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Observers Mock Fork Called Bitcoin2 That Pumps and Dumps on Two Exchanges

June 8, 2019 |

Observers Mock a Fork Called Bitcoin2 That Pumped and Dumped on Two Exchanges

Over the last 48 hours, cryptocurrency enthusiasts have been discussing a Bitcoin snapshot fork called Bitcoin2. The little known coin gained over 5,200% since May 28 on only two exchanges and managed to get listed on Coinmarketcap.com as well. Bitcoin2 is believed to be merely a pump and dump scam, much like a great majority of the Bitcoin snapshots airdropped in the past.

Also read: Bitcoin.com’s Local Bitcoin Cash Marketplace Is Now Open for Trading

BTC2 Gains Attention After Pumping 5,200% on Two Relatively Unknown Exchanges

Bitcoin2 (BTC2) was forked from Bitcoin Core block number 507850 on February 5, 2018. The reason people have just noticed this new snapshot fork is because it was recently listed on two exchanges and added to the coin market valuation website Coinmarketcap.com. The market price aggregation site shows historical price data for Bitcoin2 started on May 28 at $ 0.68 per BTC2 but the value spiked over 5,200% to a high of $ 36.93 on June 6. This has caused members of the crypto community to speculate that BTC2 is merely a scammy pump and dump scheme being propped by the creators and two unknown exchanges.

“Bitcoin2 is a scalable Bitcoin fork supporting truly anonymous and instantly verified transactions,” the token’s website banner exclaims.

Observers Mock a Fork Called Bitcoin2 That Pumped and Dumped on Two Exchanges

What the Hell Is BTC2 and Why Does This Coin Even Exist?

The coin’s website is hard to look at as the design is awful, but BTC2’s team claims the token has a vast amount of technological features. BTC2 is allegedly super fast due to the masternode system (a protocol framed in a similar fashion to the Dash network), and it also purports to be untraceable because it allegedly uses the Zerocoin protocol.

Observers Mock a Fork Called Bitcoin2 That Pumped and Dumped on Two Exchanges

Much like Zcash, the website details there are two wallets, one for regular BTC2 transactions and then another wallet that sends zBTC2 transactions which are supposedly more private. The team also details how bitcoiners with BTC held prior to block 507850 can obtain an airdrop of BTC2. The coin is only listed on the trading platforms Crex24 and Escodex but BTC2 is now ranked 1,933 on Coinmarketcap.com.

Observers Mock a Fork Called Bitcoin2 That Pumped and Dumped on Two Exchanges

On social media many people asked “What the hell is Bitcoin2?” and discussed how the token had all the elements of a laughable pump and dump scheme. One person on Twitter remarked: “Just when you’re hoping the crypto community is starting to gain some legitimacy — boom! pow! Whack! — Back to reality — Dumb money gonna do dumb things I suppose.” Another crypto fan jokingly wrote: “What the heck is this sorcery?” after observing the price spike on Friday, adding “#Scamalert” to his initial tweet. Another observer bemoaned:

Can someone explain to me what the flying figgity f*ck “Bitcoin2” is and most importantly WHY?!?!

Don’t Expect Flimflam Pump and Dump Crypto Projects to End Anytime Soon

The latest BTC2 spike was, as predicted by many observers, followed by a significant dump from its $ 36.93 high on June 6 to $ 4.18 per token just 14 hours later. Allegedly there’s $ 299,642 or 37.6 BTC worth of trade volume tied to BTC2 markets and a total supply of 17,288,923 BTC2. BTC2 does have open source documentation and the developers maintaining the project are dubbed ‘BTC2coredevs.’ The latest surprise market spectacle provided by BTC2 has led many crypto pundits to believe that investors have not learned from projects like these in the past and continue to be fooled by pumps.

Observers Mock a Fork Called Bitcoin2 That Pumped and Dumped on Two Exchanges

The news also follows the recently announced return of Bitconnect. Reportedly, Bitconnect 2.0 plans to launch on July 1 and many people are extremely suspicious of this announcement. However, the proclamation post was removed from Twitter soon after it was revealed the shady operation was returning. Bitconnect was a crypto lending platform that promised significant gains, but was regarded as one of the biggest Ponzi schemes since Onecoin. Eventually, after the original Bitconnect was broken up by law enforcement, the coin’s price went to zero and lots of people had virtually forgotten about the scam until now. The BTC2 fork pump and dump and the Bitconnect 2.0 rebrand is just another reminder that fraudulent boondoggle projects are still prevalent within the crypto economy.

What do you think about the suspicious pump and dump market performance BTC2 saw on June 6 through 7? Let us know what you think about this subject in the comments section below.

Disclaimer: Bitcoin.com does not endorse the fork “Bitcoin2,” “BTC2,” or any of its products/services. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Readers should be cautionary of crypto market pump and dumps. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Image credits: Shutterstock, Twitter, the Bitcoin2 website, and Pixabay.


Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

The post Observers Mock Fork Called Bitcoin2 That Pumps and Dumps on Two Exchanges appeared first on Bitcoin News.

Bitcoin News

Israeli Supreme Court Stops Bank From Closing Crypto Exchange’s Account

June 3, 2019 |

Israeli Supreme Court Prevents Bank From Closing Account of Crypto Exchange

In February 2018, the Supreme Court of Israel issued a temporary injunction order forbidding a major bank in the country from halting the activity of a local cryptocurrency exchange. Now the bank has been forced to accept that the company’s account will remain open indefinitely.

Also Read: Community Funding and Bringing Smart Contracts to BCH in the Weekly Update From Bitcoin.com

Banks Can’t Ban Crypto Exchanges for No Reason

Tel Aviv-based cryptocurrency exchange Bits of Gold can continue to have an account with Bank Leumi thanks to the intervention of the Israeli Supreme Court. The court has advised the bank to accept the appeal of the exchange against the closing of its account and the two sides reached a settlement that the judges validated as a ruling on Monday. The three supreme court judges who presided over the case also wrote that the exchange will continue its operations with “virtual coins” in compliance with any future regulations if and when those will be issued.

Israeli Supreme Court Stops Bank From Closing Crypto Exchange's Account

The exchange told local media that “This is a tremendous achievement for the company and the digital currency community, when the Supreme Court actually intervened and forced the bank to allow the company to manage an account whose main activity is connected to digital coins, despite the bank’s objection in principle.” Yuval Roash, CEO of Bits of Gold, added: “We worked hard to set up a company that met regulatory requirements in a new industry, and that work paid off. We managed to prove to the court that we are worthy of the trust of the banking system and that the attempt to close our bank account was wrong.”

Final Chapter in Bits of Gold vs. Leumi Saga?

In 2015, Bank Leumi decided to close the account of Bits of Gold, which is legally licensed as a currency changer business, only because it deals in cryptocurrency. The exchange turned to the courts and for several years kept working thanks to an injunction while awaiting a final verdict. In 2017, the Tel Aviv District Court authorized the bank to disallow Bits of Gold from trading in bitcoin, and the company appealed this decision to the Israeli Supreme Court which issued a temporary injunction. In early 2018 the Supreme Court ordered that the company can keep its account until a ruling was issued on the entire case.

Israeli Supreme Court Stops Bank From Closing Crypto Exchange's Account
Tel Aviv

This latest development should mean that the bank will no longer discriminate against businesses that deal with cryptocurrency without a justification to do so, however this does not mean that Leumi is now welcoming this type of activity. In the Bits of Gold settlement, the bank says that it reserves the right to examine each action in its account and take steps it thinks are needed to minimize risks from the company’s activity, and that this is not a precedent or an agreement for accepting any accounts in similar cases.

What do you think about this legal development in Israel? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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Bitcoin News

Cryptocurrency Exchanges Are Cleaning up Their Act

May 14, 2019 |

Cryptocurrency Exchanges Are Cleaning up Their Act

Ask a dozen crypto traders for the reason behind the recent rally and you’ll get a dozen different theories. Bakkt futures, Microsoft building on Bitcoin and Whole Foods accepting crypto have all been cited as fueling the bull market that’s broken out. While these factors have certainly helped, there’s a less documented reason why the crypto market has renewed confidence: exchanges have cleaned up their act, turning what was once a hostile battleground into an arena that’s fit for purpose.

Also read: How to Send Bitcoin Cash via Text Messages to Anyone With a Mobile Phone

The Three T’s That Define 2019’s Leading Exchanges

“Tier one” is a designation that’s traditionally been applied to the largest and most desirable exchanges for token listing. It’s a category where the likes of Binance, Coinbase, Bitfinex, and Bitstamp reside. But this year, tier one exchanges are defined less by their exorbitant listing fees, which in many cases have since been waived, but rather by their commitment to espousing the three T’s: transparency, trust, and true volume.

The first of these can be seen in the measures being taken by platforms such as Binance, and to a lesser extent Bittrex, to provide advance warning of large cold wallet movements to avoid spooking users. This is accompanied by frequent and detailed communication, particularly when things go wrong, such as in Binance’s $ 40M hack a fortnight ago. Although hacks are still as commonplace today as ever, at least now the crypto community is kept fully informed, rather than being left in the dark. Trading platforms such as Kraken and Poloniex have taken to publishing quarterly reports, much like those issued by publicly listed companies. Whether performed out of genuine care or a cynical attempt to ride the latest trend, this new culture of transparency has been welcomed by traders seasoned enough to recall Mt. Gox, Vircurex, and Btc-e.

Cryptocurrency Exchanges Are Cleaning up Their Act
Messari’s Real 10 index

Trust Through Proof of Solvency

Of the three T’s, trust is the hardest for an exchange to acquire, since it must be built up over time, and can be eradicated via a single misstep. While Binance has earned credit for its response to the recent hack, it’s safe to say Changpeng Zhao won’t be caught boasting about its impregnable security record again. Trust encompasses every facet of running an exchange, but is synonymous with instilling confidence in users that the platform can cover its liabilities. The Quadriga collapse is still a sore point for Canadians who lost funds when the exchange collapsed under the weight of its own insolvency. The recent revelation that Bitfinex has essentially been operating a fractional reserve, due to $ 850M of frozen assets, has added further weight to the movement for trust through proof of solvency.

Cryptocurrency Exchanges Are Cleaning up Their Act

A number of solutions have been proposed by which exchanges can show that customer deposits are fully covered, without disclosing sensitive data pertaining to account balances, or even needing to reveal the total value of its crypto assets. One such method, being pioneered by private computation network ARPA, can be used to calculate the average solvency level of exchanges without having to disclosing any sensitive data whatsoever.

“With ARPA network, data can be integrated, computed, and analyzed without being exposed,” explains co-founder Yemu Xu. “Computation will be done on encrypted data, on a distributed manner, and only the result will be viewable to the interest party.” He adds:

This technology is called secure Multiparty Computation (MPC). In the case of exchanges, exchanges can jointly compute an average for their solvency level without ever giving away their own solvency data.

Turn up the True Volume

Whereas wash trading was once de rigueur in crypto, it’s now frowned upon and penalized. Credit for cracking down on fake volume must go to the market data sites that have championed honest reporting, over Coinmarketcap’s more gameable system. “Honest” volume is fast becoming the norm rather than the exception, with Asian exchanges that doggedly insist on wash trading being shunned by a tranche of the market.

Streamex is a crypto trading platform where beginners can entrust expert traders to act on their behalf via community trading pools. It’s currently in beta, as it gears up for its full launch on July 1, heralded by a $ 1M trading competition. CEO Vedran Sisak told news.Bitcoin.com that cleaning up the reputation of cryptocurrency exchanges is crucial to onboarding new traders. “Beginners don’t want to be told they’re entering a rigged game, where wash trading and other deceptive behaviors are deployed to feign liquidity,” he explained. “They want to know that they can enter and exit trades with minimal slippage, and trade on reputable exchanges that are solvent and attentive to security and good customer service.”

Cryptocurrency Exchanges Are Cleaning up Their Act

Projects whose tokens have yet to reach exchanges are also now prioritizing platforms that champion honest reporting, over those that cook the books. Andy Yuen, CEO of fitness token Mhealthcoin, said: “The widespread availability of tools for discerning true volume makes it much easier to determine which exchanges are worth partnering with. We’ve spoken to a few crypto exchanges regarding listing Mhealthcoin, and have been drawn to those whose reputation for honest reporting lends them credibility. Being listed on an exchange where there’s rampant wash trading reflects badly on a project.”

Some of those tools for checking up on exchange volume include Messari’s Real 10 index, which recordes the trading volume of 10 platforms known for their accurate reporting, as well as The Tie’s new data transparency portal. As Joshua Frank of The Tie explained to news.Bitcoin.com: “Our team analyzed twenty factors across over thirty of the largest cryptocurrency exchanges to develop a comprehensive methodology for evaluating exchanges’ transparency, trustworthiness, and compliance. Among the factors that we analyzed were if these exchanges used any market surveillance tools like Nasdaq SMARTS, if they had formal market manipulation policies, and what data they made publicly available through their API such as historical trade level data and live order books.”

Cryptocurrency Exchanges Are Cleaning up Their Act
Nomics

In addition to the efforts being undertaken by The Tie, Messari, and Nomics, which ranks exchanges using a transparency score, a group led by Mike Novogratz’s Galaxy Digital and DRW’s Cumberland is pushing for a white list to bring the same standards to the OTC market for BTC.

Despite the progress that has been made in improving the reputation of cryptocurrency exchanges, the majority of platforms have yet to clean up their act. Exchanges still shamelessly wash trade to game CMC’s ranking system, Bitfinex still catches flak for its opacity, and, according to The Tie, less than 50% of crypto exchanges have any policies whatsoever against market manipulation such as wash trading and order book spoofing. Nevertheless, the tide is slowly turning. Where once it was profitable to engage in such behavior, now there is greater capital to be made from advocating transparency, building trust, and reporting true volume.

Do you think cryptocurrency exchanges are improving and becoming more accountable? Let us know in the comments section below.


Images courtesy of Shutterstock.


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Bitcoin News

Big Players Transforming Crypto Exchanges in Japan

April 24, 2019 |

Big Players Are Transforming Crypto Exchanges in Japan

Government-approved cryptocurrency trading platforms in Japan are undergoing changes with big players entering the market. News.Bitcoin.com talked to Japan’s top financial regulator to learn about the regulatory implications of the changing business models and internal systems of regulated exchanges.

Also read: Indian Supreme Court Postpones Crypto Case at Government’s Request

Changing Crypto Exchange Landscape

Crypto exchanges in Japan are rapidly transforming with the launch of new exchanges as large corporations entered the market. Japan’s top financial regulator, the Financial Services Agency (FSA), explained to news.Bitcoin.com Monday that when a crypto exchange is acquired by another company:

There is no need to re-register. If its business model or internal control system are to be changed, FSA will rigorously review them from the perspectives of user protection and others.

Big Players Are Transforming Cryptocurrency Exchanges in Japan

The agency further clarified, “If there are changes of entries (such as major shareholders or board members) in the registration application, notification of those changes must be submitted.”

On Tuesday, Reuters reported that the FSA “raided” two crypto exchanges — Huobi Japan and Fisco Cryptocurrency Exchange. However, according to the regulator, the visits are routine measures for all exchanges that have undergone internal changes. Huobi Japan recently acquired Bittrade exchange while Fisco Cryptocurrency Exchange acquired Zaif.

New Exchanges in Japan

A subsidiary of Yahoo Japan Corp. recently acquired a regulated exchange called Bitarg and changed its name to Taotao on Feb. 4. The new trading platform began accepting pre-registrations on March 25 and is expected to start trading in May. Taotao will only support BTC according to the FSA’s website.

Big Players Are Transforming Cryptocurrency Exchanges in Japan
Taotao exchange

E-commerce giant Rakuten Inc. has acquired Everybody’s Bitcoin exchange which had been in operation since March 30, 2017. The exchange’s name was changed to Rakuten Wallet on March 1 and the old service ended on March 31. The new service became available on April 15. Rakuten Wallet offers the trading of BTC, ETH, and BCH against the Japanese yen. Another registered crypto exchange, Decurret, also began operations on the same day, offering trading of BTC, ETH, BCH, LTC, and XRP.

Big Players Are Transforming Cryptocurrency Exchanges in Japan

Earlier this year, Bittrade exchange ended its service and began operating as Huobi Japan. The platform offers the trading of BTC, ETH, XRP, LTC, MONA, and BCH. Meanwhile, Fisco Cryptocurrency Exchange has finalized the asset transfer process from Zaif exchange after the latter was hacked in September last year, the exchange announced Monday.

Adding More Coins

All approved crypto exchanges have to declare what cryptocurrencies they will handle at the time of their application with the FSA. Currently, there are 19 approved crypto exchanges in Japan. The regulator told news.Bitcoin.com:

When a crypto-asset broker-dealer wants to add more crypto-assets or to change old ones into new ones to be traded on its platform, it is required to notify that in advance by the current laws and regulations.

Since some exchanges are owned by foreign companies, the FSA confirmed that “There is no difference between the registration process of a foreign crypto-asset broker-dealer and a Japanese one.” According to the current law, “when a foreign crypto-asset broker-dealer conducts crypto-asset exchange business in Japan, it is required to register as a crypto-asset broker-dealer with the FSA after the establishment of a company limited in Japan,” the regulator concluded.

What do you think of Japan’s changing crypto exchange landscape? Let us know in the comments section below.

Disclaimer: Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock.


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OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela’s Petro

April 22, 2019 |

OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela's Petro

Last February, news.Bitcoin.com first reported on the Venezuelan cryptocurrency the petro (PTR) launched by President Nicolas Maduro. Initially, many media reports assumed the digital currency might be phony or nonexistent. However, recent data from a few exchanges and from Venezuelans trading the asset on social media suggests the nation-state issued cryptocurrency is quite real and that locals are trading PTR regularly for goods and services.

Also read: Darknet Users Allege Wall Street Market Exit Scammed, Possibly Snatching $ 30M

Venezuelans Are Swapping the Petro on Exchanges and Social Media

Since the death of Hugo Chavez, when President Nicolas Maduro took over in 2013, Venezuela’s economy has spiraled out of control. At the time of writing, Venezuela’s inflation rate is a whopping 1,623,656%, making the nation state’s fiat currency, the bolivar, pretty much worthless. In an attempt to provide a solution, Maduro created the petro (PTR) cryptocurrency which is allegedly backed by Venezuela’s oil reserves. Some Venezuelans believe that eventually the bolivar will be decommissioned and citizens will be forced to use the petro. According to data issued by the government, PTR is supposed to be valued at 246,332 bolivars or $ 60 per PTR, but this isn’t the case right now. The digital currency also didn’t have a block explorer when the price base was increased by Maduro and most Venezuelans hadn’t seen it being used in the real world.

OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela's Petro

Our last petro report, however, showed the asset has finally seen the light of day and that Venezuelans are able to purchase PTR through the government agency Sunacrip. Moreover, the government has allowed cryptocurrencies like BTC and LTC to be used for payments in order to acquire petros. Sunacrip even created a state-sanctioned crypto remittance platform that supports BTC, LTC, and other cryptocurrencies. There is a block explorer available now that has an extremely glitchy interface, but Sunacrip has insisted that a fully functional petro block explorer will be released on April 30.

OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela's Petro
Amberes exchange. The petro cryptocurrency has been selling between 0.00555-0.007411 BTC on various exchanges.

There is also a variety of exchanges Sunacrip has made available to the public so people can buy and trade their PTR at state-sanctioned trading platforms. This includes authorized trading facilities such as Cryptoexca.io, Afx.trade, Amberes, Bancarexchange.io, Cryptiaexchange.com, and Criptolago.com.ve. The exchange rate for 1 petro varies on each exchange but one PTR is swapping for roughly $ 30-40 (0.00555-0.007411 BTC) and the cryptocurrency is paired with a variety of digital assets. Signing up for one of these trading platforms cannot be easily done, as the identification process is quite strict. For instance, the Amberes exchange requires a state-issued identification number, telephone number, bank statements, and invoices from private services showing a residential address. Some platforms like Bancarexchange allow a social media account to sign up with in addition to mandatory identification papers.

OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela's Petro
Some screenshots of the wallets people use to send and receive the petro (PTR).

OTC Telegram Groups and Facebook Tag Sales

Even though PTR is trading for much less than $ 60, Sunacrip’s official newsletter states that the Bolivarian Republic of Venezuela has had a “solid, reliable, transparent and inclusive system” since the petro introduction in 2018. Further, Sunacrip also scorns the “attacks at the national and international level, with sanctions and a campaign of discrediting the nation both internally and externally.” In addition to the petro being sold on government approved trading platforms, PTR is being traded on social media channels like Facebook and Telegram. On Facebook, there are lots of tag sale groups (called El Perolero) where people are exchanging goods and services for money. There are many ads these days scattered within these groups that show sellers will gladly accept the petro. One specific FB-based El Perolero marketplace group sees upwards of 9,000 unique ads a day and has over 293,000 members.

OTC Groups and State-Sanctioned Exchanges Start Trading Venezuela's Petro
The Petro Exchange Telegram channel.

There’s also Telegram-based over-the-counter (OTC) groups where people can purchase and sell PTR peer-to-peer. The Petro Exchange group has roughly 321 members and the purpose of the group is to “allow people to buy and sell petro using any digital currency, in addition to the commercialization of any product or service using petro as a form of payment.” However, in order to interact with the PTR dealer, buyers are required to privately send them “identity documents plus a selfie with the document in hand and a handwritten paper with the date and time, all fully readable.”

Over the last six months, there’s been a lot of curiosity aimed at the petro cryptocurrency and now Venezuelans are getting a taste of what it’s like to use the asset and what it takes to obtain the petro. With all the government-sanctioned exchanges made available, the latest remittance platform, and the upcoming revamped block explorer, the incumbent Venezuelan government led by Maduro seems confident that the petro is here to stay.

What do you think about the petro? Let us know what you think about this subject in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned exchanges, companies, software or any of the affiliates or services. Bitcoin.com or the author is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. This editorial review is for informational purposes only.


Images credits: Shutterstock, Pixabay, and various exchanges.


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The Number of Crypto Exchanges Offering Margin Has Multiplied

April 21, 2019 |

Until recently, Bitmex, Deribit and a handful of established exchanges were the only places where traders could get their leverage fix. This has now changed with the emergence of dozens of exchanges offering leverage and plenty more on their way. Binance and Kucoin – two platforms famed for driving this year’s other exchange trend, the IEO – are believed to be mulling the introduction of margin trading. In 2019, it seems, everything’s being served with leverage.

Also read: Darknet Users Allege Wall Street Market Exit Scammed, Possibly Snatching $ 30M

Margin Trading Is so Hot Right Now

Margin trading and initial exchange offerings (IEOs) have proven to be the dominant trends among cryptocurrency exchanges this year. Bibox is the perfect case in point: the exchange, which offers up to 3x leverage on BTC, recently entered the IEO game, announcing the launch of no less than four projects on Bibox Orbit simultaneously to commence on April 22: The Force Protocol (FOR), Ludos (LUD), Staking (SKR), and X-Block (IX).

The Number of Crypto Exchanges Offering Margin Has Multiplied

FTX is another platform that encapsulates one of 2019’s defining crypto exchange trends, in this case for leverage. The derivatives exchange, backed by trading firm Alameda Research, offers futures, leveraged tokens at up to 3x, and OTC trading. With leverage of anywhere from 2-100x, these exchanges multiply the thrill – and the risk – of going long or short on bitcoin and other digital assets. Where once traders had a handful of options, now there are dozens, as the number of platforms offering margin and derivatives products has proliferated.

The Number of Exchanges Offering Leverage Has Increased 10x

The Perils of Offering Leverage

On market data sites such as Coincodex, Coinlore, and Coinpaprika, the number of exchanges offering leverage now runs to more than 50. Some provide margin trading on leading coins such as BTC, ETH, and BCH, while others have gotten more adventurous, offering products such as leveraged futures on Telegram’s still unreleased gram token. For traders lured by the prospect of tripling their money through little more than cranking up a slider and letting the multiplier effect take care of the rest, there are a few perils to be aware of – aside from the obvious risk of being liquidated.

The Number of Crypto Exchanges Offering Margin Has Multiplied

Bitmex takes pride in the size of its insurance fund, which currently stands at close to 24,000 BTC, but the majority of leveraged exchanges aren’t nearly so well equipped. With smaller exchanges, a large trader’s account going bankrupt can lead to clawbacks from other accounts to cover the loss. Poorly designed risk management systems exacerbate this risk. The complexities of offering leverage are significant, necessitating collateral to be posted for separate margin wallets for each digital asset. Newly launched futures exchanges also typically suffer from low volume and poor liquidity due to a small customer base, which in turn makes it more difficult to attract customer flow and market makers.

The Number of Crypto Exchanges Offering Margin Has Multiplied
Okex rolled back its futures contracts following a massive liquidation in July 2018

It’s not just new exchanges that can get things from when it comes to managing margin, either: last year Okex suffered a $ 9M clawback after a trader placed a large BTC order and was then liquidated after the asset crashed. As FTX notes, “If a user has a leveraged futures position on and markets move against their account enough that their net asset value is negative, then someone has to pay for that loss.” It continues:

In crypto you can’t repossess assets from the bankrupt account’s owner from outside the system, so you’re stuck with other users — the users who aren’t getting liquidated — footing the bill.

With the public’s appetite for leveraged everything and IEOs for everything showing no signs of being sated, expect to see plenty more of both in 2019. In an increasingly competitive marketplace, with hundreds of platforms jostling to gain a foothold, margin, despite its hazards, is seen as a key way to attract traders and stay relevant.

What are your thoughts on the proliferation of exchanges offering margin trading? What’s your favorite platform for leveraged trading? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The post The Number of Crypto Exchanges Offering Margin Has Multiplied appeared first on Bitcoin News.

Bitcoin News

Philippines Now Has 10 Approved Cryptocurrency Exchanges

April 10, 2019 |

Philippines Now Has 10 Approved Cryptocurrency Exchanges

The Philippines is catching up to Japan with a growing number of approved cryptocurrency exchanges. The central bank has green-lighted 10 crypto exchanges so far. Meanwhile, one of the country’s largest banks now has a bitcoin ATM at one of its main branches. In addition, the Cagayan Economic Zone Authority has independently licensed 24 crypto exchanges.

Also read: Indian Supreme Court Postpones Crypto Case at Government’s Request

10 Legal Crypto Exchanges

The Bangko Sentral ng Pilipinas (BSP) has approved 10 cryptocurrency exchanges in total, according to the most recent list provided by the central bank. Three of them were recently added, the Manila Times reported Monday.

Melchor T. Plabasan, the officer in charge at the Technology Risk and Innovation Supervision Department of the central bank, said the latest crypto exchange operators authorized were Bexpress Inc., Coinvillel Phils Inc., and Aba Global Philippines Inc.

Philippines Now Has 10 Approved Cryptocurrency Exchanges

The most recent list of remittance and transfer companies with money changing or foreign exchange dealing as well as virtual currency exchange service provided by the central bank comprises 10 businesses. Besides the three new additions, the seven others are Betur Inc. dba Coins.ph, Remittance Inc., Bloomsolutions Inc., Virtual Currency Philippines Inc., Etranss Remittance International Corp., Fyntegrate Inc., and Zybi Tech Inc.

In comparison, Japan’s top financial regulator recently registered two new crypto exchanges, bringing the total of approved exchanges in the country to 19. Furthermore, the regulator has told news.Bitcoin.com that over 140 more companies have expressed interest in operating crypto exchanges in Japan.

Bitcoin ATM at a Major Bank

Union Bank of the Philippines (UBP) aka Unionbank, one of the largest banks in the country, recently installed a bitcoin ATM at one of its main branches, with the approval of the central bank and in partnership with Coins.ph. Last month, the bank announced that this ATM is now operational.

News.Bitcoin.com talked to a representative of the bank who explained that the machine can only be used to buy and sell BTC currently. Noting that the “ATM is located in the Ark Makati and can only be accessed during Ark branch hours,” the representative elaborated:

When they sell their bitcoin, users will be able to withdraw the money they made in the transaction from the ATM directly. You have to be a UBP account holder and have a crypto wallet (like Coinsph), users who do not have a UBP account can open one in the Ark where the ATM is located.

Philippines Now Has 10 Approved Cryptocurrency Exchanges
Bitcoin ATM at Unionbank. Image by Coins.ph CEO Ron Hose.

The BSP issued Memorandum 2019-006 on March 14 reminding banks that operators of cryptocurrency ATMs are considered virtual currency exchanges and must be registered with the bank, as mandated in Circular No. 944 dated Feb. 6, 2017.

According to Business World, Unionbank CEO Edwin R. Bautista said the bank plans to add more crypto ATMs in more branches, with the approval of the BSP. The bank currently has about 300 branches.

Ceza Has Issued 24 Licenses

Instead of obtaining a license from the central bank, crypto exchanges can obtain offshore licenses from the government-owned Cagayan Economic Zone Authority (Ceza) which has independently been approving a number of crypto exchanges.

Ceza CEO Raul Lambino said last month that “24 principal licenses and six regular licenses for cryptocurrency exchanges” have been issued, “as well as four licenses for 15 companies involved in financial technology solutions.”

Philippines Now Has 10 Approved Cryptocurrency Exchanges

However, unlike the harder-to-obtain BSP license, the Financial Technology Solutions and Offshore Virtual Currency (Ftsovc) license issued by Ceza comes with several restrictions. According to Bitpinas news outlet, this license allows exchanges to “run the business in the Philippines but must only service users from outside the country.” The publication further explained that “This license allows the company to do crypto-to-crypto transactions but does not allow the company to facilitate crypto-to-fiat transactions as that is a separate license from the Bangko Sentral ng Pilipinas.”

What do you think of the Philippines approving all these crypto exchanges and Unionbank having a bitcoin ATM? Let us know in the comments section below.


Images courtesy of Shutterstock and Ron Hose.


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Cryptoradar Finds Best Prices Across Exchanges and Brokers

April 6, 2019 |

Cryptoradar Finds Best Prices Across Exchanges and Brokers

When you want to buy or sell digital coins, a service called Cryptoradar can help you find the best prices across multiple trading platforms. The website tracks cryptocurrency exchanges and brokers and offers several optimal choices depending on your location.

Also read: Check If Your Market Predictions Are Right With Sparkprofit

Traders Can Select Exchanges Based on Their Features

Cryptoradar.co has a variety of filtering options. Users can pick a digital asset exchange, a crypto broker, or a P2P platform based, for example, on supported payment methods like bank transfer including Sepa, Visa and Mastercard, and payment processors like Paypal and Skrill.

Traders can also select a platform that’s either based or available in their country or region and choose those that support a particular language. Results can be filtered by features like instant verification, integrated wallet, mobile app, and beginner friendly services as well as their ratings.

Cryptoradar Finds Best Prices Across Exchanges and Brokers

The website, developed by an Estonian company, finds marketplaces for a dozen major cryptocurrencies including bitcoin cash (BCH), bitcoin core (BTC) and ethereum (ETH). It can be used by both buyers and sellers who can set price alerts for the coin they are interested in.

Cryptoradar provides information about every platform it suggests. This includes details about the applicable fees and the availability of features like cold storage, multisig wallets, business accounts, and two-factor authentication. Both payment and payout options are listed.

A popup window for each trading platform contains a short description of the exchange or broker, an estimate of the ease of use of its system, details about the verification process, and its rating score. Registered users can write reviews and even earn money by sharing their experience.

Have you used platforms such as Cryptoradar? Tell us in the comments section below.

Disclaimer: Readers should do their own due diligence before taking any actions related to the mentioned companies or any of their affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock, Cryptoradar.


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Cryptoradar Finds Best Prices Across Exchanges and Brokers appeared first on Bitcoin News.

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Indian Crypto Exchanges Share What Sets Their P2P Platforms Apart

April 5, 2019 |

These Indian Crypto Exchanges Share What Sets Their ‘P2P’ Platforms Apart

Many cryptocurrency exchanges in India offer some kind of peer-to-peer (P2P) trading. News.Bitcoin.com talked to several of them to find out what is unique about each platform, most of which were launched in response to the banking restriction imposed by the country’s central bank.

Also read: Indian Supreme Court Postpones Crypto Case at Government’s Request

P2P With Tether

A number of Indian crypto exchanges launched exchange-escrowed P2P trading following the banking restriction imposed by the Reserve Bank of India (RBI) which went into effect in July last year. Some of them use dollar-pegged stablecoin tether (USDT) as an extra step between rupees and buying or selling other cryptocurrencies on their P2P platforms.

These Indian Crypto Exchanges Share What Sets Their ‘P2P’ Platforms Apart

Wazirx has a P2P platform that allows users to convert their INR to USDT in order to trade against any of the 42 coins listed on its main exchange. CEO Nischal Shetty described to news.Bitcoin.com that “Unlike other P2P where [the] user has to decide which buyer or seller to connect with, Wazirx P2P automatically matches with the right peers based on order volume and price.” For users wanting to trade with a particular person, however, he noted that his exchange also has “a unique XID feature that lets you conduct P2P with a specific person if needed.”

Bitbns is another Indian exchange that utilizes USDT. A representative of the exchange only has this to say: “You can trade 65 coins on Bitbns. You can deposit and withdraw quickly using USDT method.”

More P2P Options

Many Indian crypto exchanges opt not to use tether as a stepping stone for their exchange-escrowed P2P platforms.

Dcx Insta by Coindcx exchange is a P2P platform that “allows users to buy and sell 160 cryptocurrencies instantly … directly with INR,” CEO Sumit Gupta told news.Bitcoin.com, emphasizing that “orders are executed near instantly.” The exchange lets users buy cryptocurrencies for as low as 10 rupees (~$ 0.14) in addition to buying “stablecoins worth INR 2,00,000 (=$ 2,894) instantly without having to wait for the order book,” Gupta remarked. His main exchange also offers “spot markets, margin trading and lending platform with the same wallets.”

These Indian Crypto Exchanges Share What Sets Their ‘P2P’ Platforms Apart

Instashift offers P2P exchange for 130 coins and a long list of fiat currencies including the rupee. The exchange claims that trades between customers are often matched and executed in “under 2 seconds” if the conditions are right. Marketing officer Jacob Mani told news.bitcoin.com that his company “operates a mixed order book; which means that if a seller is selling BTC and the buyer is buying XRP or any of the 130 coins we support, we still match them and they can trade with each other and still get to buy/sell the coin of their choice.”

Meanwhile, Giottus has a P2P exchange where “every P2P order is assigned to a customer support executive” who assists users, coordinates with buyers and sellers, and resolves any disputes, CEO Vikram Subburaj explained to news.Bitcoin.com. “Even after a seller gives confirmation that he has received INR funds … we call the seller and do a double confirmation before releasing the coins to [the] buyer (Since P2P is new to many customers, we introduced this process to ensure that sellers do not lose their funds if they had pressed the confirmation button by mistake).” The CEO added that his exchange “offers a guarantee of up to 1 BTC in P2P in case anything goes wrong and [the] customer loses his funds even after following all the P2P guidelines.”

These Indian Crypto Exchanges Share What Sets Their ‘P2P’ Platforms Apart

Crypto exchange Buyucoin, founded in 2016, has a similar platform. CEO Shivam Thakral shared with news.Bitcoin.com that his P2P system “enables users to withdraw their funds by algorithmically matching them with depositors who want to deposit and we act as [a] middle watcher so that the transaction goes smoothly.” Buyers and sellers “both create requests and using our several algorithms they get matched,” he reiterated.

P2P OTC Exchanges

There are also many online exchanges that offer P2P trading for INR, listing offers on local boards without automatically matching buyers with sellers. Known as over-the-counter (OTC) trading, these services allow local traders to find and trade with each other directly, as has been the case with Finnish platform Localbitcoins since it began service globally in 2012. Users looking to sell their BTC list the payment methods they accept next to their offers.

These Indian Crypto Exchanges Share What Sets Their ‘P2P’ Platforms Apart

Although Localbitcoins has the most INR listings, with 351 BTC traded in the week ending March 30, New York-based Paxful also shows some decent INR trading volume for BTC, with 29 coins changing hands during the same time period. Indian exchange Koinex‘s P2P network offers a similar listing format but supports four cryptocurrencies.

Bisq, a truly decentralized P2P application, is another place that offers OTC crypto trading for INR. The open-source app with a built-in TOR network node must be downloaded and run on users’ desktops before any trades can be seen. There are very few INR listings on Bisq at press time. However, what Bisq lacks in liquidity, it makes up for in extreme privacy and censorship resistance.

Requests were sent to several other Indian crypto exchanges with P2P platforms but their responses were not received at press time.

Which P2P crypto trading platforms do you like? Let us know in the comments section below.

Disclaimer: This list is not all-inclusive. Bitcoin.com does not endorse or support claims made by any parties in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither Bitcoin.com nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images courtesy of Shutterstock and Coin.dance.


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Coingapp Allows You to Exploit Arbitrage Opportunities Between Exchanges

March 28, 2019 |

Coingapp Allows You to Exploit Arbitrage Opportunities Between Exchanges

The Coingapp mobile application gives crypto traders a chance to profit from price differences between various trading platforms. The app compiles market data from several dozen crypto exchanges to offer suggestions about where to buy low and where to sell high.

Also read: New Crypto Exchange Bitzlato Offers P2P Trading

App Tracks Global and Regional Platforms

The Coingapp software is free and available for both Android and iOS devices. It allows users to find arbitrage opportunities by tracking cryptocurrency exchange rates on multiple trading platforms. Coingapp follows over 40 digital asset exchanges including global leaders like Binance, Kraken and Okex as well as regional platforms such as Exmo and Btcturk.

Coingapp Allows You to Exploit Arbitrage Opportunities Between Exchanges

The app provides a number of filtering options that let you select your favorite trading websites, cryptocurrency and fiat markets. It lists the trading opportunities with ‘buy from’ and ‘sell at’ suggestions, while showing the price difference in percentage points.

Trades are evaluated and their status is indicated in three different colors: “convenient trades” are marked as green, yellow means low volume, and red serves as a warning when deposits or withdrawals are disabled, for example.

Disabled trades can be hidden from the main screen and a warning for low volume trades can be preset at a desired level. The app has an auto refresh feature that can update the list of trading opportunities every 10 seconds.

Do you know of other mobile applications offering similar functionalities? Let us know in the comments section below.


Images courtesy of Shutterstock, Coingapp.


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Coingapp Allows You to Exploit Arbitrage Opportunities Between Exchanges appeared first on Bitcoin News.

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