Tag Archives: Cryptocurrency Trading

Bitcoin Trading

Bitcoin Trading: CME Group to Officially Launch Bitcoin Futures

There is excellent news for almost all the individuals out there that CME Group has come over with the announcement as related to the launch of bitcoin trading: futures. They will be coming up with the launching as straight into the fourth quarter of 2017, pending with some of the associated regulatory review periods.  This new contract will be based over on top of the CME CF Bitcoin Reference Rate (BRR). In simple, we would say that this agreement would finally be serving out with the one-day reference rate for U.S. dollar price of bitcoin.

For the information of the readers, we would like to mention that since November 2016, CME Group and Crypto Facilities Ltd had overall calculated and published with BRR. This will be aggregating the trade flow measurement as about some of the important bitcoin spot exchanges areas. This might happen over the time – the Dollar price of one bitcoin as of 4:00 p.m. London time.

bitcoin trading futures

The Main Purpose of Designing BRR:

BRR has explicitly been designed as for IOSCO Principles. In these principles, we would be mentioning up with the financial Benchmarks. Bitstamp, GDAX, itBit, and Kraken are known out to be part of constituent exchanges that was somehow showing their major contributions in the pricing date to calculate the BRR.

Dr Timo Schlaefer who is the CEO of Crypto Facilities has mentioned in one of his statements that we are much anxious to work along with CME Group as in favour of this product. BRR has been witnessed to be used for the range of settlement mechanism as about this major product. BRR has been specifically contributed to the qualities that make it come out to be reliable and often transparent in reflecting the global bitcoin-dollar trading. It has undoubtedly made itself one of the first choices of the financial centres as well as trading firms and in the data providers all over the world.

Crypto Facilities Ltd. And CME Group did come about with the publishing of the CME CF Bitcoin Real-Time Index (BRTI). It does play a vital role where it is providing the wholesome price transparency to encounter the bitcoin trading marketplaces. BRTI has been making an extensive use of the global demand right which it would be able to buy and sell the bitcoin into the consolidated order book. This BRTI is also published in the condition of real-time and is suitable for marking portfolios and even in terms of executing intra-day bitcoin transactions and the risk management.

The Process

As it is all evidence that there are so many options of Bitcoin review futures inside the marketplaces that would be soon coming into the way. Just as after the course of signing the exclusive BTC market data dealing with the Gemini Exchange in August; CBOE’s CEO Ed Tilly it was stated that the company and so as his team is looking much forward in response to the immediate growth of the interest in cryptocurrencies right through the creation of the bitcoin futures as being traded on top of the regulated exchanges.

It does offer some of the greatest benefits to the users namely transparency as well as price discovery and deep liquidity and centralized clearing. It is to be highlighted that over the past few years the Cryptocurrency market capitalization has raised up to the level of $172 billion is where the Bitcoin trading is making the representation of about 54% of the total or even $94billion. Overall, we would bring the concluding fact that this bitcoin spot market has roughly grown to the amount of $1.5 billion in notional value each day.

To Sum Up:

This was the end of the comprehensive discussion about how Bitcoin trading CME group will be bringing closer the launch of Bitcoin futures soon for the market holders. It would be much improved and enhanced with its features provision.

What do you think?

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5 Step For Beginners To Start With Bitcoin Trading

5 Step For Beginners To Start Trading Bitcoin

Have you been reading our posts? Today we will focus on the novice Bitcoin traders. Here, I will bring to you an easy guide in trading Bitcoins where you will reap a profit.

Cryptocurrency trading is the new thing and Bitcoin-the oldest can be extremely rewarding in terms of the spread. By spread I mean the arbitrage profit you will get by differing market prices. That is, the global market margin is widely available. This is usually as a result of different cross-rates calculations. With this, arbitrage comes in and many people can easily exploit this by trading Bitcoins.

If you have been careful about the cryptocurrency and economic news you watch; you will realize that there is a certain criterion followed by Bitcoin and any other Cryptocurrency out there. First, it is usually volatility followed by the bubble. With each bubble, the media attention shifts focus to Bitcoin. This spread of news creates attention and Bitcoin prices become volatile. That is with the increased attention; more people start tinkering with Bitcoin which becomes a hype and then the trading. This lasts until the Bitcoin hype fades.

Trading in Bitcoin is very easy. The reason for this lies in the fact that Bitcoin is global and has very little requirements. In fact, there is little to no verification when it comes to trading.  Like any other security in the market, investors want their Bitcoins to maximize their wealth while the speculators want to gain their spread from arbitrage.

To start trading in Bitcoins, you need to join one of the many online trading companies offering CFD. This stands for Contract For Difference.

What makes Bitcoin trading easy?

The answer to this question lies in the various characteristics of Bitcoin. Some of these also lie with other cryptocurrencies but are more advanced and recognized in Bitcoin. These are:

  • Volatility: Like any good speculating security in the stocks market, Bitcoin is volatile. Its prices are always yawning and are frequent enough to for daily charts. Actually, CoinDesk BPI provides these charts on a daily basis.
  • 24-hour trading: What makes Bitcoin more profitable and better than the securities market is that it trades 24/7. Part of this lies in the fact that Bitcoin is global and there is no time limit because of the different time zones.
  • Bitcoin is decentralized: This makes it independent of the various government controls. Also being decentralized makes it global meaning that any economic control in one place does not directly affect its prices. Such controls would be the devaluation of currencies or various controls in capital markets. Actually, these measures by the governments are what makes the prices of Bitcoin rise. An example is the 2013 Bubble created by Cyprus capital controls.

These factors have made Bitcoin a favorable security to invest and speculate in. actually, the other cryptocurrencies use Bitcoin as a Benchmark when it comes to trading.

Starting Bitcoin trading

Before we head there, it is important to know a few things when it comes to Bitcoin trading. First is that China leads in Bitcoin Trading. All the data collected from the many sources show that trading volumes in China are dominating the market.

It seems ironical considering that China is one of the most restrictive states to have a flourishing cryptocurrency in the market. Some might consider this a freedom of expression since Bitcoin is independent of any state power. However, that is not the case as most if not all Chinese Bitcoin Blockchain merchants consider Bitcoin as an asset to be capitalized on. That plus the following reasons is what makes China the leading Bitcoin Trader globally.

Global Leaders in Bitcoin

China hosts one of the largest Bitcoin miners, Bitmain. Bitmain operates two pools that accounts for almost 30% of all Bitcoin processing power. The other reason for China’s dominance is that the Bitcoin trading is that the Chines government had relaxed its finance regulations. This made trading much easier. This means that the Bitcoin market was also more developed and mature than the rest of the world. In the market, leverage was always maximized by lending, options, and derivatives. Also to this is that in China, exchanges were not charged. This means that Bots could trade non-stop to increase the spread in case of arbitrages.

This, however, has changed and the market dominance has shifted to Japan. The reason for this is that the Chines government has started imposing trade restrictions on virtual currencies. This is especially so on the companies that offer Initial Coin Offerings(ICOs) such as the oldest company in China BTCC. Others such as Huobi has have been exempted but the deadline will be on October 30.  As of September this year, Japan had slightly over 50% of the global trades.

Getting started with Bitcoin Trading

The first rule of the thumb is that Bitcoin has no official trading exchange. This leaves the duty of searching testing and trading to you. Have no worries though, there rules to follow while selecting these trading sites.

  1. Location:  Where the company doing the exchange is very important. This lies in the rules, laws and the regulations of that country. Also, this goes with the type of currency the exchange is taking. The recommended action is to always take exchange company in your country.
  2. Purchasing: The mode of purchasing is important. What method does the exchange take and what will work to your convenience?
  3. Exchange fee: You need to pay a certain fee when doing the exchange. Check if it has been inflated or if any other fee stands to reason.
  4. Security: Is the website HTT or HTTPS. The authentication steps to follow when entering your account.

After going using these basics to get your preferred site; you should also be able to avoid being scammed. There are many people over the net trying to get yours over using Bitcoin scams. Try to avoid these as much as you can.

Now, there are some reputable sites where trading is safe, secure and reputable. The following is a list that I have compiled. This is according to my best knowledge and your input and addition are welcome. This is compiled in terms of USD volume from the first.

Buy Bitcoin from best Bitcoin Exchanges

  1. Bitfinex. This exchange is the first in terms of USD volume. Its daily volume is 25000 BTC.
  2. Bitstamp. The company was founded in 2011 making it one of the oldest exchanges. its daily volume is 1000 BTC.
  3. Coinbase. This was the first exchange to be regulated in the United States. Coinbase trade volume is about 8000 BTC daily.
  4. Okcoin. Since the downfall of China dominance in the market, Okcoin has taken a huge dip but its worthy to mention it in the list. It used to trade at over 9000 BTC but this has fallen to less than 1000 on the day of publishing this article.
  5. Another worthy mention is Kraken. It is the first in terms of EUR daily trading volumes at around 6000 BTC. This makes it top 20 in terms of USD volume.

Trading risks

Like any other security in the market, Bitcoin has its own trading risks. Some of these are discussed below.

  1. Leaving money on Exchange:

Bitcoin is an independent non-participant currency. Apparently many do not know this. one of the most remembered cases is the Gox collapse. During its time, it was one of the largest exchange points. It was one of the easiest ways to obtain Bitcoins but on its collapse, users left more than 800,000 Bitcoins in Gox accounts. In February 20014, withdrawals were halted and up to now not have received their funds.

The best way to avoid a case like Gox catastrophe is to use a regulated exchange.

  1. Capital risk: Your capital your risk. You should start trading at low amounts then growing to larger and larger when you start gaining profit. This you will do after learning the strategies and understanding the market signs.

Above anything else, before trading, you should search and find the best strategies to use in trading Bitcoin. There are many resources on Bitcoin on the internet that you should utilize to your fullest.

Step by Step Bitcoin trading

To trade, you will of course need to sign up an account. Kraken will be used in this excerpt as a general guide to get you started.

To open an account, go to the official website and click sing up box.

Confirmation will be done using email. Once this is done, you will log in and fill your personal information.

Once you sign up and all your levels or verification are procedures are followed. You will get the following.

 

kraken_01

By the way. Every Exchange must follow the AML and KYC laws for verification.

Once your account is set up; go to funding and select your preferred choice of funding. You will get the following screen shot.

kraken_02

As with Kraken, there are many choices of deposits to choose from.

These are:

  • EUR SEPA Deposit (Free) – EEA countries only
  • EUR Bank Wire Deposit (€5) – EEA countries only
  • USD Bank Wire Deposit (Free until 3/1/2016, then $5 USD) – US only
  • USD SEPA and SWIFT Deposit (0.19%, $20 minimum)
  • GBP SEPA and SWIFT Deposit (0.19%, £10 minimum)
  • JPY Bank deposit (Free, ¥5,000 deposit minimum) – Japan only
  • CAD Interac Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $5,000 CAD deposit maximum)
  • CAD EFT Deposit (Free until 3/1/2016, then 1%, $10 CAD fee minimum, $50 CAD fee maximum, $10,000 CAD deposit maximum)

The deposits are different. With the banking system, the deposits take a maximum of three working days to process while with Bitcoins it can take about an hour but with six different confirmations.

To begin trading, select Trade tab. You can switch the trading pairs to match which you want using the black bar. To begin our trade assuming a $300 deposit in the account, select new trade. Here, you see that Bitcoin is trading at 0.5XBT for $37O per Bitcoin.

kraken_03

On checking the last trade, the price was $383.17.

The reason for this is because, one may submit at a lower price than the current one. This is done when expecting a fall in the prices of Bitcoin. Since in this case my bid is lower than the market price; my order will be processed later than the others. This is so because of placing an order through the Limitorder. This places an order by a particular price. Before placing an order, you should check the orderbook for your trading pair before deciding the price.

An example is the following:

kraken_04_bitcoin_order_book

As you can see, there are various prices through which people have placed their orders. You can skip this by placing an order through the market price. Such as the following:

As such, the market order will submit a buy order at the lowest possible available sell order which is 0.5XBT at $384.07 per XBT. If it is selling, it will place at the highest sell order of which is $382.5.

If you liked this blog post, please follow us on Twitter @coins_iq and also make sure to subscribe to our e-newsletter to receive the best and latest information on bitcoin, cryptocurrency, crypto trading and bitcoin investment!

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Bitcoin Guide Trading

Top 5 Bitcoin Trading Robots by CoinsIQ

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Bitcoin Trading – Top 5 Bitcoin Trading Robots

Trading robots are rather common in the bitcoin world, as few traders have time to stare at the charts all the time. Many people trade bitcoin as a method to produce easy revenue while functioning their routine day works.

With a lot of individuals relying upon these trading robots, the question ends up being which one can be relied on and also which one ought to be avoided.

Below is a checklist of well-known cryptocurrency trading robots, however, your gas mileage might differ when using them.

HAASBOT

The Haasbot is rather preferred among cryptocurrency enthusiasts. Theoretically, Haasbot does every one of the trading legwork on behalf of the individual, although some input is called for.

Haasbot sustains all the significant exchanges and also can understands the candle stick patterns.

Considering it costs between 0.06 BTC and 0.17 BTC per three-month period to use this service, one needs to be dedicated to making use of this software program and hopefully make a profit from doing so.

ZENBOT

One more open-source alternative for bitcoin traders goes by the name of Zenbot.

Albeit this bot has actually not seen any type of significant updates over the past few months, it is offered to download and also customize the code if needed.

This notes the 4th version of Zenbot, which is still a light-weight as well as artificially smart bitcoin trading bot.

It is likewise one of the very few bitcoin trading robots, efficient in high-frequency trading as well as sustaining numerous assets at the very same time.

Per their GitHub page, Zenbot 4 makes a 195% ROI in just 3 months, which is rather unusual.

CRYPTOTRADER

One of the more attractive and yet un-identified bitcoin trading robot has the name of CryptoTrader.

The service offers cryptocurrency users automated trading robots working on cloud platforms.

Not having to mount unknown software is a large plus, albeit it remains to be seen if this system is legit.

One appealing attribute is just how CryptoTrader approaches the market where any person can buy or sell using their favored trading approach.

Also Read: Coinbase Review

GEKKO

The Gekko bitcoin trading robot is another open source software remedy that could be located on the GitHub platform. It was last updated about 10 days earlier, which seems to indicate it is still being proactively developed.

Utilizing this automated trading robot appears to be simple, as it also has some basic approaches. It is not a high-frequency trading robot whatsoever, nor will certainly it make use of arbitrage possibilities.

With an excellent listing of supported exchanges, Gekko can be worth looking into.

BTCROBOT

One of the first automated bitcoin trading robots to ever be created – the BTCRobot.

While it appears to do the job and is fairly very easy to establish. Reaping profits using this tool could greatly differ when using this tool. Some people appear to be making moderate profits. Whereas others appear to have a hard time to get it to function correctly.

A single license costs about $19.99 per month. The platinum plan costs about $399 one time payment with a premium support.

There is a 60-day refund plan, that makes it a no-brainer to check out no matter.

Image Credits

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Cryptocurrency Guide Trading

Trading Cryptocurrency for Profit and Beginners 2017

trading-cryptocurrency

Crypto currencies are becoming more and more famous over the last few years. This is primarily due to the rise in the value of these crypto currencies. This rise is led by Bitcoins. Now-a-days even people who do not know anything about crypto currencies are thinking about investing in them. The truth is that, if you really want to invest in crypto currencies, you have to 1st get the basics right. Only when you’re able to get these basics right, it becomes easier for you to invest in the cryptocurrencies and make a decent profit.

Today we would share with you some knowledge about cryptocurrencies which would certainly help you in crypto currency investing and getting it right.

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Cryptocurrency Guide Trading

Cryptocurrency Trading – Top 5 Cryptocurrencies to trade

Top 5 Cryptocurrencies to trade

Cryptocurrency trading has become quite popular. Crypto currency has gained the fascination of the normal people after their astronomical rise. These days, people are often searching for top 5 cryptocurrencies to trade. If you look at the options among crypto currencies, there are quite a few of them. The problem is that most of the people do not have the technical knowledge required to understand crypto currencies. If you are blindly investing in any crypto currency thinking that all of them would appreciate, you would lose your money. That is where you have to be very selective when it comes to cryptocurrency trading.

Cryptocurrency-Trading

We would today solve this problem for you. We would highlight top 5 crypto currencies to trade. Thus, instead of going through all the crypto currency options available, you would have a ready-made choice of crypto currencies in which you can invest.

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