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CBOE Bitcoin Futures (XBT) Begin Trading

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Bitcoin Futures (XBT)
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The Chicago Board Options Exchange (CBOE) launched Bitcoin futures trading on December 10, 2017.

Over 4000 contracts were traded on the first day, causing two temporary trading halts as a result of the high volume.

Bitcoin Futures increased by about as much as 26% over the course of the first trading day, while Bitcoin itself hit a new all-time high of $17,270 during the same trading session.

The Bitcoin futures contracts are identified by the ticker symbol XBT.

One Bitcoin futures Contract is for 1 Bitcoin (BTC).

Forty percent margin requirements allow for leveraged trading; roughly about $8,000 to $9,000 per contract.

Below is a chart showing the Bitcoin Futures trading activity for the first day of trading, next to a 5-minute chart of the underlying Bitcoin for the same trading day.

A Futures Market for Bitcoin will have a positive effect on the cryptocurrency market in general.

First, being an underlying asset for derivative financial products listed on reputable exchanges such as the CBOE, and soon to be listed on the Chicago Mercantile Exchange (CME), will serve to legitimize Bitcoin and other cryptocurrencies in the eyes of those market participants that remain skeptical about the market.

Accessibility to the cryptocurrency market will be greatly enhanced to those institutions that are currently prohibited by government regulation from owning Bitcoin itself.

These institutions will now be able to participate in the Bitcoin market via Futures and other derivative products.

Furthermore, businesses that have avoided using Bitcoin as a form of payment for large-scale transactions that involved terms, due to the unpredictable volatility of the currency, will now be able to guarantee the value of a transaction using futures contracts to hedges against adverse market price movements, similar to the way businesses handle international transactions.

This will continue to create even more demand for Bitcoin.

Traders will now be able to hedge risk using trading strategies with combinations of Bitcoin Futures and positions of the underlying.

Being able to protect against downside risk in a Bitcoin market that is making unbelievable highs on unprecedented volatility, will ease trader’s concerns about the so called “Bubble” bursting, and Bitcoin losing all of its value overnight.

Consequently, traders will continue to enter the Bitcoin market at its highs, and the increased demand will continue to push Bitcoin even higher.

Long-term investors will also benefit from mitigating risk, and be able to create premium yielding investments using existing Bitcoin market positions that are in-the-money, along with short positions in the Futures.

We see this as the first step.

This should lead to futures contracts for other cryptocurrencies, and then eventually to Cryptocurrency Exchange Traded Funds (ETF).

We will be watching the Bitcoin Futures Market very closely.

We will be updating our subscribers as soon as we know more. For the latest updates on XBT, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Richard Yuan via Flickr

Bitcoin

Cryptocurrency Fraud is Evolving; Bitcoin ATMs Mitigate Risk 

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Cryptocurrency Fraud is Evolving
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In one of the more overlooked aspects of the crypto ecosystem, it appears that the bulk of illicit activities are shifting from hacks and thefts to cryptocurrency fraud and scams.

CipherTrace, the crypto-surveillance, and analysis firm released a report at the end of Q4 2019 that revealed hacks and thefts had decreased by 66 percent in 2019 while fraud and misappropriation of funds surged by 533 percent. And beneath the COVID-19 hysteria of 2020, hacks in the crypto sector have been eerily isolated. 

Outside of a few exploited flaws in P2P exchanges and DeFi flash loan vulnerabilities, the headline-grabbing hacks of exchanges for hundreds of millions of dollars have been absent so far this year. Is the industry due for another massive hack, or are stringent KYC/AML processes, regulatory crackdowns, better security practices, and blockchain surveillance working? 

KYC/AML Improvements Are Reducing the Appeal of Crypto Exchange Laundering 

2020 is far removed from the no-KYC wild west days of the early-mid 2010s where anonymous altcoin casinos preponderated and the Dark Underbelly of Cryptocurrency Markets thrived. 

Today, bitcoin and the crypto ecosystem is becoming institutionalized with a surfeit of derivatives (e.g., options, futures, perp swaps, etc.) available on…

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Bitcoin

IE Option – 91% Profit on BTC Fluctuations in Every 60s

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BTC
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On Thursday, Bitcoin price broke below $6,700 and hit the weekly low to $6,480. Then, it rebounded back above $7,000 again with an increasing rate of 5%. At press time, based on the incomplete statistics, more than $720 million worth cryptocurrency futures contracts have been liquidated in this week. During the strong market fluctuation, investors are learning a hard lesson about the downside of cryptocurrency futures trading with leverage. 

Since we know that we cannot make money by investing in BTC spot trade during the bear market, and we notice the high risks of liquidation by trading leveraged bitcoin futures contracts, how can we hedge the loss in spot trade and profit from the BTC market volatility? 

BTC Option is a profitable trading product that you can turn to!

What is Option?

Option is a type of crypto derivative contract which enables investors to make speculative bet on price rising and falling. Call option means that trader long BTC at a given strike price, while Put option allows trader to short BTC at a given strike price. 

For example, if you predict that BTC price may surge, you can buy a call option. Suppose that you buy a call option at $7,000. As long as price exceeds $7,000, you can make profit. 

IE Option – Get…

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Bitcoin

4 things you should know about bitcoin casinos

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Bitcoin casinos
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Bitcoin Casinos are the ideas of innovation, firmly moving towards the goal of disrupting the whole Gambling Industry. Best Bitcoin Casinos are the true trailblazers of the new era of gambling. Their creators quickly recognized all the immense potential that blockchain and cryptocurrencies contained within themselves. Most of the top Crypto Casinos started operating in the first half of the past decade and are quickly moving towards being the dominant force, when it comes to online gambling. There are a couple of key characteristics and advantages that elevate BTC Casinos above the rest of the competition on the market.  

Trusted casinos have fast withdrawals

Only the Best Bitcoin Casinos offer players the benefits that come with using cryptocurrencies as the main source of finance. One of the biggest advantages that BTC Casinos have over the rest of the competition is speed. When using cryptocurrencies, players can deposit and most importantly withdraw their money with blistering speeds. Thanks to blockchain technology, all the financial transactions are completed within the minutes of request. Alternatively, standard online casinos operating under the guidance of classical banking intuitions, need several days to complete the same procedures.

In BTC Casinos anonymity matters 

Another amazing benefit of Bitcoin Casinos is the ability to stay completely anonymous during the transactions and gameplay. Thanks to the…

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