Čvc 11

Binance Debuts Margin Trading As Bitcoin Volatility Hits Markets

Malta-based cryptocurrency exchange giant Binance has formally launched margin trading for most of its users following months of speculation. 


Long-Awaited Bitcoin Trading Feature Goes Live

In a blog post July 11, executives released the platform’s latest product, along with a dedicated guide on how it works. 

Margin trading, while available on several major exchanges to date, incurs a significant risk of funds loss if the trader controlling them is not aware of their technical characteristics.

“Margin trading is the latest development in Binance’s effort to push the industry forward and toward the freedom of money, expanding its trading offerings,” the blog post reads. 

“Margin trading allows traders to borrow funds to increase leverage, providing higher profit potential than traditional trading. However, this also comes with a greater risk, given the current volatility of the cryptocurrency market.”

The unveiling ends a period of several months during which Binance slowly dropped hints it was working on margin trading, followed by evidence of testing.

Risky Bitcoin Business

In June 2019, demand for leveraged financial tools tied to Bitcoin 00 and other cryptocurrencies is higher than ever, as markets return to levels not seen since before the 2018 bear market. 

Huge amounts of capital come and go at the hands of margin traders daily, social media users often noting how sudden movements in the Bitcoin price trigger giant liquidations in a matter of minutes. 

This week, a Bitcoin uptick saw $44 million worth of liquidations on derivatives giant BitMEX in just a single morning.

Margin trading essentially involves borrowing funds to use as collateral while betting on a token’s price moving in a certain direction. Should the bet go wrong, the trader faces liquidation.

Bitcoin Sheds 11 Percent

Binance’s product is now available to everyone with an eligible account; this means that those residing in the US, Syria, Iran, North Korea, Crimea, Canada, Japan, South Korea, and Cuba are currently unable to join in. 

The situation remained the same as Binance rolled out previous new tools such as its expanded decentralized exchange (DEX), while executives admitted that it would be impossible to prevent anyone from using a decentralized structure. 

News of the margin trading meanwhile went some way to stemming losses of Binance’s in-house Binance Coin 00 token, which delivered 24-hour losses of 6 percent.

Following a downturn in the Bitcoin price, altcoin markets have broadly slumped, shedding up to 20 percent overnight as BTC/USD fell by around $1500.

Last month, BNB had reached new all-time highs of close to $40 per coin.


What do you think about Binance’s margin trading launch for Bitcoin and other cryptocurrencies? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter: @binance

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Čvc 05

Bitcoin Market Grew ‘Independently’ in Q2 2019: Binance Report

Correlation between the Bitcoin market and the altcoin market dipped in the second quarter of 2019, claims Binance.


The Malta-based cryptocurrency exchange pitted Bitcoin against thirty alternative cryptocurrencies to determine whether or not it moved in lockstep with them. The exchange noted that all the known altcoins were tailing the Bitcoin price trend positively in Q2/2019. Nevertheless, the speed at which they followed the leading cryptocurrency experienced a drop, implying that the altcoin market, as a whole, failed to run along with a supercharged Bitcoin price rally.

“Bitcoin (BTC) became less correlated with other crypto assets in Q2 2019 relative to the first three months of 2019,” read Binance. “Correlations declined between Bitcoin and altcoins, with a decrease in the average correlation of -0.11.”

In retrospective, a perfect positive correlation between two assets reflects their 100% probability of moving in the same direction. Conversely, a negative one means that the two would always run in the opposite direction. Assets with a correlation score above 0.5 show positive correlations between the two, while a score below -0.5 exhibits negative associations.

bitcoin, bitcoin price

Bitcoin Dips against Altcoins in Terms of Correlation | Image Credits: Binance Research

Binance noted that Ethereum came closest to Bitcoin with a 0.81 positive correlation in Q2/2019, down from 0.889 of the previous quarter. Similarly, the XRP-to-Bitcoin correlation dropped from 0.875 in Q2/2019 to 0.69 in Q1/2019. The statistics appeared the same across the rest of the cryptocurrencies, including Litecoin, MIOTA, EOS, Bitcoin Cash, Bitcoin SV, and others.

Flight to Quality

The said dip appeared in line with the Bitcoin’s growing dominance in the cryptocurrency market. The leading cryptocurrency mousetrapped more than 63 percent of the total market valuation, leaving other digital assets with a fractional influence. Binance called it a “flight-to-quality behavior,” a term which indicates investors’ partiality towards what they believe is the most bullish asset. Excerpts from the report:

“The overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by “just” 71 percent over the same period. This can likely be attributed to a “flight-to-quality” behavior by crypto investors in an early bull-market state.”

The statistics closely followed the findings of Gabor Gurbacs of VanEck. The digital asset director noted that Bitcoin had left all the blue chips (a basket of top ten cryptocurrencies) and smaller cap coins (another pool of top 100 cryptocurrencies) behind in the previous 12 months in terms of returns, as shown in his tweet below:

Although the Blue Chips (Ticker: MVDA10) recorded a lesser loss compared to the Small Caps (Ticker: MVDASC), a closer look reveals that Bitcoin had more than 33 percent dominance in the former.

Bitcoin Remains the King Cryptocurrency

The Binance report reflected a shift in crypto investors’ mindset. They considered Bitcoin safer than most of the alternatives available inside — and also outside — the cryptocurrency industry.

“The report could help in assessing whether today’s crypto-market environment behaves similarly to historical early stages of bullish environments in traditional financial markets,” Binance concluded.

What do you think about Bitcoin’s YTD performance? Let us know in the comments below.


Images via Shutterstock, Binance Research, Gabor Gurbacs

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Čvc 04

Bitcoin Price Approaching $12000 Again As Dominance Hits 65%

The recent Bitcoin price correction was over before it really began. A five-day slide culminating in a short-lived 30% dip below $10000 saw a huge bounce back by over 20% as BTC surged back above $11000. It’s market dominance is now heading towards highs not seen since 2017.


Bitcoin Dominance Hits 65%

Bitcoin price has continued to push higher since it topped $11000, 24 hours ago. There was clearly huge buying pressure at four figures and some have suggested that BTC may never fall that low again. The gradual crank higher has taken Bitcoin price to $12000 again during the morning’s Asian trading session. It is now exactly 25% higher than the dip on Tuesday.

bitcoin

BTC price 1-hour candles. Tradingview.com

A few hours ago one big green candle lifted Bitcoin price back above the 200 moving average on the hourly chart. It has pulled back a little and is currently trading at 00. Zooming out to the daily chart still paints a very bullish picture for BTC.

Once again the move has increased Bitcoin market dominance to highs not seen since late 2017. According to trader Josh Rager, it is facing resistance here and altcoins could soon start to react.

“$BTC dominance climbing at 65%. Bitcoin’s dominance hasn’t been above 70% since July 2017 & see this as a definite area w/ possible resistance. Majority of altcoins can continue to retest support until BTC dominance drops (which could happen near these levels) so pay attention.”

The discussion that followed had many thinking that BTC dominance could climb as high as 70% again where it was during the start of the 2017 bull run. This would absolutely obliterate the altcoins, many of which are still wallowing over 80% down from their peaks.

Fellow trader ‘CryptoFibonacci’ has noticed a triple top for bitcoin dominance which could spell a breakout to the upside.

“I’m not a big believer in “triple tops”. It will have to prove me wrong. Be careful if you are in Alts.”

Very few of the altcoins have done anything since Bitcoin’s bounce back. Ethereum is still below $300, XRP has not moved at all from $0.40 and Litecoin is stuck at $120 as the halving FOMO dries up.

Bitcoin is currently the top performing crypto asset in the top twenty with a gain of over 5% on the day. It doesn’t look like slowing down either as fears of Trump induced dollar manipulation to start to fester. The US president tweeted that America should match currency manipulation practices being carried out in China and Europe. Fiat fiddling is all good news for Bitcoin.

Will Bitcoin price hit $13000 this week? Will BTC market dominance hit 70% again? Add your thoughts below.


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Čvc 03

Bitcoin Price May Have Found The Floor At $10,000

The long-awaited Bitcoin price correction lasted less than an hour. Yes, it did dump 30% as many analysts had predicted, but mass buying pressure was triggered when it hit the target so BTC subsequently surged again. Now comfortably back over five figures again, some have seen this as the new floor.


Only 3 Bitcoin Price Candles Closed Under $10000

The pullback to $9,600 was short-lived. According to Tradingview.com, there were only three candles on the hourly chart that closed under $10000, the lowest at $9,780. Even the one that marked the 30% dip closed in five figures indicating that this could be the last time BTC price trades that low. The charts indicate that a lot of buyers were interested in sub-$10k Bitcoin, so many in fact that it did not remain there for very long.

bitcoin

Bitcoin price 1-hour chart. Tradingview.com

$10000 Is The New Bitcoin Price Floor

CNBC Futures Now, which has often been considered as a counter trade indicator, has indicated that Bitcoin price may have just found a new floor at $10,000. During the interview on ‘Futures Now’, broker Jim Iuorio stated:

“I’m actually starting to see bitcoin for what it may be, and that really is a genuine dollar hedged safe haven asset. At least, it has performed that way over the last six months and ten thousand seems to be a good level here.”

Iuorio added that he has been very impressed with the Bitcoin price action so far this year, especially since June when it went higher up as the US dollar fell. Scott Nations, who admitted that he was not a fan of Bitcoin, stated that as digital gold it works well because investors have the belief that it will do well when everything else is doing poorly.

Nations added that anywhere around $10k would be a good entry level and for him, the only time he would consider buying Bitcoin as someone who does not usually trade it.

Where Next For BTC?

If a new floor of $10,000 has been established for Bitcoin price, then consolidation above here may be the next moves over the coming days. Trader and analyst Josh Rager is in agreement.

“We had our 30% pullback so what’s next? History says that price consolidates followed by an average gain of 153% before the next big pullback.”

Consolidation at this range would not be a bad thing and may give some of the altcoins a chance to wake up a little. So far they have been hopelessly anchored to Bitcoin on the downsides but have done very little on the upsides. BTC is still in the driving seat as its dominance returns above 62% while its brethren remain stagnant.

Will Bitcoin price fall back below $10k again? Add your thoughts below.


Images via Shutterstock, Tradingview, CNBC Futures Now

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Led 30

Japanese Yen Overtakes the US Dollar in Bitcoin Trading

The Japanese Yen (JPY) has surpassed the USD in terms of worldwide bitcoin trading in the past 24 hours. 


Japanese Yen Tops Dollar

According to data from Coinhills, the JPY has officially overtaken the USD in terms of bitcoin trading throughout the world. A total of 490,925.45 BTC were traded against the JPY over the last 24 hours.

Data shows that 49.10 percent of the entire Bitcoin 00 trading volume for the last 24 hours has been exchanged against the JPY, while the USD accounts for 45.80 percent.

Together, both currencies account for as much as 94.9 percent of all fiat currencies in BTC trading. The Korean Won, the Euro, and the British pound round off the top five Bitcoin fiat trading pairs in terms of volume. Though these are dwarfed by JPY and USD, comprising less than 2 percent of the total volume each.

JPY/BTC has grown in popularity substantially over the last two months of 2018. In November, it accounted for only 21 percent of the BTC trading, compared to a solid 50 percent for the USD. But whether it will remain in at the top remains to be seen as Bitcoin price struggles to hold above $3,000.

What Changed?

In December, Bitcoinist reported on a study which claimed that Asia has more impact on Bitcoin price than America and Europe. The study cited major developments from Asia concerning cryptocurrencies, which had impacted the market by an average of 18.61 percent.

Thing are indeed moving fast in the East. Just a couple of weeks ago, one of Japan’s largest cryptocurrency exchanges, Coincheck, was registered with the Financial Services Agency.

Additionally, a new partnership was formed between Blockstream, Digital Garage, and Tokyo Tanshi, which will serve the Japanese Bitcoin market by launching a JPY-pegged stablecoin.

Furthermore, in October last year, the country gave formal approval for the cryptocurrency industry to regulate itself, substantially increasing the capabilities of the Japan Virtual Currency Exchange Association (JVCEA), which is now authorized to punish operators which fail to conform to the stringent safety regulations put by the local authorities.

What do you think about the Japanese Yen overtaking the Dollar in Bitcoin trading? Share your thoughts below!


Images courtesy of Shutterstock

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Led 18

Goldman Sachs-Backed Startup Unveils Cold Storage Cryptocurrency Trading

Palo Alto-based blockchain security company BitGo has developed a platform which will enable traders to buy and sell cryptocurrencies without having to take it out of cold-storage. 


A Focus on Security

Days after the cryptocurrency exchange Cryptopia got hacked, Palo Alto-based security company, BitGo, announced that it has developed a platform allowing traders to buy and sell digital assets right from BitGo’s cold storage custody.

BitGo closed a Series B funding round in October 2018, bringing in $58.5 million and attracting investors such as Novogratz’ Galaxy Digital Ventures and Goldman Sachs.

Goldman Sachs logo

BitGo will team up with SEC and FINRA-regulated OTC trading platform Genesis Global Trading to establish the necessary infrastructure, liquidity, and compliance.

Genesis Trading will essentially match BitGo customer’s buy and sell orders, according to the platform’s CEO, Michael Moro. The assets will never leave cold-storage since Genesis has a cold wallet with BitGo.

The cryptocurrencies, which will be available initially through the new solution include Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, and ZCash.

The move is geared toward satisfying the custodial requirements for attracting institutional investors.

The Need for Custody

The need for institutional-grade custody solution has been highlighted more than once and by more than one industry experts.

Novogratz himself said last year that a solution of the kind could propel the next bull run.

“I think the next move up is going to need custody from a trusting source,” he explained. “It’s going to need a little more regulatory clarity. […] We wouldn’t take out $10,000 without those two things because that’s what brings the institutional investors in. But we’re going to get there.”

A serious development in this regard would be Bakkt’s warehousing solution if it gets the pending regulatory approval. Besides elevated measures for physical security, Bakkt wants to enable pre-funded purchases and sales of Bitcoin futures, essentially eliminating the risk of default.

At the same time, its clearinghouse will also have a dedicated guaranty fund, entirely funded by Bakkt, to cover the platform’s holdings.

What do you think of BitGo’s new platform? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

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Kvě 08

3Commas Continues to Impress with Automated Trading Bots, More Crypto Exchanges

· May 8, 2018 · 6:00 pm

Back in December, I reviewed a suite of ‘smart tools’ designed to help cryptocurrency traders minimize risks and maximize profits. Five months later I decided to revisit the platform to see if they had anything new to offer…


If You’re Not Innovating, You’re Stagnating

When it comes to crypto, few things are as disappointing to me as when a really promising project launches and comes out of the gate really strong, only to fizzle out a few months or a year down the road.

3Commas, which launched in September 2017, has managed to avoid that pitfall and just continues to get better and better. The platform boasts more than 22,000 active crypto traders and a daily trade volume of more than $6 million.

Speaking about the platform’s spectacular growth, 3Commas CMO Mike Goryunov said:

We continue to build win-win collaboration with our customers and as I can see it’s the main reason of our success.

The reason for the platform’s growing popularity, of course, is the wealth of tools and features it offers that has resulted in active traders making an average monthly profit of more than 15%.

More Exchanges Than Ever Before

More Exchanges Than Ever Before

When I previously reviewed 3Commas, the platform integrated with Poloniex, Bittrex, Bitfinex, Binance, and any Ethereum wallet. Since then, the developers have added integration with:

  • Bitstamp
  • CEX
  • Kucoin
  • YoBit

The team is in the process of adding support for Huobi as well, and a little bird told me that support for HitBTC and Bitmex will be coming online soon after.

Automated Trading Bots

Automated Trading Bots

The best trading tools are the ones you don’t have to babysit 24/7 and 3Commas has rolled out a new tool that makes my little guppy-sized crypto trader heart sing with joy. After much anticipation, the team has released its Automated Trading Bot tool and the reaction from the community has been overwhelmingly positive.

For those who are unfamiliar with the concept, a trading bot is a piece of computer software that executes trades over and over again based on pre-determined parameters that the trader configures.

The problem with most trading bots is that they are either difficult to use – especially for new traders – or they just plain don’t work the way we expect them to. 3Commas has solved both problems with a trading bot that is both easy to use and reliable in its performance. Results may vary, of course, but on average the trading bot generates a daily profit of around 1.5%. Detailed analytics on the bots’ performance are available on the 3Commas website.

Moomin Papa has created a terrific video explaining how 3Commas’ Automated Trading Bot works, but here it is in a nutshell:

3Commas Automated Trading Bot Step 1

3Commas Automated Trading Bot Steps 2-4

Step 1: Choose which type of bot you are creating

3Commas supports two types of trading bots – simple and complex. A simple trading bot only involves one trading pair while a complex trading bot involves multiple trading pairs. For the purposes of this article, I am only focusing on simple trading bot creation.

Step 2: Name your bot

Naming your trading bot will help you remember which bot is trading which pairs. This is especially useful if you will be creating and running several trading bots.

Step 3: Choose your exchange

Tell your trading bot which exchange it will be trading on. It can be any exchange that you have added to your My Exchanges dashboard.

Step 4: Choose your trading pair

Select the trading pair you want your bot to buy and sell from the drop-down menu.

3Commas Automated Trading Bot Steps 5-8

Step 5: Set your base trade size

This is where you tell your trading bot how much BTC, ETH, etc… you will be using in your initial trade.

Step 6: Set your safety trade size

This step is completely optional, but it lets traders ‘buy the dip’ in a safer, more controlled way. For example, let’s say my trading pair is XRP/BTC and I buy Ripple for $0.82 per token. If the price drops below my original purchase price, safety trades will let me buy more XRP with whatever amount of BTC I have my safety trade size set for.

Step 7: Set your target profit

This tells the trading bot when to sell and is set in percentages. Let’s say I set my target profit for 2%. If my trading bot initially purchased Ripple at $0.82 per token, when the price hits $0.8364, the bot will automatically execute a sell order.

Step 8: Choose your Take Profit Type

The trading bots support two Take Profit types – percentage from base trade and percentage from total volume.

 3Commas Automated Trading Bot Steps 9-11

Step 9: Max safety trades count

This step is optional (unless you have set a safety trade size) and tells the trading bot how many safety trades it is allowed to make before stopping.

Step 10: Max active safety trades count

Similar to Step 9, this step tells the trading bot how many active safety trades it can have in progress at any given time.

Step 11: Price deviation to open safety trades

Set as a percentage, this step tells the trading bot when it can start executing safety trades. For example, if I set it to 2, then when the price of Ripple drops 2% below my initial trade price the trading bot will begin executing safety trades.

3Commas Automated Trading Bot Step 12

Step 12: Trade Start Conditions

This step tells the trading bot when to make that initial trade. You can choose from TradingView Signal Buy or Strong Buy, TradingView Signal Strong Buy, Manually, or Open New Trade ASAP.

That’s all there is to it. Twelve steps may seem like a lot, but in reality, you can configure your first trading bot in just a few minutes – even if you’ve never set one up before. That’s the beauty of this tool – it’s easy enough for beginning traders but still robust enough to satisfy more experienced traders as well.

Are you ready to test drive 3Commas’ Automated Trading Bots for yourself? Visit 3commas.io and sign up today.

Are you a 3Commas user? Have you checked out their Automated Trading Bot? How does it compare to other trading bots? Let us know in the comments below.


Images courtesy of 3Commas

Bitcoinist does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company.

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Lis 23

Bitfinex Now Offering BTC:EUR Trading Pair

· November 23, 2017 · 1:00 am

Bitfinex, the online cryptocurrency exchange and trading platform, announced that BTC:EUR is now a live trading pair on their website.


Bitfinex the worlds leading cryptocurrency exchange announced today that they will begin trading BTC:EUR, a move that has been widely welcomed after the site previously only supported the US dollar. The exchange also offers margin trading for those with more than a hobbyist attitude towards cryptocurrency trading.

Big News but Little Fanfare

Other than the tweet above, there has been very little fanfare of the new trading pair introduction. Although Bitfinex’s website itself has made no mention of the addition, it has come to light on Reddit that the minimum deposit for Euros is actually 10,000€, with a 0.100% fee on transactions. The exchange and trading platform also announced an introductory discount fee of 15%.

GDAX already has EUR, GBP and US dollar pairs for Bitcoin, so Bitfinex shall make a welcome addition for many traders. The Euro Bitcoin price is currently at 7045€, which converts to $8312 leaving quite a margin for arbitrage, however acceptance of trading certain pairs is limited to certain regions but the savvy trader could perhaps find profit in such a EUR/USD shortfall in Bitcoin’s price.

Are you a Bitfinex user? Is this a welcome move? Let us know what you think in the comments below.


Images courtesy of Bitfinex, Shutterstock

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