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How Futures Contracts Will Affect Bitcoin

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How Futures Contracts Will Affect Bitcoin
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Bitcoin impressive run to record highs of $16,000 will face its biggest test in the coming weeks as exchanges open their doors for Futures Derivatives. The crypto currency has been trading in an uptrend, but with the entry of Futures, investors will now be able to play ’both sides’ of the market.

Two Sided Market

A two-sided market is something that has not been put to test when it comes to bitcoin trading. CME Group and CBOE Global markets are set to change the landscape in the coming days in a move that could have significant impact on the crypto currency’s future

The opening of Bitcoin Futures will provide institutional investors and high-speed traders an opportunity to bet on the digital currency’s wild swings. News of the Futures derivatives sent the cryptocurrencies to record highs after registering a record single-day gain of $2,500.

Futures introduce a different type of playing the game. As it stands, the market has rewarded all investors regardless of the number of coins that one owns. However, with the introduction of bitcoin futures big name players are set to enter the game.

The new players have the potential to drive the market down given the amount of money they are set to inject into the market. Futures were designed with a sole purpose of hedging against the risk. They provide one of the surest ways of benefiting when things go bad.

Bitcoin Futures Impact

With Futures, contract miners will be able to get the price for the coins they intend to mine in future. Holders are already doing the same thing as they hedge their downside. As it, stands there is no hedger on the buying side, something that has consistently piled pressure on the downside. The equilibrium has always been met with a strong bull market thus preventing bitcoin from collapsing

The futures contract will make it easy for investors to play both sides of the cryptocurrency market unlike in the past. With the digital currency, trading at record highs on mere speculation there is now a strong reason to be a bear and make a considerable profit by hedging against it.

Bitcoin has experienced volatility never seen before if price gains of up to $2,500 in a day are anything to go by. With the entry of new money from institutional investors, volatility levels could get out of hand, to the disadvantage of a normal investor on the wrong side of a trade.

The volatile nature of bitcoin with the introduction of Futures derivatives could also present another risk for clearing houses which act as middlemen between parties involved in transactions. Wild price swings could make it impossible for smaller brokerage firms to meet their margin calls which would make them to fail.

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Image courtesy of Richie Diesterheft via Flickr

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.

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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