Čvc 14

Switzerland’s Private Banking Sector Offering Bitcoin as an Asset

· July 14, 2017 · 3:30 pm

Switzerland’s Falcon Private Bank has partnered with a local Bitcoin exchange giving the financial institution the opportunity to offer Bitcoins, as well as altcoins, to its customers through asset portfolios.


Falcon Private Bank

On Wednesday, Falcon Private Bank took major steps in a number of avenues within digital currency when it announced that it would be storing and trading Bitcoin within its asset infrastructure. Wealthy customers of the bank will now be able to branch out into digital currencies, allowing them to hold, buy and sell Bitcoin directly through the bank.

It is a move that many have expected to see for some time as slow moving financial institutions like banks and asset management finally come around to the idea of digital currency and the markets that they are building.

A Pioneering Nation

A Pioneering Nation

Switzerland has pioneered the way for digital currencies of late with its light touch in terms of regulations. Bitcoin-based businesses have been categorized under the same lenient laws that also control financial technologies, separate from the usual banking licensing and red tape.

Falcon bank received the green light from the regulators in the country, setting a new precedent for private banks. It is an important and ground breaking move as the hopes are that it will be successful enough to prompt other institutions across the globe to follow suit. The crypto asset-management market is a huge, untapped entity that could provide banks with a fresh and technologically advanced market.

Bitcoin Trading added to Falcon Private Bank

Moving with the Times

The partnership between Falcon and Bitcoin Suisse, the local digital currency exchange, is seen as a positive step for the bank’s customers as well as the institution itself as it works to resurrect its stuffy and traditional brand.

Arthur Vayloyan, Falcon’s global head of products and services, said in a statement:

We are proud to be the first-mover in the Swiss private banking area to provide blockchain asset management for our clients. Falcon is convinced that the time is right to enter this nascent market and it is our firm belief that this new product will fulfill our clients’ future needs.

Although Bitcoin and other digital currencies have seen a sharp downward turn since the highs of the $3000 Bitcoin, there is a belief held by these institutions and agencies that are entering the digital currency market that the rise will continue in the near future.

Would you be willing to make your trades with Bitcoin through a bank? Is it possible to have a bank involved in Bitcoin, or does that defeat the object? Let us know in the comments below.


Images courtesy of AdobeStock, Falcon Private Bank, MaxPixels

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Kvě 03

Missouri Prosecutes ‘Unlicensed’ Bitcoin Trader, Threatens 5 Years Jail

· May 3, 2017 · 4:00 pm

A Missouri entrepreneur faces up to five years in jail for unlicensed Bitcoin sales to undercover FBI agents.


‘Unlicensed’ Klein Sold Up To $75k To Fed Agents

Jason R. Klein, founder of technology businesses Logic Forte and Datality Networks, pleaded guilty to representing himself as a Bitcoin exchange without the appropriate state or federal licenses.

According to a release Tuesday, Klein met with undercover officers five times between February 2015 and July 2016, each time exchanging USD for bitcoins worth “between $1000 and $15000” per transaction.

Klein also levied exchange fees, which amounted to over $2000 over the course of the relationship.

“An undercover federal agent responded to an online advertisement posted by Klein. Klein told the undercover agent that his rate included a 10 percent commission “for an in-person $1,000 cash exchange,” the release states.

Jason R. Klein, founder of technology businesses Logic Forte and Datality Networks

Missouri Prosecutes Where Florida Gave Up

The charges represent another high-profile incident of US authorities cracking down on unsanctioned trading. Last year in Florida, a man was arrested for selling $1500 worth of bitcoin to an undercover agent, despite the buyer telling him he planned to use the funds for illicit purposes.

Due to the nature of cryptocurrency under Florida law, however, a judge ultimately threw out the charges.

“By pleading guilty today, Klein admitted that he represented himself on the Internet to be a bitcoin exchanger,” the release confirms. “However, Klein was not a licensed money transmitter with the state of Missouri or with the Financial Crimes Enforcement Network, as required by federal and state law.”

Jason Klein

Somewhat ironically, Klein is also the president of the Association of Information Technology Professionals in southwest Missouri. The organization exists to educate professionals on technology best practices and has around 230 members, making it the largest regional faction in the US.

The specific sentence will only be known once police investigations have concluded.

While Missouri has rarely made the news in cryptocurrency circles, the state is famous for being the jurisdiction to shut down embattled mining operator Butterfly Labs in 2014.

In 2016, the company settled a multimillion dollar legal case for just $15,000, due in part to the limited financial resources of alleged owner Sonny Vleisides.

What do you think about Jason Klein’s case? Let us know in the comments below!


Images courtesy of JRKlein.com, Shutterstock

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Dub 28

EToro Sees Bitcoin & Ethereum Trading Volume ‘Explode’ by 4,500%

· April 28, 2017 · 5:30 am

eToro has revealed that the number of users its Bitcoin and Ethereum has soared while trading volumes have “exploded” on its platform since the beginning of the year. 


eToro Runs Up Trading Volume 4,500%

EToro, a leading online trading and investment platform, has experienced a huge increase in both cryptocurrency users and trading volume of Bitcoin and Ethereum, according to Marketwatch. 

So far this year, eToro users trading CFDs (contracts for difference) in cryptocurrencies his risen by four times compared to the same period in 2016. Since the beginning of the year, cryptocurrency trading volume on eToro has soared by a whopping 4,500%.

Since Bitcoin trading has been supported by eToro since 2014, one major reason for this surge can be attributed to the platform’s addition of Etheurem in the beginning of the year.

The price of Ethereum has jumped from about $15 USD per Ether (ETH) to over $65 today in just the past two months. This is reflected in 90% of Ethereum traders buying the asset since it was launched on eToro. Meanwhile, 80% of Bitcoin traders have been buying up the cryptocurrency for a consecutive fifteen months, eToro notes. 

It should also be noted that eToro provides a feature called “copy functionality.” This lets novice users copy the trading strategies of its most successful cryptocurrency traders.

‘Cryptocurrency is the Future of Forex’

Commenting on this impressive growth, Senior Markets Analyst at eToro, Mati Greenspan, believes that “Cryptocurrency is the future of forex.”

[O]ver the last 12 months we’ve seen a 4x growth in traders accessing this market. But the volume of trading has exploded even more than this, with a huge 4,500% jump.

As the total cryptocurrency market capitalization recently passed $30 billion, Greenspan explained, that its users have been reaping ‘significant rewards’ from this jump in prices and a nascent market that has doubled in just the past four months. 

“The rapid growth in the adoption and price of cryptocurrencies only marks the first few steps on the long-journey to establishing cryptocurrencies as a dominant force in forex trading,” he continued.

We expect cryptocurrency trading volumes to get much bigger over the coming years.

As Bitcoin is once again above Gold market price, surging to record highs, the cryptocurrency market should continue to attract even more traditional investors looking for the next big thing.

Recent news of the Securities and Exchange Commission (SEC) willing to review its rejection of the Winklevoss Bitcoin ETF is just the latest in a string of positive news for traders to be bullish on Bitcoin and cryptocurrencies as a whole.

Will the cryptocurrencies market continue to attract traditional investors or will we see another repeat of the dot-com bubble? Share your thoughts below!


Images courtesy of Shutterstock, Twitter, eToro

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Čvc 12

Bitfinex Outages Raise Questions of Reliability and Regulation

Source: bitcoin

Bitfinex

On June 20, the Bitcoin world came to a halt for some traders — twice in 24 hours, in fact — when popular Hong Kong exchange Bitfinex, owned and operated by iFinex Inc. (Bvi), unexpectedly went offline, preventing trading at the exchange for several hours.

Disclaimer: This article was provided by the Vanbex Group. Bitcoinist is not affiliated with the firms represented by the Vanbex Group and is not responsible for their products and/or services.

Bitfinex Outages Raise Important Questions

Industry-related media reported because of news regarding the outage rippling throughout the trading community, it sparked a temporary sell-off that ultimately contributed to bitcoin’s fall from the US $740 range to $685 at its lowest point.

When Bitfinex went offline the first time, which was during the afternoon, the exchange took to Twitter, stating: “Trading has been paused while we investigate an infrastructure issue,” assuring followers that “The issue does not involve funds or system security.”

Bitfinex eventually cited server migration issues and server instability as reasons for the outage of the U.S. dollar (USD) side of the exchange to eventually come back online later that night.

“The longer you are down the more people worry their coins are gone,” one Twitter user, @CamsHouseLive, responded.

His sentiment is not unfounded. Bitcoin exchanges have a history of security breaches, fraud and technical glitches with Mt. Gox setting that stage in 2014, when, as the world’s leading exchange at the time, was forced to shut down after a reported theft of 850,000 bitcoins.

Creditors are still working with bitcoin exchange Kraken in hopes of getting back money lost at Gox.

The event eventually led to the arrest of Mt. Gox CEO Mark Karpelès in 2015, with no significant developments in the case since he was charged with embezzlement.

Other well-known exchanges such as ShapeShift, Bitstamp and Cryptsy have also been victims of hacking, trading outages or stolen funds, reinforcing the notion that cryptocurrency exchanges are inherently unsafe and unstable.

However, exchanges have worked tirelessly to improve technology and security standards.

“Nobody steps away from a computer now without locking their screen,” ShapeShift CEO Erik Voorhees said in an interview with Bitcoin.com, following the highly-publicized hacks that took place in April.

“Keys and access are being much more compartmentalized, and 2-factor [authentication] is being integrated in every possible manner, among other things.”

Other exchanges have established their own precautions to protect against outside threats.

Crix.io CEO, Dmitry Koval, says that exchanges have to focus on several key aspects to make sure their customers’ funds are safe. Some of these essential areas include:

  • Web application security
  • Private key storage
  • Security audit procedures

Crix works to provide the best security possible, implementing “the most reliable architecture by using best-in-class technical components,” said Koval.

In addition to 10 mostly-redundant virtual servers handling different software aspects of the exchange, Crix has all of its virtual infrastructure installed at HP servers and Netapp storage.

“The equipment is resided in [a] tier 3 datacenter,” Koval explains. “Overall, the architecture is designed to withstand high loads.”

But government and regulatory oversight are also factors.

Kevin Batteh, partner at Delta Strategy Group, a full-service government affairs firm based in Washington, D.C., said he couldn’t imagine a scenario where an exchange, Bitfinex or otherwise, would self-inflict such damage.

“When running an exchange the most important thing is volume — that’s how you get paid,” said Batteh. “An exchange going down is not a good way to keep customers.”

Trust is a key part, he added. Without it, a trader is less likely to place an investment. Regulation plays a further role in this as well, as a regulated exchange affords a level of comfort to the trader.

“As a regulated institute, required systems and safeguards would be in place,” said Batteh, who referenced the Nasdaq outage in 2013.

During that particular outage, the U.S. Securities and Exchange Commission immediately inquired as to what occurred, and demanded a “blow-by-blow account of the trading disruption” from the exchanges involved and moved to determine if the failure had to do with technological standards, as was then reported by Reuters.

Of course the framework would be different for cryptocurrency exchanges and the like, said Batteh.

Koval said there is some role for government, but warns that the bitcoin exchange industry may not be able to handle the stress placed upon it by mainstream regulatory standards.

“Too heavy [a] regulatory burden can make it impossible to operate,” Koval says.

One option, though, is ensuring that exchanges are solvent, so at the very least traders can be sure that they can get their money out if their exchange goes under.

“From a regulatory perspective,” notes Koval, “monitoring the exchange’s solvency is of higher priority than setting the responsibility for technical outages at this stage.”

Koval further stressed that the market is the strongest protector of traders’ coins at the moment.

There is a market-driven balance. “If one exchange is not able to provide continuous service, traders will go to another one.”

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Bitfinex Outages Raise Questions of Reliability and Regulation

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Čvc 12

Bullish Trading Ahead? Bitcoin Price Sees New Technical Patterns

Source: bitcoin

Bitcoinist_Traditional Finance

Technical indicators suggest that the bitcoin price could be preparing for a rather significant correction, potentially sending it below $600. Traders shouldn’t have too much to fear though, as the decline is expected to be followed by bullish activity, resulting in a rise to $700 and beyond, hitting resistance at $1000.

Also read: Industry Report: The Halving That Came and Went

Bitcoin Price Looking Bearish, but Not for Long

Long-Term Analysis

After a year where a rounded bottom pattern was perfectly accomplished, a new big pennant had taken place into the mid-term trading box, created as a result of the sideways lateral market that professional traders´ work let behind their accumulation activities. Perhaps we could see another month in the same price level while prices perform this pennant, which could become a bigger flag formation.

This kind of well-known pattern may also create a bullish consensus that provides some up-sliding of the trading box from the $600 support to the long-term Fibonacci resistance at $820, starting the first wave of the Elliot´s theoretical pattern staying inside the next level box with a probable ladder step rebound at the $700 support level. All of these movements will occur in a major zig-zag advancing pattern toward the second box´s higher resistance of $1000.

Mid-Term Analysis

Forming a kind of trading box with support at $600 and resistance at $820, prices had composited other patterns that could help traders to figure their marketplace, like several rising lines that provide reference for making decisions.

Meanwhile, prices advance in a slow rising zig zag movement, which should become a fireworks show of growth in about 2 months’ time, when the third phase of Elliott wave theory gets real in the charts.

Right now, mathematical oscillators are giving enough signals to sustain the bullish consensus, and to allow the suspicion of far higher prices at the end of the year.

When the present flag pole reaches the $820 resistance, the support will have to be relocated at $700 like a ladder step rise sliding the box to next level.

Short-Term Analysis

According to volume indicators and candlestick analysis, prices are preparing for a down movement, which may create panic selling from weak hands. This selloff would hit a big support level below $600—probably near 580—where strong hands and big players could be planning their purchases.

After this probable downward slide, the next movement in the present trading box could send prices upward for another 100 points, performing a fast rebound to $820.

Following that rise, a bear correction will send the bitcoin price to a new support level around $700, launching a new sideways lateral movement with resistance at $1000. This trading pattern is expected to hold for the next two weeks.

What do you think will happen to the bitcoin price? Let us know in the comments below!


Featured image courtesy of Shutterstock.

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Čvn 03

Mathematics Drives Crix Bitcoin Futures Trading

Source: bitcoin

Mathematics Drives Crix Bitcoin Futures Trading

Dmitry Koval, founder of Crix.io, a cryptocurrency trading platform, said in a recent interview: “Our mission is to contribute to the community and ecosystem by creating the best niche products such as exchange-traded futures contracts suitable for hedging and high-leveraged trading.”

Disclaimer: This article was provided by the Vanbex Group. Bitcoinist is not affiliated with the firms represented by the Vanbex Group and is not responsible for their products and/or services. 

Mathematical Bitcoin Trading With Crix

Crix

In the cryptocurrency world, where volatility can swing at even circumspect news, precision and probability must co-mingle. To gather a behavioral understanding of cryptocurrencies — to discern its movement within a probabilistic range — requires a significant degree of analytical depth predicated on vital access to historical information.

“Real mathematics stands behind many aspects of trading today. This includes the volatility modelling and the Value at Risk method we use at our platform,” said Koval.

At Crix they analyse hundreds of time periods back to then help determine the end of the next period within a certain range and probability. Like the guess of a coin-flip, understanding the percentages are a guide to making an educated assessment.

“With bitcoin, it is way more complex, but the principle is the same,” said Koval, adding, “We use a two-stage approach to determine price limits.”

In the first stage, the historical volatility of the BTC/USD market is assessed to find the mathematical function that best corresponds to the volatility data. The information is then calibrated based on the historical data sample.

Next, a Value at Risk analysis is run on the out-of-sample historical data set in order to predict a single-period price range within a given accuracy.

“Both volatility modelling and VaR techniques are widely used these days for portfolio risk management on different markets,” said Koval.

Of the cryptocurrency varieties Crix does support — Bitcoin, Litecoin, Dash, Namecoin, Doge, Peercoin and Nextcoin — there is a noticeable gap, however, ether.

Koval said, “We are going to open ETH to BTC trading at our spot section in the nearest time. We are going to introduce futures contracts as well.”

The only challenge for futures contracts is the historical data, explained Koval.

“We need 500 to 1,000 periods back to get good results for the model.”

Crix’s flagship product is its futures platform. Most efforts in development and marketing, according to Koval, go toward this part of Crix’ trading system.

However, the Crix platform also offers a spot section where users can locate benchmark prices on alternative coins (altcoins), allowing people to exchange them to bitcoins and trade futures collateralised in bitcoins without a need to use another provider.

It’s simple, convenient and honest.

“The shorter contract term at Crix (three hours, 24 hours) is the trade-off for totally mitigated slippage risk and full transparency of all the calculations,” said Koval.

“We don’t have any proprietary parameters which are changing throughout the session and therefore, no manipulation is possible by design.”

Furthermore, margin calls are prevented by setting particular trading rules.

Prices throughout the session, whether for a three hour or 24-hour contract, are limited to model-predicted limits so a trader cannot place an order priced outside of these limits, said Koval.

“Therefore, none of the traders can lose more than their initial collateral during the session.”

Visit Crix.io for more information and to test the company’s platform.


Images courtesy of Wall-Pix.net, Crix.io.

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Mathematics Drives Crix Bitcoin Futures Trading

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