What Does it Really Cost to Buy and Sell ... - Kraken Blog
What Does it Really Cost to Buy and Sell ... - Kraken Blog
An Analysis of Order Book Depth on the Binance Exchange ...
Real-time limit order book data of desired depth ...
Understand the Market Depth Charts in Trading Hacker Noon
Best Cryptocurrency Multi-Exchange Trading and Portfolio Management Platforms Ranking 2020
Trade on multiple exchanges from a single platform and avoid the hassle of multiple logins, different interfaces, constant tab changing and overall keeping track of balance holdings and trades. https://preview.redd.it/ksar6fkxmfv51.jpg?width=1200&format=pjpg&auto=webp&s=b8629b0f29aefd9546d816413cc82de9656ef7f9 With more than 300 cryptocurrency exchanges today, most traders have to manage multiple exchange accounts. The need for more than one account usually rises because of the variety of offered crypto currency pairs, market liquidity, having to diversify the risk of being hacked, as well as the different trading tools and terms each exchange offers. Trading and keeping track of your portfolios on multiple exchanges is time consuming, inefficient and frustrating. Having to log on different platforms, use different interfaces, keeping track of multiple portfolios and all trading related activities become increasingly difficult with each new account. It would be simple and easy if you could connect all those exchange accounts into a single multi-exchange platform which combines all the data in real time and provides a single interface to control all remote exchange accounts.
A multi-exchange platform allows the traders to connect all their exchange accounts into a single account through the user of API keys generated from the account of each exchange. Once all accounts are connected into a single one, using the exchanges interfaces becomes obsolete. The unified account will now track and combine all portfolios and traders will be able to track prices, order statuses and other data across all exchange accounts from a single interface. In addition, most multi-exchange platforms provide various information tools such as news aggregators, sentiment tools, arbitrage matrix and price alerts. With regards to API keys security, these platforms do not require withdrawal or deposit permissions which limits the possibility of fraud and loss of funds. Finally, multi-exchange platforms do not typically charge additional trading fees and do not require lengthy verification procedures.
The current top platforms
Currently there are a handful of multi-exchange platforms with a variety of services. They range from a simple crypto portfolio tracker to an advanced trading and portfolio management platform. A detailed list of all major multi-exchange platforms and their features can be found here: www.AltXpert.com Here is an overview of the top 9 multi-exchange trading and portfolio management platforms:
Build Your Own Blockchain Based Crypto Exchange Website (www.infograins.com)
https://infograins.com/services/blockchain-development-company/ Tips to launch a successful bitcoin exchange Bitcoin and other cryptocurrencies have created a buzz in the financial market. Those who invested in cryptocurrencies at the initial stages are now reaping its benefits. More people choose to launch a bitcoin exchange rather than directly investing in bitcoins since the former is deemed a safer way of making profits. Like many people launching their bitcoin exchange platforms, if you are thinking how you can build your own bitcoin exchange website, here are a few tips that can help you in your business venture. Secure legal clearance When it comes to launching a bitcoin exchange, different regulatory guidelines are required to be taken care of. You need to acquire proper licensing, adhere to KYC (Know Your Customer) regulations and handle various legal aspects like this. To ensure that you do not end up facing any legal problem in future, hire a team of legal experts who have in-depth knowledge of this domain. Raise adequate funding Before you begin to build your own bitcoin exchange website, you need to have a clear idea about the cost involved in the project. You will be required to invest in technology, hosting, advertising and licensing. Although you need not fund the entire project upfront, sufficient funding helps you to be sure of smooth flow of money whenever necessary. Find a reliable technology solution provider One of the major concerns of most people when it comes to investing in cryptocurrencies is security. It is extremely essential that you work with a team of reliable developers who can provide you a highly-secure and user-friendly exchange platform that allows safe and easy transactions. Look for a company that has the experience and expertise to develop secure applications. Connect with other exchanges One of the factors to influence the success of any bitcoin exchange is its liquidity. The absence of any trading activity or order book means that your target audience is more likely to consider you as fraud. Thus, to establish yourself as a trusted exchange, connect with the network of other exchanges. The larger the network, the better it will be for your business. Partner with a payment processor With a large number of bitcoin exchanges competing for recognition, you need to have the lowest rate of transaction to be successful. Some processors charge hidden fees, so understand the contract clearly prior to signing it. Make it secure Once you decide to build your own bitcoin exchange website, make sure that you rely on the best security measures. User authentication, encrypted database, KYC verification are a few measures that can be taken to build a secure exchange, which is hard for cyber criminals to break through. Embrace beta testing After successful development of bitcoin exchange, it is time to launch it. Make sure that you simultaneously test the capabilities of your website by using beta testing. Marketing your website If you search for a bitcoin exchange, you are sure to come across a plethora of options, so how would you make your exchange stand out? Well, the answer is – through proper marketing. Right from the time you decide to build your own bitcoin exchange website, ascertain to have a pre-launch and post-launch digital marketing plan in place so that you create enough awareness about your business among your target audience. If you do not know much about digital marketing or how you can leverage it to spread the word about your exchange, professional help is always advisable. Focus on customer support The success of any business depends on customer satisfaction. Once you have launched your bitcoin exchange, there can be many instances when your users require you to answer the queries that they might have. Get a dedicated team, who provides necessary support to your users round the clock, and replies to their queries on time. Have a legal team to support you In addition to helping you to maintain legal compliance, a dedicated legal team will assist you to settle disputes. Make sure that the professionals you choose to build your team are competent in handling foreign jurisdictions’ cases, too. GET DEMO Other Blockchain Casestudies www.infograins.com
Build Your Own Blockchain Based Crypto Exchange Website
https://infograins.com/services/blockchain-development-company/ Tips to launch a successful bitcoin exchange Bitcoin and other cryptocurrencies have created a buzz in the financial market. Those who invested in cryptocurrencies at the initial stages are now reaping its benefits. More people choose to launch a bitcoin exchange rather than directly investing in bitcoins since the former is deemed a safer way of making profits. Like many people launching their bitcoin exchange platforms, if you are thinking how you can build your own bitcoin exchange website, here are a few tips that can help you in your business venture. Secure legal clearance When it comes to launching a bitcoin exchange, different regulatory guidelines are required to be taken care of. You need to acquire proper licensing, adhere to KYC (Know Your Customer) regulations and handle various legal aspects like this. To ensure that you do not end up facing any legal problem in future, hire a team of legal experts who have in-depth knowledge of this domain. Raise adequate funding Before you begin to build your own bitcoin exchange website, you need to have a clear idea about the cost involved in the project. You will be required to invest in technology, hosting, advertising and licensing. Although you need not fund the entire project upfront, sufficient funding helps you to be sure of smooth flow of money whenever necessary. Find a reliable technology solution provider One of the major concerns of most people when it comes to investing in cryptocurrencies is security. It is extremely essential that you work with a team of reliable developers who can provide you a highly-secure and user-friendly exchange platform that allows safe and easy transactions. Look for a company that has the experience and expertise to develop secure applications. Connect with other exchanges One of the factors to influence the success of any bitcoin exchange is its liquidity. The absence of any trading activity or order book means that your target audience is more likely to consider you as fraud. Thus, to establish yourself as a trusted exchange, connect with the network of other exchanges. The larger the network, the better it will be for your business. Partner with a payment processor With a large number of bitcoin exchanges competing for recognition, you need to have the lowest rate of transaction to be successful. Some processors charge hidden fees, so understand the contract clearly prior to signing it. Make it secure Once you decide to build your own bitcoin exchange website, make sure that you rely on the best security measures. User authentication, encrypted database, KYC verification are a few measures that can be taken to build a secure exchange, which is hard for cyber criminals to break through. Embrace beta testing After successful development of bitcoin exchange, it is time to launch it. Make sure that you simultaneously test the capabilities of your website by using beta testing. Marketing your website If you search for a bitcoin exchange, you are sure to come across a plethora of options, so how would you make your exchange stand out? Well, the answer is – through proper marketing. Right from the time you decide to build your own bitcoin exchange website, ascertain to have a pre-launch and post-launch digital marketing plan in place so that you create enough awareness about your business among your target audience. If you do not know much about digital marketing or how you can leverage it to spread the word about your exchange, professional help is always advisable. Focus on customer support The success of any business depends on customer satisfaction. Once you have launched your bitcoin exchange, there can be many instances when your users require you to answer the queries that they might have. Get a dedicated team, who provides necessary support to your users round the clock, and replies to their queries on time. Have a legal team to support you In addition to helping you to maintain legal compliance, a dedicated legal team will assist you to settle disputes. Make sure that the professionals you choose to build your team are competent in handling foreign jurisdictions’ cases, too. GET DEMO Other Blockchain Casestudie www.infograins.com
AMM + Limit Order, Will OneSwap Replace Traditional Exchange?
When a thing is denied, something new starts at a higher level. The update and iteration of the currency circle takes only a few days. On August 13, Yam, the token of a popular DeFi project, plummeted by 98%, while YFI, another DeFi cryptocurrency, outran the digital currency Bitcoin Gold by value under capital operation. According to their familiarity with DeFi, blockchain investors in 2020 can be divided into two categories. The "New" investors are active in DEXs such as UniSwap and Balancer, striving for hundredfold returns on investment amid fake projects, while the "old" investors stick to mainstream cryptocurrencies and advocate value investment in the three major CEXs. Despite its long history, DEX did not prosper until recently. It has processed transactions of over US$520 million in the past 24 hours, and the trading volume for the past week has exceeded the figure across 2019. But still, many people are stranger to DEX. I.Will DEX shuffle the existing trading market? Upon discovering something new, you can describe it, but never evaluate it superficially. UniSwap occupies 55% of the entire DEX market. Celebrities in the circle enjoy discussing the changes brought by UniSwap on social media and how it will change the existing trading landscape. On August 5, Jay, CEO of OKEX Exchange, publicly stated that "UniSwap can hardly replace the current mainstream exchanges." on Weibo. He also listed two reasons:
With insufficient transaction depth, UniSwap cannot support large transactions;
UniSwap cannot set prices independently, but has to follow the prices set by other exchanges.
Unlike private cryptocurrency wallets that gives you total freedom to use your bitcoins or ether as you see fit, Coinbase has placed some limitations with regards to spending and receiving digital currencies. Under Section 6.4 of the user agreement, for example, Coinbase reserves the right to monitor your account and keep track of where you send and receive cryptocurrency to make sure you're not using it for purposes that fall under what's prohibited. "Prohibited Use and Prohibited Business," which can be found under Appendix 1 of the user agreement, covers a wide array of activities and businesses, such as online abuse, gambling, high-risk businesses, illicit drugs, pornography, and pyramid schemes, to name a few. Violating this can result in the sudden suspension or termination of your Coinbase account . While these prohibitions seem reasonable on the surface, It's still worrisome as it technically prohibits us from using our bitcoins on businesses Coinbase deems high risk. This is a slippery slope in and of itself since cryptocurrency exchanges can very well fall under this umbrella. So if you transfer bitcoins to an exchange site like Binance to purchase other less popular cryptocurrencies like monero, Coinbase can potentially suspend or terminate your account without notice and freeze any in-app assets you may have in the process. First, the “trading pair” (or, “currency pair”) is the product being traded. In the above screenshot the product is ETH, and the “quote currency” is USDThis means that traders are buying and selling the cryptoasset ethereum, priced in dollars .The order book shows all the bids and asks at a given time. A “bid” is the price at which a buyer will buy, and an “ask” is the price at which a seller will sell. The order book also shows the aggregate amount of asks and bids (supply and demand) at a given price, called the “market size.” The “depth chart” is another way to visualize the order book, showing cumulative bid and ask orders over a range of prices. Coupled with volume — or, the total amount traded over a given time period — the depth chart provides a good way to measure “liquidity.” Liquidity describes how easy it is to turn an asset into cash. For instance, if ethereum suddenly saw a massive sell-off, there might not be enough buyers, or enough “liquidity,” for sellers to sell to. Lastly, the “mid-market price” is the price between the best “ask” price and the best “bid” price. It can also be defined as the average of the current bid and ask prices. Coinbase operates both an order book exchange, called the Global Digital Asset Exchange (GDAX), and a brokerage, called Coinbase. More advanced traders (including small institutional players, like cryptoasset hedge funds and family offices) buy and sell cryptoassets on GDAX and determine the mid-market price. Coinbase (the brokerage) then allows retail investors to buy and sell cryptoassets at these mid-market prices, and charges a fee on top. In practice, retail investors can buy and sell directly from Coinbase’s brokerage, like they might buy a stock from Scottrade or Charles Schwab. Coinbase’s brokerage range from roughly 1.5% to 4.0% depending on the user’s payment method; due to increased risk, credit cards come with higher fees than bank transfers. Traders on GDAX pay significantly lower fees. Of note, Coinbase’s brokerage buys cryptoassets from GDAX, instead of from an outside exchange. This gives the company a secure in-house source of liquidity. Given how often exchanges are hacked or otherwise compromised, this is quite important; Coinbase’s brokerage doesn’t have to rely on anyone else for liquidity. There are a lot of exchanges on the market that aren’t as trustworthy as they claim to be, which is one of the reasons I am writing this Coinbase review — to show you how legitimate Coinbase is, among other things. So, is Coinbase legit? Well, the truth is, Coinbase is probably as legit as it gets. Just to operate in 30 states of the U.S. alone, it has over 40 different licenses. This ensures their practices are legal and that they handle your money with integrity. If you’re reading this Coinbase review, the first thing you need to know is whether or not you can use this exchange in your region. Coinbase can be used in many countries to do transactions like sending, receiving or storing funds. However, Coinbase’s buy and sell features are only available in 32 developed countries around the world. So, be sure to check whether you can use Coinbase from your country before you attempt to sign up.
Since my previous post about my vision of the future has garnered some attention and discussion, I thought it would be good to discuss the first part of the vision in deeper depth as it created a lot of discussion of its probability of becoming reality. I will break it down as much as I can. I will like to note that I am doing this because if you have this knowledge and information, you can make better more informed decisions of the future. Sometimes, you can see the future. Sometimes, the enemy reveals their hand. Everything I write will be a combination of both. For example, everyone on C_S_T is surprisingly still discussing cryptocurrency as a viable alternative to fiat currency. This will not happen. There is no need. The only need for crypto was to avoid fees and create a global currency based on imaginary value once again. We seen this with the fluctuation of the prices. Who dictates the prices? Well for one, the FBI holds the most Bitcoins out of anyone. So they definitely can or probably do make impacts on the market all the time. Crypto works as a penny stock. Ethereum was backed and supported by employees at Google. Does not ring any alarms in your head? The top three cryptos: Bitcoin, Ethereum, and Ripple have solidified their place. Is it not strange that all three of these currencies were funded, researched, and supported by executives in Silicon Valley? The very place that steals all our data? Early in 2018, we all saw an anomaly in the market. I do not know if you noticed (not many made the correlation), but the same day that the stock market crashed -666 points, the top three cryptocurrencies' prices fell down to Bitcoin: $6000 Ethereum: $600 Ripple: $0.60 Let me ask you, what is the probability of such a thing happening? The same day? Why was it 666? It was more of a message to Trump who just recently signed an executive order that froze billions of dollars in assets on a list of people more than a thousand pages long. The corrupt wealthy wanted to send a message that they still control the market. That despite the efforts of Trump, they decide where our money goes and they can crash the market whenever they so please. And that was why I knew it was the perfect time to buy back into crypto after their horrible crash in January. And sure enough, after the crash down to 666, everything started going back up. And I sold it soon after. Why? Because it is a penny stock. Since many corrupt wealthy individuals are now having the assets frozen, are being tried, being arrested, being hunted, they have to hide their money but want to see a return as well. Has anyone seen the subreddit Cryptocurrency? Or any specific cryptocurrency sub? It is basically a page of penny stock news. They leak information exactly as a penny stock creator would do. And you can follow the news with rises and falls in the price. They are basically taking you guys for a ride. So you might be thinking, well wtf do we do if the stock markets are rigged, crypto is rigged, and we might crash the economy if we stop fiat currency since all our bonds are connected to other countries. Let me give you the current situation and reveal how simple it really is: -Saudi Arabia, after their government change, reached out to Trump and asked for help in the tech industry. They wanted to pull out of oil because they saw no future in it and wanted to become a primary tech powerhouse in the world. Trump agreed but on couple conditions:
Saudi Arabia must start being progressive in terms of their ideals and cultural practices. They have started doing this. Women are allowed to drive now and dress as they please. A hugeee change in their society.
Saudi Arabia must buy oil from the United States.
And guess who is now the world's number one supplier of oil? Yup, the United States. This was one small development in terms of the US economy. Yes, China owns our bonds and debt but the situation is actually really quite simple and we got to witness some of it last year. Why did the trade war with China never materialize? It wasn't because of Trump's expert maneuvering or anything like that. It was because China has no choice. They slap tariffs on products we bring over there, and we do not slap tariffs on goods they bring into the United States. Are you starting to get the picture? It was a one sided deal. And we were allowed to pull out whenever we want. We made China into the economic powerhouse they are today. They did not do it themselves. We literally lifted them from the rubble and gave our middle class in exchange of our own. And this only happened by a simple trade deal of removing tariffs on their goods and allowing our goods to be taxed. That's it. So Trump is like bad deal, and throws it out. And guess what? China has no choice but to accept. Yea, they can grumble and threaten a trade war, but its all empty words. As soon as we completely overhaul all the trade deals with the world, we will see a return of wealth in the United States of at least $800+ billion/year. And that's just the beginning. Once manufacturing makes a full return to the states, people around the world will be racing to buy American products, most likely going to be the highest quality goods in the world. And this is where my vision of returning to the gold standard comes in. Of how it is possible within the next 10 years. In order to convert back to the gold standard, the value of gold must be around $10-12k per ounce in order to handle the amount of currency we have. It currently sits at $1.2k. Very easy. The United States holds the most gold in the entire world. Are they just holding it for fun or for history's sake? No, because the return to the gold standard was always on the table. Once we return to the gold standard, we can remove the Federal Reserve. We wouldn't need people manipulating the market with interest rates. We got something physical that holds everything together. I heard people saying: "Prepare for the worst case scenario." The worst case scenario is actually behind us. It would have been Hillary Clinton. They tried so hard to get us to manifest the reality that Hillary Clinton will be the next president. They failed. Why? Because our mental fortitude has been slowly growing in the past decade. I heard people saying: "Oh, I seen this before. This is another cycle that civilization goes through and then we fall back into their grips of power." I never seen or read in recorded history of what is happening right now. There is one huge game changer that no matter how much you planned, how much you prepared, no one can handle and that is the internet. The one variable factor that upsets all plans or attempts at controlling the future. The fucking internet. And they are trying so hard to combat it. They are already about to implement the citizen score system in China. And do not think for a second that they do not already have that same system in place for us, but hidden. And trust me, if you are on here in this sub discussing such ideas, your score ain't that great. You are probably labelled as a risk. This is why we are not able to repeat the same cycle. Yes, you are comfy in your home, but right now, in the rest of the world is starting to wake up. A lot faster than those in the United States. Proof? -France and the yellow vests -South Korean citizens protest and force the previous president out of the office for corruption -Armenia overthrows their government twice when they attempted to control the people -Venezuelans are overthrowing their government These events have all been transpiring in the past couple years. We are waking up, together, at the same time, all around the world. This has never happened before in history. Why? Because there was no internet. So we can't repeat the cycle. There is no going back anymore. Only forward. And the future is bright. So I will go over the events that will transpire in the next 10 years:
It will be revealed that government organizations such as NASA and the CDC have been mismanaging funds and pretty much have not been doing their jobs properly for the past decade. The current administration is going to clean house and flush out a lot of the employees who are responsible for this. Therefore, we have the government shutdown. After 30 days of government shutdown, you are allowed to let go of furloughed employees. And trust me, there is a list of people who will be let go. It will be one of the cleanest flushing of trash in our government and you cannot even blame Trump because both Republicans and Democrats are responsible for the shutdown as either side wants to relent to one another.
Also, Trump has issued a new policy for federal employees that instead of scheduled raises, it will now be merit-based raises. This attracts actual competent workers and gives them incentives to work harder to move up, rather than laze around and wait for their automatic raises. This also forces employees who have been slacking off to get their shit together or fall behind. Once NASA is cleaned up, they will be given a huge budget (you can look it up yourself, Trump afford an unlimited budget to NASA for a trip to Mars, but that was only to force NASA's hand and have them reveal that they are inadequate and have been doing nothing to begin the shake up within their ranks) to actually start implementing a lot of hidden technologies such as gravitational field generators. This will make travel significantly cheaper. Remove all pollution from the world, and remove the need for batteries. We will also be able to use gravitational waves to communicate and connect to the internet, removing the need for radio waves and WiFi signals which are actually harmful. Gravitational waves can move through mass, therefore we do not need antennas and signal towers everywhere.
The Vatican Church will fall. We are already witnessing this. Lies upon lies, the pope screaming that anyone who accuses the Catholic Church of child molestation is Satan himself, yet the very next month, enacts procedures to start bringing priests and cardinals into check. It was actually just last month where the number two person in the Vatican is charged. Once the Vatican falls, their library (which has over 15 miles of shelves of books) will be revealed to the public. As it rightfully should have to begin with. This new knowledge is going to change a lot of things in our society. One of which is the Bible itself. A lot of concepts we follow today will be changed. For one, we will discover that Jesus was not even his real name. That Jesus never wanted to be a religious symbol used in whatever way authorities saw fit. In fact, Jesus did not even want to gain popularity. Which was why he always moved to another town after he started gathering a following.
Economic prosperity and technological advancement on a scale and exponential growth we did not see possible. A lot of people here seem to say that if we were to get off fiat currency, everything would crash and burn. Do you think we would really do that if we knew everything would implode? What about the alternative that the GDP increases tremendously instead? What about the possibility that it corrects the market?
-Japan is already working on the Space Elevator -Stem cell research is reaching new heights -Cures for cancer is already discovered. The current administration is trying to figure out how to implement it without creating an economic black hole. Why? Because of geriatrics. We will have a huge influx of old people living longer and our current system would have them rot in senior homes. We wouldn't be able to handle it. We have to encourage seniors to exercise and get their bodies back into shape. There are people who are in their 70s that are still physically able and fit. This is possible for all of us. Consistency and discipline is key in exercise!
Military tribunals I don't know if you know or not, but the mainstream media hasn't really publicized it, but Trump is not even being investigated by the Mueller special council. He was never investigated to begin with. It was a witch hunt to try to find some dirt on Trump. But they are failing embarrassingly. All they have is Cohen and he was a pawn Trump was prepared to throw out for his seedy financial history.
But guess who is being investigated? As we speak? The Clinton Foundation, the Obamas, and the Bushes. I would like to remind you that it was only last year that the heiress of Seagrams Alcohol was arrested on charges of human trafficking. She is a billionaire btw. She was teamed up with another billionaire and created a sex slave organization called NXIUM. It was last year that the Paradise Papers was published. The articles that implicates a shit ton of people including the Queen of England in tax fraud and laundering. There are still people working to get this into court. It is a matter of time for these people. Unfortunately, I have to get back to work and finish up some assignments so I am going to have to end this here. Hope you guys enjoy and gain some hope yourself of the bright future ahead of us. Much love you guys.
1 – Quote of the Week – Who Spoke/Wrote these Words?
“One of the best ways to achieve justice is to expose injustice.” Look for the answer somewhere in this edition of TheMessage
2 – A Deeper Look Inside The Rabbit Hole of Utopia – PART III
In Part II we reviewed the heyday of the BBS (Bulletin Board Service) as well as Internet Relay Chat (IRC). In Part III we will focus on the revolutionary changes that came about in the way people shared content and the consequences of those changes. In early 1999, Napster was launched by teenagers who had met each other on a BBS related to hacking by some accounts, and IRC by others. Their goal was clear; make sharing music over the internet easy. Their software utilized Peer-to-Peer technology and took off like wildfire. The growth of their service was explosive even by today’s standards and helped popularize the term “downloading” in many households. At its height, Napster was utilized by more than 70 million users. The calendar year did not close before the RIAA (Recording Industry Association of America) filed suit on behalf of all five major music labels on December 6, 1999. Eventually the court ordered Napster to pull down all copyright-infringing material and being unable to fully do so, the company shutdown its service on July 1, 2001. Analysis: The founders of Napster, seeking eventual traditional profits from their service, incorporated the company and in so doing, painted a legal bullseye on their backs for vested interests to target. In legal discovery, communications from one of the founders highlighted a kind of complicity with the copyright-infringement that was rampant on their service. Furthermore, while their software had elements of Peer-to-Peer technology, in that users could share their own content and download from others, the network resources were fully centralized, enabling Napster engineers to attempt to execute the court order and purge their service of infringing content before eventually shutting down. Ultimately, Napster failed because their technology was not fully decentralized, not fully Peer-to-Peer, they exhibited central chokepoints from both a legal and technical perspective. On July 2, 2001, literally a single day after the Napster central servers were shutdown for good, the first publically available version of the BitTorrent protocol went live. In every way which Napster exhibited fatal flaws during its less than 3 year run, BitTorrent carried the torch with a firmer grip and a longer stride. First, it was an independent and content-agnostic protocol, free from any of the copyright-infringing baggage that the billions and billions of files that would soon be shared using it would carry. Second, it harnessed the awesome power of genuine Peer-to-Peer technology, as “seeders” and “leechers” of files would testify, the bandwidth came from the users themselves, no central servers to target, no central chokepoint to take down. Within 10 years of its release, some reports had BitTorrent traffic representing fully more than half of all internet bandwidth at any given moment in time. The term BitTorrent has become inextricably linked with Peer-to-Peer technology itself and many technically inclined internet users of a certain age, this author included, will lecture you about how the internet simply would not be the same today without the power of BitTorrent. Think for just a moment how dreadful a place the internet would be if information itself, of a relatively high quality, were not so freely available with a few searches and a little effort. What if when you searched about the “Gulf of Tonkin incident” because you heard that perhaps Vietnam didn’t start the war with the United States, you came across a paywall and were asked to pay $9.99 to learn the historical truth. Just imagine if you decided to research the “USS Liberty incident” because you heard reports that the Israeli military misidentifying the ship as Eqyptian and killing 34 Americans were complete fabrications and Israel knew exactly who it was targeting on that day, but found that reports and in-depth analysis of the events of that day were simply unavailable online because such information was locked up in the vaults of a private corporation and not for sale or distribution. Can you imagine such an internet for a single moment? That is how the internet would be with respect to content (Video, Audio, Games, Books) if BitTorrent did not exist. It would be full of holes, paywalls, and dead ends. BitTorrent, and the democratizing nature of content and content distribution represents the very best of the internet in that era. What would happen if this kind of democratizing power were projected unto money itself? That will be the focus of Part IV; the rise of Bitcoin.
3 – Introducing UtopiaLeaks by Orwell
Julian Assange is the speaker of this week’s quote, “One of the best ways to achieve justice is to expose injustice.” He is an Australian activist and publisher who founded Wikileaks in 2006. He is currently in Belmarsh prison, in South-East London, England awaiting extradition hearings to the United States, having been indicted for alleged computer intrusion and subsequently charged with violating the Espionage Act of 1917, a United States federal law being utlized to punish national security leakers. This publisher, in coordination with a collaborating colleague, Orwell, is pleased to introduce to you a P2P, censorship-resistant, whisteblower-friendly, platform for releasing and distributing secretive material exposing wrongdoing. I’ll let Orwell take it from here: The channel is called “UtopiaLeaks”, in honour of its older brother and is associated with the uNS record “UTOPIALEAKS”. The Channel ID is 8A03C469E1CDA30C6EA3A63FFA0FBA00. All users who care about seeing injustice exposed are highly encouraged to join the channel in order to give it the P2P robustness it deserves. Investigative journalists from around the world are also encouraged to join the channel and to remain connected in order to receive any files that may be dumped into the channel in the future. Initially, only image files may be shared by users from around the world, but future updates and upgrades to the Utopia client software may allow additional document file types as well. Staying connected to the channel is important because the channel only exists as a Peer-to-Peer forum, meaning image files will only receive initial distribution with whomever is connected at the time of release. It will be up to journalists to authenticate and follow-up on any material that finds it way into the channel. The great news is the channel doesn’t simply offer an encrypted file drop, but also an encrypted chat forum for the leaker to answer questions and share insights. In the future, an accompanying Utopia website may also be developed, but for now this channel should be fit for purpose. Please join today and do whatever you can to spread the word! https://preview.redd.it/x9afcujyiqh41.png?width=768&format=png&auto=webp&s=f12a58cdeba7f5ace606c980f860201e3ffb2630
4 – CRP Wheel of Random – Invite-Only 350 CRP Mega Round
The private, password-protected channel has been established under the uNS record “FREECRP”. While there have been reports of some users not yet seeing the channel or the option to join, TheMerchant is pleased to report that more than 20 users have already joined the channel. Any invited user not able to join by Sunday will be accommodated since the event itself will be live-streamed. Recall that this event is being held in celebration of the much anticipated major update, 7 weeks in the making, which was released on February 4th of 2020. These Invite-Only Mega Rounds will be held at TheMerchant’s discretion from time to time in celebation of major events and milestones on the Utopia network. It is hoped that we will have reason to hold these events many more times during this year of 2020. Please see the details below for information on the rewards, the criteria for invitation and the list of users invited to celebrate. Please Note: the following users are eligible for invitation, but because they are not authorized contacts of TheMerchant, have not been able to receive their invitation to join via PM. Scorpion, m3tal, MrHarr1son, MeineKleineDorf, chelezo, Noname, DrVooDoo, Showmetheway, 123456789, cjh, shengwusuolian, ghostille, Aren, m108, xinyicom, ╣╖╗╠╖└╬, Hvoinui, Pixel, xescapex, imnotallright, eA2, AipotuR If they wish to join while maintaining the privacy of their Public Key, they are invited to make their intention clear either at TheMegaphone or at TheMarket. Otherwise, they are encouraged to add TheMerchant’s Public Key to their contacts list soon: 0093DEFD354D78D4F035CF04A935DD211A9765B8779C68D30A9DA0B3EB06554F CRP REWARDS 100 CRP x 1 Spin 75 CRP x 1 Spin 50 CRP x 1 Spin 25 CRP x 3 Spins 10 CRP x 5 Spins There will be a total of 11 spins for a combined sum of 350 CRP in rewards. ELIGIBILITY CRITERIA The invitation criteria used for this and future Mega Rounds of the CRP Wheel of Random which *enhance eligibility* are as follows: A) Active participation in public chat (including non-English) channels where a helpful and positive attitude toward fellow users of Utopia is demonstrated B) Subscribing to TheMarket, TheMegaphone & TheMessage and demonstrating active participation C) Having a uNS record registered that resembles your alias/account name D) Active participation in contests held by TheMerchant E) TheMerchant reserves the right to use his discretion in qualifying additional users of Utopia (e.g. tempting 1984 to join us again!)
5 – Personal Note from The Publisher
Here’s where to find the “Rabbit Hole” that is Utopia for those who may be reading on the surveillance landscape of the clearnet: https://u.is TheMerchant Public Key: 0093DEFD354D78D4F035CF04A935DD211A9765B8779C68D30A9DA0B3EB06554F Request contact authorization from TheMerchant to receive uMail versions of TheMessage and to purchase CRP, the future of private P2P commerce. TheMarket Channel ID: E95109799EC5047783C867F6AF6D4568 Utopia’s leading forum for the exchange of both CRP and uNS records. Zero-Profit Escrow Service is available from TheMerchant to help establish trust. TheMessage Channel ID: BE91B84B9565C8429D214EBB10753E83 The first weekly publication on all things Utopia. Subscribe to TheMessage and get connected. TheMegaphone Channel ID: 3277D61A3CF7BAEE951C0C6607532FB8 TheMerchant’s ECHO feed; his personal and uncensored voice, amplified and protected by Utopia. Turn on TheMegaphone!
In order to create an account on BitMEX, users first have to register with the website. Registration only requires an email address, the email address must be a genuine address as users will receive an email to confirm registration in order to verify the account. Once users are registered, there are no trading limits. Traders must be at least 18 years of age to sign up. https://preview.redd.it/0v13qoil3cc41.jpg?width=808&format=pjpg&auto=webp&s=e6134bc089c4e352dce10d754dc84ff11a4c7994 However, it should be noted that BitMEX does not accept any US-based traders and will use IP checks to verify that users are not in the US. While some US users have bypassed this with the use of a VPN, it is not recommended that US individuals sign up to the BitMEX service, especially given the fact that alternative exchanges are available to service US customers that function within the US legal framework. How to Use BitMEX BitMEX allows users to trade cryptocurrencies against a number of fiat currencies, namely the US Dollar, the Japanese Yen and the Chinese Yuan. BitMEX allows users to trade a number of different cryptocurrencies, namely Bitcoin, Bitcoin Cash, Dash, Ethereum, Ethereum Classic, Litecoin, Monero, Ripple, Tezos and Zcash. The trading platform on BitMEX is very intuitive and easy to use for those familiar with similar markets. However, it is not for the beginner. The interface does look a little dated when compared to newer exchanges like Binance and Kucoin’s. Once users have signed up to the platform, they should click on Trade, and all the trading instruments will be displayed beneath. Clicking on the particular instrument opens the orderbook, recent trades, and the order slip on the left. The order book shows three columns – the bid value for the underlying asset, the quantity of the order, and the total USD value of all orders, both short and long. The widgets on the trading platform can be changed according to the user’s viewing preferences, allowing users to have full control on what is displayed. It also has a built in feature that provides for TradingView charting. This offers a wide range of charting tool and is considered to be an improvement on many of the offering available from many of its competitors. https://preview.redd.it/fabg1nxo3cc41.jpg?width=808&format=pjpg&auto=webp&s=6d939889c3eac15ab1e78ec37a8ccd13fc5e0573 Once trades are made, all orders can be easily viewed in the trading platform interface. There are tabs where users can select their Active Orders, see the Stops that are in place, check the Orders Filled (total or partially) and the trade history. On the Active Orders and Stops tabs, traders can cancel any order, by clicking the “Cancel” button. Users also see all currently open positions, with an analysis if it is in the black or red. BitMEX uses a method called auto-deleveraging which BitMEX uses to ensure that liquidated positions are able to be closed even in a volatile market. Auto-deleveraging means that if a position bankrupts without available liquidity, the positive side of the position deleverages, in order of profitability and leverage, the highest leveraged position first in queue. Traders are always shown where they sit in the auto-deleveraging queue, if such is needed. Although the BitMEX platform is optimized for mobile, it only has an Android app (which is not official). There is no iOS app available at present. However, it is recommended that users use it on the desktop if possible. BitMEX offers a variety of order types for users:
Limit Order (the order is fulfilled if the given price is achieved);
Market Order (the order is executed at current market price);
Stop Limit Order (like a stop order, but allows users to set the price of the Order once the Stop Price is triggered);
Stop Market Order (this is a stop order that does not enter the order book, remain unseen until the market reaches the trigger);
Trailing Stop Order (it is similar to a Stop Market order, but here users set a trailing value that is used to place the market order);
Take Profit Limit Order (this can be used, similarly to a Stop Order, to set a target price on a position. In this case, it is in respect of making gains, rather than cutting losses);
Take Profit Market Order (same as the previous type, but in this case, the order triggered will be a market order, and not a limit one)
The exchange offers margin trading in all of the cryptocurrencies displayed on the website. It also offers to trade with futures and derivatives – swaps.
Futures and Swaps
A futures contract is an agreement to buy or sell a given asset in the future at a predetermined price. On BitMEX, users can leverage up to 100x on certain contracts. Perpetual swaps are similar to futures, except that there is no expiry date for them and no settlement. Additionally, they trade close to the underlying reference Index Price, unlike futures, which may diverge substantially from the Index Price. BitMEX also offers Binary series contracts, which are prediction-based contracts which can only settle at either 0 or 100. In essence, the Binary series contracts are a more complicated way of making a bet on a given event. The only Binary series betting instrument currently available is related to the next 1mb block on the Bitcoin blockchain. Binary series contracts are traded with no leverage, a 0% maker fee, a 0.25% taker fee and 0.25% settlement fee.
BitMEX allows its traders to leverage their position on the platform. Leverage is the ability to place orders that are bigger than the users’ existing balance. This could lead to a higher profit in comparison when placing an order with only the wallet balance. Trading in such conditions is called “Margin Trading.” There are two types of Margin Trading: Isolated and Cross-Margin. The former allows the user to select the amount of money in their wallet that should be used to hold their position after an order is placed. However, the latter provides that all of the money in the users’ wallet can be used to hold their position, and therefore should be treated with extreme caution. https://preview.redd.it/eg4qk9qr3cc41.jpg?width=808&format=pjpg&auto=webp&s=c3ca8cdf654330ce53e8138d774e72155acf0e7e The BitMEX platform allows users to set their leverage level by using the leverage slider. A maximum leverage of 1:100 is available (on Bitcoin and Bitcoin Cash). This is quite a high level of leverage for cryptocurrencies, with the average offered by other exchanges rarely exceeding 1:20.
BitMEX does not charge fees on deposits or withdrawals. However, when withdrawing Bitcoin, the minimum Network fee is based on blockchain load. The only costs therefore are those of the banks or the cryptocurrency networks. As noted previously, BitMEX only accepts deposits in Bitcoin and therefore Bitcoin serves as collateral on trading contracts, regardless of whether or not the trade involves Bitcoin. The minimum deposit is 0.001 BTC. There are no limits on withdrawals, but withdrawals can also be in Bitcoin only. To make a withdrawal, all that users need to do is insert the amount to withdraw and the wallet address to complete the transfer. https://preview.redd.it/xj1kbuew3cc41.jpg?width=808&format=pjpg&auto=webp&s=68056f2247001c63e89c880cfbb75b2f3616e8fe Deposits can be made 24/7 but withdrawals are processed by hand at a recurring time once per day. The hand processed withdrawals are intended to increase the security levels of users’ funds by providing extra time (and email notice) to cancel any fraudulent withdrawal requests, as well as bypassing the use of automated systems & hot wallets which may be more prone to compromise.
BitMEX operates as a crypto to crypto exchange and makes use of a Bitcoin-in/Bitcoin-out structure. Therefore, platform users are currently unable to use fiat currencies for any payments or transfers, however, a plus side of this is that there are no limits for trading and the exchange incorporates trading pairs linked to the US Dollar (XBT), Japanese Yen (XBJ), and Chinese Yuan (XBC). BitMEX supports the following cryptocurrencies:
Bitcoin Cash (BCH)
Ethereum Classic (ETC)
Ripple Token (XRP)
EOS Token (EOS)
BitMEX also offers leverage options on the following coins:
5x: Zcash (ZEC)
20x : Ripple (XRP),Bitcoin Cash (BCH), Cardano (ADA), EOS Token (EOS), Tron (TRX)
HDR Global Trading, the company which owns BitMEX, has recently announced a partnership with Trading Technologies International, Inc. (TT), a leading international high-performance trading software provider. The TT platform is designed specifically for professional traders, brokers, and market-access providers, and incorporates a wide variety of trading tools and analytical indicators that allow even the most advanced traders to customize the software to suit their unique trading styles. The TT platform also provides traders with global market access and trade execution through its privately managed infrastructure and the partnership will see BitMEX users gaining access to the trading tools on all BitMEX products, including the popular XBT/USD Perpetual Swap pairing. https://preview.redd.it/qcqunaby3cc41.png?width=672&format=png&auto=webp&s=b77b45ac2b44a9af30a4985e3d9dbafc9bbdb77c
The BitMEX Insurance Fund
The ability to trade on leverage is one of the exchange’s main selling points and offering leverage and providing the opportunity for traders to trade against each other may result in a situation where the winners do not receive all of their expected profits. As a result of the amounts of leverage involved, it’s possible that the losers may not have enough margin in their positions to pay the winners. Traditional exchanges like the Chicago Mercantile Exchange (CME) offset this problem by utilizing multiple layers of protection and cryptocurrency trading platforms offering leverage cannot currently match the levels of protection provided to winning traders. In addition, cryptocurrency exchanges offering leveraged trades propose a capped downside and unlimited upside on a highly volatile asset with the caveat being that on occasion, there may not be enough funds in the system to pay out the winners. To help solve this problem, BitMEX has developed an insurance fund system, and when a trader has an open leveraged position, their position is forcefully closed or liquidated when their maintenance margin is too low. Here, a trader’s profit and loss does not reflect the actual price their position was closed on the market, and with BitMEX when a trader is liquidated, their equity associated with the position drops down to zero. In the following example, the trader has taken a 100x long position. In the event that the mark price of Bitcoin falls to $3,980 (by 0.5%), then the position gets liquidated with the 100 Bitcoin position needing to be sold on the market. This means that it does not matter what price this trade executes at, namely if it’s $3,995 or $3,000, as from the view of the liquidated trader, regardless of the price, they lose all the equity they had in their position, and lose the entire one Bitcoin. https://preview.redd.it/wel3rka04cc41.png?width=669&format=png&auto=webp&s=3f93dac2d3b40aa842d281384113d2e26f25947e Assuming there is a fully liquid market, the bid/ask spread should be tighter than the maintenance margin. Here, liquidations manifest as contributions to the insurance fund (e.g. if the maintenance margin is 50bps, but the market is 1bp wide), and the insurance fund should rise by close to the same amount as the maintenance margin when a position is liquidated. In this scenario, as long as healthy liquid markets persist, the insurance fund should continue its steady growth. The following graphs further illustrate the example, and in the first chart, market conditions are healthy with a narrow bid/ask spread (just $2) at the time of liquidation. Here, the closing trade occurs at a higher price than the bankruptcy price (the price where the margin balance is zero) and the insurance fund benefits. Illustrative example of an insurance contribution – Long 100x with 1 BTC collateral https://preview.redd.it/is89ep924cc41.png?width=699&format=png&auto=webp&s=f0419c68fe88703e594c121b5b742c963c7e2229 (Note: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments. The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,978, representing $1 of slippage compared to the $3,979 bid price at the time of liquidation.) The second chart shows a wide bid/ask spread at the time of liquidation, here, the closing trade takes place at a lower price than the bankruptcy price, and the insurance fund is used to make sure that winning traders receive their expected profits. This works to stabilize the potential for returns as there is no guarantee that healthy market conditions can continue, especially during periods of heightened price volatility. During these periods, it’s actually possible that the insurance fund can be used up than it is built up. Illustrative example of an insurance depletion – Long 100x with 1 BTC collateral https://preview.redd.it/vb4mj3n54cc41.png?width=707&format=png&auto=webp&s=0c63b7c99ae1c114d8e3b947fb490e9144dfe61b (Notes: The above illustration is based on opening a 100x long position at $4,000 per BTC and 1 Bitcoin of collateral. The illustration is an oversimplification and ignores factors such as fees and other adjustments. The bid and offer prices represent the state of the order book at the time of liquidation. The closing trade price is $3,800, representing $20 of slippage compared to the $3,820 bid price at the time of liquidation.) The exchange declared in February 2019, that the BitMEX insurance fund retained close to 21,000 Bitcoin (around $70 million based on Bitcoin spot prices at the time). This figure represents just 0.007% of BitMEX’s notional annual trading volume, which has been quoted as being approximately $1 trillion. This is higher than the insurance funds as a proportion of trading volume of the CME, and therefore, winning traders on BitMEX are exposed to much larger risks than CME traders as:
BitMEX does not have clearing members with large balance sheets and traders are directly exposed to each other.
BitMEX does not demand payments from traders with negative account balances.
The underlying instruments on BitMEX are more volatile than the more traditional instruments available on CME.
Therefore, with the insurance fund remaining capitalized, the system effectively with participants who get liquidated paying for liquidations, or a losers pay for losers mechanism. This system may appear controversial as first, though some may argue that there is a degree of uniformity to it. It’s also worth noting that the exchange also makes use of Auto Deleveraging which means that on occasion, leveraged positions in profit can still be reduced during certain time periods if a liquidated order cannot be executed in the market. More adventurous traders should note that while the insurance fund holds 21,000 Bitcoin, worth approximately 0.1% of the total Bitcoin supply, BitMEX still doesn’t offer the same level of guarantees to winning traders that are provided by more traditional leveraged trading platforms. Given the inherent volatility of the cryptocurrency market, there remains some possibility that the fund gets drained down to zero despite its current size. This may result in more successful traders lacking confidence in the platform and choosing to limit their exposure in the event of BitMEX being unable to compensate winning traders.
How suitable is BitMEX for Beginners?
BitMEX generates high Bitcoin trading levels, and also attracts good levels of volume across other crypto-to-crypto transfers. This helps to maintain a buzz around the exchange, and BitMEX also employs relatively low trading fees, and is available round the world (except to US inhabitants). This helps to attract the attention of people new to the process of trading on leverage and when getting started on the platform there are 5 main navigation Tabs to get used to:
**Trade:**The trading dashboard of BitMEX. This tab allows you to select your preferred trading instrument, and choose leverage, as well as place and cancel orders. You can also see your position information and view key information in the contract details.
**Account:**Here, all your account information is displayed including available Bitcoin margin balances, deposits and withdrawals, and trade history.
**Contracts:**This tab covers further instrument information including funding history, contract sizes; leverage offered expiry, underlying reference Price Index data, and other key features.
**References:**This resource centre allows you to learn about futures, perpetual contracts, position marking, and liquidation.
**API:**From here you can set up an API connection with BitMEX, and utilize the REST API and WebSocket API.
BitMEX also employs 24/7 customer support and the team can also be contacted on their Twitter and Reddit accounts. In addition, BitMEX provides a variety of educational resources including an FAQ section, Futures guides, Perpetual Contracts guides, and further resources in the “References” account tab. For users looking for more in depth analysis, the BitMEX blog produces high level descriptions of a number of subjects and has garnered a good reputation among the cryptocurrency community. Most importantly, the exchange also maintains a testnet platform, built on top of testnet Bitcoin, which allows anyone to try out programs and strategies before moving on to the live exchange. This is crucial as despite the wealth of resources available, BitMEX is not really suitable for beginners, and margin trading, futures contracts and swaps are best left to experienced, professional or institutional traders. Margin trading and choosing to engage in leveraged activity are risky processes and even more advanced traders can describe the process as a high risk and high reward “game”. New entrants to the sector should spend a considerable amount of time learning about margin trading and testing out strategies before considering whether to open a live account.
Is BitMEX Safe?
BitMEX is widely considered to have strong levels of security. The platform uses multi-signature deposits and withdrawal schemes which can only be used by BitMEX partners. BitMEX also utilises Amazon Web Services to protect the servers with text messages and two-factor authentication, as well as hardware tokens. BitMEX also has a system for risk checks, which requires that the sum of all account holdings on the website must be zero. If it’s not, all trading is immediately halted. As noted previously, withdrawals are all individually hand-checked by employees, and private keys are never stored in the cloud. Deposit addresses are externally verified to make sure that they contain matching keys. If they do not, there is an immediate system shutdown. https://preview.redd.it/t04qs3484cc41.jpg?width=808&format=pjpg&auto=webp&s=a3b106cbc9116713dcdd5e908c00b555fd704ee6 In addition, the BitMEX trading platform is written in kdb+, a database and toolset popular amongst major banks in high frequency trading applications. The BitMEX engine appears to be faster and more reliable than some of its competitors, such as Poloniex and Bittrex. They have email notifications, and PGP encryption is used for all communication. The exchange hasn’t been hacked in the past.
How Secure is the platform?
As previously mentioned, BitMEX is considered to be a safe exchange and incorporates a number of security protocols that are becoming standard among the sector’s leading exchanges. In addition to making use of Amazon Web Services’ cloud security, all the exchange’s systems can only be accessed after passing through multiple forms of authentication, and individual systems are only able to communicate with each other across approved and monitored channels. Communication is also further secured as the exchange provides optional PGP encryption for all automated emails, and users can insert their PGP public key into the form inside their accounts. Once set up, BitMEX will encrypt and sign all the automated emails sent by you or to your account by the [[email protected]](mailto:[email protected]) email address. Users can also initiate secure conversations with the support team by using the email address and public key on the Technical Contact, and the team have made their automated system’s PGP key available for verification in their Security Section. The platform’s trading engine is written in kdb+, a database and toolset used by leading financial institutions in high-frequency trading applications, and the speed and reliability of the engine is also used to perform a full risk check after every order placement, trade, settlement, deposit, and withdrawal. All accounts in the system must consistently sum to zero, and if this does not happen then trading on the platform is immediately halted for all users. With regards to wallet security, BitMEX makes use of a multisignature deposit and withdrawal scheme, and all exchange addresses are multisignature by default with all storage being kept offline. Private keys are not stored on any cloud servers and deep cold storage is used for the majority of funds. Furthermore, all deposit addresses sent by the BitMEX system are verified by an external service that works to ensure that they contain the keys controlled by the founders, and in the event that the public keys differ, the system is immediately shut down and trading halted. The exchange’s security practices also see that every withdrawal is audited by hand by a minimum of two employees before being sent out.
BitMEX Customer Support
The trading platform has a 24/7 support on multiple channels, including email, ticket systems and social media. The typical response time from the customer support team is about one hour, and feedback on the customer support generally suggest that the customer service responses are helpful and are not restricted to automated responses. https://preview.redd.it/8k81zl0a4cc41.jpg?width=808&format=pjpg&auto=webp&s=e30e5b7ca93d2931f49e2dc84025f2fda386eab1 The BitMEX also offers a knowledge base and FAQs which, although they are not necessarily always helpful, may assist and direct users towards the necessary channels to obtain assistance. BitMEX also offers trading guides which can be accessed here
There would appear to be few complaints online about BitMEX, with most issues relating to technical matters or about the complexities of using the website. Older complaints also appeared to include issues relating to low liquidity, but this no longer appears to be an issue. BitMEX is clearly not a platform that is not intended for the amateur investor. The interface is complex and therefore it can be very difficult for users to get used to the platform and to even navigate the website. However, the platform does provide a wide range of tools and once users have experience of the platform they will appreciate the wide range of information that the platform provides. Visit BitMEX
An extensive guide for cashing out bitcoin and cryptocurrencies into private banks
Hey guys. Merry Xmas ! I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively. The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow. I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
A. What is required to open an account in a Private bank when you made your fortune through crypto.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise. *The origin of your crypto wealth *Your background (residence, citizenship and probity) These two aspects must be documented in-depth. How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit. 1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start. Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice. 2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand. Let’s have a look at a few examples and how to document the few profiles I mentioned earlier. The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous. The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here: *proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early. *story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day. *micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning. *signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ? *ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow. The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow: *Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig. *Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful. *Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened. *Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet. *Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time. The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me. The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative. The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point. Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria: *Seriousness of the project Extensive study of the whitepaper to limit the reputation risk *AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted *Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises... *Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
B. The tax issue I am not a tax specialist, but I can say that this year I have seen it all. Again I am not judging. You made $100m hodling, and still wouldn’t pay your taxes ? Your decision.I personally advise everyone to pay their taxes, but also to be generous, to give to charities. I mean you eventually made it. Good for you. What about you contribute to make the world a better place now? I will stop patronizing you. It’s just my 2cts, and it’s your money.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me. First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards. For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t. EU tricks Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible. Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand. Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really. Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way. Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids? Dubaï
Set up a company in Dubaï, get your resident card.
Spend one day every 6 month there
Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen. The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains). The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again. Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly. “Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out. The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
C. The cash out itself So you have accumulated patiently a good amount of wealth. For some of us who have been involved in crypto since 2010, it took years. Remember when BTC was stuck at 200$ for months? I personally feel like it was yesterday. There is no way you screw up your wealth by cashing out in a hurry or with low security standards. Here is how the cash out takes should place.
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;) What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight. The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard. Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp, The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny. Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts. Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks. Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier) Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around. Your options: DIY or going through a regulated financial intermediary. Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately. The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused. Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them! The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax. The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million. Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction. Cheers. @swisspb on telegram
With Bitfinex announcing its EOS-based DEX will be launched this month on the 25th, DEX of Binance is facing strong competition again.
https://preview.redd.it/jae7b0zweu931.jpg?width=967&format=pjpg&auto=webp&s=2671a92a17bc54915173f55333322d4e53c9219b On June 27, Bitfinex retweeted that EOSfinex, the DEX based on EOS, had completed testing and planned to launch on July 25. This means that after more than a year of development, another centralized trading platform giant has joined DEX. https://preview.redd.it/4wxvbr1yeu931.jpg?width=592&format=pjpg&auto=webp&s=b8bda43ba45952f982ffeeb383c3807c7e90f28b 01. Why are the giants of centralized trading platforms switching to DEX? According to statistics, more than 90% of digital currency assets are traded on centralized trading platforms, which also provide sufficient liquidity for various tokens and are indispensable to the market. However, these centralized trading platforms have significant risks and shortcomings, and news of trading platforms getting stolen comes out every once in a while. From the earliest Mt.Gox incident, to the Bitfinex theft incident in 2016, to the theft of more than 7,000 bitcoin COINS in May this year, every hacker theft event will bring huge losses to the trading platform. According to the statistics of Manwu Technology, since September 2012, trading platforms have been attacked and stolen by hackers for 46 times with a total loss of 2.9 billion dollars. When we put encrypted assets on a centralized trading platform, we have to worry about not only the trading platform being attacked by hackers, but also whether the trading platform itself will steal. In addition, due to the lack of effective supervision of the current digital currency market, the centralized trading platform may even have some black case operation and market manipulation. https://preview.redd.it/9v0xpp5zeu931.png?width=1080&format=png&auto=webp&s=16614ddef975c483c7b850e0372289af311fee11 This centralized management model deviates from the decentralized nature of blockchain. In the long run, maybe DEX is the future. 02. DEX Model In the world of blockchain, the private key is everything, and whoever holds the private key owns the encrypted assets in the corresponding address. In DEX, cryptocurrency assets are held in digital currency wallets that hold their private keys, so security is greatly improved. As long as it's not a human error or a wallet security breach, it's almost impossible for hackers to steal money. When you need to trade, there is no need to register DEX nor recharge separately. You can access DEX directly through wallet authorization, realizing seamless connection between wallet and DEX, which is very convenient. Matchmaking tradeoff between two parties are automatically executed through intelligent contracts in the chain. After the transaction going through, the corresponding digital assets will be automatically transferred in/out of your digital currency wallet, and all the transaction information will be "permanently" recorded on the blockchain, with no organization or individual to tamper with or delete. So, how does DEX make profits? https://preview.redd.it/zl3khi86fu931.jpg?width=880&format=pjpg&auto=webp&s=1a5361c05c988746029e19ea34aa6bc98da7b07b In fact, just like the centralized trading platform, DEX mainly relies on trading fees to make profits but DEX has lower fees compared with the centralized trading platform. There are already plenty of DEX products on the market, including DEX from Binance which was officially launched not long ago. Zhao Changpeng has repeatedly said in public that DEX would be a trend in the future. He Yi said in a recent interview: "Currently, the peak daily trading volume of coindex is equivalent to $16 million, and both the trading volume and the number of users are increasing at a very fast rate." With so many competing products on the market, what's so special about Bitfinex's EOSfinex? 03. The specialty of EOSfinex As one of the largest digital asset trading platforms in the world, in order to continue to push the boundaries of market leading services, Bitfinex officially announced in February 2018 that it would develop an DEX product – EOSfinex, which can provide users with a fast, transparent and reliable trading platform. After more than a year of development and testing, EOSfinex has completed all the preliminary work and is scheduled to launch on July 25. What are the features and advantages of this EOSfinex compared to other DEX on the market? https://preview.redd.it/is8cs6b8fu931.jpg?width=1080&format=pjpg&auto=webp&s=7b1918f1ec6715c995a3d5642f0d3dd517b74cf5 A. EOSfinex offers multiple order types EOSfinex offers a range of order types that provide users with the tools they need to implement successful trading strategies. Market Order: to buy or sell a security at the best available price in the current market. It is widely considered the fastest and most reliable way to enter or exit a trade and provides the most likely method of getting in or out of a trade quickly. If you have a priority order, you should choose the market order. https://preview.redd.it/i58a5ee9fu931.png?width=340&format=png&auto=webp&s=85c0f881bd93a492fc1d547595aadbd46433e1f7 Limit Order: An order to a broker to buy a specified quantity of a security at or below a specified price, or to sell it at or above a specified price (called the limit price). This ensures that a person will never pay more for the stock than whatever price is set as his/her limit. So, if you're not in a rush to buy or sell, limit order is a good choice. Post-Only: To ensure that limit orders are added to book orders and are not paired with existing orders. If your order is in line with the existing order, the submission of the limit order will be cancelled. This order ensures that you pay a market maker's fee and not a counterparty fee, unless paired with a hidden order. IOC: An immediate or cancel order (IOC) is an order to buy or sell a security that executes all or part immediately and cancels any unfilled portion of the order. Release on Trade: If this function is enabled, funds will be transferred to the side chain account after receipt. Sweep Collateral: If this function is enabled, the balance of the trading platform account will be transferred to the side chain account when the order is completed or cancelled. EOSfinex trading platform provides a variety of order types, users can choose according to their different trading needs. B. The trading interface can be customized The EOSfinex trading platform allows traders to customize the trading interface according to their preferences, such as changing the page theme, font and time zone according to their own needs. If you want to further customize UI of EOSfinex, there are eight individual UI components of the trading interface for your to Rearrange: Chart, Balances, the Orders, the Order Book, Order Form, Order History, Trade History and EOX Resources. The EOSfinex UI is built around a drag-and-drop system, and each of these 8 components can be repositioned, resized, or even deleted in any way you want by clicking on the title of each component and dragging it to the appropriate location. C. It’s all on the blockchain to ensure transparency and security EOSfinex is a completely chain-running and extensible trading platform based on the EOS of the blockchain. All the core trading components including order book, matching engine and hosting solution are in the blockchain. That is to say, the whole trading process is operated in the blockchain from the matching of orders and orders by users to the settlement of assets, which not only ensures the transparency of asset transactions, but also guarantees the security of assets. D. Side chain operation EOSfinex will run on a side chain of EOS to ensure higher TPS and a better trading experience for users. E. Lower transaction costs EOSfinex, just like other trading platforms, uses Maker and Taker mechanisms to charge different fees. Generally speaking, the fee of Maker is lower than Taker’s because Maker provides liquidity, while Taker consumes Maker in the deep list and reduces liquidity. EOSfinex has a zero Maker fee and a 0.2% Taker fee, and due to the providing liquidity of Maker, there will be a 0.5% return with it. F. Rely on Bitfinex to ensure the depth of trading Currently, the biggest defect of DEX on the market is the insufficient trading depth and poor user experience. To solve this problem, you need to attract enough users to participate in using DEX. Only with more people, there will be enough trading depth. Bitfinex is one of the world's top established trading platforms and has accumulated a very large user base, which is founded in December 2012. After EOSfinex is officially launched, Bitfinex will definitely lead the flow. Due to the endorsement of Bitfinex trading platform, it is believed that more and more people will participate in the use of EOSfinex. 04. Summary Compared with the centralized trading platform, DEX is more suitable for the decentralized spirit of blockchain. With the development of blockchain technology and the deepening of industry education, more and more people will master the ability of private key management proficiently, and more and more people will experience the pleasure of "managing your own assets, no one can take away" and choosing DEX. Whether EOSfinex, which will be officially launched on July 25, can become the leader of the DEX trend, let's wait for time to find out.
I’ve noticed the same questions begin asked in BitcoinUK/ again and again. I’ve some experience of trading cryptos in the uk, so here’s a brain dump of what I’ve learned. BE WARNED: things change quickly and this stuff will be out of date before long. I’m writing in August 2017, by November it’ll all be different BE WARNED: don’t take any of the below as fact - it is opinion, my opinion, and you don’t know me, I could be a crazy person. Check your shit before you do anything. ok. Transferring funds to an exchange The cheapest (and sometimes only) way to transfer funds to an exchange is via an international bank transfer (sometimes called bank wire). Each exchange has its own quirks, you need to do a bit of research before you begin. Most exchanges that have GBP markets will not have UK bank accounts (none possibly), even if they’re based in the UK. I’m not sure why - some are UK registered companies and are based in London, but still don’t have UK bank accounts. It seems weird but it’s quite common. I can only assume the crappy UK banking system refused them business. Don’t be afraid of international bank transfers, they aren’t necessarily difficult or expensive. So, some things to check for you start transferring your hard earned cash…
what currencies are accepted by the exchange (just because they have GBP markets doesn’t mean they accept GBP deposits)
what is the exchange rate if you send in one currency and it’s received in another (or just avoid doing this this, you’re throwing money away)
some exchanges have multiple bank accounts, make sure that you send the right currency to the right account (else you’ll be throwing more money away)
what fee’s does your bank charge for an international transfer (should less than 10GBP …or 10USD, 10EUR, otherwise your bank is ripping you off)
what fee does the exchange charge for receiving an international transfer (often this is zero, but not always)
can you withdraw your funds should you change your mind (or accrue funds through selling), and what are the withdrawal costs and procedures.
Be patient. What you will find is that the 1st international payment you make to any one exchange takes a long time. If they say something like “up to 5 working days”, it will be at least 5 working days. After that first one is out of the way payments can arrive same day, within a couple of hours sometimes. However, note that the international banking system shuts down for the weekend. From experience, if you need to make a payment on Friday, make sure you make it before 10am on friday morning else it’ll be stuck until monday. I think the bankers basically go to the pub for lunch on Friday, forget their way back, and just stumble into another pub. If you want to make a payment via a debit card, thats also possible on some exchanges. Same set of warnings apply as above; make sure you understand the fees, the exchange rates and the timescales. They almost all have a link from their homepage to their fees page. If an exchange isn’t clear about their fees don’t use them, simple as that. If you’ve found an exchange that doesn’t seem to have a KYC (Know Your Customer) policy and will let you transfer funds without any sort of ID check, don’t do it. Don’t be tempted to use them because it feels like an easy option. STAY AWAY. Similarly if they don’t offer 2FA, don’t use them. Make sure you activate 2FA immediately, like the very first thing you do after registering. I believe the current advice is not to use Authy, but to use Google Authenticator (despite how shit it is). Also, turn on email login notifications (despite how annoying they are). The Non-banks (Transferwsie, Revolute etc) As far as I know exchanges will typically not accept payments from these “non-bank” entities. It’s due to their KYC and AML (Anti Money Laundering) policies. The problem is that the money you transfer will go to (or come from) a bank account that isn’t in your name, which just isn’t allowed any more, and for good reason. I know that Transferwise now offers a personal EURO account which comes with it’s own IBAN. And I think Revolute offers both personal GBP and EURO accounts (although the euro IBAN just doesn’t work at all). But I don’t know if those accounts are in your name and the banking level, I suspect not. I’d be really interested to know if anyone has successfully transferred funds to or from an exchange to one of these “non-banks”. I know that some exchanges have explicit policies against these organisations and say that they will reject your payment, which will cost you time and no doubt money. Interestingly, Revolute is becoming a crypto currency exchange soon. More on that another day maybe. Transferring funds from an exchange Same principals as above really - do your research first; check the fees, check the exchange rates and expect the first ever payment to be VERY, VERY slow, like super slow, more than 5 working days, weeks maybe (i’m not joking). I’ve noticed that payments from an exchange to my bank account will almost always take longer than payments from my bank account to an exchange do. Also, an intermediary bank may be involved (what ever that is), and they’ll help yourself to some of your money on its way through, so don’t necessarily expect it all to turn up. How much do they take? No one seems to know - check the small print, or don’t bother because it won’t say. After your first withdrawal from an exchange, international bank payments to and from some exchanges can happen same day. The Non-banks Making a payment from an exchange to something other than a bank isn’t something I can comment on. I am trialling Crypto Capital, on the surface it seems like a good service, but will refrain from giving my opinion just yet. The exchanges I’ll limit this bit to those exchanges I’ve found that have GBP/crypto markets… ** ANXPRO - rating: 3/10 Based in HongKong. In summary - expensive, slow, a bit crap, but sometimes with good prices. From time to time good prices can be found on ANX for selling BTC for GBP. You can’t deposit funds though, you can only withdraw. So for buying BTC with GBP you might as well forget them, but for selling it can be worth while. The BTC/GBP market is not very liquid as you might expect for a Honk Hong market trading GBPs and the large spread can sometimes mean crappy prices. I have seen good prices here, but not often. Withdrawing funds typically takes exactly 5 working days (occasionally it’s 2 but that’s rare). Often a bit of money disappears on its way (12GBP last time I checked) due to those pesky “intermediary banks”. Their withdrawal fee’s are high but are easy to understand and calculate. The trading fee is I think the highest I’ve seen (0.6% last time I checked) for market takers, but less for market makers. I guess they’re trying to encourage market making… although their market maker fee isn’t great either. And there are no discounts available for high volume traders. They have a reasonable API, and the exchange doesn’t seem to suffer from many planned or unplanned outages. Their support is also reasonable, they usually reply within a couple of days which is WAY better than most. My confidence in the exchange in general isn’t high at all. Sometimes crypto deposits simply don’t arrive (I’m not joking). If you’re a busy trader making lots of crypto funds movements, make sure you check that each and every transfer has arrived. If funds don’t arrive you have to raise a support ticket, maybe include a link to show the crypto network transaction taking place, and some days later your funds will appear. Red flag? You bet. Their AML processes were ok as I recall. ** Kraken - rating 2/10 Based in Japan. In summary - a bit pointless. Possibly I shouldn’t have included Kraken here as they’ve just delisted their GBP markets (temporarily maybe). Interestingly they did this by giving ZERO notice to their customers which is a bit unforgivable. Their technology is clearly appalling. The website is crazy slow, sometimes unreachable, weirdly designed (IMO) and just not that easy to use - mostly because it’s so slow. They have an ok API but it’s completely unresponsive at times. It’s not uncommon to get errors when placing orders so you’ve no idea if the order was placed or not, same goes for cancelling orders, order books can take minutes down download and are basically fictional. Red flag? Oh yes. GBP deposits are cheap (10GBP last time i checked), and from memory quite fast, I think I’ve had them arrive same day. Maybe the Japanese banking system actually works? Withdrawals aren’t so cheap though (60GBP I think) and not very fast, certainly not same day. Support is not great, but ok I guess. I feel like responses come in 3 to 5 days, and they actually attempt to answer your question. Their KYC/AML process is very thorough. There are 4 levels of verification, it like a shit game. Their trading fees are reasonable and they do have discounts for high volume traders. ** CEX.IO - rating 7/10 Based in the UK I think. In summary - the best place to buy crypto currencies with GBP (IMO!). GBP bank transfers to the exchange are free, and they support Crypto Capital which is also free for inbound transfers. You can also deposit GBP via a VISA or master card, although it’s very expensive (I wouldn’t bother personally) but I assume much faster than a bank transfer. Their bank isn’t UK based so its another international transfer and takes the usual amount of time (i.e. some days). GBP bank withdrawals are also cheap (30GBP), they even offer a withdrawal to a VISA debit card for only 2.90GBP. They do have strict limits on what can be withdrawn though, so if you’re a big trader it may not be suitable, (I think its suitable only for small time traders). Strangely they charge 1% for crypto capital withdrawals which makes no sense. I’ve checked the Crypto Capital fees page and can’t fathom why CEX have chosen to add this fee, it seems crazy. As mentioned above, your first withdrawal to a bank account (or other payment provider) will take FOREVER, like two weeks or more. They don’t really explain this adequately in my opinion. They have a small number of markets (BTC, BCH and ETH) but are expanding these slowly. And you can trade with other FIAT currencies as well. Support is bad. Slow to reply, and you’ll get a stock response. Almost no effort is made to answer your question. Time between replies is several days if you get one at all. The API is good, the website is fairly easy to understand, responsive and uptime is excellent. Their KYC/AML process is very thorough. Weirdly I’ve had to do it twice, the second time was via email which didn’t feel at all secure. Why are the exchanges still using email for this stuff? Their trading fees are reasonable but they don’t have any sort of discounts for high volume traders. *** Coinbank - rating 5/10 Based in… well that’s unclear - Scotland? Belize? In summary - crazy high fees. Deposit fees for GBP are actually zero, but withdrawal fees are way too high for both FIAT and crypto currencies. Any exchange that charges percentages for withdrawal fees (as opposed to a fixed value) should be treated with great caution. Trading fee’s are also very high. As usual, their bank isn’t UK based so you’re looking at days to make a deposit, and many days to make a withdrawal, but as you’ve probably realised by now that seems to be the norm. Their API is ok (the order book appears to be partly fictional) and the last time I checked the API was changing - maybe they’re still building it. The website is fine I guess. It’s quick enough and doesn’t seem to suffer from that much of planned or unplanned downtime. I don’t like dark backgrounds though and I don’t think you can change it, but that’s just me. They don’t have many markets but do support most major crypto currencies. Interestingly they have some pure FIAT/FIAT markets which is something I’m beginning to see more of. The GBP markets aren’t very liquid either, so sometimes the spread is high which means the prices are pretty uncompetitive. Occasionally though someone comes in with a massive order so you’ll maybe get lucky and get a good deal. It’s a while since I used their support (i’ve stopped trading because of the fees), but I recall it wasn’t great. My last ticket ended with something like ”a member of the tech team will get back to you”, and that’s the last I heard from them. They appeared to have adequate KCY/AML procedures. They don’t offer any discounts for high volume traders. ** Coinfloor - rating 6/10 Based in the UK (but you guessed it, with an overseas bank account). In summary - a good all round exchange! I think they pride them selves on their security and suitability for being regulated (and I hope the succeed). I like coinfloor. They have a slightly unusual business model in my opinion. They charge a deposit fee and a withdrawal fee, but they don’t charge a trading fee. It didn’t used to be the case, and I guess may not be in the future. The fee’s are competitive though, certainly not high. Support is excellent, probably the best I’ve encountered. Someone usually responds same day and they even read your question and attempt to be helpful with their answer. Amazing. The website is a pretty basic no frills affair. It certainly won’t make your laptop sound like a hovercraft unlike some. One thing to mention is that you can only withdraw crypto funds to a single wallet (per currency) and that wallet must be a personal wallet and not one on another exchange. I doubt they can enforce where that wallet is, but it certainly against their usage policy. Until recently you could only trade BTC here, but they’ve now added support for more currencies. They didn’t do it very well though, you can’t withdraw the new currencies, and they aren’t supported by the API. The website has suffered from some long outages which were definitely unplanned. The API is mostly good though, stable, reliable and easy to use. They do have discounts for high volume traders and their KYC/AML procedures were good as I recall. ** GDAX (aka Coinbase) - rating 5/10 I wasn’t going to mention GDAX because GBP deposits aren’t an option. However, as it’s such a large exchange it’s worth mentioning. In summary - good but a bit pointless. GDAX does have one GBP market but getting into it isn’t very easy. You can’t deposit GBP funds into the exchange but you can sell BTC for GBP, sometimes at good prices too. You can register a UK bank account but using it is complicated - better to look at their docs rather than have me do an bad explanation. Ultimately, if you send them GBPs I think you’ll be credited with EUROs. The fee’s are ok (but complicated), their technology is good. I don’t recall their KYC/AML procedures. They have 2 websites confusingly; GDAX is aimed at traders and Coinbase is aimed at people who want to occasionally buy and sell. I guess Coinbase is just a simple front end for GDAX. The API is the best I’ve seen. They have discounts for high volume traders. In summary I’m sure there are other GBP markets out there, and I’ll update this post when I have an opinion on them. For now though, if you want to buy crypto currencies for GBP, you best bet in my opinion is cex.io. You’ll find good prices, good market depth, a small spread and enough currencies to get you started. Support is crap (but that’s the norm), but both deposits and withdrawals are cheap and reliable, you just need to be patient. If you aren’t patient however they at least have an expensive & fast option for you and that is to buy with your debit card.
I would need a stream of the limit order book data, preferably something similar to: Along with the respective events ... Stack Exchange Network Stack Exchange network consists of 176 Q&A communities including Stack Overflow , the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. GDAX is a well designed platform which shows the order book, history of orders and charts varying from candlestick, bar charts and a Depth Chart. In this article we’ll focus on understanding a Depth Chart. Depth charts is one of those which can let you know about Demand and Supply. It gives a visualization of demand or supply of a particular stock or commodity or a cryptocurrency. Today, we ... Bitcoin is a distributed, worldwide, decentralized digital money … Press J to jump to the feed. Press question mark to learn the rest of the keyboard shortcuts. r/Bitcoin. log in sign up. User account menu. 1. Cryptowat.ch - Live depth chart and order book. Close. 1. Posted by. u/coinvalidationllc. 5 years ago. Archived. Cryptowat.ch - Live depth chart and order book. cryptowat.ch/btce/b ... An Analysis of Order Book Depth on the Binance Exchange : Bitcoin. by newicotelegraph March 18, 2019. Share 0. A community dedicated to Bitcoin, the currency of the Internet. Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. You might be ... The last venue offers a depth of book which is also more expensive to use but provides more details on prices, liquidity, and other factors. Moreover, there are lower trading costs and a more extensive range of order types. Thanks to the Android and iOS apps created by Coinbase company, it is possible to trade on the mobile phone with the same comfort. Evolve Markets. Website: https://evolve ...
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