Singapore Appeals Court Rejects Quoine Appeal in Landmark Crypto Ruling

Singapore’s Appeals Court has rejected Quoine’s appeal, ruling that the exchange must pay damages to a market maker for seven wrongfully reversed trades.

In the country’s first legal dispute involving cryptocurrency, the Singapore Court of Appeals has ruled that virtual currency exchange Quoine must pay damages to electronic market maker B2C2. The damages are for seven transactions that were wrongfully reversed on the platform during April 2017.

According to The Straits Times on Feb. 24, the court dismissed Quoine’s appeal, in which the exchange argued that it was entitled to unilaterally cancel the orders due to such comprising a mistake. 

The exchange argued that the parties who fulfilled B2C2’s orders to sell Ether (ETH) for Bitcoin (BTC) at the price of 10 BTC per ETH believed that their orders had been executed at the current market price, rather than 250 times above market value. It further claimed that B2C2 was aware of this mistake.

The Feb. 24 landmark ruling saw four of the five judges of the Court of Appeals dismiss Quoine’s appeal, with Chief Justice Sundaresh Menon, Judges of Appeal Andrew Phang and Judith Prakash and International Judge Robert French determining that there was no mistake concerning the terms of the trading contract executed on the platform. Judge Jonathan Mance was the sole adjudicator to dissent on the matter. 

B2C2 sells 309 ETH for 3,092 BTC during April 2017

The court found that both B2C2 and Quoine were operating complex automated trading systems to execute a high volume of trades on the Quoine exchange. It further discovered that these systems sought to exploit the spread between cryptocurrency prices across multiple exchanges.

Upon encountering a lack of sufficient market data, B2C2’s arbitrage bot would revert to a “deep price” of 10 BTC per ETH. During April 2017, a bug in Quoine’s software resulted in B2C2’s deep price taking effect, before seven orders were fulfilled on April 19, 2017 that saw B2C2 sell roughly 309 ETH for 3,092 BTC.

Shortly thereafter, Quoine deducted 3,085 BTC from B2C2’s account.

Quoine mandated to pay damages to B2C2

While the Singapore International Commercial Court (SICC) ruled that Quoine must pay damages to B2C2 nearly 12 months ago, the parties were unable to come to a consensus regarding the sum to be repaid.

The SICC did not rule that Quoine must return 3,085 BTC to the market maker, with judge Simon Thorley asserting that current Bitcoin prices were “substantially higher than the price in April 2017 when the trades were executed."

Additionally, B2C2 had sold almost one-third of the BTC in question before the trades being reversed, with automated trading bots offloading the coins across nine different exchanges. As such, an SICC judge determined that ordering a specific sum to be repaid to B2C2 would “cause substantial hardship to Quoine which any potential difficulty in assessing damages does not outweigh.”

World’s Richest Lose Billions in Stock Rout, Is Bitcoin The Answer?

bitcoin wealth gap
Yesterday’s stock market plunge was one of the largest single day losses in history resulting in the fortunes of the world’s billionaires shrinking a little. Can bitcoin be the answer to this epic wealth gap? Global stock markets were pounded on Monday with some shedding as much as 4% in a single day. While this is a relatively small percentage in comparison to crypto markets, it is a big deal for stocks. The Dow plunged a thousand points yesterday marking the third biggest daily point drop for the Dow Jones Industrial Average in its 124 year history. Investors have started to get the jitters as the Covid-19 virus spreads beyond China with countries including Italy and Iran recording spikes in infections. Billionaires Lose Billions According to reports, the ten richest people in the world lost a collective $30 billion. The world’s wealthiest person, Amazon’s Jeff Bezos, saw his net worth slide by $4.8 billion to just under $123 billion as shares of his e-commerce monopoly slumped 4%. CEO of French luxury conglomerate LVMH, Bernard Arnault, lost a similar percentage as his wealth slipped to a mere $100 billion. Billionaire Facebook boss Mark Zuckerberg also got stung as his firm’s stock slumped 4.5% yesterday which cost him $3.4 billion. Elon Musk was in greater pain as his Tesla stock crashed 7.5% costing the tech mogul $2.4 billion. The company suffered more than the rest due to its reliance on a recently opened factory in China the report added. Previously the world’s richest man, Microsoft’s Bill Gates, was hit with a $1.5 billion loss reducing his money pile to just $111 billion. Forbes has reflected the changes in wealth on its ‘real time billionaires’ page. The US president shrugged off the stock rout with claims that everything was under control with regards to the viral outbreak. The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me! — Donald J. Trump (@realDonaldTrump) February 24, 2020 Bitcoin & The Epic Wealth Gap The report highlights a growing wealth gap with those at the top getting richer even in the fact of these losses. Crypto twitter has been awash with commentary today about Warren Buffet’s recent bitcoin remarks and claims that he will never own any. On industry observer aptly pointed out; “Why do people keep asking an 89 year old value investor worth almost $100B about his views on a revolutionary new money system that will take decades to play out.” There has been too much reaction to this largely insignificant interview when the real problem is that a very small number of people control a very large percentage of the wealth. Being divisible and borderless, bitcoin can become a solution to this but it will not happen overnight. Can bitcoin solve the wealth gap problem? Add your comments below.

A New Generation of HardWallet: How HASHWallet Protocol Protects Users Cryptocurrencies on Blockchain

Data breaches are a major concern to internet users, organizations, and governments. In 2013, almost 3 million customer credit card records were stolen from the Adobe database. Also, information pertaining to 60 million users was accessed on the U.S Postal Service database. These breaches come with financial costs and can ruin customers’ trust, which brings about a need for data security.

In line with that, data integrity is important. It ensures that stored information is unchanged irrespective of when, where, and how it is accessed. However, not many systems can offer this characteristic. A system that can, must be immutable, tamper-proof and decentralized.

Accordingly,  HASHWallet protocol has been used to develop a new generation kind of hardware wallet. This innovative hardware wallet is primarily designed to safeguard its users’ crypto-assets.in the shape of a convenient “smart card” full premium features —  which makes it easy for its users to move around with.

HASHWallet Offers High-Level Security and Ease of Use

HASHWallet is the first non-programmable hardware wallet, hence it offers a more secure environment for users to verify transactions. Here, a large e-ink screen is used to check and approve transactions, which eliminates the potential for fraud. What’s more, the private key on the smart card can never be extracted by the user. As such, the key can neither be lost nor stolen.

HASHWallet also features an intuitive user interface that makes it easy for everyone to operate. Whether you are new to the cryptocurrency space, or you have little or no knowledge of gadgets, you can operate this wallet with ease. Moreover, it is the world’s first hardware wallet to feature a direct mobile application. The application can be used to manage the wallet and user’s funds from a smartphone.

HASHWallet has entered into an arrow certificate program         

                                      

Basically, the Arrow certification program is a partnership between Arrow and Indiegogo that gives entrepreneurs the necessary tools and services to bring their product ideas to life. Just recently, after deep investigation and scrutiny, HASHWallet has been endorsed and certified to be an “Arrow Certified Product.’’ In fact, the eSignus engineering team from HASHWallet is now working with ArrowGlobal to ensure that they build the most secure hardware wallet.

HASHWallet makes it Difficult for hackers to steal what they don’t know;

Actually, this device is designed to incorporate public-private key technology. So, anytime the card is initialized for the first time, it generates the key pairs in a random way and not based on any seed. The private key is kept inside without anyone knowing it not even the user. Therefore, what is not known and inaccessible is impossible to steal.

HASHWallet offers maximum security via Biometric Technology:

In many sectors or industries, when it comes to topnotch security, biometric authentication is no doubt one of the most reliable options for asset storage security. The crypto industry is no longer left out; HASHWallet has imbibed this form of security for the storage of its users’ crypto-assets. This technology solves one of the challenges facing cryptocurrencies — to protect owner identity.

HASHWallet offers an innovative key recovery system:

Safekeeping cryptocurrencies is hard work for some users. According to the recent research by Chainalysis, a digital forensics firm that examined the Bitcoin Blockchain,  about 3.79 million has already gone forever based on a high estimate and 2.79 million based on low. 

Statistically, we can say that Hardware wallets get lost all the time either from damage or misplacement. That is why HASHWallet comes with two Smart seed cards to provide an alternative way to access your funds if the wallet is lost. While activating HASHWallet for the first time, the seed cards are paired to the device via NFC. As a result, your Recovery Seed is stored on these cards. The card also generates a ‘Recovery Key’ that is stored on the eSignus Vault.

Also if it happens that you no longer have access to the HASHWallet, you can fall back on one of these cards. All that is required, is to purchase another HASHWallet and use one of the Seed cards to enter the Recovery Seed and Recovery Key. Your funds will then be accessible from the new HASHWallet.

Conclusion:

HASHWallet protocol helps to protect users’ cryptocurrencies on the blockchain. Accordingly, users looking for a more secure way to transfer their virtual assets and in a faster manner need to take advantage of the HASHWallet. This hardware wallet is secure, easy to use, and has been built with the latest technology.

The post A New Generation of HardWallet: How HASHWallet Protocol Protects Users Cryptocurrencies on Blockchain appeared first on NullTX.

Regulator May Ban La Liga Football Clubs’ Crypto Sponsorship Deals

Jan Oblak, the goalkeeper for Spanish club Atlético Madrid. Source: a screenshot, Instagram/atleticomadrid One of Spain’s top financial regulators has warned top-tier professional football clubs in the country that their sponsorship deals – including many made with cryptocurrency-related companies – could be “toxic.” Sports newspaper AS says it has seen a report compiled by the

Crypto-Friendly Banking App Now One of Europe’s Most Valuable Fintechs

Crypto-supporting banking app Revolut has raised $500 million in a fresh funding round and tripled its valuation to hit $5.5 billion.

United Kingdom-based digital bank Revolut has raised $500 million in a fresh funding round and tripled its valuation to hit $5.5 billion. This, as the Financial Times reported on Feb. 25, makes the crypto-supporting app one of Europe’s most valuable fintech firms.

Since late 2017, Revolut’s app has enabled its users to complete transactions in cryptocurrencies that include Bitcoin (BTC), Litecoin (LTC), Ether (ETH) and XRP

In Dec. 2018, the firm received a banking license in Lithuania, paving the way for a transition away from prepaid cards toward offering a fuller suite of banking services.

Valuation equals erstwhile record for European fintech

The new funding round was led by Silicon Valley venture capital group TCV, which invests in major tech players such as Facebook, Airbnb, Tripadvisor, LinkedIn and Spotify. 

TCV’s $5.5 billion valuation of Revolut equals the previous record set by a private European fintech, Sweden’s Klarna, in 2019.

In 2018, the firm had been valued at $1.7 billion, in a funding round led by early Facebook and Spotify backer DST Global. 

Revolut — which has a user base of over 10 million — saw customer growth rising by over 150% last year. Alongside its cryptocurrency and stock trading features, the firm is looking to expand into lending services and is pursuing a U.K. banking license.

The U.K. is proving to be a highly lucrative market for disrupter banks — sometimes dubbed “neobanks” — with users soaring from 7.7 million to 19.6 million last year, according to a report released yesterday by Accenture.

The first half of 2020 could also herald Revolut’s launch in the United States, should the firm manage to clear the regulatory hurdles. It has also been eyeing expansion to Latin American and Asian markets.

Neobanks and cryptocurrency banks gain traction

As recently reported, Mark Hipperson, the co-founder of fellow U.K.-based neobank Starling, is planning to launch a new banking venture, Ziglu, in Q1 2020. The bank will offer balances in multiple currencies — both fiat and cryptocurrency — held together in one account, which can be spent globally using a Mastercard debit card.

Hybrids combining the features of legacy banking services and cryptocurrency transactions continue to develop. Coinbase this week announced its principle membership of Visa and crypto-dedicated banks such as Switzerland’s SEBA and Syngum continue to diversify their services.

Wall Street Veteran Aims at Institutional Investors With a New Crypto Bank

Caitlin Long. Source: A video screenshot, Youtube/ReasonTV A new crypto-focused bank is set to open in 2021 in the U.S. state of Wyoming in order to provide institutional-level investment infrastructure for cryptoassets, while abiding by strict regulatory requirements. The company, called Avanti Bank, is already seed-funded and has partnered with major, Canada-based blockchain company

Crypto market sees extensive bloodbath as Bitcoin reaches key level

After a futile attempt to kick off another uptrend yesterday, the crypto market has seen an intense selloff that has stemmed from Bitcoin’s move down to $9,500, which has subsequently led most major altcoins to plummet lower.

This bloodbath has led most major cryptocurrencies to form an incredibly close correlation to Bitcoin, and it is highly probable that where the aggregated market heads next will be dependent on whether or not BTC is able to hold above a key level that it is currently trading at.

If the benchmark crypto breaks below this level, it could spark a market-wide selloff that leads many major altcoins to invalidate the bullish market structures they have formed over the past several weeks.

Crypto market sees intense selloff following Bitcoin’s bearish rejection 

Yesterday, Bitcoin attempted to make a move up to $10,000 that was met with significant selling pressure, subsequently leading BTC to plummet towards $9,500.

This rejection sent shockwaves throughout the aggregated crypto market, with many altcoins that were previously expressing bullishness to see notable selloffs.

At the time of writing, Tezos and Chainlink – two of the best performing altcoins in 2020–are leading today’s drop, trading down 8 percent and 7.5 percent respectively.

Most other altcoins are closely trailing these losses, with Litecoin, EOS, Bitcoin Cash, and others all trading down roughly 6 percent.

The only major cryptocurrency that has been able to dodge losses of this magnitude is Ethereum, which is trading down just under 3 percent.

Where altcoins go next depends on how Bitcoin reacts to one key level

Today’s selloff has led Bitcoin to a key support level at $9,550 that bulls are currently attempting to defend, and a drop below this level could open the gates for significantly further near-term losses.

Big Chonis, a prominent cryptocurrency analyst, spoke about this key level in a recent tweet, referencing the level seen on the below chart.

“Very important area that Bitcoin bulls want to hold…Has acted as support to resistance and back to support… weekly!”

Bitcoin Crypto Altcoins
Bitcoin Trading Levels.  Courtesy of Big Chonis

In the near-term, how deep the ongoing altcoin selloff extends will likely rest largely on whether BTC is able to further extend its upwards momentum, as a failure to do so will likely lead investors to flee their altcoin positions in favor of BTC.

The post Crypto market sees extensive bloodbath as Bitcoin reaches key level appeared first on CryptoSlate.

IRS Plans Crypto Crackdown for Tax Evaders

IRS

The IRS, or Internal Revenue Service, has called for a summit to be held early next month to address the responsibilities that cryptos holders have from the standpoint of taxation. The US government agency has called on both crypto companies, and crypto advocates to attend the event.

Cryptos are mostly anonymous, and the IRS has few resources to enforce tax requirements if US taxpayers use an exchange that doesn’t report its activities to the IRS.

While many major US exchanges, like Coinbase, have turned over their records to the federal agency, there are numerous offshore exchanges that do not have this responsibility.

With so many offshore crypto trading options, the IRS looking to drive home the responsibilities that US taxpayers have for their crypto holdings so that the agency is able to better collect the money that it believes that it is entitled to.

Cryptos are a Tricky Market for Tax Authorities

According to the IRS, the upcoming Crypto Tax Summit will feature a few 90-minute sessions, although they may not be made available to the public. Regardless of how open the IRS chooses to be about its crypto policies, there are bigger problems at hand for tax authorities when it comes to cryptos.

It is no secret that many people in the crypto community adopted the new technology because it gives them anonymity, and also reduces their reliance on government-blessed fiat currency.

It is highly unlikely that a person who values their personal freedom and specifically uses a means of savings and payment that avoids governments will care about what is coming out of the IRS.

A Global Issue

Another thing that makes the crypto markets very difficult for national tax authorities is the global nature of cryptos. A US resident doesn’t have to use US crypto exchanges. In fact, there are a number of crypto brokers who offer advanced trading services to crypto-only clients who require little more than an email address to begin trading.

While the IRS would be able to track a fiat transaction and find where the money had been sent, this is also very difficult in the world of cryptos.

Again, a US taxpayer can store their cryptos on cold storage devices, and also use ‘mixers’ to obscure the transactional trail for their wallet’s holdings, all of which makes tax enforcement nearly impossible.

The IRS is Stepping it Up

Taxation is a business, and the harder it is to collect on taxes, the less likely tax authorities are to enforce regulation, even if they do exist. The General Accounting Office (GAO) of the US has already cited the IRS’s tax regulations for cryptos as being difficult to understand, although the IRS disagreed with the GAO.

For the IRS, all of this is just business as usual. The US tax agency has a spotted past, and may not even be legal to begin with. While recent case law has supported the IRS’s authority, the constitutional law that created the agency is questionable – at best.

Cryptos aren’t the only area that is going to see increased enforcement activity in the coming years. The IRS recently announced that it will be sending agents to the homes of high-net-worth individuals that don’t file tax returns.

According to Hank Kea, who is a director of field collection operations at the IRS:

“These visits shouldn’t come as a surprise to the taxpayer because the IRS has contacted these individuals multiple times regarding their tax issues prior to their cases being assigned to an IRS revenue officer.”

What might come as a bigger surprise is that the IRS has more than 2,000 Series 1811 Special Agents in its IRS-CI division, all of whom are authorized to carry automatic pistols, shotguns, as well as assault rifles. The ‘CI” in IRS-CI stands for Criminal Investigation, and anyone who doesn’t file their paperwork the right way could easily be considered a criminal by the IRS.

Be sure to follow the IRS guidelines and use some form of cryptocurrency tracking software if you are a US taxpayer to maintain records, as failure to comply could result in a home visit from the IRS-CI, and agents at your front door.

The post IRS Plans Crypto Crackdown for Tax Evaders appeared first on Blockonomi.

Germany’s Second Largest Exchange Boerse Stuttgart Lists Short Bitcoin ETP

Boerse Stuttgart has listed an exchange-traded product that is inversely correlated to Bitcoin’s price swings.

Investors looking to short Bitcoin (BTC) have a new option in Germany. On Feb. 25, Boerse Stuttgart — the country’s second-largest stock exchange — announced the listing of an exchange-traded product (ETP) that is inversely correlated to the cryptocurrency’s price swings.

Hedging against all scenarios

The inverse ETP is issued by crypto fund manager 21Shares, formerly known as Amun. The product offers investors a positive return whenever Bitcoin’s price falls — minus a daily management fee.

Already listed on Switzerland's principal stock exchange SIX Swiss Exchange, the 21Shares Short Bitcoin ETP (SBTC) will reach an even wider investor base via Boerse Stuttgart, which last year reported trading volumes of 68.5 billion euro. 

Hany Rashwan, CEO of 21Shares, has claimed that “investors in Germany have demonstrated strong support for prior crypto offerings” and the firm is responding, though cautiously, to this strong demand.

SBTC, which trades in euro, is fully hedged 1:1 with the corresponding underlying asset and has been issued a WKN German securities identification code (WKN: A2781V).

21Shares has indeed rolled out a suite of derivatives tracking the value of Bitcoin (BTC), Ether (ETH), XRP, Binance Coin (BNB) and Tezos (XTZ), as well as a basket of currencies.

21Shares also confirmed today that its PD3 Prospectus Regulation for existing ETPs governed under Swiss law had been approved by the Swedish Financial Supervisory Authority. 

In a statement, 21Shares managing director said the approval represents a milestone for traditional investors and the crypto community, opening crypto-based ETP products to both retail and institutional clients in Germany and across Europe.

In a past interview with Cointelegraph, CEO Hany Rashwan had pointed to the “massive” demand for crypto derivatives, yet noted that many of the products that exist today remain in the form of options/futures and are “built mostly out of unregulated geographies.”

This situation, he argued, tends both to ward off institutional investors and to result in such complicated and management-intensive products that retail investors, too, are driven away.

Past offerings

Last year, 21Shares — then known as Amun — partnered with crypto asset manager Bitwise on another multi-crypto-based ETP, which tracks the performance of up to 10 cryptos, also for listing on SIX Swiss exchange.

Boerse Stuttgart has previously partnered with European digital publishing titan Axel Springer and Finanzen.net to jointly launch a blockchain-powered trading venue, having previously rolled out a zero-fee crypto trading app.

Bitcoin Once Again Falters: Dropping to $9,500 as Bears Maintain Control

Red Crash Price Crypto

Bulls, unfortunately, were dealt another blow on Monday, with Bitcoin continuing to sell off after rallying as high as $10,025 on the weekend.

At the day’s low, the cryptocurrency was trading as low as $9,490 on some exchanges, far below the five-digit price point where it started the day.

Despite the renewed selling pressure, there remain many still bullish on Bitcoin, citing a confluence of factors as to why they think this short-term volatility is just noise in the larger and brighter crypto picture.

Analysts Remain Optimistic Amid Bitcoin’s Weakness

When Bitcoin started dropping towards $9,500 on Monday, analysts across the board had their eyes glued to the charts, waiting with bated breath to see how the cryptocurrency would react at that crucial price point.

  • After breaking below $9,500 for a few seconds, the cryptocurrency bounced back relatively hard, surging as high as $9,600 in the minutes that followed.
  • The bounce was later confirmed when BTC closed its daily candle for Monday at approximately $9,600, negating some negative side effects of the drop.

While it wasn’t a pretty candle per se, analysts say it is a silver lining in the shaky conditions the cryptocurrency market has exhibited over the past few weeks.

Below is an analyst’s chart of this silver lining, which shows that despite Bitcoin printing a series of lower highs, it has been holding $9,500 as if its life depended on it, suggesting there remains a good amount of buying pressure in the crypto markets.

View image on Twitter

This holding of $9,500 is important as the price point has been defined as “major” support by many an analyst, noting that this is where Bitcoin’s “China pump” topped in 2019 and where a few key technical analysis levels sit.

And not to beat a dead horse but Bitcoin printed what is known as a golden cross earlier this month, whereas its 50-day simple moving average crossed above the 200-day moving average after forming a death cross last year.

This is especially relevant for Bitcoin because previous golden crosses led to extremely strong rallies.

Indeed, this writer found that when a golden cross was seen in 2015, a rally from around $300 to $20,000 followed, and when another was registered in 2012, it ended up being a precursor to an over 20,000% rally that took Bitcoin from well under $10 to $1,000.

Gold Surges, Boosting Bull Case for BTC

As hinted at in a previous Blockonomi market update, the recent strength in gold could add to the Bitcoin bull case.

Over the past 24 months, the embattled precious metal, which has dramatically underperforming stocks and other mainstream assets since the 2008 Great Recession, has finally started to show signs of an uptrend.

After rallying over a dozen percent in 2019, the price of a gold ounce continued to surge higher into 2020, establishing a new all-time high against a number of currencies.

Most recently, the metal hit a seven-year high against the U.S. dollar on Monday, reaching a price just shy of $1,700, buoyed by a tumultuous stock market, which itself was moved by fears that the coronavirus outbreak from China is moving into the West.

This strength in gold, senior commodities analyst at Bloomberg Mike McGlone has claimed, may add to Bitcoin’s strength moving forward:

There’s little to push it lower when considering a shrinking supply, increasing adoption and favorable macroeconomics. […] Our graphic shows seemingly entrenched trends: appreciating quasi-currency prices and declining bond yields. Given advancing debt-to-GDP levels, notably in the U.S., Japan and China, it’s little surprise that alternative stores-of-value are gaining.

It is important to point out that there have been some cracks forming in the narrative that Bitcoin is meant to be a digital counterpart to gold and other risk-off assets.

Monday’s price action was a perfect case in point: Bitcoin dropped alongside the S&P 500 and Dow Jones while gold rallied. Also, when BTC has traded alongside gold in the past, the correlation has always been somewhat imperfect and sometimes entirely non-existent, with the cryptocurrency often rallying or crashing minutes before or after the precious metal does something similar.

The post Bitcoin Once Again Falters: Dropping to $9,500 as Bears Maintain Control appeared first on Blockonomi.

Billionaire Investor Tim Draper Quit Stocks for Bitcoin 6 Months Ago

In a mainstream media interview, Draper surprises by confirming he was out of the market for half a year, doubling down on crypto instead.

Tim Draper now holds “a lot” of his portfolio in Bitcoin (BTC) after pulling his wealth out of public stock markets six months ago.

Speaking to CNBC on Feb. 24, the VC investor and serial Bitcoin proponent revealed that he had significantly added to his crypto holdings since last year. 

Draper: “Uber drivers were day trading”

“It’s a lot, it’s a lot, a lot,” he responded when quizzed about exactly how far his faith in Bitcoin extended. 

“I’m just a believer — and I look and I say, ‘Hey, this is just better.’ Long term, people move to things that are better.”

Draper was speaking in his characteristic Bitcoin logo tie as stock markets plummeted worldwide due to concerns over coronavirus. 

Continuing, he confirmed his exposure to the crisis was limited due to previous concerns that stocks were too “frothy.”

“It just got too frothy — the market got too excited and Uber drivers were doing day trading, all the signs were there,” he said.

Draper added that his VC firm, Draper Associates, was still active in private markets. His other major crypto investment, Tezos (XTZ), has more than doubled since the start of the year.

Buffett crypto criticism rejected

Many other remarks were already known to Bitcoin supporters, including a $250,000 price target, which Draper now feels will come by around 2022. 

During that time, the health of investments such as banks and insurers will change dramatically for the worse, he warned, disagreeing with comments about Bitcoin from Berkshire Hathaway chairman, Warren Buffett, earlier on Monday.

“Of course he’s worried,” Draper retaliated.

In his latest anti-Bitcoin diatribe, Buffett claimed that cryptocurrencies en masse were not productive investments.

“Cryptocurrencies basically have no value and they don’t produce anything,” he told CNBC.

“So you can look at your little ledger item for the next twenty years and it says you’ve got X of this cryptocurrency or that — it doesn’t reproduce, it doesn’t deliver, it can’t mail you a check, it can’t do anything. And what you hope is that someone else comes along and pays you more money for it.”

As Cointelegraph reported, BTC/USD remains the star investment of 2020, with year-to-date gains at one point exceeding 40%.

Bitcoin and Altcoins Start Fresh Bearish Wave

Yesterday, bitcoin struggled to continue higher above the USD 9,850 resistance area. As a result, BTC/USD started a fresh decrease and broke the USD 9,650 support area. The price is now trading near the USD 9,550 support, below which it could accelerate its decline towards USD 9,200. Similarly, there were bearish moves in most major altcoins, including ethereum, XRP, litecoin, bitcoin cash, BNB,

Blockchain Proves Warren Buffet Holds Crypto Gift, Says Justin Sun

Warren Buffett recently said that he does not own any cryptocurrency, but Tron founder Justin Sun said that this is not the case.

Warren Buffett recently said that he does not own any cryptocurrency, but Tron (TRX) founder Justin Sun begs to differ. 

Speaking to CNBC reporter Becky Quick on Feb. 24, billionaire Buffett said that he does not own crypto and derided its supposed lack of purpose: 

“I don’t own any cryptocurrency. I never will […] You can’t do anything with it except sell it to somebody else.”

However, on Feb. 25, Sun said in a tweet that he had gifted cryptocurrency to Buffett and that blockchain data proves that the billionaire did not move his gift of crypto assets:

“The cryptos $BTC/$TRX Mr. Buffett owns remain intact w/ #blockchain proof which is the beauty of blockchain.”

Sun also admitted that, while Buffett “owns” cryptocurrency, he would not define Buffett as a crypto investor. Sun added that the value of the Bitcoin (BTC) and Tron he gave Buffet has already increased by 20%.

Buffett ostensibly received the gift at his famous charity luncheon, which Sun won at auction last year. The two met at a private not-for-profit country club in Nebraska along with other crypto luminaries including Charlie Lee, founder of the Litecoin Foundation, and Chris Lee, the CFO of major cryptocurrency exchange Huobi.

Financial heavyweights criticize crypto for its illicit connections 

Warren justified his lack of interest in cryptocurrencies by saying that they have no value and that “Bitcoin has been used to move around a fair amount of money illegally.” He is not the first member of the world’s financial elite to express distaste towards cryptocurrencies because of their purported prevalence in illicit activities.

For instance, in February 2018, Bill Gates stated that cryptocurrencies are “a rare technology that has caused deaths in a fairly direct way,” referring to drug-related deaths.

Billionaire Mark Cuban, like Buffet, sees Bitcoin as having no value. He said at the end of September that he would “rather have bananas” than Bitcoin, because he can at least eat them.

Crypto Exchange Exec: Bitcoin Will Not Stop at $100,000

Bitcoin price moon 2020
Bitcoin is holding on to gains today as the threat of a larger correction looms. The long term outlook is extremely bullish though, at least according to one crypto exchange executive. Kraken Director on $100k Bitcoin Kraken’s director of business development, Dan Held, sat down with Nuggets News CEO Alex Saunders to discuss global markets, why bitcoin is the hardest money, and how it fits into the macroeconomic system. Excuse the #DadJoke but this is a seriously Kraken interview! Today we welcome @danheld of @krakenfx to discuss global markets, why #Bitcoin is the hardest money, how it fits into the macro economy & why it's a game changer that can not be stopped. 🎙🔥📡 https://t.co/uEmF1vMewz — Alex Saunders (@AlexSaundersAU) February 25, 2020 Held got into BTC in 2012 after learning about the financial system crash in 2008. He added that it was a tiny space back then and no major players in tech wanted to get involved in crypto. He said that the scene now is so much different with many different products and institutional involvement. This could spur a ‘super cycle’ with a lot more fiat flowing in which would take bitcoin prices to $100k in no time. At the moment there is such a small amount relatively with total market cap hovering around $275 billion which is smaller than some US tech giants. Host Saunders added that the floodgates could open when there are trillions of newly printed dollars entering financial markets when there are negative interest rates. Held continued to say that when price goes up more people talk about BTC and it gets more mainstream media coverage which adds to the FOMO. On the negative side it was mentioned that there has been concern over a possible crackdown in the US from bankers and politicians that view it as a threat to their own monetary system. Hodlers have some of their net worth in bitcoin so if a government bans it they’re damaging that percentage of people that are holding it and potentially losing support when enough people do hold it. He added that one of the best moments of 2019 for him was when the Chair of the US Federal Reserve, Jerome Powell, said that bitcoin was a speculative store of value. “Bitcoin is now recognized as a valid contender for store of value by the most powerful financial institution in the world.” Held said he couldn’t be more bullish and that things haven’t yet really begun in terms of major investment and inflow. In terms of macroeconomics Held said he has waited seven years for this moment with the president of the US tweeting at the FED to print more money. He called it a race to zero with investors looking where to put their money while household debt skyrockets and savers are getting punished. It is all good gravy for bitcoin and this one industry executive is more bullish than ever. Will BTC hit $100k in the short term? Add your comments below.

How to Hide Your Bitcoin – Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

How to Hide Your Bitcoin (Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials)

In an era of increasing economic uncertainty, surveillance, specialized cybercrime and hacking, knowing how to hide bitcoin safely has become a paramount concern for crypto holders. Whether it’s by way of taking wise opsec measures, utilizing noncustodial tools, leveraging a DEX, or even storing seed phrases in your brain, there’s no shortage of measures that can be taken to protect your stash. This article seeks to detail some of the best ways anyone can use to ensure their coins remain safe from bad actors.

Also read: Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor

Safekeeping for Sats

A “satoshi” is the smallest unit of bitcoin, and when it comes to the popular cryptocurrency, keeping one’s stash safe down to the last sat is important. For those new to the space — and perhaps even for more experienced hodlers who’ve overlooked certain security precautions and tips — what follows is a list of ways to ensure your stack of satoshis remains in good hands: your own.

Opsec Best Practices

Opsec, or operational security, is highly important when securing crypto holdings. It’s not sufficient just to have any old two-factor authentication (2FA), for example, as some variants of the measure like SMS-enabled 2FA can still leave easy attack vectors. SIM jacking is one example of this, and all that’s required is an overly cooperative and friendly customer service worker at a cellular provider.

When it comes to hacks like SIM jacking, where an attacker swaps your device data to a new SIM card by way of social engineering, phone number 2FA won’t help, and gives an infiltrator keys to whatever account is secured by that means. Instead, using a 2FA app such as Google Authenticator — and not a phone number, is a better bet. Be sure to disable SMS 2FA on sensitive accounts — especially crypto exchanges — and switch to a more secure option. When a phone number can serve as a key to your crypto safe, hiding bitcoins behind such info is a bad idea.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials
Axl Rose may be your favorite frontman, but using his name for a password over and over is not advisable.

For account passwords, usernames, pseudonyms, and other such information used for accounts, be sure to use unique and secure choices. Though you may be a huge Guns n’ Roses fan, having “Axl6969” as a password for everything probably isn’t a good idea. Trusted and verified password managers can make maintaining even a long list of unique and strong passwords fairy easy, and quality services allow users to keep their master password stored locally, and not on any central server.

Anonymity and Social Awareness

Where anonymity is concerned, be sure all records, memos, or other account information which might tie your real identity to accounts and usernames are encrypted. Phone numbers should not be given out publicly, and a secure virtual number service can be used to route public calls to your personal device. The more you secure sensitive information, the less likely it is a bad actor or social hacker will be able to connect the dots and gain access to your bitcoins.

Further, simply knowing when to keep quiet is a great tool for keeping bitcoins secure. As mentioned above, sharing a phone number publicly is not a good idea. Nor is exclaiming to the whole bar on karaoke night that you just made huge gains on Binance and are buying everyone a round. The more people know about your holdings, the more potential interest can be piqued in malicious actors who seek to gain as much info as possible to access accounts. This type of openness can even endanger personal safety, as one of the quickest ways to get to someone’s device for criminals may just be to steal it.

Cold Storage

Cold storage refers to storing bitcoins and their private keys offline for greater security. With private keys never being exposed to the internet, the security levels of cold storage options can be significantly higher than other avenues. Examples include hardware wallets such as Trezor and Ledger, which allow funds to be spent without private keys leaving the device, paper wallets created offline, and even more extreme options like fireproof seed phrase capsules. Perhaps most James-Bond-like of all the choices is storing a wallet in something hopefully not cold, but undeniably secure: your own mind.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

Known as a “brainwallet,” storing a bitcoin seed phrase in your brain is definitely secure, as long as you don’t forget it or get mixed up. Using a mnemonic device such as a colorful, vivid story, particularly sharp bitcoiners can retain a 12-word seed phrase entirely in their heads. As with all such measures though, there’s a trade off. If you’ve got to run from a bad actor or flee the country and can’t take anything with you, this option is undeniably appealing. But beware: once forgotten, no customer service group on the planet is going to be able to help you retrieve the lost mental bitcoins.

Leveraging DEXs, Noncustodial Options

While popular centralized exchanges like Coinbase, Binance and Kraken can make getting into bitcoin easy, and even storing it for day-to-day transactions, it is never advisable to leave bitcoins sitting around online when not trading. Exchanges have been hacked multiple times, are subject to governmental regulation and technical difficulties, and as such are not secure for stashing sats. Once such an exchange is shut down, hacked, or frozen, so is your money.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials
Custodial exchanges and wallets are commons ways many users find significant amounts of bitcoin lost to the sands of time and chance.

Better options include decentralized exchanges (DEXs) with open source code and where software and network data is stored locally. Also, such networks allow for greater anonymity with minimal to no registration requirements, and can afford features such as encrypted chats for P2P trade and blind escrow. The Bisq network is one example of such an exchange. Local.bitcoin.com, another, is a peer-to-peer bitcoin cash marketplace where users need only to enter an email to trade BCH privately for a variety of traditional assets.

Where crypto wallets are concerned, noncustodial options (wallets where the private keys are solely in the user’s possession and are not centrally stored) are always best, as a seed phrase can restore the wallet if an accident happens or a device is lost. When it comes to custodial wallets, however, once the provider is compromised, so is the user. Always be sure to verify any wallet you are using is noncustodial, as the whole point of bitcoin is for you — and nobody else — to be in control of your money.

How to Hide Your Bitcoin - Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials

The Less Trust, the Better

Trust between humans can be a beautiful thing, but when it comes to stashing bitcoins, the less trust, the better. Satoshi himself cited this as the central issue concerning traditional financial systems. The Bitcoin creator noted “the inherent weaknesses of the trust based model” in the Bitcoin whitepaper, and developed the cryptocurrency in answer to these challenges.

When hiding your bitcoins, then, it’s always paramount to remember the reason for the asset in the first place: so you don’t have to trust any central entity to keep your money safe. At the end of the day things like customer service laziness at AT&T, human forgetfulness, and having to trust certain tools or developers may always be an issue, but the closer we can get the trust level to zero, the better.

How do you recommend hiding and securing your bitcoins? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company 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, A.PAES, fair use.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post How to Hide Your Bitcoin – Opsec, Anonymity, Cold Storage, Brainwallet, Dexes and Non-Custodials appeared first on Bitcoin News.

An “OG” Bitcoin holder shilled an altcoin a conference, and nobody is all too pleased

Last weekend, some of the world’s most outspoken Bitcoin proponents and analysts descended on Las Vegas. The reason: Tone Vays, the Wall Streeter-turned-cryptocurrency analyst was hosting a “Bitcoin not blockchain” conference and a “celebrity” poker tournament in a weekend he dubbed “Unconfiscatable,” a reference to the decentralized nature of BTC.

The list of attendees was stacked: Vays himself, programmer Jimmy Song, Adaptive Capital’s Willy Woo, outspoken libertarian Max Keiser, content creator Peter McCormack, and many others.

The list also included Trace Mayer, a somewhat elusive figure in Bitcoin circles, seemingly appearing at few conferences compared to his counterparts on the list.

Mayer is a long-time investor, having shilled the cryptocurrency via his online platforms when the asset was under $5, before 2012. He is also a “HODLer of Last Resort,” BTC owners that purport to never sell their coins. Like never.

Because of his commitment, many were excited to see him, including American HODL, a pseudonymous commentator that has been blocked on Twitter multiple times for his antics whose entire persona is built on, well, HODLing Bitcoin.

Unfortunately, attendees purport that Mayer isn’t what they expected, and they aren’t too pleased because of that.

Drop Bitcoin, buy MimbleWimble Coin?

In the wake of Unconfiscatable, American HODL, who has since restarted his Twitter account (and thus the relevant tweet was deleted), was languishing on Twitter.

Through a very direct tweet, he said that after talking with Trace Mayer for an hour, he had lost faith in the individual, claiming that Mayer “was” his hero and idol. The reason: Mayer was going around at the conference purportedly promoting some altcoin called Mimblewimble Coin (MWC). The commentator elaborated:

He spent that hour shilling me mimblewimblecoin [sic]. To say I’m disappointed would be an understatement.

According to Giacomo Zucco, a prominent Bitcoin maximalist who was also in attendance at the event, the shilling also took the form of the below piece of fortune cookie fortune-esque paper.

Many were immediately taken aback by the contents of the message, which touted MWC as “Good money” and a profitable altcoin that is up “100x in BTC [terms] in two months.” Zucco himself wrote:

People spend effort, time & money to organize educational events about Bitcoin, while having a good laugh at shitcoin scams. Then somebody takes advantage of all that effort to distribute promotion codes for his own pump&dump scam.

Many prominent names in the Bitcoin space shared and bumped Zucco’s tweet, including individuals like Hodlonaut, Stephan Livera, Mr. Hodl, and others. Others included their own commentary on the situation, making comments on how it’s important not to have heroes in Bitcoin, why the concept of trust is so relevant to cryptocurrency, and so on.

It isn’t clear exactly how Mayer distributed the above message, though some have joked that he might have been passing them out as if they were contraband, subtly slipping the paper into the hands of people he talked to.

And importantly, it appears that the tweets from Zucco and American HODL aren’t a concerted attempt to slander Mayer’s character or person either. Seven minutes into the below Youtube video in which the long-time Bitcoin owner is interviewed, Mimblewimble Coin is mentioned.

What the hell is Mimblewimble Coin?

This may leave you wondering, what is MWC?

MWC, which was literally just listed on CoinMarketCap on Feb. 23, is an extremely new crypto project that leverages the technology it’s named after, Mimblewimble, and others to improve scalability and privacy. As an excerpt from the project’s site reads:

MWC is a scarce pure proof of work Mimblewimble based coin that enables greater network scalability, privacy and fungibility than legacy blockchain protocols. All transactions on the base layer use Greg Maxwell’s Coin Join with his Confidential Transactions and signature aggregation. MWC is the technologically superior ghost money.

It isn’t exactly clear who is behind the project.

What happens in Vegas, uh, doesn’t stay in Vegas

As it stands, Mayer has yet to respond to the recent criticism he has faced from many corners in the Bitcoin community; his Twitter account remains silent, with its last post being published on February 18th.

Unfortunately, it seems that the age-old tagline “What Happens in Vegas, Stays in Vegas” didn’t seem to apply to the going-ons of Unconfiscatable, an event focused on discussing the censorship-resistant Bitcoin.

How fitting. How fitting.

The post An “OG” Bitcoin holder shilled an altcoin a conference, and nobody is all too pleased appeared first on CryptoSlate.

Will Bitcoin Head and Shoulders Play Out in Dump to $8,300?

bitcoin h&s
Bitcoin prices have slowly inched back today but they are currently holding at support as another day’s trading gets under way. A head and shoulders pattern could be bad news for short term direction. Crypto markets have had another day of declines with total capitalization shrinking by almost 3% as $8 billion leaves the space. They are now approaching critical levels and a bigger selloff could occur if there are no moves back to resistance. Bitcoin At Support BTC has made another lower low with a plunge to $9,500 to test previous levels during yesterday’s trading. Since then the digital asset has recovered to around $9,600 but a further fall is looking likely. BTC price 1 hour chart – Tradingview.com Since the weekend taps of $10k bitcoin has retreated 4% and the next level of support lies at around $9,300. Analysts are scouring the charts for indications of larger moves and one has identified a head and shoulders pattern that could result in another big dump. This head & shoulders can quickly hit $8,300 target But I’m more interested in anticipating a busted head & shoulders here, with an $11,700 target Will be tracking this in coming days pic.twitter.com/GsC3wjIMUB — Crypto Capital Venture ⚡ (@cryptorecruitr) February 25, 2020 The low $8k zone is a strong support region which is likely to hold if hit. A bullish break of the H&S could result in a higher high and a continuation of the rally that began at the beginning of the year. Further bullishness can be seen in the formation of this wedge which this analyst believes will result in more upwards momentum. “Still having a hard time not seeing how $BTC doesn’t look decently bullish here. Nice S/R flip, bullish consolidation, and a nice clean wedge forming.” Still having a hard time not seeing how $BTC doesn't look decently bullish here. Nice S/R flip, bullish consolidation, and a nice clean wedge forming. Granted it hasn't broken up yet but still looks more likely than down. pic.twitter.com/OYp2AsGebU — Income Sharks (@IncomeSharks) February 25, 2020 Not all are so bullish though and sentiment does appear to be turning bearish elsewhere, however, as the signals align on the daily time frame. “3 daily engulfing candles preventing higher highs. At the same time price returns to the 9500$ area over and over again” 3 daily engulfing candles preventing higher highs. At the same time price returns to the 9500$ area over and over again 👀$BTC $BTCUSD #bitcoin pic.twitter.com/5NdLa8EJU3 — CryptoHamster (@CryptoHamsterIO) February 25, 2020 Providing bitcoin remains above $9k and consolidates there for a while things will remain bullish. The horizontal lines of support are strong where it currently trades. Elsewhere on Crypto Markets Altcoins are having a worse day than bitcoin so far with most of them extending losses. Ethereum has slid a couple of percent back towards $260 while Ripple’s XRP has dropped below $0.27 and continues to weaken. The two bitcoin forks, BCH and BSV, are dumping harder with 5-6% losses while Litecoin, EOS and BNB shed 3-4% on the day. As predicted yesterday, Tezos is starting to freefall with 8% dumped over the past 24 hours as XTZ retreats back towards $3. There is no green whatsoever to be seen in the top 30 altcoins at the moment. Will bitcoin dump back to $8,300 this week? Add your price predictions below.

The One Thing The Best Crypto Traders Do Differently

Disclaimer: The text below is a sponsored article that was not written by Cryptonews.com journalists. _____ Do you often find yourself missing out on the most profitable trades? If you are like most people, you will find that it is difficult to buy and sell exactly at the right moments. The difficulty with trading cryptocurrencies is that the markets are open 24/7 and there are way too many

Deribit Cryptocurrency Futures & Options Trading: Complete Review

Deribit Review

Deribit is a Bitcoin trading platform that enables individuals around the world to engage in futures and options trading.

The team behind the project combined the first letters from the words Derivates and Bitcoin in order to create the name of their website, and members can use Bitcoin in order to make deposits, withdrawals, and to collateralize trades.

The platform also allows traders to take advantage of up to 100x leverage when trading Bitcoin futures. While not as well known as other cryptocurrency futures exchanges, Deribit is growing in popularity and proving to be an attractive alternative for crypto enthusiasts actively involved in futures trading.

Deribit Review

Visit Deribit

Deribit Overview

Deribit is a derivatives exchange based in the Netherlands with the team conducting their day to day operations from an office in Amsterdam. The project launched in 2016, and is registered as Deribit B.V., and retains an address at Stationsstraat 2 B, 3851 NH, Ermelo, The Netherlands.

The company was founded by current CEO John Jansen, and CTO Sebastian Smyczýnski and the Bitcoin and trading enthusiasts have set about creating a platform that caters to their passions. The Deribit team is one of the more transparent in the space and includes CMO Marius Jansen and Lead developer Andrew Yanovsky.

Despite this transparency, all transactions on the platform are processed solely in BTC, and Deribit is currently acting as an unregulated broker as European regulators haven’t classified cryptocurrencies as financial instruments and are still in the process of drawing up a unified framework.

However, the platform is also open to the residents of over 100 countries, and allows traders to take advantage of fee free deposits and withdrawals, up to 100x leverage, and competitive trading fees.

Deribit Features

  • Functionality – Deribit utilizes a web-based trading platform, and incorporates an intuitive and relatively easy to use interface that also includes a wide range of functions. Common features such as the order book, trading history, and recent trades are well laid out. The platform also includes futures, index, and volatility charts and a range of statistics, technical analysis indicators, and key data related to futures and options trading.
  • Technology – The exchange strives to be technologically advanced and allows users to trade via their trade matching engine with less than 1MS latency. Users can also trade via web interface, mobile (iOS/android), or API and Deribit also integrates with trading bot software such as HaasOnline, BotVS, and Actant. In addition, the platform makes use of cold storage in order to secure approximately 95% of user funds.
  • Trading Options – Deribit provides an extensive range of trading options and users have access to both an Options and a Futures exchange. The platform specializes in offering leveraged trading at up to 10x leverage, while BTC futures are available at up to 100x leverage. Users can also take part in margin trading and practise their trading strategies on the Deribit testnet after receiving 10 BTC worth of demo funds.
  • Customer Support – The site is available in English, Spanish, Chinese, Russian, Korean, Japanese, and Turkish. In addition, a support team is available to deal with any issues, and the team provide a list of email addresses in the members section. The Deribit team can also be contacted via their Twitter account or Telegram group, and provide a Blog, a Docs page, and an FAQ page in the members section that explain a number of key issues They also run a YouTube channel which contains a number of explanatory videos.

How to Get Started on Deribit

The Deribit website displays login and register panel in the center of the page and you can begin by clicking “Create Account”.

1) Create an Account

You can sign up by entering your email address, username, password and county of residence.

After confirming your email address by clicking the link in the confirmation email, you will gain access to your account.

2) Make a Deposit

You can fund your account by clicking the “Deposit” button at the top right of the page. You can then generate a deposit address that will allow you to transfer Bitcoin onto your Deribit account. When you have processed the transfer, Deribit will only require one confirmation before allowing you to begin trading.

The withdrawal process is very much the same, and you can access the “Withdrawal” tab via “My Account”. Once on the withdrawal page, you’ll need to enter your BTC wallet address, and the desired withdrawal amount. There are a number of priority level options and the choices are linked to the fee you are willing to pay, and the higher the priority, the higher the withdrawal fee.

3) Select BTC Futures or Options Trading

You can navigate your account in order to select your preferred type of trade. The main options are laid out on the left side of the dashboard, while other key features are located centrally.

The futures contracts are quite standard and have monthly expirations; Deribit’s price index is derived from a number of leading exchanges including Bitfinex, Bitstamp, GDAX, Gemini, and Kraken.

Deribit sells future contracts for $10 each, and by using the order panel on the left-hand side, it is possible to choose the order type from Limit, Market, Stop Market, and Stop Limit.

The Stop Limit option allows the user to limit risk by changing the Trigger and Stop price depending on the desired Buy and Sell option. After reviewing the prospective order, it can be confirmed by clicking on BUY or SELL, and a confirmed order will appear at the bottom of the page among all open orders and positions.

Options on the platform are European style and can’t be executed before expiration as opposed to US style options. The Options section can be accessed by clicking on BTC Options on the upper left-hand side of the screen.

From here, order forms can be accessed by clicking on any order that has been posted on the back of the order panel.

The platform also provides a live testnet for its users, and it’s necessary to create another account on test.deribit.com. After signing up, users receive 10 BTC in demo funds, and these funds can be used in order to practice various strategies and get to know the platform and the world of derivatives trading in general.

The testnet can also be used to fine-tune bots that may later be used on live accounts via the Deribit API.

Supported Currencies & Fees

Deribit specializes in BTC futures and options trading and users of the platform are required to deposit BTC into their accounts. There is currently no support for fiat deposits and more experienced users often make fiat purchases of BTC on exchanges such as Coinbase, Gemini, and Kraken before transferring them over to Deribit.

The team do not charge fees for deposits; however, withdrawals incur a fee dependent on the Bitcoin network’s mining fees.

The exchange also operates a maker-taker fee model, and futures orders which improve liquidity receive a rebate of 0.02%, and orders that take liquidity are charged a fee of 0.05%. Perpetual contracts orders that provide liquidity receive a rebate of 0.025%, while orders that take liquidity incur a fee of 0.075%. Selected fees are as follows:

Perpetual Contracts

  • Maker Rebate: 0.025%
  • Taker Fee: 0.075%

Futures

  • Maker Rebate: 0.02%
  • Taker Fee: 0.05%

Options

  • 0.04% of underlying or 0.0004 BTC/option contract
  • Fees can also never rise higher than 12.5% of the price of the option.

Futures liquidations fees  

  • 0.35%

Perpetual contracts liquidations fees

  • 0.375%

Options liquidations trades

  • 0.19% of underlying or 0.0019BTC/options contract,

With both futures and perpetual contract liquidations, 0.30% of the fee goes to the insurance fund, while 0.15% of underlying or 0.0015BTC per contract goes to the insurance fund for options liquidations.

Deliveries

Deliveries incur half the fees of taker orders, therefore:

  • Futures: 0.025%
  • Perpetual Futures: 0.025%
  • Options: 0.02%  

Is Deribit Safe?

The team makes use of cold storage in order to secure their users’ funds with approximately 95% of all BTC being held in this way. This helps the platform to remain resilient to hacking attempts but can also lead to slower customer withdrawals.

In addition, in order to further secure user accounts, Deribit incorporates two factor authentications (2FA), although this function is not enabled by default and must be set up after you login.

Furthermore, IP pinning provides additional security by identifying a change of IP address during a session, and terminating it as a result. The platform also allows users to adjust their session timeouts, and the default timeout period for inactivity on an account of one week can be shifted to just one hour.

Despite this, it’s always best practice to only keep funds on an exchange when they are being used for trading. Lastly, Deribit has an insurance fund that is set up to cover the losses of bankrupt traders.

The majority of trader positions should be reduced or closed by the platform’s real time incremental liquidation system, however bankruptcies still occur.

The insurance fund allows the withdrawals of profits from unexpired futures to be available immediately after settlement. The fund is maintained by liquidation order fees and if it gets depleted, bankruptcies become socialized among the winning traders. A list of bankruptcies is maintained on the “Insurance” page.

Is Deribit Suitable for Beginners?

Newer entrants to the world of cryptocurrency trading may be used to logging into an exchange, and trading cryptos for either digital or fiat currencies. However, Deribit deals in the more complicated world of derivatives and as a result, may not be suitable for newcomers.

In addition, the ability to margin trade and enter into leveraged trades adds a further level of risk and this makes the world of futures and options trading best suited to more experienced traders.

Having said that, the team have developed their live testnet which allows users to practice trading 10 BTC in demo funds, and learn various strategies as well as get to know the slightly complicated interface and different analytical tools.

The team have also made a number of resources available aimed at helping traders to improve their skill sets and these include a Blog, a Docs page, an FAQ page in the members section, and a YouTube channel which contains a number of explanatory videos.

Therefore, while it may not be the best place to start live trading, it may still be a good place to learn how to engage in derivatives trading.

Deribit Pros & Cons

Pros 

  • Transparent team
  • Futures and options trading available
  • Competitive trading fees
  • No deposit or withdrawal fees
  • High leverage offered

Cons

  • Not regulated
  • All account activity in BTC
  • No fiat support
  • Not beginner friendly

Conclusion

Deribit specializes in the trading of Bitcoin derivatives and provides access to the world of futures and options trading. The platform incorporates a number of features that may help it to gain a competitive advantage over exchanges such as BitMEX and Digitex and these include low fees, up to 100x leverage, test trading, and an insurance fund. Despite this, Bitcoin derivative trading is still relatively new and only accounts for small volumes being traded.

In addition, a lack of clarity regarding EU regulations means that Deribit isn’t regulated even though it offers derivatives and the complicated nature of the service may be difficult to overcome for newer traders.

The platform doesn’t support fiat payments and accounts are held in Bitcoin, which leaves users exposed to the volatility of BTC at all times. The exchange also chooses to block the inhabitants of certain jurisdictions, and is currently unavailable to residents of the United States, Canada, or the Netherlands.

Despite this, Deribit provides a viable alternative to other Bitcoin futures trading exchanges and incorporates a comprehensive range of features that appeal to more experienced traders.

The platform gives experienced futures and options traders exactly what they want and the wide range of analytics, high leverage, and insurance fund should prove enticing.

Less experienced traders may be better off with a platform such as IQ Option which allows its customers to trade Contracts for Difference (CFDs) on cryptocurrencies and is a much more straightforward platform to use.

Anyone who lacks experience but is determined to get into Bitcoin futures trading would be best served by going through the written resources and videos before spending time using a test account.

Due to its range of features, Deribit is a solid option for Bitcoin derivative traders but not recommended for beginners.

Visit Deribit

The post Deribit Cryptocurrency Futures & Options Trading: Complete Review appeared first on Blockonomi.

China Adopts Security Standards for Blockchain Applications in the Financial Sector

China Adopts Security Standards for Blockchain Applications in the Financial Sector

Keeping the focus on blockchain development, banking authorities in China have issued a set of rules pertaining to the secure application of crypto-related technologies in the financial sphere. The new standards, the first of this kind, are to guide the work of developers and service providers operating in the industry.

Also read: China Issues Digital Currency Guide for Party Cadres

Central Bank of China Issues DLT Security Specification

The Financial Distributed Ledger Technology Security Specification (JR/T 0184—2020) comes as a result of joint efforts between major banks such as Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China, under the guidance of the People’s Bank of China (PBOC). The main purpose of the document issued earlier in February is to standardize the deployment of blockchain technology in the financial field, Chinese crypto news outlet 8btc reported.

With the new regulation, the central bank of China puts an emphasis on improving information security of distributed ledger technology (DLT) applications. Organizations engaged in the development of blockchain systems for the financial sector as well as various service providers that are using DLT-based solutions are expected to comply with the standards in their activities.

China Adopts Security Standards for Blockchain Applications in the Financial Sector
People’s Bank of China

The 35-page instruction paper demands the implementation of secure financial DLT technologies and addresses various aspects of such systems like basic hardware and software, cryptographic algorithms, consensus protocols, communication between nodes, smart contracts, operational and maintenance requirements. The document also deals with matters related to identity management, privacy protection, compliance support, and governance mechanisms.

On the central government level, China turned its attention to blockchain last year when the General Secretary of the Communist Party Xi Jinping stated that the country should step up research in the emerging field. At a politburo meeting, the Chinese president insisted on speeding up development in the sector so that the People’s Republic could gain an edge, given the importance of DLT in the new round of technological innovation and industrial transformation.

Technical Committees Introduce Government Standards in Various Sectors

In November 2019, Beijing announced the establishment of technical committees tasked to introduce standardization in various fields, from baby products and sharing economy to photovoltaic systems. The standards drafted for each sphere will be used to coordinate government objectives across the country and throughout the entire economy. Approved and published regulations will be reviewed every five years.

A working group was created for the blockchain space, too. Chinese authorities believe that as many DLT initiatives originate from the financial and banking sector, standardization will facilitate deployment of new systems in accordance with established universal security requirements. Officials also want to ensure a “healthy development” of the industry producing and implementing blockchain solutions.

China Adopts Security Standards for Blockchain Applications in the Financial Sector

Over 37,000 blockchain businesses operate in China, according to the country’s company information portal Tianyancha.com. More than a third of these entities have been registered in the past year alone. China is also a leader by number of filed blockchain-related patent applications which reached almost 13,000 in October, or over 53% of the global total, shows data compiled by the World Intellectual Property Organization.

The PBOC is also working intensively to prepare the launch of a digital version of the national fiat and test the new Digital Currency Electronic Payment (DCEP) system with the help of four state-owned commercial banks and three leading telecom operators. The digital yuan is said to be partially based on blockchain technology but as news.Bitcoin.com reported recently, the Chinese central bank has filed 84 patents relating to the digital currency.

What do you think of China’s decision to adopt security standards for blockchain applications in the financial sector? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Do you need to track down a Bitcoin transaction? With our Bitcoin Explorer tool, you can search by transaction ID, address, or block hash to find specific details, and for a look at the broader crypto space explore our Bitcoin Charts tool.

The post China Adopts Security Standards for Blockchain Applications in the Financial Sector appeared first on Bitcoin News.

Coincheck Announces Qtum Soon Available for Trading

The Japan-based cryptocurrency exchange announced a 12th currency would soon be available for trading.

Japan may be on its way to creating a state-issued digital currency, but local companies in the world’s third-largest economy can still innovate and provide some healthy competition.  

Coincheck, the crypto exchange based in the Asian nation, currently handles trading, selling, and buying for eleven cryptocurrencies. They announced on Feb. 25 that they were planning to add another to the mix. The cryptocurrency Qtum (QTUM) will soon be the 12th available for trading on the exchange. 

How will Qtum be different from existing Coincheck cryptocurrencies?

As with other cryptocurrencies the exchange manages, Coincheck will allow its users to send, receive, buy, and sell Qtum. 

However, they will also be able to use Qtum for Coincheck's lending service. Under the existing service, users can lend their cryptocurrencies to the exchange by agreeing on a loan contract agreement. Once this contract expires, Coincheck will return the cryptocurrency with an annual percentage rate on top of it. The exchange claims the annual interest rate has been up to 5%. 

Qtum is a blockchain platform established in December 2016. They are working with both Google and Amazon to develop their Dapps platform. As of Feb. 25, the date of release for the cryptocurrency has not been set.

This Critical Bitcoin Short-Term Top is Sparking Big Correction Fears

Bitcoin struggled to stay above $9,750 and declined towards the $9,500 support against the US Dollar. BTC price could decline heavily if it settles below the key $9,500 support. Bitcoin price struggled to continue higher and declined below $9,750 against the US Dollar. A strong support is forming on the downside near the $9,500 area. There is a key bearish trend line forming with resistance near $9,640 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could either rally above $9,680 or it might decline heavily below the $9,500 support. Bitcoin Testing Key Support Recently, we saw a rejection in bitcoin near the $9,880 level against the US Dollar. BTC even started a downside extension from the $9,847 swing high and declined below the $9,750 support. Besides, there was break below the $9,680 level and the 100 hourly simple moving average. It opened the doors for more losses and the price dropped towards the key $9,500 support area, where the bulls emerged. A swing low is formed near $9,481 and the price is currently correcting higher. It surpassed the 23.6% Fib retracement level of the recent drop from the $9,841 high to $9,481 low. However, there are many hurdles on the upside, starting with $9,640 and $9,680. More importantly, there is a key bearish trend line forming with resistance near $9,640 on the hourly chart of the BTC/USD pair. Bitcoin Price On the downside, the main support for bitcoin is near the $9,500 area. If there is a downside break and proper close below $9,500, the bears are likely to take over. In the mentioned case, there are chances of more losses towards the $9,200 and $9,050 support levels. Main Breakout Levels On the upside, the first key resistance is near the trend line and $9,640. The next one is near the 50% Fib retracement level of the recent drop from the $9,841 high to $9,481 low. The main hurdle for bitcoin is near the $9,740 level and the 100 hourly simple moving average. Therefore, the bulls need to clear the trend line resistance and gain momentum above the 100 hourly simple moving average to start a fresh increase in the near term. If not, there is a risk of a sharp decline below $9,500. Technical indicators: Hourly MACD – The MACD is slowly moving back into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting higher towards the 45 level. Major Support Levels – $9,500 followed by $9,200. Major Resistance Levels – $9,680, $9,740 and $9,880.

Warren Buffett Doesn’t Want to Own any Cryptocurrency

The fourth-wealthiest person in the world doesn’t think cryptocurrencies have anything to offer.

“Cryptocurrencies basically have no value,” Warren Buffett said in an interview on Monday.

Speaking to CNBC reporter Becky Quick on Feb. 24, the fourth-wealthiest person in the world discussed his impression of Bitcoin following a fundraiser. In attendance was Justin Sun, CEO of Tron, and long-time believer in crypto.

In May 2019, the two gathered with others at a fundraiser for the Glide Foundation, a charity organization that helps the homeless in San Francisco. Speaking billionaire to billionaire, the young Sun suggested the seasoned Warren consider investing in cryptocurrency.

However, when pressed on whether Sun had given him any Bitcoin after the exchange, Buffett balked:

“I don’t own any cryptocurrency. I never will… You can’t do anything with it except sell it to somebody else.”

He also commented on the fact that the cryptocurrency has been associated with money laundering and terrorism: 

“Bitcoin has been used to move around a fair amount of money illegally.”

Buffett made the bulk of his fortune from hedge funds and insurance. He has an estimated net worth of $88.9 billion.

Billionaire investors in cryptocurrency

Bitcoin has seen major investments from millionaires and billionaires alike, but as Warren demonstrated, some who made their fortunes using more established means are reluctant to accept cryptocurrencies. Mark Cuban, the billionaire who rose to fame in the dot-com bubble, has said he’d rather “have bananas” than Bitcoin.

On the other hand, there have been some success stories. Tyler and Cameron Winklevoss may not have reaped the benefits of Facebook, but the two have a combined net worth of over $1.4 billion after founding the crypto exchange Gemini.

Blockchain Security Company CoolBitX Raised $16.75 Million in Series B

The Taiwan-based startup responsible for CoolWallet plans to use the funding to expand to new markets.

CoolBitX, creator of the cryptocurrency-storing CoolWallet, continues to be popular with investors. In a press release today, the Taiwan-based startup announced that it had secured additional funding for expansion.

Led by Japan-based SBI Crypto Investment Co. Ltd., the Monex Group, BitSonic, and the National Development Fund of Taiwan, the group provided CoolBitX $16.75 million from the Series B funding round. To date, the company has raised $30.25 million: $500,000 from a seed funding round, $13 million from Series A, and the most recent round.

With this new funding ready, CEO of CoolBitX Michael Ou spoke to Cointelegraph on the future of Sygna Bridge, the company’s signature solution to the Financial Action Task Force's (FATF) regulations. Sygna allows Virtual Asset Service Providers licensed or registered in any of the 200 global jurisdictions to be regulatory compliant while still being user friendly.

“In the past, there was no such infrastructure to facilitate behavior [between crypto exchanges]. So we built Synga Bridge... whenever we make a transaction for our customers, we share customer information in a private and secure channel.”

The deadline for complying with the FATF's travel rule is rapidly approaching in many countries. As of today, numerous crypto exchanges have already begun or are considering implementing Sygna Bridge to meet this compliance. CipherTrace and the Shyft Network are also working with exchanges before the deadline.

CoolBitX’s strategy for 2020

Japan may be the next major expansion for CoolBitX as Sygna Bridge becomes more accepted by exchanges in other countries.

“Sygna’s progress has been in line with the strides made in crypto KYC/AML in various Asian jurisdictions, especially Japan. As such, CoolBitX will be establishing a Sygna entity in Japan this year as we are committed to having open dialogues with local stakeholders.”

While the Series B investment will certainly be a boost for Synga, CoolBitX has its sights set higher. Ou discussed what this funding would mean for the future of his company:

“We are looking for more growth every year. I'm sure even by the end of this year we will have even more news to share because we are rolling out more product lines which will help the growth of our company. Overall what we want to achieve is not just a valuation of the company or the funds that we raise. We want to foster the mass adoption of crypto space.”

Ripple (XRP) Takes A Bit Hit But Here Is Why It Could Correct In Short-Term

Ripple failed to stay above the $0.2740 support and extended its decline against the US Dollar. XRP price is currently testing the key $0.2650 support and it could correct higher Ripple price is down 3% and it traded below the $0.2740 support against the US dollar. The bulls are currently protecting the $0.2650 support area. There is a short term ascending channel forming with resistance near $0.2720 on the hourly chart of the XRP/USD pair (data source from Kraken). The price could correct higher in the short term towards $0.2710 or $0.2740. Ripple Price Testing Key Support After ripple failed to clear the $0.2850 resistance, it started a fresh decline. XRP price traded below many supports, including $0.2800, $0.2740, and the 100 hourly simple moving average. During the decline, there was a break below a key bullish trend line at $0.2765 and a bearish continuation pattern with support near $0.2720 on the hourly chart of the XRP/USD pair. Ripple Price It opened the doors for more losses and the price traded close to the $0.2650 support area. A swing low is formed near $0.2638 and the price is currently consolidating losses. Ripple is trading near the 23.6% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low. On the upside, there are a few key hurdles waiting near the $0.2710 level. The next key resistance on the upside is near the $0.2740 level (the previous support) and the 100 hourly simple moving average. Besides, the 50% Fib retracement level of the recent decline from the $0.2852 high to $0.2638 low is also near the $0.2745 level to act as a resistance. On the downside, there is a major support forming near the $0.2650 area. As long as the price is trading above $0.2650, there are chances of a short term correction. However, the bulls are likely to struggle near the $0.2740 level and the 100 hourly SMA. More Losses? If ripple fails to correct above the $0.2710 and $0.2740 resistance levels, it could extend its decline. The main support is near the $0.2650 level. A successful close below the $0.2650 level might start a strong slide in the near term. The next target for the bears below $0.2650 and $0.2620 could be $0.2500. Technical Indicators Hourly MACD – The MACD for XRP/USD is slowly moving in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting higher, but it is well below the 50 level. Major Support Levels – $0.2650, $0.2620 and $0.2500. Major Resistance Levels – $0.2710, $0.2740 and $0.2850.

Ethereum Eyes Downside Thrust Before A Strong Upsurge

Ethereum is currently declining and trading below $270 levels against the US Dollar. ETH price could dive towards the $255 support area before it starts a fresh upward move. Ethereum struggled to climb above the $280 resistance and declined recently against the US Dollar. The price is currently declining and trading below the $265 support area. There is a key descending channel forming with resistance near $266 on the hourly chart of ETH/USD (data feed via Kraken). Bitcoin price is also moving lower towards the $9,600 and $9,500 support levels. Ethereum Price Could Extend Its Decline Yesterday, we saw a decent increase in Ethereum above the $270 resistance level against the US Dollar. ETH price even climbed above the $275 level and the 100 hourly simple moving average. However, it failed to extend gains above the $278 and $280 levels. As a result, there was a fresh decline below the $275 and $270 levels. During the decline, there was a break below a crucial ascending channel with support near $268 on the hourly chart of ETH/USD. Ethereum Price It opened the doors for more losses below the $265 level the 100 hourly simple moving average. Finally, Ethereum price traded close to the $255 support area and it is currently correcting higher. There was a break above the 23.6% Fib retracement level of the recent decline from the $278 high to $256 low. On the upside, there are many key hurdles seen near the $266 and $268 levels. Besides, there is a key descending channel forming with resistance near $266 on the same chart. Therefore, Ethereum could extend its decline below the $260 level in the near term. It may perhaps spike towards the $255 and $252 support levels before the bulls appear again. Fresh Increase? On the downside, there are a few key supports near the $255 and $252 levels. The next key support is near the $245 level, where the bulls are likely to take a strong stand. Once the current correction wave is complete, Ethereum is likely to climb back above the $266 and $268 levels. The next key resistance is near the $275 level, above which the price is likely to accelerate towards the $280 and $285 levels in the coming days. Technical Indicators Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone. Hourly RSI – The RSI for ETH/USD is currently near the 40 level, with a minor bearish angle. Major Support Level – $255 Major Resistance Level – $268