only one of them mentions that you should tell your bank not to use an intermediary that will convert your currency. If you do things properly, and are lucky, you end up only paying ~$40 in fees. But chances are, you don’t, and end up paying 4%! (see https://www.reddit.com/BitcoinCA/comments/7rd6k8/fees_when_sending_to_krakencom/). You also have no idea how much the fees will be until the money finally shows up in your account. That’s tremendously unsettling. Luckily my bank branch manager was familiar with crypto currency wires and helped me do things properly. But, the wire took over 2 weeks to show up (Jan 18th), and Kraken support is so overloaded that they didn’t’ respond, despite me escalating my support ticket several times. I eventually had to resort to a reddit post to get a response to my support ticket. I gave support my wire receipt and answered lots of additional questions to help them try to “locate” it. Perhaps the worst part of my entire experience was that while my wire was being located, the entire crypto market tanked by 50%...and no one would respond to my support ticket…I felt helpless. A Kraken support rep a few days ago said that they are handing >50K new user registrations per day and have >20K new support tickets per day. I feel they should turn off new user registrations until they are capable of servicing existing customers. This is what their competitors have done. I found it disheartening to learn that the only way to get a response to my support ticket was to complain via social media --- many others have found the same. While I was waiting for my wire to appear Kraken had a >48h outage. Prior to the outage, the site was almost unusable as you’d receive constant 50x errors (I found this out prior to wiring my funds). After the outage, I find that their site is still barely usable. Pages take 10-15 seconds to load and when they do load many times they display errors so you have to continually retry until things work. At the end of the day though, they did come through for me: my wire arrived safely. So with my funds in Kraken, I tried to use them to purchase crypto. But no matter what I tried, none of the CAD dollar trading pairs would appear. I logged out and back in a few times and 15 minutes later, it suddenly started appearing. With the flakiness in Kraken’s platform, I had no choice but to transfer everything to a more stable and faster exchange:
Binance: These guys have their shit in order. Super simple site navigation once you get used to it, fast verification times, blazingly fast website and trading engine, more than 50 coins supported, etc. But, they don’t support fiat – you must use one of the other exchanges to buy crypto with fiat and then transfer in your crypto. Gotta say it again: everything is super fast. Not just the page loads, but also trading, email confirmations, and withdrawals. Trading takes a bit of getting used to as you aren’t really buying or selling crypto…you are instead “trading” one crypto coin for another. Depending on the coin you want to purchase, you might have to trade your coin for BNB (binance’s own coin) and then trade BNB for the coin you desire.
Be Your Own Bank: One final word of advice. Binance is awesome, but don’t trust anyone as despite everyone’s best intentions: no matter how secure a platform is, it can and will be hacked. As soon as you have done your shopping, transfer your coins off to your own wallet. This is why withdrawal fees are important.
You might be asking: in hindsight, if I had to do it all over again, what would I do differently? To wire CAD funds I would try to use Coinsquare if it’s a big amount (after re-reading other people’s recent reviews). For USD wires, I might try using Gemeni, but I still haven’t been verified by them and have been waiting for almost 2 months. Before using either I would re-test how long it takes for a support ticket to be responded to. If you do wire funds, don't wire an exact round amount like "10,000.00", instead I would wire "10,070.45" so that it's easier to locate if things go wrong. Once the account has been funded I wouldn’t hesitate to transfer everything to another exchange if I wasn’t happy with the platform, the number of coin offerings, or quality of service I was receiving: you can always come back when things improve.
Things change so quickly so not sure how helpful this will be…just wished I had known some of the above before starting.
submitted by ignacvucko to BitcoinCA [link] [comments]

HitBTC Review

HitBTC is one of the most advanced crypto exchanges and has been in the industry long enough to master all its arts. With more than five years in operation, HitBTC is the best place to trade popular digital coins such as Bitcoin, USD Tether, Monero, Litecoin, Dogecoin, Ethereum among a host of other digital coins. Htmlcoin was newly listed on HitBTC Exchange. The trading pairs are BTC, ETH and USDT.
Besides Htmlcoin, HitBTC offers support to more than 200 digital coins that are trading daily on this platform. It also covers the users of tokens and ICOs (Initial Coin Offerings). With customers spread from all corners of the world, the venture capital of this international crypto exchange platform is now estimated at 6 million Euros. All the operations of HitBTC exchange are handled by a Hong-Kong- based firm known as HIT Solution Limited. The creation of this exchange platform was as a result of collaborative efforts between professionals in the finance sector, traders, as well as experienced software developers. This brought in a one of a kind exchange platform that meets the need of all users. The main matching engine of this system has been designed with spectacular features including fast clearing process and integrated order matching algorithms. The site has also been lauded for fault tolerance, uptime, as well as high availability.

The Great Features of HitBTC

For cryptocurrency traders, HitBTC is the best trading platform that has it all. The top-notch matching engine system and the high liquidity are some of its main selling points. Advanced security measures, reduced transaction fees, zero limits on withdrawals and deposits of crypto assets such as Htmlcoin are some of the things that set this platform aside. HitBTC has close to 200 instruments that users can pick from as well as the most upgraded REST API and FIX API. To add to that, customers are not required to register before being allowed to trade on this platform. In a nutshell, here are some of the selling points of this great Bitcoin trading platform.

What are the Trading Tools for HitBTC?

While a number of exchanges allow traders to indulge in their businesses without sufficient information, HitBTC offers the most vital information needed before trading. For professionals in this market, there are various graphs and charts that HitBTC has in store. Beginners aren’t left behind, as there is enough information on how to go about the virtual currency trading at this platform.

How to Register with HitBTC Exchange

It is very simple to register a new account with this online exchange platform. On the upper-right corner, a tab labeled “Register” is clearly seen and here is where the customer will place all the needed information. They are required to have a valid email address and even set up their passwords. To confirm the address and activate the account, HitBTC will then send a link to the customer’s email. That sounds really easy and fast.

Making a Deposit with HitBTC Exchange

To be able to deposit into the main HitBTC account, customers would be needed to create their wallet address. The action would begin by clicking on the green “Deposit” button before proceeding to the type of currency that the customer is supposed to trade with. From there, a new wallet address would be made available to the customer as well as a QR code, letters, and other numbers. Trading on the HitBTC
All of the assets that are found in the HitBTC exchange account come with a special address. To be able to withdraw coins, the tab labeled “Accounts” has it all. There is one button that is dedicated to each available currency.

Trading on the HitBTC

For the users of Htmlcoin and other digital assets, trading on this platform is very easy. The first thing they would be required to do is to transfer funds from their main HitBTC account to the account meant for trading. Between the two accounts, there is the blue arrow that the customers would be required to click before they continue. From there, they will place the amount they want to move before they click the “Transfer” button. The instruments section has all the trading pairs needed to trade. The Trading Fees at HitBTC Exchange Just like any other exchange platform dealing with virtual coins, HitBTC imposes certain fees on customers. This is the only way it would be able to continue running its operations and make some profit. This platform works with a maker-taker type of model that increases liquidity as it lowers the spread on the market. Takers, for those who might not be aware, are those who take away the liquidity, they then place an order that is very similar to the one already available. Makers, on the other hand, are those who offer liquidity by designing a limit order under the asking price for purchasing. Takers in this platform are charged 0.1% fee when they trade here, while makers aren’t charged any fee. This is one of the offerings that are not easy to come across in this market. It is one of the benefits that place this Hong Kong-based crypto exchange ahead of others in the competition. As a matter of fact, makers receive a rebate when they make a 0.01% trading. This rebate is made to act as a reward for offering the needed liquidity.

Last word

For those who are out seeking for a well-organized crypto exchange that has high liquidity and high volume, then HitBTC is the exchange to look for. Its useful features such as user-friendly interface and various trading options set it aside from other sector leaders.

About HitBTC

HitBTC is the world’s most advanced cryptocurrency exchange. Since 2013, HitBTC has been providing markets for Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, USDT, and more than 300 cryptocurrencies in total. Created by outstanding technical minds, high-level finance professionals and experienced traders, HitBTC is delivering the most reliable, fast and powerful platform solution on the market. The platform has earned its reputation for fault-tolerance, flawless uptime and high availability. Its core matching engine is among the best technological products in its class, offering traders a wide range of features such as real-time clearing and cutting-edge order matching algorithms. Key Feature
https://www.htmlcoin.com/blog/hitbtc-review-2
submitted by denuoweb to htmlcoin_community [link] [comments]

Beginner’s Guide to Exchanges – Part 1

Beginner’s Guide to Exchanges – Part 1

Hola Compadres! It is me u/poop_dragon here with another guide. Today I would like to run through a list of ETH exchanges. This is just Part 1 of this list, and it covers established exchanges. Soon I will post Part 2 and 3 which will go into some other types of exchanges (derivative markets, coin converters, decentralized, and foreign exchanges) Side note, I have given rating to these exchanges based on some comparisons, news, and information which I have found online. Recently, EVERY exchange has been slow/unresponsive in their customer service due to the huge influx of new users. My intention is to help educate new users about the exchanges available. I am not trying to discredit, advertise, pump up, or damage reputations. If you feel something is inaccurate, please respectfully bring it up in the comments. I will be editing as we go. Last thing of note, I have only included the lowest level trading tier to calculate trading fees, which assumes the highest rates. Most exchanges offer lower fees for bigger orders, but I have gone with the assumption that everyone here is not dropping whale amounts of cash.

00 – Concepts and Definitions

01 –Digital Exchanges

Poloniex

Exchange Type Maker Taker
All Currencies .15% .25%
Feature Details
2FA Google Authenticator Available
Wallet Security ‘Majority’ of Funds in cold storage
Personal Information Encrypted and Stored Off-Site
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Level 1 X X $2,000 USD Daily Withdrawal Limit
Level 2 X X X X X X $7,000 USD Daily Withdrawal Limit
Level 3 X X X X X X $25,000 USD Daily Withdrawal Limit
Level 4 X X X X X X X X >$25,000 USD Daily Withdrawal Limit
What is a KYC? It stands for Know Your Customer Documentation. This varies between exchanges. However, like most things, if you have to ask, you probably can’t afford it.

Bittrex

Exchange Type Maker Taker
All Currencies .25% .25%
Feature Details
2FA Google Authenticator Available
Wallet Security Multi-stage wallet Majority’ of Funds in cold storage
Personal Information IP Whitelisting restricts trading from new addresses
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Basic X X X 3 BTC or less daily
Enhanced X X X X X X 100 BTC or less daily