Bitfinex Cryptocurrency Exchange Bitcoin Trading ...

What Is a Cryptocurrency Exchange?

What Is a Cryptocurrency Exchange?

https://preview.redd.it/1v6z6af9jcf51.png?width=963&format=png&auto=webp&s=5b29763a9609c95dc0941c1a9edc443b2e3c1127
A cryptocurrency exchange is the meeting point where traders exchange their cryptocurrencies for fiat money or other cryptos. These online exchanges, where the market price is generated, mark the value of cryptocurrencies based on supply and demand. It is a virtual space that allows the purchase and sale of cryptocurrencies.
Since the appearance of Bitcoin in January 2009, cryptocurrencies have quickly demanded the use of this type of platform to access decentralized assets. The first cryptocurrency exchange was developed in March 2010 under the name of Bitcoinmarket. Since then, many proposals have emerged in the crypto space to provide quality options to cryptocurrency traders worldwide.
Listing
One of the important achievements of a Blockchain platform is getting your currency listed on a major cryptocurrency exchange in the digital finance arena.
According to the Cambridge Dictionary, in the stock market, the term ‘listing’ refers to a place in a list of companies whose shares are bought and sold on a particular stock market, or the act of putting a company on a list. In the case of cryptocurrencies, the native tokens or coins of a blockchain platform represent those ‘shares’ of the platform.
However, being listed on exchanges, especially on major ones, is neither easy nor straightforward. Many cryptocurrency exchanges have well-defined listing criteria to list the cryptocurrencies of credible projects, and not all projects meet the criteria the exchanges present.
How exchanges operate
Cryptocurrency exchanges can be classified into different types, but they all share something in common. They are all platforms designed to facilitate the participation of their users in the alternative cryptocurrency market.
For this, they have fundamental and technical analysis tools and a large number of indicators so that traders can make the best decisions at all times within the market.
Depending on the type of exchange used, transactions work on the platform or user side, all based on the benefits offered by blockchain technology.
Most of the exchanges charge a commission on the buy-sell operation established by the trader. Also, those transactions are confirmed in the native blockchain of currency on which it is operated. Thus, for example, if you deposit or withdraw a certain amount of BTC in Binance, you will have to wait for the confirmation of the bitcoin blockchain network. You can see the corresponding balance successfully reflected after your transaction is confirmed.
What is the difference between a CEX and DEX
As we mentioned earlier, there are many categories of cryptocurrency exchanges, but fundamentally two large groups dominate the scene: centralized «CEX» and decentralized «DEX» exchanges.
The first group corresponds to traditional exchanges, where access to buy or sell their tokens according to the market price.
Compared to DEX, they are highly regulated platforms that must meet KYC(Know Your Customer) and AML(Anti money laundering) standards. It means that there is no privacy on their platforms since users are forced to reveal their identity to trade. Coinbase, Binance, Kraken, Bithumb, and Bitfinex are examples of this type of exchange.
Moreover, CEX charges for its services, and some of them offer funding alternatives through traditional bank accounts or conventional credit cards. By charging commissions, CEX keeps the platform functioning and generating income.
In the case of decentralized exchanges or DEX, they are a direct evolution of the traditional ones. Although they work in a similar way to the CEX, they are able to operate in a decentralized way thanks to smart contracts. It indicates that there are no intermediaries, and the platform is self-supporting due to its programming. In addition to this, DEX usually has high levels of privacy and even anonymity since it does not require KYC or AML. Some of the examples of DEX are AirSwap, Bancor, UniSwap, and Bisq.
However, despite its mentioned qualities, there are defects that traders are reluctant to use DEX exchange. In many cases, its interface is difficult to use for the average trader to operate, and it has limited order types. Also, its low liquidity that generates high spreads drives away the users.
Where FLETA is listed
In the case of the FLETA token, we can find it available in a large number of exchanges globally.
Since our first listing on the GDAC Exchange with the FLETA / KRW pair, the token is now available on five more exchanges for a total of enlistment in 08 pairs within six global exchanges.
Below you can find the complete list of token availability in cryptocurrency exchanges in the market:
● Bithumb «FLETA / KRW»
● Coinone «FLETA / KRW»
● Bithumb Global «FLETA / USDT»
● Bittrex «FLETA / BTC»
● DigiFinex «FLETA / ETH»
● DigiFinex «FLETA / BTC»
● GDAC «FLETA / KRW»
● Bitsonic «FLETA / KRW»
**
submitted by fleta-official to fletachain [link] [comments]

CRYPTO.COM COIN REACHES A 24 HOUR VOLUME OF 67.01 MILLION USD

Crypto.com Coin (CURRENCY: CRO) was trading 1.5% higher against the US dollar during the 1 day period.
Crypto.com Coin has a $ 2 market cap of $ 22.26 million Crypto.com coins were traded on the exchanges on the last day.
A Crypto.com coin token can currently be purchased for around $ 0. 01 or 0. 00000856 BTC on major cryptocurrency exchanges such as ABCC, OceanEx, Indodax, and CPDAX. In the past seven days, Crypto.com Coin has traded 000. 5% against the US dollar.

Here's how similar cryptocurrencies developed on the last day:

Huobi Token (HT) was 0% against the dollar and is now trading at $ 4,000 or 0. 00045453 BTC.
Acash Coin (ACA) traded 8% against the dollar and is now trading at $ 0. 0789 or 0.00000856 BTC.
Maker (MKR) rose 2.6% against the dollar and is now trading at $ 461.62 or 0.05008744 BTC
Basic Attention Token (BAT) rose 1.6% against the dollar and is now trading at $ 0. 26 or 0. 00002782 BTC.
IOStoken (IOST) declined 0.3% against the dollar and is now trading at $ 0. 0396 or 0.461 BTC.
Kyber Network (KNC) was up 2% against the dollar and is now trading at $ 1.25 or 0. 00017719 BTC.
OKB rose 0.3% against the dollar and is now trading at $ 4. or 0. 00053815 BTC.
Aave (LEND) traded 14 .1% higher against the dollar and is now trading at $ 0.14 or 0. 00002427 BTC.
FTX Token (FTT) traded 1% higher against the dollar and is now trading at $ 3. 00 or 0.00033005 BTC.
THETA (THETA) traded up 4.3% against the dollar and is now trading at USD 0. 11 or 0. 00002724 BTC.
CRO is a token. It was first traded in November 2019.
The total stock of Crypto.com Coin is 093, tokens and it's circulating supply is 11, 093, 607, 306 tokens.
The official message board for Crypto.com Coin is blog.crypto.com.
The Reddit community for Crypto.com Coin is / r / Crypto_com.
The official website for Crypto.com Coin is www.crypto.com/de/chain.
Crypto.com Coin's official Twitter account is @cryptocom.

Buying and selling Crypto.com coins

Crypto.com coins can be traded on these cryptocurrency exchanges: Fatbtc, OceanEx, BigONE, Upbit, HitBTC, GOPAX, DDEX, IDEX, ABCC, Indodax, OKEx, Dcoin, BiteBTC, Bithumb Global, Bithumb, Bibox, Bittrex, KuCoin, Huobi Global, DigiFinex, CoinTiger, Huobi Korea and CPDAX.
Currently, it is usually not possible to buy alternative cryptocurrencies like Crypto.com Coin directly with US dollars. Investors wishing to trade Crypto.com Coin should first buy Ethereum or Bitcoin through an exchange that trades in U.S. dollars such as Gemini, GDAX, or Changelly. Investors can then buy their newly-acquired Ethereum or Bitcoin Crypto.com coin on one of the exchanges listed above.
submitted by jakkkmotivator to thecryptobasic [link] [comments]

[Daily Discussion] Wednesday, October 17, 2018

Thread topics include, but are not limited to:
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submitted by AutoModerator to BitcoinMarkets [link] [comments]

Introduction to Cryptocurrencies: USDT, the most popular stable coin

Introduction to Cryptocurrencies: USDT, the most popular stable coin
Written by the CoinEx Institution, this series of jocular and easy to understand articles will show you everything you need to know about major cryptocurrencies, making you fully prepared before jumping into crypto!
Many novices of cryptocurrencies may feel confused with the obscure difference between USDT and USD at first . Different as they are, there remain some relations. To some extent, the name USDT is like a biased belief implanted in the minds of novices.

https://preview.redd.it/nqp97earybt41.png?width=1200&format=png&auto=webp&s=84e70cc382389d21e4647b98605f3eabee06936d
USDT (Tether USD), known as Tether, is a token based on the stable value currency US dollar (USD), launched by Tether. In other words, it serves as a currency to replace the US dollar in digital currency trading platforms. (With 1USDT = 1USD, users can exchange USDT for USD at a rate of 1: 1 at any time)
USDT is not a new token It was launched for trading in 2015, and the world-renowned digital asset trading service platform CoinEx supports USDT trading pairs. There are extensive concerns about how to exchange tokens into fiat currencies after the introduction of cryptocurrency trading. USDT has provided part of the solution, and thus has been highly praised by many investors.
In the white paper “Tether: Fiat currencies on the Bitcoin blockchain”, Tether defines USDT as a digital currency pegged to fiat currencies. All Tethers are are initially issued as tokens on the BTC blockchain through the Omni Layer protocol, at a pegged exchange rate of 1:1 against the USD. After launching USDT, Tether strictly adheres to the 1:1 reserve guarantee, which means that for every issued USDT token , its bank account will have 1 USD funding guarantee.
Many people are fond of USDT precisely because of its specific characteristics. In recent years, it remains one of the most popular stablecoins, with a market share of nearly 3 billion US dollars, leaving behind such stablecoins as USDC, Gemini Dollars and JPM Coin
USDT's creator, Tether, is one of the top five digital currency companies by cash flow. They earn 3-5% profit from the $2 billion offered by the users around the world, almost without any operating costs. (This is really cool)
USDT is issued and traded through the Omni (formerly known as Mastercoin) protocol, which is a 2.0 currency based on the Bitcoin blockchain. Transaction confirmation and other parameters of USDT are consistent with those of BTC. Users can transfer USD to the bank account provided by Tether through SWIFT, or get USDT through the exchange. Of course, they can also buy USDT with BTC in the exchange. In short, it is quick and easy!
Unlike other digital currencies, USDT boasts some great features:
1.Intuitive
USDT is equal to the US dollar, with 1 USDT = 1 US dollar. Each currency = how much USDT, which is equal to how many US dollars its unit price is.
2.Stable
As Tether is backed by fiat currencies, users can still trade on the blockchain asset market without being affected by the price fluctuations of most blockchain assets.
3.Transparent
Tether's issuing company, Tether, claims that its fiat currency storage account has regular audits to ensure that each USDT in circulation is backed up by one US dollar. The storage account status is public and can be queried at any time. In addition, all Tether transaction records will be published on the public chain.
4. Low transaction fees
There is no fee for transactions between Tether accounts or between wallets where Tether is stored. Conversion from USDT to a fiat currency requires the transaction fee.
Tether has been frank about the risks of USDT in the white paperAlthough Tether is a decentralized digital currency, Tether company is not that decentralized .. As a centralized depositor of all the assets, the company also faces possibilities of bankruptcy, freezing funds and fund running; what’s more, the re-centralization may also paralyze the entire system. To put it simple: coin speculation could be risky and investors need to be cautious. Such honest companies are hard to find.
Yet in March 2019, Tether changed its terms of service: the USDT's endorsement altered to 75% USD anchorage and 25% iFinex stock-collateral loans. . In April of the same year, Tether issued an additional 640 million USDT, also pushing itself to the forefront.
So what’s on your mind after reading this article? Why not make your voices heard by trading on CoinEx, or join the official CoinEx’s telegram group at https://t.me/CoinExOfficialENG ?
About CoinEx
As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment and has obtained a legal license in Estonia. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
Website: https://www.coinex.com/
Twitter: https://twitter.com/coinexcom
Telegram: https://t.me/CoinExOfficialENG
submitted by CoinEx_Institution to Coinex [link] [comments]

EDUCATIONAL PIECE COMING FROM #CoinExInstitution :- Introduction to Cryptocurrencies: USDT, the most popular stable coin

EDUCATIONAL PIECE COMING FROM #CoinExInstitution :- Introduction to Cryptocurrencies: USDT, the most popular stable coin

https://preview.redd.it/f7gy1slqqct41.jpg?width=725&format=pjpg&auto=webp&s=a8ef4d04c45403ed7f2d7efeb118164d3c158239
Source: https://www.twitter.com/coinexcom/status/1251046090272657409
Written by the CoinEx Institution, this series of jocular and easy to understand articles will show you everything you need to know about major cryptocurrencies, making you fully prepared before jumping into crypto!
Many novices of cryptocurrencies may feel confused with the obscure difference between USDT and USD at first . Different as they are, there remain some relations. To some extent, the name USDT is like a biased belief implanted in the minds of novices.
USDT (Tether USD), known as Tether, is a token based on the stable value currency US dollar (USD), launched by Tether. In other words, it serves as a currency to replace the US dollar in digital currency trading platforms. (With 1USDT = 1USD, users can exchange USDT for USD at a rate of 1: 1 at any time)
USDT is not a new token It was launched for trading in 2015 and the world-renowned digital asset trading service platform CoinEx supports USDT trading pairs. There are extensive concerns about how to exchange tokens into fiat currencies after the introduction of cryptocurrency trading. USDT has provided part of the solution, and thus has been highly praised by many investors.
In the white paper “Tether: Fiat currencies on the Bitcoin blockchain”, Tether defines USDT as a digital currency pegged to fiat currencies. All Tethers are are initially issued as tokens on the BTC blockchain through the Omni Layer protocol, at a pegged exchange rate of 1:1 against the USD. After launching USDT, Tether strictly adheres to the 1:1 reserve guarantee, which means that for every issued USDT token , its bank account will have 1 USD funding guarantee.
Many people are fond of USDT precisely because of its specific characteristics. In recent years, it remains one of the most popular stablecoins, with a market share of nearly 3 billion US dollars, leaving behind such stablecoins as USDC, Gemini Dollars and JPM Coin
USDT’s creator, Tether, is one of the top five digital currency companies by cash flow. They earn 3–5% profit from the $2 billion offered by the users around the world, almost without any operating costs. (This is really cool)
USDT is issued and traded through the Omni (formerly known as Mastercoin) protocol, which is a 2.0 currency based on the Bitcoin blockchain. Transaction confirmation and other parameters of USDT are consistent with those of BTC. Users can transfer USD to the bank account provided by Tether through SWIFT, or get USDT through the exchange. Of course, they can also buy USDT with BTC in the exchange. In short, it is quick and easy!
Unlike other digital currencies, USDT boasts some great features:
1.Intuitive
USDT is equal to the US dollar, with 1 USDT = 1 US dollar. Each currency = how much USDT, which is equal to how many US dollars its unit price is.
2.Stable
As Tether is backed by fiat currencies, users can still trade on the blockchain asset market without being affected by the price fluctuations of most blockchain assets.
3.Transparent
Tether’s issuing company, Tether, claims that its fiat currency storage account has regular audits to ensure that each USDT in circulation is backed up by one US dollar. The storage account status is public and can be queried at any time. In addition, all Tether transaction records will be published on the public chain.
  1. Low transaction fees
There is no fee for transactions between Tether accounts or between wallets where Tether is stored. Conversion from USDT to a fiat currency requires the transaction fee.
Tether has been frank about the risks of USDT in the white paperAlthough Tether is a decentralized digital currency, Tether company is not that decentralized .. As a centralized depositor of all the assets, the company also faces possibilities of bankruptcy, freezing funds and fund running; what’s more, the re-centralization may also paralyze the entire system. To put it simple: coin speculation could be risky and investors need to be cautious. Such honest companies are hard to find.
Yet in March 2019, Tether changed its terms of service: the USDT’s endorsement altered to 75% USD anchorage and 25% iFinex stock-collateral loans. . In April of the same year, Tether issued an additional 640 million USDT, also pushing itself to the forefront.
So what’s on your mind after reading this article? Why not make your voices heard by trading on CoinEx, or join the official CoinEx’s telegram group at https://t.me/CoinExOfficialENG ?
About CoinEx
As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment and has obtained a legal license in Estonia. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
Website: https://www.coinex.com/
Twitter: https://twitter.com/coinexcom
Telegram: https://t.me/CoinExOfficialENG
submitted by dammy1988 to ICOAnalysis [link] [comments]

Beginner's Guide to Trading Crypto. Part 2

Beginner's Guide to Trading Crypto. Part 2
Jump to Part 1.

The March Of Derivatives Through Times And Markets

The abundance of terms available on the financial market is as scary as it is confusing for the average, uninitiated trader seeking to start making a fortune on their assets. The knowledge of a starting trader who was used to the cozy and familiar confines of the checkout at the local grocery store will turn into a wild rollercoaster ride the moment they step into the crazy world of financial instruments. But the financial devil is not as terrifying as he is made out to be.
Orders, derivatives, contracts, futures, shorts, stops and so on are the terms that threaten starting traders to to shatter dreams and haunt their nightmares, drenching their backs with cold sweat at the sight of ominous Japanese Candles and convoluted geometrical figures on frightening charts. But it is not that horrifying as the theory of virtually every single financial instrument is tightly knit into the fabric of everyday life. The simplest and most common instrument that every single person who has ever watched even a moment of financial news has heard of is the basic derivative.
The derivative is just a fancy name for a contract relying its value on a large variety of instruments on the financial market that are better known as stocks, bonds, commodities, currencies, interest rates and other variables. In fact, there are derivatives on virtually anything imaginable and a very simple example can be betting, where the profit of one party to the contract is placed on the outcome of a certain event.

The Long Way

The history of derivative contracts goes back to ancient times. The instrument has come a long way since its primitive form as a verbal agreement between merchants seeking to attract funding for their adventures. One of the oldest known examples is that of Babylonian merchants who concluded risk sharing agreements and received loans for their caravans. The loans could be repaid if the goods were successfully delivered and sold in distant lands. The Templars used a further development of loans as they used to give money to pilgrims traveling to the Holy Land and would later charge interest on the funds. The Conquistadors were no better, as they signed futures contracts with the Spanish Crown and wealthy Spaniards for their ventures into the New World, where the booty and plunder pilfered from the hapless natives would serve as the payoff. The first modern derivative contracts appeared on the London Stock Exchange in the 1830s, and the United States entered them into practice in the 1850s.
Derivatives, mostly the swaps, served as the reason for the 2008 mortgage crisis in the United States as the involvement of counterparty risks simply spiraled out of control.
In the cryptocurrency world, the first derivatives were issued on BTC as Bitcoin futures and options are successfully traded on the Chicago Mercantile Exchange (CME Group), the Chicago Board Options Exchange (CBOE), as well as on a number of cryptocurrency exchanges, in particular, on Binance, BitMex, BitFinex, OKCoin and others.

Types of Derivatives

There are a number of types of derivatives that are available to traders. Most of them operate on the same principles with several differences that are tailored to specific requirements the traders put forward.
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Futures Contracts
Futures contracts are some of the most common types of derivatives. A futures contract is an agreement between two parties for the purchase and delivery of some kind of asset at an agreed upon price at some date specified in the future. Futures are traded on exchanges as standardized forms. This type of derivative is usually used by traders to hedge risks or for speculation on prices of various assets. A classic example are speculations on the price of oil, gold or the price of the US dollar or British pound.
The expiration date of the delivery of the asset is not always the date of contract termination, since many derivatives are settled on cash. Basically, the gain or loss in trade is a positive or negative cash flow for the trader. Interest rate futures, stock index futures, and many more are also called cash settled contracts.
Forwards
Forward are the next important kind of derivative and are quite similar to futures, much like most other derivatives. Forward contracts are not traded on exchanges, but on OTC. Under a forward contract, the buyer and seller can customize the terms of the deal, its volume and the settlement process. Counterparty risks, or the risk that one of the parties will not be able to fulfill their obligations are inherent to futures. An important aspect of forwards is that more than two parties can be involved in the contract to offset the risks.
Swaps
Swaps are a derivative under which it is possible to swap one kind of cash flow with another. For example, it is possible to switch from a variable interest rate loan to a fixed interest rate loan, or vice versa. These are very popular for offsetting risks and are extremely useful when dealing with currencies.
Options
Options are agreements between two parties to buy or sell an asset at a predetermined future date for a specified price. Under this type of derivative, the buyer is not obligated to call the contract, while the seller has to either buy or sell the asset if the buyer chooses to exercise the contract. Hence the name. Options are commonly used for hedging or price speculation on assets.

The Echoes On Derivatives

The opinions of market specialists on derivatives vary diametrically as many herald them as the be-all of the market, while others blame them for excessive volatility and other market troubles. Derivatives do have their limitations as they are quite difficult to value. Since the price of derivatives is based on the price of assets, their value is subject to a variety of external factors. The risks for OTC derivatives include counterparty risks that are difficult to predict. The expiration time, the cost of holding the asset, and the interest rates are also factors that affect the value of derivatives. Matching the value of a derivative with the underlying asset is made difficult by this combination of factors. The supply and demand of a derivative can make its value to rise and fall in value even if all other factors, including the price of the asset are kept constant. And this is called speculation.
The most recent criticism was directed at Bitcoin futures, which have caused the value of Bitcoin to jump, but eventually failed to maintain its price in the plus in the long run. The call from every set of lips on the market was that Bitcoin was a bubble and its end was nigh. The failure of Bitcoin futures contracts to have any serious long term effect on the asset’s price can be attributed to the immense news background determining the price of such an asset, once again proving the limitations of derivatives on classical exchanges and their amalgamations on the crypto market.
Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia said “It is rare that you see something more volatile than Bitcoin, but we found it: Bitcoin futures.”
Since Bitcoin does not have any physical underlying assets, many experts on the market believe that the advent of futures contracts for Bitcoin is not good for the crypto market in the long run. The arrival of institutional investors is supposed to be the panacea the market is waiting for. The lack of any requirements on the ownership of Bitcoins on the part of the seller of the futures contract is considered to be the main drawback hampering the application of derivatives for such assets.
https://preview.redd.it/tg2rz9uczgy31.png?width=650&format=png&auto=webp&s=bed377e5ad32565acbf3c0ed3b574469e1598186
Those siding with the futures on Bitcoin claim that their arrival will help stabilize the market and provide better order execution, thus bringing a more civilized nature of trade to the entire market. Another important argument in favor of derivatives with crypto assets is the trust factor. Crypto enthusiasts are certain that the introduction of such instruments on regulated and reputable exchanges will help garner trust from institutional investors and attract them to the market of crypto assets, thus generating liquidity and minimizing volatility.

The MoonTrader Approach

Trading is an art form, but there are plenty of techniques and ways of streamlining and smoothing out the learning curve necessary to becoming a true maître. MoonTrader will offer an abundance of instruments necessary for beginning traders to start making sense of the market and earning on their assets.
The world of finance and trading is not that scary if properly explained. In fact, most of the realities found in the world of trading are situations we encounter in daily life and have gotten used to. The situations simply acquire different titles and applications in the world of trading.
MoonTrader intends to offer its users a wide variety of instruments so they can start trading freely and safely on the market, and is determined to attract new participants by simplifying and minimizing the risks the trade of crypto derivatives can pose.
Jump to Part 1.
Check us out at https://moontrader.io
https://preview.redd.it/39z0xyigzgy31.jpg?width=600&format=pjpg&auto=webp&s=8a162365fe4736eb958bcbc221ed893cdaa18bf5
Check us out on:
Facebook: https://www.facebook.com/MoonTraderPlatform
Twitter: https://twitter.com/MoonTrader_io
LinkedIn: https://www.linkedin.com/company/19203733
Reddit: https://www.reddit.com/Moontrader_official/
Telegram: https://t.me/moontrader_news_en

Originally posted on our blog.
submitted by MoonTrader_io to Moontrader_official [link] [comments]

Let’s talk about taxes.

A lot of people have been talking about taxes for this upcoming year and that like kind apparently doesn’t apply to crypto (anymore or potentially ever). In theory that’s fine, I get the usd cost of every trade and bam ez pz got my taxes all set and ready. Now let’s talk about reality.
First off every coin usually has two trading pairs at least on every exchange bitcoin and ether. Ether and bitcoin in turn have different prices on different exchanges. This effectively makes taxes impossible to do fairly in anyway whatsoever. Here’s a hypothetical. Say I bought 100 Trx earlier today at 325 sats on a binance trading pair. And now I just sold it for 430 Sats. This is potentially a taxable event so now I want to calculate the gains on this trade. Well I gained a total of 10500 sats which is 1.43 dollars based on gdaxes current price of 13625 per bitcoin. Beautiful - good don.... not even close. First how is this the fair price of my exchange if the transfer would take me 80 minutes to be able to convert to usd in which time the price will change. Also the transaction fees for stock trades are not calculated as capital gains so I would have to include those. But those are just the solvable problems, I could wait 80 minutes and record the hypothetical price of sale and minus the transaction fee. But there’s a few more unsolvable problems. One is there is currently on coin market cap 400 bitcoin markets, some for usd some for other alt coins, and these are the top 400 based on volume there is of course more. Well obviously I would only include trading pairs which use actual fiat currency. Still got a problem. As on Wex exchange whatever that is the price is 13382. On Gdax it is now 13621. On finex it’s 13515. On bithumb it’s 17681. And so on and so forth WHICH ONE DO I USE? is it the one I’ve used before, well great except I’ve used more than 1 before.
Then there’s the rub of eth trading pair. I can spend 43000 sats ive earned today to buy eth and cash out that way as I usually do because eth transfers faster. This of course means I guess I need to calculate it’s fair price based on eth trading pairs on other exchanges which is going to be different then each other and the bitcoin pairs. The transaction fees are also different. So is the transaction times.
Then there’s the IRS tax guidance sheet which states it only applies to “convertible virtual currency” and proceeds to define “convertible virtual currency” as “ currency that can be digitally traded and purchased for or exchanges into usd”. Which only fits the description of bitcoin, eth and bitcoin cash and litecoin for most Americans. I cannot exchange trx for usd. I can exchange it for bitcoin which I can then exchange for usd.
I’ve talked with an accountant who admitted he wasn’t very knowledgeable about it but he said based on those points, he wouldn’t account for any gain as realized until actual cashing to US dollars. I intend to go to another accountant I’ve heard who apparently knows this better and see what he says I should do but this covers only a few of the problems. What about derivatives like bitmex.
submitted by commander217 to CryptoCurrency [link] [comments]

05-10 01:52 - 'Bitfinex launches public sale of LEO tokens, and released white paper.' (self.Bitcoin) by /u/Trey-Bishop317 removed from /r/Bitcoin within 73-83min

'''
This Thursday Bitfinex Cryptocurrency Exchange officially Launched a public sale LEO tokens on [leo-bitfinex.com]1 by selling which it intends to raise $1 billion.
The information on the Bitfinex website confirms the information about the company’s plan to eliminate the $850 million deficit using a token sale.
“If less than 1 billion USDT is sold during the private token sale, the issuer can continue to sell them in such a way and at such times as it deems appropriate at its own discretion in accordance with applicable laws,” the document says.
The issuer of the LEO token will be Unus Sed Leo Limited, registered iFinex recently.
In June, the launch of its own IEO-platform iFinex, through which pre-approved projects will be able to attract funding and list their tokens on the Bitfinex and Ethfinex exchanges.
In addition, Bitfinex will launch a “licensed and regulated security tokens exchange” combining the capabilities of the “existing stock market with the distributed registry technology ecosystem”. Access to the platform will not be granted to users from the United States and other jurisdictions where applicable restrictions apply.
The exchange also plans to launch a derivative product, “which will be secured in USDT (inaccessible to other market participants), with leverage up to 100x”, and the next-generation Dazaar data generation marketplace, which will allow anyone who wants to distribute and receive large-scale information packets in a decentralized network.
'''
Bitfinex launches public sale of LEO tokens, and released white paper.
Go1dfish undelete link
unreddit undelete link
Author: Trey-Bishop317
1: le*-**tfi*ex.com
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

Excerpts From Charlie Shrems New Book On Bitcoin And Prison

Hey guys, just wanted to share some excerpts from Charlies new book, "How To Guard Your Coins And Manhood In Prison".
It really takes an "inside" look to proper measures a Bitcoiner will need to take to not be mounted in the gox while in prison.
Always sleep with your cardboard stock paper wallet in your mouth, and your back to the wall. In the unfortunate event another person in your bitcoin and prison community is trying to put a member in your mouth, they will pass given the rough feel. If your booty hole is tucked against the wall, you are creating a Chinese firewall to prevent the dragons from pillaging your cavern.
There is no such thing as free bitcoins, or a free candy bar. No matter how nice it may seem, the large ogre offering you magical Internet money, or a free Snickers bar, is merely trying to perform wizardry on your brown eye. Better batten down the cheek hatches, and politely decline.
Never shower. A nice hot shower after a long stressful day of doing nothing may appear welcoming, but danger lurks around the corner. The second you slip off those not-so jesus like sandals off and snuggle up to a shower head, the mythical trouser trout beasts will appear. They will come in many forms, and before to long, you will be drowning in a pool of their offspring.
Always be working on updating your security measures. As you are now fully aware, there are many potential attack vectors in the Bitcoin prison community. One large ogre created a DAO and has hoarded all of the Bitcoins and Marlboro's. Decentralization is at risk.
Your only option is to build a majestic sword made of the finest Colgate toothbrushes and tape, and slay the beast. Luckily, the ogres code was shit and you found a way to drain the funds via a smart contract.
With all the other ogres basking in your brilliance, you are now free to romp around the fenced in land proudly wearing your White Hat crafted out of toilet paper. You have successfully survived your first week in prison. Both your Bitcoins and booty hole still in tact. You have gained the respect and trust of the ogre nation in your community. You go to sleep peacefully.
Alert Alert. Bitcoinwisdom alarms going off like crazy. You wake up to discover there was a massive hack. The price of your Bitcoins are plummeting, thanks Finex, and your bed sheets are soiled in blood. The smell of brown sorrow lingers in the air throughout your concrete home.
The fetal position is your friend. Despite the urge to sell your hacked Bitcoin tokens and battered butt hole virginity, you hodl. Like the great Spartan you are. You curl up in the fetal position and dream about the days when your coins can rest safe in a Trezor, and wars are not being battled over your poop shooter. Hodl tearful Spartan, hodl.
The list really could go on. An amazing book delving deep into the physical and mental struggles of a Bitcoiner in prison. Well done Charlie!
submitted by djLyfeAlert to Bitcoin [link] [comments]

Tether and the Global Markets Challenge

Disclaimer - Read the disclaimer.

The U.S. regulatory agency, SEC, regularly works with foreign countries governments and regulatory agencies when enforcing laws on foreign companies. There is more than ample case law and literature that will verify this. That does not apply to all, or even most U.S. or other countries laws. Most laws do not give jurisdiction to one country over another. We will use the example of the world famous KimDotCom and his website Megaupload.

As a Non U.S. citizen, the U.S.'s Department of Justice does not have the jurisdiction to send their agents to New Zealand to arrest him for violating US copyright. They must legally have New Zealand extradite him. This is obvious, or should be to most people. Which is exactly why he is still in New Zealand and not in the U.S. either in court or jail. He has been able to fight extradition for the last 6 years, and hopefully that's how it stays. However, there are certain things which does fall under the jurisdiction of foreign countries. I'm not even going to try to list them here as that isn't important.

The most important thing however is how the U.S. extends jurisdiction when they should have absolutely no legal grounds. Specifically this falls under the Dodd-Frank Act. "Under the Dodd-Frank Act, U.S. courts have jurisdiction over claims of securities violations brought by the SEC or DOJ that involve: 1) Significant steps in furtherance of a violation that occurred in the United States even if the transaction took place outside the United States; or 2) Conduct outside the United States that has a “foreseeable substantial effect” within the United States.”

The U.S. has on more than one occasion claimed jurisdiction over a foreign cryptocurrency exchange. Once for a lawsuit against Mt. Gox (Japan) from 2014 which is still ongoing in the state of Illinois in federal court. More details can be found here.

Again last year when the SEC and DOJ sought charges against BTC-e, a Russian Exchange, and it's owner Alexander Vinnik. Accordingly BTC-e's assets including domain, etc. was seized by the U.S. and charged with operating an unlicensed money service business, money laundering, and related crimes. Details of this case can be found here.

We now also have BCC lawsuits happening. Two have already been filed and a U.S. Judge issued an order to freeze their assets, they were provided 10 days to turn them over. If they decide to not do it since they can’t just be forced as the banking system can, they will then face criminal charges; Not just a lawsuit. More information here.

Now you know shit is serious when the U.S. Government acts faster on something than any other time in the last 200 years. Look no further than Tether and Bitfinex. Most exchanges pair the USDT coins and not USD. This is done so foreign exchanges don't have to worry about U.S. banking laws that any company dealing with USD is legally obligated to do but they are still able to pair things against the US dollar which we all see it listed as USDT/BTC. A vast majority of people will never notice nor even give this a second thought. Exchanges do this specifically because using the USD would subject them to U.S. banking laws but since Tether "USDT" is a coin and not money, exchanges don't have to follow U.S. banking laws. This creates an extra layer of protection for exchanges and they are able to operate much easier without accidentally breaking those or other U.S. money-laundering, know your customer, etc. laws; While they are still able to pair coins with USD thanks to the coins being set 1:1 with the U.S. Dollar.

Many in the community remember last year when Bitfinex announced they announced they were stopping all user activity for U.S. citizen accounts. This was done for a very specific reason, and if you research what Bitfinex did after the last hack of $70 million USD, you will understand why. I'm sure a lot of people that weren't around when the hack occurred wouldn't believe what the exchange did to their customers.

Anyway back to subject on hand. Including using the aforementioned way that exchanges protect themselves by pairing with USDT and not USD; Tether further protects itself by separating itself into multiple entities; Tether Limited (“TLTD“) for U.S. citizens, Tether International Limited (“TIL“) for all Non U.S. citizens for the purpose of issuing, use, etc. of the Tether coin. Tether "TIL", Tether "TLTD" and Bitfinex (owned by iFinex Inc.) are incorporated in Hong Kong. Last but not least, and most important. Tether Holdings founded in 2014, and iFinex Inc. are both based in British Virgin Islands. These are the only parts of Tether and Bitfinex that receive real money, actual US dollars, Euro's, Yen, etc.

Any exchange, wallet, etc. that accepts actual money payments dealing with cryptocurrency knows that by accepting real money they must follow AML/CTF laws of whichever jurisdiction that would apply. Hence why most all exchanges pair with USDT and not USD. Furthermore, most people are also aware that the British Virgin Islands, Cayman Islands, etc. are considered tax havens which is where both holding companies are incorporated. There is much more about Tether if anyone wants to look further. Information released in the Paradise Papers links both companies and finally sheds light on the people behind this. It should be easy for anyone following along to see the possible implications. For our purpose, all we need is know how the companies are structured. Which is why the media just reported on January 31st 2018 that the U.S. issued subpoenas to both Bitfinex and Tether.

 

NOTE: NEW INFORMATION FROM TODAY SHOWS SNAPSHOT OVERVIEW

 

If you didn't know what company it was that was structured in this way with multiple sister corps, parent corps, locations, etc. Most people would be baffled as to why any company would go through all that trouble. What practical reason could a cryptocurrency company, in a unregulated world, have to do that in the first place? Fraud is rampant and no one seems to ever go to jail. Even if doing the same thing in any other business would likely result in criminal charges. So why would any company go through all that trouble if they had nothing to worry about. Even if their entire goal is to defraud people such as "B-Connect", why would any foreign company dealing with crypto go through that much trouble in such an unregulated market? Number one that is substantially more expensive financially and also much more work that would have to be done. Not including the additional time and cost to hide that stuff

This is where we need to ask ourselves a question. Putting aside any thought of Tether committing fraud or whatever else is alleged. Let's just look at the basic facts: If foreign exchanges, etc. aren't subject to outside laws because they are located in a different country. Why would any of them use a coin in place of real money for pairings? Wouldn't it be easier no matter what to just pair listing against the dollar. USD/BTC or whatever fiat currency is paired against cryptocurrency. That would just create more accounting and unnecessary additional steps to convert crypto to fiat? No business would adopt a model like that if there was not a fundamental need for the extra work/cost/etc.

We first had to ask that question before we can even ask the next one. So if exchanges are protected from foreign country laws just by using USDT. Why would Tether, Bitfinex, "B-Connect" International for that matter, stop doing business with U.S. citizens if they use USDT and are not based in the U.S.? Why would it matter then if they do business with them? Maybe the reason they ensure that no U.S. citizen can do business with them is because U.S. law does still apply to them if they transact with them. By now everyone knows "B-Connect" was a Ponzi scheme, and if you have paid any attention, the U.S. is going after them tooth and nail. Yes "B-Connect" did have U.S. locations however "B-Connect" International which is the holding company of the new "B-ConnectX" is already up and running and is unable to be shut down since US citizens are not permitted to use that service now.

There is a much more serious risk at hand. A risk that will make the 2014 Mt. Gox crime, which destroyed market cap by over 80% and didn’t recover until 2017, look like a weekend robbery at a convenience store. From 2014 until January 2017 a total of 10 million USDT had been created. No one would even question if they had 10 million USD in a bank account to back each coin up. When Well’s Fargo terminated them as a customer at the end of March, start of April, the total USDT supply increased to 44 million. December 1st when the Paradise papers were released 440 million Tether. Apparently within a week subpoenas were issued, that right there should indicate the severity of the problem.

December 31st 2017 supply was well over 800 million USDT. Fast forward a month and the total is 2.2 billion USDT at the end of January 2018 when the MSM finally picks up on it. NYTimes was the first to have an article of the US mainstream news. To add to the horror show playing out in front of all of us Tether is now issuing a new USDT and EURT on the Ethereum blockchain. The 2.2 billion are on the omni layer protocol which on the Bitcoin blockchain. Note: The new ERC20 USDT and EURT are not intended to replace the USDT that are bitcoin based but rather to compliment.

The implications of this reach much further than the cryptocurrency markets. If you are unaware how Market Capitalization works I will simplify this. If the entire cryptocurrency market capitalization is 500 billion that does not mean that the equivalent amount of money has been put into the system. According to a previous report from JP Morgan since 2009 a total of 6 billion $USD actually entered into the cryptocurrency market and that gave it a 300 billion market capitalization. If you want a more detailed explanation of market capitalization you can look here.

Now what does this all mean? What does this have to do with you or anyone else? You might be saying I don’t have any USDT so why do I even need to care or pay attention. Well simply explained, if $6Bn USD can create a 300 billion market cap. $2Bn USD that technically isn’t there could remove much, much more than $2Bn of hard assets and money from the cryptocurrency market.

 

TL:DR

 

Tether is acting as if they are the U.S. Federal Reserve without having to guarantee the USD like the Federal Reserve and U.S. government. In the last few months leading up to the recent all time high’s (ATH) many stories came out of people taking out second mortgages so they could invest in Bitcoin. Multinational corporations have become involved. Even governments have either knowingly or unknowingly invested into it. One of the key players here was also a key player in the 2008 global financial collapse. Only a couple things can happen:

1. Tether has 20%-100% of the USDT backed up with US dollars. Everything should be okay except cryptocurrency now has a central bank.

2. They don’t have US dollars to back it up. Exchanges lock the doors as everyone creates a run on the bank trying to get out before or during the crash, investors lose everything, all $$$ in the system is extracted out by Tether. That will have a detrimental effect on global markets and could trigger the collapse of the stock market bubble which will also take out the housing bubble.

Conclusion:

No matter what, this is going to be a very painful ride. Even if they do have the money, the US will make sure it doesn’t continue. Chances of them having the $3Bn as one of their insider friends stated are slime to non existent.

On the bright side, we will witness the greatest theft mankind has ever seen.

Disclaimer:
Last updated: February 02, 2018
This is not legal or financial advice and as such Author assumes no liability. Always consult with a licensed attorney or legal representative concerning any laws that may be applicable in your jurisdiction.
Author assumes no responsibility for errors or omissions in the contents on the Service.
In no event shall Author be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. Author reserves the right to make additions, deletions, or modification to the contents at any time without prior notice
© 2018 All Rights Reserved.
submitted by PissedOfMiner to u/PissedOfMiner [link] [comments]

A new beginning

Yesterday's price action will be quite a memorable one. Very high volume day, a bullish engulfing candle, the closing price was in my price range 6.2-7.2 EUR even though the bottom went temporarily through it on the hacked account news. Maybe there is a pause and a minor retest but there are strong hints this will be a bottom on the weekly chart for many candles, at least 2-3 months, and the minimum targets would be around 9-9.5. I believe 12-12.5 would be possible as well but a little bit stretched. Beyond that, we need to reverse powerful existing forces. Hopefully that will happen one day.
I still think that the supply problem from mining + ICO is not resolved even though the demand side of the equation has improved at these lower prices. But thats because we hit the big support level. If we hit it again it would be weaker, I guess. So 3-4 EUR is still a remote possibility. But not for now. And maybe this is the true bottom and we will make new ATH. Time will tell.
Anyway, thats my last 2 cents that I'll spend here. As for me, i wasn't even involved in yesterday's trade even though i posted a lot. Thus,it made me realize that I'm really wasting my time unproductively. The reason i've been sitting out of the market is a lack of risk appetite/confidence recently. And also the lack of incentives.
As for the lack of risk appetite, its more psychological than anything else. After all, my gross profit this year according to my spreadsheet is north of 430K EUR with an ATH just below 450K (in September), so less than 5% retracement. But my big problem is with taxes. I didn't think about it before pressing the SELL button when i sold my ETH during the first bubble (around 9 EUR which provided more than 2/3 of my profits, as I bought first in Dec15, its higher than today !!). In my juridiction (Japan) I'll have to pay 50% on that. I'm working to reduce a bit the bill, even reducing that to something like 40% would help a lot obviously, but i don't know if it will work.
So taking risk with my capital, and having the govt taking 50% of the gains, isn't a good risk/reward proposition...depressing if anything... gains from FX or stock trading is taxed only 20% here...!!! Law might change in the near future, but too bad for me...
The other thing is my mindset about crypto. I've left my IB trading position 3 years ago, and haven't worked since. Those crypto gains is a nice sum of money, BUT not a life changing one for me, my net worth is one order of magnitude higher. The real best thing it has done for me, is giving me back some credibility to my entourage (and to myself), as I would not have invested in crypto if i hadn't spent time in meet ups, conferences, studying IT/cryptography a bit (online courses) and even meeting ETH devs BEFORE the ICO ! Also, a salary would have been taxed the same, and obviously I can't get anymore a job paying that much these days.
While a lot of people here have a YOLO mentality, wanting to be crypto millionaires with 10x or 100x or more gains, hoping to repeat for themselves the stories of the likes of Bitcoin Jesus, my mentality is (overly) conservative and I don't want to become a loser of crypto after having made some money, because i need more the "credibility" than i need the money !
To avoid becoming a loser once you've become a winner in this game, there is only ONE SURE recipe, its to cash out, something i did already after the first bubble, where from the initial 40K ETH i went back to 10K size in the second bubble, and then even less size after DAO hack (when i flattened my whole portfolio at the time) before resuming trading earnestly again with ETC and BitFinex hack day. Addicted gamblers all end up in ruin because they continue betting the farm until they lose it...
Given my NET AFTER TAX profits will amount only to a more modest #200K (a bit more maybe if my plan works), i have decided to have a buy and hold position in only XMR + a little bit of ETH, and i own also FCT A-shares (those would be taxed only 20% if there is ever a gain). In the case it all goes to 0, i will still be a winner in this game.
At some stage later, i might decide to increase my size or even to trade again, notably if I get some good money from other investments than crypto. After all, my crypto holdings is an extremely small percentage of my net worth. [ I own real estate, gold, even some stocks.] But if I trade actively, i want to try to commit 100% professionally, using professional tools (arbitrage bots included), maybe even manage other's people money. and also, stop posting.
Posting was good for my ego, and also good for my discipline. I never BS you, and writing here my stop levels helped me to execute them with no remorse. "forgetting" stop losses has cost me a lot so many times in my career.
I also learnt a lot from many posters, even some i liked to mock like etheraddict77 and wish you good luck to all. I think see many good young traders here (special mention to redembr, kustonoy, arbitrage84, thisusernameluvsyou, and also the guys who called right this latest bear market like econoar, O-O-O) I see good quality TA posts, so I know you won't be orphans. It was very entertaining to read you guys.
I will need to block this site especially during the rest of this month. To make things "worse", the Japanese tax offices considers any crypto transaction as a BTC/JPY etc.... transaction (so ETH/EUR is ETH/JPY + EUJPY)... which means i have to sort out all my trades and compute my taxable income all by myself... I've started to program that but only 15% through that. (I don't wanna do that on a spreadsheet, i want to use this as an opportunity to practice my beginner programming skills)
This is my last post, if I come back posting, I might even use a new account.
Thank you to all, it was fun, I spent a good time with you all. Good luck, try to make money, but don't forget, don't invest more than you can lose, it MIGHT all go to 0 even if we all hope it goes to 100$ or 1000$, never use leverage, and never short crypto...and believe in TA !!! markets don't need reasons to go up or down, they just need a trend (or it could just be noise)...
Good bye Hasta la Vista Au revoir Sayonara
submitted by GrossBit to ethtrader [link] [comments]

Trading Cryptocurrency Markets

Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019.
If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund
I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies.
Major Exchanges
In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem.
Function and History
Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe.
The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people.
Popular Exchanges
Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence.
Bitfinex
Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT).
Binance
Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours.
Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles.
Have you ever thought about what are the types of Crypto exchanges?
  1. Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
  2. Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
  3. Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet.
Regulatory Environment and Evolution
Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold.
The United States of America
A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system.
The European Union
The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology.
Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto.
Behavior of Cryptocurrency Investors by Demographic
Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions.
The Cryptocurrency Market Cycle
Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins.
Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years.
The Influence of Age upon Trading
Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.”
Geographic Influence upon Trading
One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside.
2013 Bull run vs 2017 Bull run price Analysis
In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely.
Fraud & Immoral Activity in the Private Market
Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak.
What are the Exchange Hacks?
The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts.
Hardware Wallet Scam Case Study
In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified).
Hardware Wallet Scam Case Study Social Media Fraud
Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed.
Market Manipulation
It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase.
Examples of ICO Fraudulent Company Behavior
In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”.
Signposts of Fraudulent Actors
The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper.
Signposts of Fraudulent Actors §2
No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out.
Methods to Avoid falling Victim
Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.”
Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not?
If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper.
Is this too good to be true?
All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH.
Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take:
If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees.
Selling Cryptocurrencies
Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time.
Methods of Sale
Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons.
The influence and value of your Trade
There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project.
Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market.
Market Behavior in Different Time Periods
The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order.
Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens.
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Evolution of Exchanges

Swap.Online delves into the background of centralized and decentralized cryptocurrency exchanges. As decentralization is our name for the game, we would primarily like to find out whether it was inevitable or not.

From Childhood to the Golden Age: DCEs and CEXs

The first centralized cryptocurrency exchanges had two main pre-historical roots of origin. Ideologically, they originated from the e-commerce exchange services of the early 2000s. Digital Currency Exchanges, or DCEs, were particularly popular in the U.S. and Australia. GoldAge Inc., E-Gold Inc., Liberty Reserve were frequently seen in the headlines mostly due to legal issues, as the U.S. SEC, as well as the Australian ASIC failed many times over to figure out whether the e-gold exchange was a form of banking, money laundering, non-licensed remittances or illegal entrepreneurship. These services exchanged fiat money on different digital currencies (1MDC, E-Gold, eCache etc.) and, in a way, fulfilled the demand of New World and EU citizens for anonymous transactions of digital and fiat money.
But, in fact, the first significant cryptocurrency exchange arose from a surprising source… The website of the online game “Magic: The Gathering Online”. This game’s name refers to a magical world, where the currency system is represented in the form of cards. Jed McCaleb, the programmer from San Francisco and future contributor for Ripple and Stellar, developed the Mt.Gox project with the purpose of trading these cards like traditional stocks. In January 2007, he purchased the domain name mtgox.com, but in 2008, he abandoned the project as a premature venture. One year later, he used this domain to advertise his own online game. In the year of 2010, he read about the concept of Bitcoin and decided to launch the Mt.Gox exchange and exchange rate service allowing to trade Bitcoin freely. The project was released on July 18, 2010.
Rapid commercial growth started when the product was sold to the French-Japanese developer Mark Karpeles in January 2011. It was the year 2011 when Mt.Gox demonstrated the main security challenges that traditional centralized exchanges will encounter all along their development path in the future. These included direct thefts from the platform’s wallets, attacks with multiple ‘ask’ orders, malefactor invasions resulting in price drops (one day, in the spring of 2011, 1 BTC was worth less than 0.01 USD) etc. By the way, the dramatic collapse of February 2014, with more than 750K BTC lost and the $65M civil suit in Tokyo court were still to come. During the years 2012–2013, every 3 of 4 Bitcoins in the world was sold via Mt.Gox, and it was a real success story.
The years 2011–2012 gave birth to the bulk of top centralized cryptocurrency exchanges. BTCC was founded in June 2011 as the first exchange for the Chinese market. At the same time, American developer Jesse Powell had spent a month visiting Mt.Gox offices to offer assistance in the aftermath of the first hack. He was unsatisfied with the level of business organization, and that was how Kraken was founded in July 2011. The infamous BTC-e platform for exchanging rubles for BTC was also launched in July 2011. In late 2011, the largest American exchange BitInstant was founded and started selling Bitcoin via WalMart and Walgreen. 2012 became the year of origin for Bitfinex, Coinbase (first Ethereum marketplace) and LocalBitcoins.

Pros and Cons of Centralized Exchanges

We are now six or seven years away of those days. Today, hundreds of centralized exchanges are offering the services of exchanging BTC, ERC-20 and another cryptos. We can even hardly classify them. Usually, specialists speak about three mainstream types of centralized exchanges.
Trading platforms. They connect buyers and sellers to each other, allowing them to publish trading orders and take some transactional fees (most commonly 0,3 per cent from the taker of the liquidity). For example, Cex.io, BitFinex, BitStamp belong to this group. Usually, these platforms are characterized by a complicated interface, which is not suitable for newbies.
Cryptocurrency brokers. If a trading platform is a local market where you buy goods from their producers, the broker is a small player on the market. They sell coins at definite prices while setting high fees, but allow acquiring cryptos in a simpler manner. Moreover, most of them support a broad range of payment tools. Coinbase, Coinmama, Coinhouse are among the most popular brokers.
Peer-to-peer-services. They simply allow their users to publish announcements about operations with cryptos. The buyer and the seller directly negotiate the prices. It is even possible to find one selling crypto for cash in your neighborhood. The most remarkable example here is LocalBitcoins.
As one can see, now the range of services offered is truly broad. By the way, there is a list of common complaints regarding centralized exchanges both from traders and crypto theoreticians.
Safety. Even a single point of centralization can lead to the massive theft of users’ funds and keys. More than a million BTCs have been stolen by the time of writing of this article.
Regulation. If the center (or even one of the centers) of a CEX is physically located in some country, the position of this country’s government on ICOs and crypto related issues becomes crucial for the future of the project. Legal restrictions in this sector are now imposed in the U.S., China, South Korea, India etc. When your exchange is centralized, the officials can arrest your cryptos for no reason. Moreover, the administration of the exchange can be involved in fraud with your private information and money.
Speed. We have conducted some particular research on the speed of popular CEXs (Binance, Huobi, Poloniex, see p. 11). The results are sad: you can wait dozens of minutes waiting for the pending of your transaction.
KYC/AML. There is nothing to talk about in this regard, we suppose. If you must send someone your photo, a scanned copy of your ID or even proof of income wanting nothing in return but to withdraw your own funds, it is not OK.

Decentralization: The Solution

Decentralization, as the initial meaning and internal essence of blockchain, smart-contracts and cryptocurrencies, was first italicized by Satoshi Nakamoto and even Nick Szabo in 1990–2000-s. The rise of CEXs resulted in an obvious contradiction, because blockchain-based currencies are being operated via centralized mechanisms just like Visa or MasterCard, but much slowly. Is it normal? Where is the next stage of evolution or, does it even exist in the first place?
The answer was the main point of arguments in the crypto community during the year of 2017. In February, Vitalik came out with the suggestion about the nature of blockchain’s decentralization: “Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure), but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer)”.
The only possible expression in the commercial implementation of ‘architectural decentralization’ is the decentralized exchange of cryptocurrencies.
And the most advanced technology in this case is that of the Atomic Swaps — the direct peer-to-peer instant cross-chain transaction.
CEXs were the natural and inevitable stage of development for cryptocurrency exchanges. By the way, the DEXs are coming: we found them (namely IDEX, EtherDelta and Waves DEX) on the list of the top-100 exchanges on Coinmarketcap.
So, the Swap.Online team is on the right track. Get ready for ERC-20 ⇔ BTC, ETH ⇔ BTC, USDT ⇔ BTC, EOS ⇔ BTC trading directly from your browser with neither middlemen nor a centralized infrastructure.
See you on the mainnet on August 27, 2018,
Swap.Online Team
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Cryptocurrency Exchanges - Bullseye.io

Bithumb Binance OKEx ZB zbg DigiFinex HuoBi Pro Bit-Z Exx UPbit Coinbene Bitfinex Coinw BitForex Bibox Hitbtc BW KKCoin FUBT LBan XTRA HHT.one coineal star KEX Exrates BitMart Fcoin Coinbase Pro Kraken Coinsuper AEX IDAX Fatbtc DragonEx CoinTiger IDCM
Cryptonex Bitbank bitker ZG.top Quoine TOPBTC Bitstamp RightBTC BihuEx CoinEgg Chaoex Gate.io
OCX
U-COIN Sistemkoin BCEX Simex DobiTrade Bitinka
PK.TOP Bittrex QBTC Yoexs bitalong Hubi Hotbit Allcoin Bitlish Asbtc OEX
B2BX EXB Poloniex
144$34,413,7290.16%AmericaStock71
📷 TOKOK LATOKEN 66OTC AlphaBit CryptoCurrency Bitflyer Coinone Coinsban ZT.COM Coinhub Gemini Exmo Monster LocalTrade BitGoG YoB BYE Bg ItBi Kryptono Korbit BTCBOX ZNN.com Open Asset Exchange BtcTradeIm Coinbe Qryptos 60.CO Bitinf Coincheck Bila Ubit LiveCoin CoolCoin MBAex HOTCOIN.TOP KuCoin CEO CEX.IO SOK.TOP BitBay HADAX Neraex LakeBTC HCoin Coinsquare BZX Fe InfinityCoin Exchange BTCTurk Mercatox Gopax Zaif Bitsane TradeByTrade Vebitcoin coinmex Coinroo BitRabbit Ethfinex C2CX CoinEx Bitcoin Indonesia/Indodax WEX TOP.ONE Paribu Liqui Coindeal Bitso Luno Instantbitex.Com BTC Alpha CEX Tidex OOOBTC TDAX zgcom
BTCMarkets
SZ.COM
BX Thailand CoinMate Chinawkb QuadrigaCX EtherDelta (ForkDelta)
DSX Btc98 Altcoin Trader BBX Negocie Coins Ovis ACX Stocks.Exchange Coinfloor OasisDEX OkCoin Koineks Independent Reserve Cryptopia Mercado Bitcoin Rfinex Cobinhood GetBTC BigONE VBitEX CoinExchange Bancor Network Bithesap BL3P IDEX BitMarket VNBIG LiteBit.eu CryptoBridge Waves Decentralized Exchange Crex24 JBEX Bitonic CZC Exchange Tidebit Bitbns BitcoinToYou EttEx BitcoinTrade CoinEx Market OTCB Ethex Paradex BITNOAH Stellarport Lykke Exchange 123Token 0i Kuna Stellar Decentralized Exchange Gatehub Koinex Braziliex Trade Satoshi Bitex.la RippleFox VVVEX Bleutrade S.TOP ESCODEX Yiia CoinYee Koinim Bits Blockchain CoinCorner DDEX OpenLedger DEX Bud TradeOgre AidosMarket CryptoMarket Coinrail Bittylicious bitk C-CEX BitAsiaEx graviex xBTCe Bit2C Radar-Relay CoinFalcon Stronghold BitFlip WINBITEX Coinut BtcTrade BitShares Asset Exchange Iquant Switcheo Network Ripple China kkex Coinnest CRXzone LongEx Zebpay Bisq Fisco Token Store Nocks Paymium Cryptohub Coingi SouthXchange Bitmaszyna Tripe Dice Exchange TherockTrading Nanex Cryptox C-Patex Gatecoin Cryptomate LuckyBi mgcex HiB8 BitKonan RuDEX EzBtc Novaexchange Ore.Bz GuldenTrader FreiExchange Tux Exchange BTCC ISX Heat Wallet BarterDEX Coinrate ExcambrioRex OneChain eBtcBank BitGrail Asdbi(Closed) UCX BitStar COSS Fargobase Coinsecure Ourdax(Closed) Foxbit Cfinex ETHEXIndia(Closed) Bitcny(System Maintaining) CryptoDerivatives Coinhouse Dgtmarket LEOxChange Abucoins Octaex Omicrex coinlim Bitmex QUBI UB Dcoin 58COIN VirtualWorldLand
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Cryptocurrency symbols are not unique

Cryptocurrency symbols are not unique
Coinmarketcap keeps records of more than 2100 cryptocurrencies. How many times can we detect BIT, BTB or PUT symbol? We do not know whether the reason is in poor imagination or failure to check the market, but here is a list of coins with identical symbols.
One symbol — three coins:
🔻 BIT — BitRewards, BitMoney, First Bitcoin
🔻 BTB — Bitibu Coin, BitBar, BitBall
🔻 BITS — Bitswift, Bitcoinus, Bitstar
https://preview.redd.it/k1c0btc57je21.jpg?width=1280&format=pjpg&auto=webp&s=0bf2056ffed571871d29982098e96013118c8488
One symbol — two coins.
🔻 ALT — Alt.Estate token, Altcoin
🔻 ARB — Arbit, ARBITRAGE
🔻 AT — AWARE, ABCC Token
🔻 BBK — Brickblock, Bitblocks
🔻 BET — DAO.Casino, BetaCoin
🔻 BLZ — Bluzelle, BlazeCoin
🔻 BOX — BOX Token, ContentBox
🔻 BTM — Bytom, Bitmark
🔻 BTX — Bitcore, Bitcoin X
🔻 CAN — CanYaCoin, Content and AD Network
🔻 CAT — BlockCAT, BitClave
🔻 CBC — CashBet Coin, Cashbery Coin
🔻 CEN — Coinsuper Ecosystem Network, Centaure
🔻 CMCT — Crowd Machine, Cyber Movie Chain
🔻 CMS — COMSA [XEM], COMSA [ETH]
🔻 CMT — CyberMiles, Comet
🔻 CPC — CPChain, Capricoin
🔻 DFT — DraftCoin, DigiFinexToken
🔻 EDR — Endor Protocol, E-Dinar Coin
🔻 ETT — EncryptoTel [WAVES], EncryptoTel [ETH]
🔻 EVN — EvenCoin, Envion
🔻 FAIR — FairCoin, FairGame
🔻 FT — Fabric Token, FCoin Token
🔻 GCC — Global Cryptocurrency, GuccioneCoin
🔻 GENE — Gene Source Code Chain, Parkgene
🔻 GET — GET Protocol, Themis
🔻 GOT — ParkinGo, GoNetwork
🔻 HC — HyperCash, Harvest Masternode Coin
🔻 HMC — Hi Mutual Society, HarmonyCoin
🔻 HOT — Holo, Hydro Protocol
🔻 IQ — Everipedia, IQ.cash
🔻 KEY — Selfkey, KEY
🔻 KNC — Kyber Network, KingN Coin
🔻 KNT — Kora Network Token, Knekted
🔻 LBTC — LiteBitcoin, Lightning Bitcoin
🔻 MAG — Magnet, Maggie
🔻 MORE — More Coin, Mithril Ore
🔻 MTC — doc.com Token, MTC Mesh Network
🔻 NTK — Neurotoken, NetKoin
🔻 ONG — SoMee.Social, ONG
🔻 ORS — Origin Sport, ORS Group
🔻 PAI — PCHAIN, Project Pai
🔻 PLC — Polcoin, PLATINCOIN
🔻 PLY — PlayCoin [ERC20], PlayCoin [QRC20]
🔻 PUT — Profile Utility Token, PutinCoin
🔻 PXC — Phoenixcoin, Pixie Coin
🔻 QBT — Cubits, Qbao
🔻 RED — RED, RedCoin
🔻 RKC — Rookiecoin, Royal Kingdom Coin
🔻 SCC — SiaCashCoin, StockChain
🔻 SLT — Smartlands, Social Lending Token
🔻 SOUL — Phantasma, CryptoSoul
🔻 SPD — SPINDLE, Stipend
🔻 TIT — TittieCoin, Titcoin
🔻 TOK — Tokugawa, TOKOK
🔻 USC — Ultimate Secure Cash, USDCoin
🔻 WEB — Webcoin, Webchain
🔻 XIN — Mixin, Infinity Economics
🔻 XRA- Xriba, Ratecoin
It seems like unique things turn out to be not exclusive at all. Stay alert!
submitted by bonumchain to CryptoNews [link] [comments]

Hypocrites and deceivers

Don't know which is worse. Finex and their wash volumes, polo with their blatant insider trading, or just about any bank with their hypocritical criticism of crypto while they happily launder Iranian money. DEX or nothing.
Link
submitted by eleanorcwhite to Rad_Decentralization [link] [comments]

Cryptocurrency Exchanges - Niuyan

Bithumb Binance OKEx ZB zbg DigiFinex HuoBi Pro Bit-Z Exx UPbit Coinbene Bitfinex Coinw BitForex Bibox Hitbtc BW KKCoin FUBT LBan XTRA HHT.one coineal star KEX Exrates BitMart Fcoin Coinbase Pro Kraken Coinsuper AEX IDAX Fatbtc DragonEx CoinTiger IDCM
Cryptonex Bitbank bitker ZG.top Quoine TOPBTC Bitstamp RightBTC BihuEx CoinEgg Chaoex Gate.io
OCX
U-COIN Sistemkoin BCEX Simex DobiTrade Bitinka
PK.TOP Bittrex QBTC Yoexs bitalong Hubi Hotbit Allcoin Bitlish Asbtc OEX
B2BX EXB Poloniex
144$34,413,7290.16%AmericaStock71
📷 TOKOK LATOKEN 66OTC AlphaBit CryptoCurrency Bitflyer Coinone Coinsban ZT.COM Coinhub Gemini Exmo Monster LocalTrade BitGoG YoB BYE Bg ItBi Kryptono Korbit BTCBOX ZNN.com Open Asset Exchange BtcTradeIm Coinbe Qryptos 60.CO Bitinf Coincheck Bila Ubit LiveCoin CoolCoin MBAex HOTCOIN.TOP KuCoin CEO CEX.IO SOK.TOP BitBay HADAX Neraex LakeBTC HCoin Coinsquare BZX Fe InfinityCoin Exchange BTCTurk Mercatox Gopax Zaif Bitsane TradeByTrade Vebitcoin coinmex Coinroo BitRabbit Ethfinex C2CX CoinEx Bitcoin Indonesia/Indodax WEX TOP.ONE Paribu Liqui Coindeal Bitso Luno Instantbitex.Com BTC Alpha CEX Tidex OOOBTC TDAX zgcom
BTCMarkets
SZ.COM
BX Thailand CoinMate Chinawkb QuadrigaCX EtherDelta (ForkDelta)
DSX Btc98 Altcoin Trader BBX Negocie Coins Ovis ACX Stocks.Exchange Coinfloor OasisDEX OkCoin Koineks Independent Reserve Cryptopia Mercado Bitcoin Rfinex Cobinhood GetBTC BigONE VBitEX CoinExchange Bancor Network Bithesap BL3P IDEX BitMarket VNBIG LiteBit.eu CryptoBridge Waves Decentralized Exchange Crex24 JBEX Bitonic CZC Exchange Tidebit Bitbns BitcoinToYou EttEx BitcoinTrade CoinEx Market OTCB Ethex Paradex BITNOAH Stellarport Lykke Exchange 123Token 0i Kuna Stellar Decentralized Exchange Gatehub Koinex Braziliex Trade Satoshi Bitex.la RippleFox VVVEX Bleutrade S.TOP ESCODEX Yiia CoinYee Koinim Bits Blockchain CoinCorner DDEX OpenLedger DEX Bud TradeOgre AidosMarket CryptoMarket Coinrail Bittylicious bitk C-CEX BitAsiaEx graviex xBTCe Bit2C Radar-Relay CoinFalcon Stronghold BitFlip WINBITEX Coinut BtcTrade BitShares Asset Exchange Iquant Switcheo Network Ripple China kkex Coinnest CRXzone LongEx Zebpay Bisq Fisco Token Store Nocks Paymium Cryptohub Coingi SouthXchange Bitmaszyna Tripe Dice Exchange TherockTrading Nanex Cryptox C-Patex Gatecoin Cryptomate LuckyBi mgcex HiB8 BitKonan RuDEX EzBtc Novaexchange Ore.Bz GuldenTrader FreiExchange Tux Exchange BTCC ISX Heat Wallet BarterDEX Coinrate ExcambrioRex OneChain eBtcBank BitGrail Asdbi(Closed) UCX BitStar COSS Fargobase Coinsecure Ourdax(Closed) Foxbit Cfinex ETHEXIndia(Closed) Bitcny(System Maintaining) CryptoDerivatives Coinhouse Dgtmarket LEOxChange Abucoins Octaex Omicrex coinlim Bitmex QUBI UB Dcoin 58COIN VirtualWorldLand
submitted by jarze to NiuYan [link] [comments]

Deex Exchange - Trading platform of a new generation

Deex Exchange - Trading platform of a new generation
About Deex
The main goal is to make the Exchange’s functional comfortable for solving trader’s current tasks at the first stage and at subsequent stages to implement the following functional:
  • A platform for safe ICO conduct in conjunction with the decentralized escrow toolkit from descrow.org. DEEX will be used as a platform for prospective project’s ICO, our specialists will carry out full project analysis, help them to receive funding from a permanent pool of private investors and further conduct pre-sale and large-scale ICO. DEEX tokens investors will receive a share of revenues from all ICOs;
  • A platform for creating a decentralized transparent blockchain system for cryptofund managed by DEEX professional traders and issuing an appropriate stock token with automatic placement on both all DEX-Exchanges and leading centralized cryptocurrency Exchanges;
  • Cryptocurrency debit cards linked to users' wallets on DEEX and integration into fiat gateways, allowing to convert cryptocurrency into fiat when paid by card in outlets;
  • API for the integration of third-party applications and services with the DEEX platform;
  • Creation of the own agent network of crypto ATMs for the purchase and sale of cryptocurrency for fiat money with the ability to work with bank cards.
https://preview.redd.it/t67o37biyxx11.jpg?width=893&format=pjpg&auto=webp&s=462bd19062d55d7bb2ba67d95cb30bf9d932c84b
Deex provides individuals a reliable and convenient platform to quickly trade, buy or sell cryptocurrencies with help of the most popular payment methods for the fiat currencies available in the country of his/her residence. Initially more than 10 cryptocurrencies will be available for the exchange including Bitcoin and Ethereum and many other altcoins.
Cryptocurrency exchanges description.
At the present moment there are two types of exchange platforms – centralized and decentralized.
The main differences between them are the following:
Centralized Exchange. All the main decisions are made by one governing body (center) and all participants depend on these decisions and almost never can affect them. Participants must keep their funds in the Exchange’s wallets.
Decentralized Exchange. It does not have a single decision-making center by all issues. It provides all participants with equal conditions and provide a platform where they can trade directly with each other. Centralized Exchanges provide high margin and volatility of cryptocurrencies and tokens courses. They are easy to use, have easy access and provide advanced trading functions, such as margin trading, stop-loss, lending and others. As examples of centralized crypto exchanges we can name the well-known sites, such as Poloniex, Kraken, Bittrex, BitFinex, BitStamp, BTC-E.
Decentralized Exchanges is a fairly new phenomenon in the cryptocurrency world, most fully revealing the ideology of decentralized blockchain where all participants have an equal rights and opportunity to take part in the management of the Exchange's activities and to perform any operations of cryptocurrencies exchanging among themselves, holding money in a personal wallet but not in a third party’s wallets (as it realized in centralized Exchanges). Their very important advantage is the highest degree of data confidentiality. Decentralized exchanges are BitShares, OpenLedger, RuDEX.
Official links:
Website
Telegram
Reddit
Youtube
____________________
The article is written by artur2403
submitted by artkld39 to u/artkld39 [link] [comments]

How to Predict the Future with the Past? This Method May Give You the Answer

How to Predict the Future with the Past? This Method May Give You the Answer
Predicting the future is what humans have been dreaming of for thousands of years, but so far, humans have been very limited in doing this. Considering the current level of technology, it is obviously impossible to accurately predict future events. However, predicting the future is something that every one of us likes, after all, in daily life, we need to make judgments about the future to decide our current action.
This is also widely reflected in the financial market. Perhaps the most common thing for investors to do every day is to predict whether a stock will rise or not in the future. Venture capital institutions are also predicting whether their investment projects can develop well in the future, and the government's forecast has also never stopped. These predictions have their own basis and reason, but from the probabilistic level, there are also some mathematical methods that can give relevant predictions from different angles.

https://preview.redd.it/7oc75k4cfps11.jpg?width=550&format=pjpg&auto=webp&s=fc114bc0c4912c8a6cca57483ae1d4befeeca890
The Monte Carlo method is one of them. This is widely used in the fields of financial economy, computer technology, statistics, machine learning, etc. The person who proposed the Monte Carlo method is John von Neumann, and Monte Carlo is the name of the casino street in Monaco. As can be seen, this is a way to study probability.
Although the descriptions we have used so far are very exclusive, in fact this method is not difficult to understand. The Monte Carlo method does not have profound theoretical support, and its simple description of the basic principles is very easy to understand.
Let us imagine an example of a square with a side length of 1. How can we calculate the area of the inscribed circle?
I believe this problem is very simple. The radius of this inscribed circle is 0.5. According to the area formula of the circle, the area is equal to π multiplied by the square of the radius. We can know that the area of this circle is 0.25π.
But what if we don't know the area formula of the circle? Or what if it is not a circle, but an irregular figure? At this time, we can use the Monte Carlo method to find the approximate area.
Let the machine generate a huge amount of random points, let’s say, 10,000 points, in this square. Then we can see how many points fall within the circle. If there are 8,000, then the area of this circle is four-fifths of the square area. That is 0.8.
https://preview.redd.it/lig321kdfps11.png?width=500&format=png&auto=webp&s=ea1037c042df28c85e821a3b33d2c7ac6b5bf757
The more random points there are, the more accurate the final result will be. Therefore, we can see that the basic idea of Monte Carlo method is to obtain a large number of random events, and then to obtain the probability of occurrence of such events, based on the ratio of the number of times and the total number of times. The larger the sample size of a random event, the more reliable the results are.
In the financial market, the application of Monte Carlo method is also very extensive. To give an example, we can randomly select a large number of points in the historical trend of Bitcoin, and then observe the ups and downs of these points over a period of time. Then what do we get? We get the probability that Bitcoin would go up and down over a period of time.
Such a probability has limited uses for individual investors. After all, it cannot predict when bitcoin will rise or fall sharply. But this probability has other meanings. For example, in the digital currency mortgage business (that’s what Vena Network is focusing on), the mortgage rate can be determined from this. For example, we see through the Monte Carlo method that, the probability of bitcoin dropping by 30% in one month is less than 1% in history, so we can determine the loan-to-value ratio as 70%, or slightly lower. This example is not necessarily accurate, but it will minimize the occurrence of collateral value falling below the value of the loan.
This is a way to predict the future with the past. Of course, this method does not accurately predict the future, but it can judge the most likely events in the future based on a certain probability, and provide a reliable basis for our judgment.
https://preview.redd.it/jqr98tpefps11.png?width=780&format=png&auto=webp&s=74d43cf3ae9abbb2ebec277ae15c1f88d16ac9fc
Now Vena Network is working on bitcoin mortgage with Monte Carlo method. Vena Network is an open protocol for tokenized asset financing and exchange. Vena is building a decentralized digital asset financing and exchange network, in which everyone can process P2P cryptocurrency collateral lending and OTC trading anytime and anywhere, enabling free exchange between cryptocurrency and fiat currency.
Vena is going to start ICO in the end of October or the beginning of November. If you are interested, you can follow us in Facebook, Twitter, Telegram, Instagram, Reddit, etc. just by searching ”Vena Network“.
Our partner includes KuCoin, DigiFinex, tekrise, F’enhance, vipexc, etc. And the ICO will be held on Leek ICO, KICKICO and TOKENPLUS.
submitted by VenaNetwork to VenaProtocol [link] [comments]

The actual true definition of Bitcoin, and how Bitcoin needs to be handled after forks.

There has been a lot of discussion about this topic later. Both sides try to politically use this tool to make it so their dev team and their vision is what is defined as "True" Bitcoin. We see it with Core/NO2X people spamming exchanges with lawsuits threats if they don't list Core 1x coin as "Bitcoin," and exchanges like BitMEX and BitFinex who have decided that Core chain is the true Bitcoin by decree royal decree. Also we see it on Bitcoin Cash side too by Bitcoin.com "Bitcoin Cash = real Bitcoin." However all these people are wrong demonstratively so.
Its understandable why these various groups want to decide what Bitcoin is. There comes a lot of power and public recognition to "Bitcoin" name, thus if your dev team and your vision of Bitcoin can have your own fork listed as "Bitcoin" then it will give you a lot of power and recognition and financial gain as well. However, all these are just selfish definitions of people over grasping.
There is a very simple definition for the value of Bitcoin, simply that Bitcoin was created in 2009 by Satoshi Nakamoto, and 1 Bitcoin value of the Genesis block is the value of Bitcoin. So its impossible to change or lobby to what the definition of Bitcoin is, and its not a political game or football either. So essentially right now, a "Bitcoin" is simply the sum of Core SegWit coin + Bitcoin Cash. Because 1 Genesis block coin will equal 1 Core SegWit coin + Bitcoin Cash, then the true definition is they are both Bitcoin, this the proper way for an exchange to handle Bitcoin forks/split...
...is to make "Bitcoin" value = the value of the Genesis block Bitcoin, the true definition. So today, that means the 2 chains with the same shared Genesis block are Bitcoin Core + Bitcoin Cash. So the proper way for exchanges to handle the value of "Bitcoin" is for it to be the combined price of both individual surviving chains value. So, today for example that would be about $5600 + $350 = $5950 is Bitcoins worth.
So, since splitting is fairly new to the Bitcoin universe, its understandable why some exchanges are not really prepared for it, and want to only list 1 coins and not split coins. (also not to mention most exchanges did not think BCC would even survive) Not only is it an expression of some control, that somehow they decide what Bitcoin means or it is a subjective definition based on their business, it means they setup their exchanges poorly and probably have to add in extra code changes to account for splits. So it takes a bit of work to actually handle this, and update the exchange or service in such a manner to account for this, so its understandable why there is pushback, and most exchanges want to do as little as possible and just "choose" a coin, but it is the only real true way for the definition. The exchange should have been setup in the first place to account for chain splits, since its a real possibility that it can happen. If the exchange wasn't setup for it originally, they need to fix it if they want to sell Bitcoins and hold customer Bitcoins.
So, as a quick example, lets say with Coinbase. When Coinbase sells a "Bitcoin," it should be defined by the subset sum of Bitcoin SegWit and Bitcoin Cash, based on where the chain split August 1, 2017. So, when a user buys "Bitcoin" on Coinbase or any exchange, today they will actually be purchasing 2 coins, Bitcoin SegWit, and Bitcoin Cash. Of course, the user should have the option to only transact or choose to buy the type of coin the want to. So exchanges should have a setting in their user interface configuration, that users can select which coin they want to use only. So, Core fans would probably choose to only buy Bitcoin Core SegWit coin, and big blocker fans would probably only want to buy Bitcoin Cash, and this is perfectly allowable in the exchange interface simply by selection an option in your preference. The user will have complete choice if they want to stay transaction only with a certain chain token, or buy "Bitcoin" as as sum of all chains to make it equal to original Genesis block value.
However, there seems to be a huge misconception now, that exchanges or developers get to choose the value of Bitcoin, when in fact this has been decided at the origin of the coin 8 years ago, and is not a negotiable or subjective concept.
So, in short, for the future 1x/2x chain split, yes all exchanges will need to add another fork and component of "Bitcoin," if they want to exchange "Bitcoin." It would be just like a stock broker issuing share splits to their customer. It would be against their power to somehow hold back or keep part of a share split, just because they didn't think it would happen, or disagree politically with the stock split. So the new Bitcoin, if the fork results in a chain split, will be Bitcoin = B1x + B2x + BCC, 3 parts. And yes, if Bitcoin Gold is a valid functioning chain, then they need to add that also (as long as it is a true 1:1 distribution split, I haven't looked too much into BGold honestly). This is the only true value if someone originally bought bitcoin in the past, what it would equal today. 1 Bitcoin = 1 Bitcoin If an exchange wants to only deal in a certain type of token, for example B1x only, for technical limitations, or political reasons, they can do that, but it needs to be clear in the naming "Bitcoin 1x" or Bitcoin with the chainsplit of block 4983453 that was a result of not changing the 1MB block size. So the naming needs to clarify it is just a subset of the Bitcoin chain split, also they should distribute split tokens if they want to be ethical and not steal customers value.
Think of a software project like "Firefox." There have been thousands of version upgrades for Firefox. If a user wanted to "download Firefox," more specifically they would be downloading Firefox version 43.5634.23 release, or something like that. Although this example isn't mean to compare anything about chain splits or value distribution, you can see the point, when you "download Firefox" or "buy Bitcoin" there needs to be more description about which Bitcoin you are buying.
tl;dr Bitcoin is already well defined, meaning the same value as when it was created, 1 Bitcoin at creation 8 years ago, needs to be worth the same "value" as 1 Bitcoin today for it to be true. This means that Bitcoin today equals the sum of all functional active chain splits.
submitted by squarepush3r to btc [link] [comments]

[uncensored-r/CryptoCurrency] Let’s talk about taxes.

The following post by commander217 is being replicated because some comments within the post(but not the post itself) have been openly removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ CryptoCurrency/comments/7nllf7
The original post's content was as follows:
A lot of people have been talking about taxes for this upcoming year and that like kind apparently doesn’t apply to crypto (anymore or potentially ever). In theory that’s fine, I get the usd cost of every trade and bam ez pz got my taxes all set and ready. Now let’s talk about reality.
First off every coin usually has two trading pairs at least on every exchange bitcoin and ether. Ether and bitcoin in turn have different prices on different exchanges. This effectively makes taxes impossible to do fairly in anyway whatsoever. Here’s a hypothetical. Say I bought 100 Trx earlier today at 325 sats on a binance trading pair. And now I just sold it for 430 Sats. This is potentially a taxable event so now I want to calculate the gains on this trade. Well I gained a total of 10500 sats which is 1.43 dollars based on gdaxes current price of 13625 per bitcoin. Beautiful - good don.... not even close. First how is this the fair price of my exchange if the transfer would take me 80 minutes to be able to convert to usd in which time the price will change. Also the transaction fees for stock trades are not calculated as capital gains so I would have to include those. But those are just the solvable problems, I could wait 80 minutes and record the hypothetical price of sale and minus the transaction fee. But there’s a few more unsolvable problems. One is there is currently on coin market cap 400 bitcoin markets, some for usd some for other alt coins, and these are the top 400 based on volume there is of course more. Well obviously I would only include trading pairs which use actual fiat currency. Still got a problem. As on Wex exchange whatever that is the price is 13382. On Gdax it is now 13621. On finex it’s 13515. On bithumb it’s 17681. And so on and so forth WHICH ONE DO I USE? is it the one I’ve used before, well great except I’ve used more than 1 before.
Then there’s the rub of eth trading pair. I can spend 43000 sats ive earned today to buy eth and cash out that way as I usually do because eth transfers faster. This of course means I guess I need to calculate it’s fair price based on eth trading pairs on other exchanges which is going to be different then each other and the bitcoin pairs. The transaction fees are also different. So is the transaction times.
Then there’s the IRS tax guidance sheet which states it only applies to “convertible virtual currency” and proceeds to define “convertible virtual currency” as “ currency that can be digitally traded and purchased for or exchanges into usd”. Which only fits the description of bitcoin, eth and bitcoin cash and litecoin for most Americans. I cannot exchange trx for usd. I can exchange it for bitcoin which I can then exchange for usd.
I’ve talked with an accountant who admitted he wasn’t very knowledgeable about it but he said based on those points, he wouldn’t account for any gain as realized until actual cashing to US dollars. I intend to go to another accountant I’ve heard who apparently knows this better and see what he says I should do but this covers only a few of the problems. What about derivatives like bitmex.
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

ATTENTION !! Time to withdraw from Bitfinex

After Bitfinex hack, it's shields were down -- it became a fractional reserve crypto-currency bank.
BTC price difference reached $50: (about 5% market premium over spot price) https://www.reddit.com/btc/comments/65vs85/the_gap_between_bitfinex_and_bitstamp_reached_50/
Bitfinex is smelling more and more like MtGox: https://twitter.com/deadalnix/status/748794511598362626
As a Bitcoin veteran since 2013, and a Dash user now, I recommend all of Dash Nation to withdraw crypto-coins immediately from Bitfinex. I have seen Mt.Gox collapse myself and lost 0.15 BTC back then in 2014. Better safe than sorry. You'we been warned.
Bitcoin investors lost over $500 million dollars back then.
I have 10 years of experience in traditional stock markets, and 4 years of experience in Bitcoin (crypto) markets. Basically the Free Market tells us that there is a 5% chance of Finex collapse soon. I believe, from my 10-years of experience, that chance is much higher, around 30%.
USDT tokens are obligations of tether, and suffer the same bfx problem as they are the same parent company. USDT tokens are centralized, and can collapse, too.
My Popcorn is ready. You should prepare your popcorn, too, or pampers, depending on your financial position.
-Technologov
submitted by Technologov to dashpay [link] [comments]

How NOT To Invest - Advice for Beginners - YouTube Bitcoin Trading with BitFinex BITCOIN ANALISIS JUNIO 2018 BITCOIN FENIX DigiFinex: EDC Blockchain Trading How to invest using BitFinex

Bitcoin (COIN:BTCUSD) Historical Stock Chart From Sep 2020 to Oct 2020 Bitcoin and other cryptocurrencies are typically not correlated to traditional stock markets. The price change in one is not related to the other and is believed to be independent of each other ... Dow Jones Gold Price Oil Price EURO DOLLAR CAD USD PESO USD POUND USD USD INR Bitcoin Price Currency Converter Exchange Rates Realtime Quotes Premarket Google Stock Apple Stock Facebook Stock ... Bitfinex offers order books with top tier liquidity, allowing users to easily exchange Bitcoin, Ethereum, EOS, Litecoin, Ripple, NEO and many other digital assets with minimal slippage. Margin funding. Liquidity providers can generate yield by providing funding to traders wanting to trade with leverage. Funding is traded on an order book at various rates and periods. Margin trading. Bitfinex ... Bitcoin Kurs laut Stock-to-Flow Methode genau dort, wo er hingehört , Bitfinex kleiner Erfolg im Verfahren & Börse Stuttgart reguliert den Krypto Handel.

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How NOT To Invest - Advice for Beginners - YouTube

Fenix Parts Inc - FENX Stock Chart Technical Analysis for 06-28-17 Subscribe to My MAIN Channel Here: https://www.youtube.com/claytrader/ Free Guide - The 5 ... Live Bitcoin Trading With Crypto Trading Robot DeriBot on Deribit DeriBot Backup 917 watching Live now Bitcoin Basics (Part 5) - "How To Make Money Trading Bitcoin" - Duration: 20:01. Bitcoin Basics (Part 1) - "Explained For Beginners" - Duration: 24:27. ... WE HAVE A HUGE PROBLEM.. oil, stock market, etc - Duration: 17:15. Financial Education 90,429 views. New; 17:15 . How to ... How to use Bitfinex to buy Bitcoin - Duration: 9:41. Krypto Consultants 52,879 views. 9:41. ... Best Beginner Stock Trading Indicators RSI & MACD Combined - Duration: 17:42. The Boiler Room ... Many users in the Middle East tend to store their crypto currencies on different exchanges. For more information now visit:- https://finex.me/

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