Is GDAX a Reliable Website to Buy Cryptos? Find Out Here
Is GDAX a Reliable Website to Buy Cryptos? Find Out Here
How to I enable Margin Trading on GDAX : CoinBase
GDAX.com Review – Pros and Cons of Trading at GDAX
Does GDAX still have Margin Trading? : BitcoinMarkets
Coinbase has added margin trading to its bitcoin exchange
HUOBI EXCHANGE REVIEW
Huobi is a Singapore-based cryptocurrency exchange. Founded in China, the company now has offices in Hong Kong, Korea, Japan and the United States. In August 2018 it became a publicly listed Hong Kong company. Recently during early 2019, after crypto communities lost interest in ICOs (Initial Coin Offering) due to many unregistered STOs (Security Token Offering) and other projects whose aim was only to raise the funds. Exchanges adapted and gave a new dimension of the fund raising, IEO (Initial Exchange Offering). In this regard, exchanges helped the projects by providing them a platform to raise the funds and also helped the retail investors by doing due diligence on the project on behalf of the investors. Best part of this process is, such issued tokens are listed on the same platform and exchanges helped these start ups in the process. This gave a sense of security and helped to maintain integrity with the projects and public investors. All the top tier exchanges are participating in this movement and named such fund raising as Launchpad, Jumpstart, Spotlight, Startup etc. While Huobi came up with Huobi Prime. Unlike other exchanges, Huobi Prime has helped varieties of start-ups.
It all started with a DAG based blockchain platform, Top Network.
A project named after the greatest scientist who made a major impact on the human lives, Newton Project. It is aimed to deliver an infrastructure for the community economy.
It is followed by Thunder Core. A blockchain project dreamt of decentralized future and allows anyone to build dApps on their platform.
Then Reserve Rights continued the legacy. It’s a protocol for stable currencies with three kinds of tokens RSV, RSR and collateral tokens.
Akropolis - a protocol to explore the informal economy and help the people with DeFi. It was one of it’s kind which was competitive enough to seek the help from the Huobi.
Later a social digital currency, Emogi secured a place to be the next Prime project.
Recently, Whole Network - A consensus, co-creation, and win-win behavioral value network had the opportunity to feature as a 7th Prime project.
However, each of the Prime project is different from the other in the list. One must admit, it is a basket with mixed fruits. From DAG to Currency to dApp platform to stable coin protocol to DeFi protocol to digital currency to blockchain phone. Huobi has covered a rich list of projects in this journey. https://preview.redd.it/8z08lbq3qls41.png?width=800&format=png&auto=webp&s=34de122d950f32feb46df82cdce290221e1572be (This chart presents the information based on the price of the each token on 2nd October. However it may vary marginally as price of the cryptocurrencies are volatile in nature) Trading Options Many centralized exchanges serve as the sole, centralized market maker. In contrast, Huobi also allows you to trade over the counter (OTC). This means that you can buy and sell cryptocurrencies peer-to-peer on Huobi. Even though this option exists on the exchange, it has yet to gain adoption from traders. Various commenters have said that there is a lack of OTC offers. Still, this is still an innovative technical feature. If you are a margin trader, Houbi has a separate platform specifically for this. You can access this by going to the margin tab in the header. The amount of leverage you can have varies from coin-to-coin. For example, BTC is around 3x. Compared to other margin trading platforms, this is low. Nonetheless, it is an attractive option for potential users. In December 2018, Huobi Derivative Market issued BTC contracts and ETH contracts (including weekly, bi-weekly and quarterly, respectively), and flexible leverages, including 1x, 5x, 10x and 20x. In the future, more digital currencies will be issued to meet various investment demands. Meaning “currency” in Mandarin Chinese, Huobi consistently ranks as one of the world’s top ten largest exchanges by trade volume. In this article, we look at everything you need to know as a potential Huobi user. Let’s examine fees, fund security, customer experience and more. User Interface and Mobile App Available on iOS and Android, the Huobi mobile app features most of the functionalities available on the web platform. You can even complete tasks like account registration and verification directly via the app. In Google Play, the Huobi Global app has an average rating of 4.1 stars out of 3,730 reviews. However, in December 2018 and January 2019, some users have said that the Android app won’t let them login due to an error with Captcha. On the Apple App Store, Huobi boasts an average rating of 4.9 stars out of over 4,800 reviews. Trading Options Many centralized exchanges serve as the sole, centralized market maker. In contrast, Huobi also allows you to trade over the counter (OTC). This means that you can buy and sell cryptocurrencies peer-to-peer on Huobi. Even though this option exists on the exchange, it has yet to gain adoption from traders. Various commenters have said that there is a lack of OTC offers. Still, this is still an innovative technical feature. If you are a margin trader, Houbi has a separate platform specifically for this. You can access this by going to the margin tab in the header. The amount of leverage you can have varies from coin-to-coin. For example, BTC is around 3x. Compared to other margin trading platforms, this is low. Nonetheless, it is an attractive option for potential users. In December 2018, Huobi Derivative Market issued BTC contracts and ETH contracts (including weekly, bi-weekly and quarterly, respectively), and flexible leverages, including 1x, 5x, 10x and 20x. In the future, more digital currencies will be issued to meet various investment demands. Huobi offers a margin trading option. Security Compared to other exchanges, Huobi continues to excel from a security perspective. Many top exchanges suffer from large-scale hacks, with varying results in terms of trading volume afterward. In 2015, a Bitstamp hacker withdrew 12,000 BTC from Huobi. However, this issue did not relate to the security of Huobi. Huobi reported a DDOS attack in 2015 but this did not cause a security breach. According to one review, an individual user lost USDT and EOS on Huobi. This reviewer states that the problem was caused by a technical error with Huobi’s 2FA. One comment suggests that it was the result of a phishing scam. Huobi claims that its risk controls have been developed by the likes of Goldman Sachs. The exchange stores around 98 percent of funds in cold wallets. Moreover, Huobi now utilizes a decentralized exchange structure to prevent DDOS attacks. The exchange even has a User Protection Fund Initiative. Twenty percent of net revenue that the exchanges gains from trades will go to this fund, which it will use to buy back Huobi Token (HT). It also has a service called Huobi Security Reserve. As part of this, the exchange plans to store 20,000 BTC for insurance. This is a preventative measure that will help Huobi reimburse users in the case of any future hacks. Huobi Fees Huobi has a 0.2 percent fee that applies to both market makers and takers for amounts between $0 and $5,000,000 over the course of a 30-day period. In comparison, other top exchanges like Binance have 0.1 percent fees. Meanwhile, GDAX has 0.3 percent fees. In January 2019, Huobi Global launched a tiered fee structure that significantly reduces fees for higher volume traders. This is relatively competitive when compared to other exchanges. Users also have the option to reduce trading fees on Huobi by becoming a VIP member. This involves paying a monthly payment of HT, which varies depending on the membership level (1-5). Like most exchanges Huobi has no fees on deposits. However, Huobi does have withdrawal fees and minimums that vary from coin-to-coin. For example, withdrawing Bitcoin (BTC) costs 0.001 BTC, with a minimum withdrawal amount of 0.01 BTC. For Tether (USDT), the flat fee is 5 USDT and minimum withdrawal amount is 20 USDT. Overall, this means that Huobi fees are generally higher than most exchanges for lower withdrawal amounts. A few exceptions exist. For example, TUSD has a withdrawal minimum of $20 but a withdrawal fee of only $2. Withdrawal Limitations Similar to many exchanges on the market, Huobi has withdrawal limitations based on various levels of user verification. One thing you will notice is that withdrawal amounts vary greatly depending on your citizenship. For example, if you are a citizen of China, you can’t withdraw any funds as an unverified user or with level 1 verification. This option is only available at level 2 or above. In the United States, the exchange only requires level 1 verification. However, the amounts are relatively low: a daily limit of $2,000 and a monthly limit of $10,000. Customer Service Experience Compared to most exchanges, Huobi has above average customer service experience. Customer support is available 24/7, and response times only take two to three hours on average. Many consider this to be a rarity in the space. There are two main methods that you can use to reach customer support. First, you can utilize the chat app that is available directly on the Huobi trading platform. Second, you can contact the team at [[email protected]](mailto:[email protected]). If you choose this option, Huobi asks that you use the registered email address associated with your Huobi account and include your user ID. Huobi Website: https://www.huobi.vc/en-us/topic/invited/?invite_code=3afg5 UID: 134371568 Huobi Indian Community: https://t.me/huobiglobalindia Huobi Global Community: https://t.me/huobiglobalofficial
ABOUT HUOBI : Huobi is a cryptocurrency exchange founded in China in 2013. Currently, Huobi is based in Singapore because this country has friendlier cryptocurrency regulations. The company is registered in Seychelles. Before leaving China due to a cryptocurrency ban, the exchange was responsible for 90% of Bitcoin trading volume in this country. Now Huobi is an international platform with offices located in Singapore, Hong Kong, the United States, Japan, and Korea. In China, the company provides blockchain consulting services. Huobi has sub-exchanges: Huobi Korea, Huobi US, etc. Huobi Global is the biggest Huobi exchange. In November 2019 Huobi Global had to shut down all the accounts belonging to the US customers due to strict cryptocurrency regulations of the USA. This exchange is one of the top 50 cryptocurrency exchanges by trade volume. On the Coingecko chart of exchanges, Huobi Global occupies the third position. The exchange has more than 500 markets and supports over 220 cryptocurrencies. As Huobi provides an option to buy cryptocurrency with fiat money, this exchange is a gateway for people who enter the cryptocurrency world . FEATURES : Huobi Global has a really wide range of functions. First off, this exchange provides an opportunity to buy cryptocurrencies with fiat money using a credit card and other payment means. This option is delivered in the over-the-counter trading section (OTC). There is a menu line in the upper part of the website. It begins with "But Crypto". That's where one can see the OTC offerings provided by Huobi. One can buy or sell the following currencies: Bitcoin (BTC), Ether (ETH), Tether (USDT), EOS, XRP, Litecoin (LTC), Huobi Token (HT), Huobi stablecoin (HUSD), and Bitcoin Cash (BCH). Please note, that there are not so many offerings especially for certain currencies. Normally there are many options for buying BTC or USDT. The prices and payment methods vary from one trader to another. You can pay with a credit card, some traders accept payments via Western Union, AliPay, and other services. There is a cryptocurrency exchange with hundreds of crypto-to-crypto pairs. The exchange supports market, limit and stop-limit orders. It gives traders some control over the situation and helps to secure the assets from trading in loss to some extent. In general, the exchange interface of Huobi is quite generic. Those who have experience of trading on several other exchanges will find the interface familiar. It has a trading view with a candlestick chart on the left and the list of orders updating in real-time on the right. Under the charts, there is an order history. Under the list of market trades, there is a section where users can place orders. The candlestick chart is powered with numerous analysis tools and indicators. What makes Huobi Global more attractive for traders is the support of margin trading. In all margin trading pairs the currencies are traded against Tether (USDT). There are 6 cryptocurrencies that can be traded with x3 leverage: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), XRP, Ether (ETH), and EOS. Huobi Global is aimed to provide service both to small investors and institutional traders. That's the reason why the platform offers institutional accounts with special opportunities for corporate customers. Among these features, there are colocation options and other tools that provide the opportunity of seamless high-frequency trading. Additionally, institutional accounts can get special OTC loans. One more feature is trading derivatives. Huobi provides two separate interfaces for that purpose: Swap trading and Futures trading platforms on Huobi DM. Moreover, it is possible to participate in IEO trading via the Huobi exchange. This feature requires the use of the Huobi Token. ASSETS AND INSTRUMENTS: As mentioned, there are two types of instruments that you can trade on the Huobi derivatives platform. These are your traditional futures as well as the perpetual swaps or futures. With these instruments, you are trading crypto on margin. This means that they are leveraged and your exposure is often many multiples of the amount that you have put down as collateral. Now that we have a brief understanding of leverage, let’s take a look at the instruments on offer at the Huobi exchange. Futures are instruments that allow the holder to buy or sell some asset in the future. Essentially, you are trading some future price of the instrument on the chose delivery date. In terms of expiry dates, they have weekly, bi-weekly and Quarterly which settle every Friday. In terms of expiry dates, they have weekly, bi-weekly and Quarterly which settle every Friday. When it comes to the specifics of the contract, they differ according to which asset is being traded. You should also take a look into the contract specifics in the Huobi docs. This includes such information as the index reference for the prices as well as your last trading price. The latter can only be done up till 10 minutes before the expiry. Perpetual swaps are leveraged instruments that do not have have a delivery date. They are marked to market everyday and settle 3 times a day. They are sometimes also called “perpetual futures” at other exchanges. The reason that they are called “Swaps” at Huobi Derivatives is because you are swapping the returns of one asset for the returns of another. Here, you are swapping crypto returns for returns on the US dollar. At Huobi DM, the Perpetual swaps have leverage up to 125x and they are written on 5 different assets. These are Bitcoin and Ethereum with other coins to be added soon. HUOBI APPS: Huobi mobile app for iOS and Android are available. Similarly, the Huobi mobile app features most of the functionalities available on the web platform also. You can even complete tasks like account registration and verification directly via the app. In Google Play, the Huobi Global app has an average rating of 4.1 stars out of 3,730 reviews. However, in December 2018 and January 2019, some users have said that the Android app won’t let them login due to an error with Captcha. On the Apple App Store, Huobi boasts an average rating of 4.9 stars out of over 4,800 reviews. API : For those of you who are programmers, you will be happy to learn that Huobi global API can be used on the Futures and Swap markets. There is both a websocket as well as a REST version available. It is suggested that you use the REST for one off operation to trade and withdraw. You should use the websocket for market data & order updates. You should also note that you can be a market maker on through the API. If you want to start using the API then you will to get yourself an API key. This can easily be done in the API management of your account dashboard. Here you can select whether you would like it to be a read-only, Withdraw or Trade. You can also bind an IP address to this API so you can ensure than no other person will use your account even if compromised. HUOBI FEES : Huobi has a 0.2 % fee that applies to both market makers and takers for amounts between $0 and $5,000,000 over the course of a 30-day period. In comparison, other top exchanges like Binance have 0.1 percent fees. Actually, it has a fair trading fees structure and easy to remember also. Meanwhile, GDAX has 0.3 percent fees. In January 2019, Huobi Global launched a tiered fee structure that significantly reduces fees for higher-volume traders. This is relatively competitive when compared to other exchanges. Users also have the option to reduce trading fees on Huobi by becoming a VIP member. This involves paying a monthly payment of HT, which varies depending on the membership level (1-5). Like most exchanges, Huobi has no fees on deposits. However, Huobi does have withdrawal fees minimums that vary from coin-to-coin. For example, withdrawing Bitcoin (BTC) costs 0.001 BTC, with a minimum withdrawal amount of 0.01 BTC. For Tether (USDT), the flat fee is 5 USDT. And the minimum withdrawal amount is 20 USDT. Overall, the meaning- Huobi fees are generally higher than most exchanges for lower withdrawal amounts. A few exceptions exist. For example, TUSD has a withdrawal minimum of $20 but a withdrawal fee of only $2. IS IT TRUSTWORTHY? In contrast to other exchanges, Huobi receives a favorable score. First of all, it is incorporated and operated from Singapore. As we all know crypto regulations are advanced there. And promote blockchain startups always. Second, Huobi does provide users with multiple ways to safeguard their accounts. Although it is not enough. Essentially, 2-factor authentication is available using both SMS and authenticator apps. The platform does not require any special confirmation if the account is logged into from an unfamiliar IP address or location. There is no option to whitelist addresses for asset withdrawal, allowing funds to be sent to any address input. Furthermore, Huobi was never hacked. Even though they do present a lucrative target for attackers. Meaning, Huobi has adopted a decentralized exchange structure, which helps to resist DDOS attacks. And we believe the exchange takes these threats seriously and does everything in their power to protect the exchange from hackers. Also, Huobi does store user funds in cold storage to restrict access to them. Actually, the exchange stores around 98 percent of funds in cold wallets. SUPPORT : Something else that is crucial to the entire trading experience is the level of support that the exchange provides. There is nothing more frustrating than having to wait hours for response from support. When it comes to Huobi, there are actually quite a few options to reach their customer support. Perhaps the quickest and most effective way is through their live chat function. Firstly, they will try to help you with the available resources. If that does not work then you can reach out to a live agent. CONCLUSION: So, in summary. We really liked the Huobi futures products. It is not only highly functional but is also secure and leverags the expertise that the team have at the main Huobi exchange. For the futures instruments, there is a decent range of assets and leverage. Markets are also pretty liquid and these are all traded on a simplistic yet technically able trading platform. It’s also great that you can trade on PC programs and mobile apps as well. When it comes to security, they have taken all of the same precautions that are used on the main exchange. Their 20,000 BTC strong insurance fund keeps them well protected and they have not had a single clawback of trader funds since their inception. Yes, there are areas for improvement but the exchanges is still evolving and building out functionality. One can only hope that they take trader suggestions into account. So then, is it worth considering? Well, if you are looking for a highly functional and secure futures exchange that is backed by one of the biggest names in the business, then it is well worth a try. Huobi Website: https://www.huobi.com/en-us/topic/invited/?invite_code=czdh5 UID: 138138177 Huobi Indian Community: https://t.me/huobiglobalindia Huobi Global Community: https://t.me/huobiglobalofficial
setup an account on coinbase.com, buy your coins, walk away until next year or later, fees are ~1.5% which is $1.5 USD for a $100 USD of coin
note coinbase does have an option to buy via credit card instead of a bank account, fees are ~4% when you do that, your credit card company may charge more if it considers it a cash transfer
Guide for Not Noobs
Less Simple
-setup an account on coinbase.com, move dollars into your account, setup an account on gdax.com (same company, same login), move your cash from coinbase to gdax, buy your coins on GDAX at Market, fees are cheaper 0.25% versus 1.5% -consider buying alternative coins supported by coinbase
No Fees
-all of the above but use GDAX's Limit/Buy, zero fees, but you have to wait for the market to dip below your buy price
More Money Available
-setup several Limit/Buy orders at different price points to capture dips when you are away
More Control but More Complex
-it's possible coinbase could go out of business, move some or most of your coins to a personal hardware wallet like a Trezor or Ledger Nano S, made in Czech Republic and France respectively -consider using other exchanges with different fees and coin support -consider buying other alternative coins supported by other exchanges
You Are Very Responsible
-create a paper wallet, put it in a safe, be warned it's like a visual bearer instrument, if you lose it or someone takes a picture of it...it's gone, but you have complete control over your money/asset
DO NOT EVER
-buy more than you can lose, it's early wild west days, the market could easily come crashing down -panic sell, the market fluctuates regularly by 20%, thus far it has ALWAYS recovered, people that try to sell during a fall/dip and buy at the bottom usually miss time it and lose -store your keys on your computer or phone unless its small amount, these are the two most vulnerable routes to hacking and simple hardware failure resulting in loss -attempt to daytrade and time the best prices unless your real life job is day trading -get addicted to watching the market, pay attention watch for dips, but don't let it crowd out your work or free time -keep a LOT of cash or coin in an exchange, it is very easy to mistype and buy or sell far more than you meant to, exchanges can disappear with your coins -buy a hardware wallet from anyone other than the company who makes it, i.e. do not buy one on Amazon, it is possible some third person hacked it and could steal your coin
PROBABLY DON'T
-limit sells until the far future when market volatility is down, flash crashes have happened and recovered, if you had all your coin in limit sells it would be gone -margin trade unless your real life job is day trading -stop buys or stop sells unless your real life job is day trading
DO
-hold your coins, your coin may be worth x10 or more in value in the future, e.g. if bitcoin replaced gold, bitcoin would be worth ~x70 the current value -buy small amounts over time DCA, this might not seem intuitive but it spreads your risk out, reduces risk of buying at all time highs (ATH) and more likely to catch lows (dips), a fluctuation of $100 in price is small if the eventual value is worth x10 or more in the future -keep a small amount of cash on an exchange always, when there is a lot of traffic/trading which happens during dips, you are much more likely to be able to make trades on an exchange rather than with your own wallet
REMEMBER
-if you don't have your coin in your own wallet, it's not your coin. this is not a problem until you have a lot of value and you want to keep it safe from a bankruptcy, unscrupulous people/exchanges, or unforeseen acts. if it's a small amount compared to your income it's an acceptable risk, if not then move it to a wallet -in the days of fake news not everything you read is true, in fact there are armies of people shilling for 'pick a random coin'; some are malicious, some uninformed, and some willfully uninformed -if your value starts to become large, dig deep into how your asset/currencies work just like you would for any other purchase, understanding how it works helps you understand if it will be a success, e.g. understand the difference between PoW vs PoS or what a hard fork is -some coins especially newer ones are scams, a good indication of if it is not a scam is how long the coin has been around -most bitcoin hard forks so far have not been successful with some exceptions -btc is the accepted short-name for bitcoin on most (but not all) exchanges, xbt is also common in EUR-land
Other Risks
-holding your own coin requires personal responsibility, it is easy to lose and not be able to recover it if you are not careful -again, do not buy more coin than you can lose -transaction speeds which are slow are a serious problem in bitcoin scaling -there is less innovation and more argument going on in bitcoin than some other coins, bitcoin is large enough that consensus is difficult, future change is less likely than with some other coins, there are other side solutions to bitcoins problems that may not require bitcoin to change much -bitcoin.org IS the generally accepted bitcoin website, NOT bitcoin.com -important other risks compiled by themetalfriend -coinbase has insurance up to $250k USD for you USD Wallet which DOES NOT cover your bitcoins or other crypto currencies, they claim to have separate insurance for your crypto currency but it is unclear how much
Community
there are a lot of memes -hodl, GameKyuubi mistyped hold and it spread -to the moon, where everyone hopes the price will go -coin on a rollercoaster, it is highly volitile market you will see this during fluctuations -this is gentlemen, via Liquid_child , here -lambo/roadster, a car people want to buy when they get rich -the cost of pizza, early days someone bought a pizza for 10,000btc which is worth over ~80million USD today -tesla/vehicle with a bitcoin chart, cytranic posted a picture that spread -intersting guide by stos313 , here. I do not agree with everything but it has a lot of useful information.
CORRECTIONS
Edit: Adding in user comments. Edit: Crosslinking to a more Beginner Version. Edit: Note in an earlier edit of this guide I said. note that most of the development on bitcoin is by employees of one company, it is open source but their priorities may not align with the community This is not true. Blockstream appears to have a high representation but not an overwhelming amount. You can compare blockstream's employee page and bitcoin's commits in the last year. Thank you to lclc_ , trilli0nn , and Holographiks for pointing this out. See this for a detailed break down. Edit: Clarification that FDIC insurance does NOT cover crypto currency/assets. Edit: Clarity on who owns bitcoin.org
Good Luck and Hodl.
Please comment if your experience is different. Or call out things I missed.
WolfpackBOT - The World's Fastest Crypto Trading Bot https://preview.redd.it/s5j8hgsgsi131.png?width=799&format=png&auto=webp&s=e0e5597fa32aa74f78fcfbb5cc08d143f8b8ca3b There are basically two different ways you can make mazuma from digital currencies. You can purchase a couple of coins currently, hold them for an extensive period and offer them after the esteem has risen significantly or you can get started with exchanging digital forms of money, here once more, you can exchange physically or run with the best crypto exchanging bots. While holding cryptographic money for a more drawn out term has turned out to be fulfilling, it takes a bounty of time and tolerance for you to optically observe the estimation of your speculation increase.If you are somebody, who does not have the persistence to hang tight for so long, at that point digital currency trading provides you with the immaculate chance to make some mazuma. Numerous prosperous digital currency dealers do recommend you purchase low and sell high. In any case, this is easier verbalized than done. Digital currencies have been cosmically unpredictable since the earliest reference point. They are the main tradable resources whose esteem shifts in twofold digit rates every day. The cost does not generally go up either. Along these lines, timing the market is the way to turning into a prosperous cryptographic money merchant. Exchanging digital money isn't any advanced science. All you require is a record on a digital money trade and some cryptographic money in your wallet. This would have been the situation, had you started exchanging these computerized resources route in 2010. Presently, on the off chance that you try to put in any limitation request on any famous cryptographic money trade, you will outwardly see another application set appropriate above you're, putting forth a superior arrangement. Hence, you are constrained to put orders at market esteem. The way that a superior offer quickly negated your offer does not assign that somebody is continually crushing before the PC. You just set off crypto exchanging bot when you submitted your request. The best bitcoin exchanging bots have surmounted the whole cryptographic money exchanging biological system, and this is primarily because of the way that they are more effective than people, particularly when it comes down to exchanging. Presently that you ken that bots have surmounted the crypto exchanging market, you more likely than not understood as of now that the chances of making mazuma when piled facing a great many bots are cosmically svelte. You could ace all the distinctive specialized investigation strategies and exceed the bots. In any case, in addition to the fact that this is tedious withal very tedious. So instead of investing more energy finding out about the specialized investigation, you can set up the crypto exchanging bots all alone. By the end of this article, not exclusively will you ken probably the most profitably rewarding cryptographic money exchanging bots out there, yet moreover will be enabled with the intelligence of winnowing your very own exchanging bot later on. Variables to Look for When Culling the Best Crypto Trading Bots
Dependability
A standout amongst the most vital viewpoints to consider is the dependability of an exchanging bot. You would not operate to lose on a brilliant open door because your crypto bot went disconnected or stopped working for quite a while. You may contend that there is no real way to make sure about the dependability of a specific exchanging bot. Notwithstanding, you aren't the just a single using a bot. Scan for what alternate clients who have used a particular bot need to verbally express about its consistent quality or basically allude to our rundown of the best bitcoin exchanging bots underneath.
Security
With regards to cryptographic forms of money, you can't inculpate anybody yet yourself if there should be an occurrence of a hack. When you initiate using an exchanging bot, you are giving the bot access to your mazuma. This can be very jeopardous, particularly if the exchanging bot is beginning in the field. There is no telling how secure a specific bot is. In this way, while separating an exchanging bot, complete quintessential research and winnow a bot that has been broadly extolled for its security.
Productivity
Everything comes down to this fundamental part. Is the bot profitably worthwhile or not? An inquiry for which it is elusive an answer. The primary reason you chose to run with an exchanging bot is to benefit over its exchanging ability. There is no influential pertinence in using a bot that isn't profitably rewarding. In this way, discover the productivity of a bot up to you put both your time and mazuma into it.
Straightforwardness
The fundamental motivation behind why digital currency rose to acclaim is that the entire system is plenarily straightforward. There is the wrong spot for any injustice. The equivalent ought average even from the exchanging bot that you choose to run with. Attempt to winnow a bot whose engineers are unmistakable for their work in the network. Straightforwardness benefits to fabricate trust as well as also profits you to connect with the ideal individuals to adjust any issue.
Simplicity of profit
The entire cogency of running with a robotized bitcoin exchanging is to make the whole procedure of transferring cryptographic forms of money simple for everybody. A bot which accompanies a simple to use interface is the one that is exceptionally well known. Having the capacity to control the bots with only a couple of snaps of the mouse is something you should pay individual mind to, in the bot that you choose to use. Considering every one of the variables we have arranged a rundown of the best ten digital currency exchanging bots in 2019, the review will be unendingly refreshed with the goal that data remains apropos. Top 10 Best Crypto Trading Bots in 2019
Cryptohopper
This may be a new bot in the crypto exchanging market. In any case, this newcomer has figured out how to blow some people's minds because of the comprehensive exhibit of highlights that this bot gives. One of the defeats of most exchanging bots is that they kept running on your neighborhood machine. This betokens they run just when you have turned on your PC. With the lift in enthusiasm for cloud-predicated advancements, Cryptohopper uses cloud innovation to keep the bot running day in and day out. By running the bot on a cloud, clients will most likely put in exchange requests notwithstanding amid the night. In this manner, no open door is missed. Another critical reason that prompted the lift in the notoriety of Cryptohopper is its simplicity of usage, particularly for the tyro. The bot has incorporated with an outside exchanging signaller. This assigns anybody can initiate using this bot by running it on autopilot. This is a help to the nascent dealers, who need not stress over setting exchanging signals for their bot. The bot withal gives progressively experienced clients a chance to mess around and set their own exchanging signals. Along these lines, it is satisfying the desiderata of both. Aside from this, the bot is incidentally outfitted with highlights, for example, trailing stops, specialized examination, formats, and backtesting. Formats benefit you to design a nascent setting for your bot quickly, and specialized investigation sanctions you to redo and arrange your own settings. Like every extraordinary thing, the crypto container comes with a sticker price fastened to it. The cost starts from $19 every month for the fundamental arrangement and goes up to $99 per month if you operate their most extravagant arrangement. When you buy into any of the organizations, you can start using the bot on prominent trades like Binance, Huboi, Kucoin, Bittrex, Coinbase, Poloniex, Kraken, Cryptopia, and Bitfinex. On the off chance that you are slanted to spend the additional buck on an exchanging bot, at that point Cryptohopper is an extraordinary separate.
3Commas
Even though 3Commas bot is nascent to the exchanging bot scene, it could give its clients huge increases, notwithstanding amid the crypto bear showcase. The new element that dissevers this bot from other bots is its workforce to trail any crypto advertise. This authorizes the bot to close the exchange at the most profitably excellent position, yet the objective addition set by the utilizer had just been come to. This element benefits enormously amid the crypto bull run. Additionally, the bot adventitiously endorses clients to exchange numerous cryptographic forms of money simultaneously. In this manner, it is not passing up any great exchanging opportunity that goes along the way. The bot is set up on the cloud and is available through the site. This betokens the bot runs 24X7. The bot can be designed with Binance and Bittrex at this moment and increasingly legitimate trades, for example, BitFinex, Poloniex, KuCoin, and so forth will be coordinated anon. The 3Commas comes with a sticker price appended to it. The starter plan will cost you $24, and the most luxurious genius pack would set you back by $82. On the off chance that you operate to give crypto bot exchanging a go, at that point, you could use the 3Commas starter plan and later peregrinate to the more rich schemes.
Gunbot
This is another mainstream exchanging bot with more than 6000 dynamic merchants using its lodging on a quotidian substructure. Good with a few exchanging stages including Binance and GDAX, it very well may be kept running on your nearby PC. This can keep running on Windows, Linus, and the Mac stages, so running on your neighborhood machine would not be a bind. The bot has 32 diverse pre-arranged exchanging systems which give clients a wide cluster of choices to induce some automated revenue. Among these techniques, the three most well-known ones are the Bollinger band, step addition, and ping pong. Numerous clients have detailed having made a bounty of benefits with the BB procedures. Gunbot isn't in freedom to use and accompanies a one-time level rate running from 0.1BTC to 0.3BTC, contingent upon the highlights that you would savor to optically observe in the bot. Aside from this, the bot supplementally comes as a Lite rendition that has encircled highlights yet can be habituated to test around with the lesser measure of mazuma. The post-buy support given by the organization is truly surprising. Clients get their issues settled in less than multi-day. The main pickle with regards to this bot is that you ought to in every case reliably outwardly look at the present market state. If the instability of the crypto advertise is high, at that point you ought to most likely turn the bot off to shun any misfortune
Gekko
This is the most diverse digital money exchanging bot in subsistence at present. For any individual who needs to gain proficiency with some things about exchanging bots and not spend any mazuma getting one, at that point Gekko is the bot for you. The Gekko trading bot is an open source bitcoin exchanging bot venture that is accessible for anybody to use for nothing. The way that it is in freedom to use is the fundamental purpose behind its wide prevalence. Like some other open-source ventures, Gekko is free of for all intents and purposes all bugs and even the ones the pop are fixed up at lightning speeds. The Gekko bot can collaborate with a few trades, including Bitfinex, Polonix, and BitStamp. The bot uses a web interface to associate with the clients and can keep running on a neighborhood machine with Windows, Linux, or the Mac OS. The bot comes pre-designed with some exchanging system. You can initiate using the bot on autopilot as anon as you introduce and design it with a trade. In any case, if you would savor to use your very own exchanging system, the bot withal endorses you to design it to your savoring. While the present design is respectable for trying different things with the bot, there are a few other exchanging techniques accessible online that would benefit you make an all the more profitably worthwhile wager. The bot will withal send you a notice at whatever point it executes a specific exchange. This is finished by incorporating it with the Telegram envoy. Consequently, you will dependably ken how well your bot is performing. The main drawback to the Gekko exchanging bot is that it isn't very utilizer-heartfelt. There are a few aides in the digital world that direct you through the underlying setup process. Be that as it may, this procedure isn't extremely direct and you would presumably hit a barricade at any rate once amid the underlying setup.
Zenbot
Another allowed to use digital currency exchanging bot, Zenbot can be considered as a further developed form of the Gekko exchanging bot. Nonetheless, as Gekko has been around for a more extended time, it is all the more generally used. Much the same as Gekko, Zenbot programming can be downloaded from Github and introduced on your neighborhood PC. The product is perfect with Windows, Mac just as the Linux working frameworks. The bot comes pre-arranged with an entirely nice exchanging system. In any case, its real potential can be opened only when you initiate executing your exchanging order. The primary bind with the allowed to use bots is that they are frequently not very utilizer-genial. In any case, this isn't the situation with Zenbot. The entire setup process is extremely effortless, and you can have the bot fully operational in all respects speedily. The bot chips away at all prevalent trades, for example, Bitfinex, Poloniex, Bittrex, and so on. As it is an open source venture, it is without now of a few bugs, and regardless of whether one springs up, it will be adjusted all around speedily. The Zenbot can effortlessly actualize with a few informing stages, for example, slack, Telegram, and so on to give you the updates of any exchange that was executed. Adventitiously, the Zenbot withal braces high-recurrence exchanging. This is a component that outlined the personnel of the Gekko bot. The Zenbot is being refreshed, and more highlights are being incorporated traditionally. Hence, making it a bot for you to reliably outwardly analyze.
WolfpackBOT: WolfpackBOT is a cryptographic money exchanging programming application that has been created with the most developed highlights of any robotized exchanging programming of its sort. The WolfpackBOT has been intended to execute exchanging directions with the usage of restrictive numerical calculations, and specialized investigation bespeakers predicated on the client's predefined assignments.
The cryptographic money advertise as of now bearish, and many exchanging bots easily miss the scarcest vacillations. WolfpackBOT has been built to execute trading directions at a lightning speed and is fit for making up to a large number of exchanges every day, relying upon the states of the market. WolfpackBOT is among the few cryptographic money exchanging bots that give crypto aficionados full self-governance, security, and control of their exchanging bot and its related API keys. A large portion of the crypto trading bots out there are cloud-predicated stages that are constrained by outsider frameworks. While these stages guarantee dealers of outright wellbeing and security, insightful brokers ken that in the crypto space, outsider frameworks like trades and other cloud-predicated steps are hacked proximately consistently. Since WolfpackBOT programming and your related API keys are put away individually PC or devoted VPS, WolfpackBOT can sidestep a significant number of the security issues related to cloud-predicated frameworks. WolfpackBOT has been created for the whole crypto network, from experienced merchants to novices, with three in all respects reasonably valued membership levels. WolfpackBOT accompanies a few membership bundles that authorize clients to exchange with a wide scope of chances predicated on their favored membership.
CryptoTrader
cryptotrader_reviewAlmost all digital money merchants would have aurally seen about the crypto dealer exchanging bot. The across the board fame of this bot is because it was one of the absolute first bots to be kept running on the cloud and accessible to the clients day in and day out. The crypto broker bot is plenarily web-predicated and in this manner, open from anyplace you can associate with the digital world. The bot can be easily designed with a few well-known trades, for example, Poloniex, Bittrex, Kraken, and so on. This bot does not come for nothing out of pocket. You can operate from the few organizations accessible. The valuing initiates with 0.003BTC every month for the most simple arrangement and this goes up to 0.0472 BTC every month for their excellent arrangement. While all plans do offer clients support for programmed exchanging, the early highlights and as far as possible for the more indulgent plans is higher than that given the basic arrangement. Any early component that is caused is most readily accessible on the higher bundle designs and are later accessible on the basic plans. On the off chance that you would simply savor to exchange on a solitary trade and with exceptionally delineated mazuma, at that point the basic arrangement will get the job done. Be that as it may, on the off chance that you are outwardly looking at the higher volume of exchanges, at that point run with the higher bundle. This bot additionally sustains algorithmic exchanging. In this manner, I am making it effortless for clients to execute their very own arrangements. The bot can be effortlessly modified. In this manner, I am making it a broadly utilized cryptographic money exchanging bot.
Bitcoin Robot
btcrobotWe simply needed to incorporate the pioneer of digital currency exchanging bots on our rundown of the best crypto exchanging bots. The Bitcoin robot started as a Bitcoin exchanging bot. In any case, it can now withal be designed to exchange different digital currencies, for example, Ethereum and Litecoin. The bot is accessible as a product and should be downloaded and keep running on your neighborhood machine. This betokens the exchanges will be executed just as long as you keep your PC turned on. The bot can effortlessly work with a few digital money trades and is by and large broadly utilized even today. The bot isn't accessible free of expense and costs you a premium. The cost of the bot ranges from $19.99 every month for the principal plan. In any case, clients usually buy the platinum plan that costs just $399 one time charge and offers utilizer unlimited access to every one of the highlights. The benefits made by individuals using this bot verbalizes for itself. Supplementally, they do offer a 60-days mazuma back assurance. Along these lines, you should look at them once.
USI Tech
This can't be considered as a bot. In any case, the USI tech BTC settlement promises mechanized benefits for your BTC speculations. The USI Tech was at first intended for Forex exchanging. In any case, after the raise of the ubiquity of Bitcoin, they additionally offer BTC bundles. Not at all like some other BTC exchanging bot where you require to give the API key of your trade account to execute exchanges, on USI Tech, you will require to winnow from among the few BTC master exchanges. At that point, you will begin accepting your segment of benefits at whatever point exchange is made. The USI Tech stage basically ensures extraordinary comes back to your speculations. The entire procedure of purchasing your absolute first BTC bundle is withal simple and pellucidly elucidated on their site. You can explore different avenues regarding the benefits that you gain. In any case, the number of bundles you purchase, the more dominant will be your benefit
Margin.De (Leonardo Bot)
Edge LeonardobotThis is a cryptographic money exchanging bot with the most utilizer-genial interface. The GUI of the bot is easy to use, and the highlights gave are extremely puissant. The bot was structured with two exchanging techniques ping pong and Margin exchanging actualized into it. In any case, you can withal modify it with your very own custom settings. This bot lays incredible complement on the visual parts of exchanging. The specialized examination done by the bot is immensely simple to break down. What more? The bot has an astonishing component called visual exchanging. This interface feels rich smooth to use and offers clients the most extreme authority over the exchanges. The bot was at first evaluated at 0.5 BTC consistently. Notwithstanding, presently, it is accessible at a one-time cost extending from $89 to $1999 with the most elevated arrangement offering a bigger number of highlights than th
How To Invest in Cryptocurrencies: The Ultimate Beginners Guide
All statements are based on the author’s experiences. I take pride in informing the public and helping as many as I can through sharing my experiences with my readers. That said, no one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing. If you would like to learn more about the techlogogy behind cryptocurrencies, please check out our blockchain courses on crypto. When I first started taking an interest in cryptocurrency I thought I was so lost in this huge sea of unknowns. Where do I start? What are the useful keywords to look up and keep in mind? What are the available helpful resources? This cryptocurrency investing guide is written so that in just 20 minutes, you would have a sense of what to expect of your upcoming crypto journey, and how to best go about starting it. Enjoy it, it might just be the most exhilarating ride of your life. Rise of the Cryptocurrencies As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once skeptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now? Current Makeup of the Cryptocurrency Space You would have heard of Bitcoin and the ‘altcoins.’ How this naming convention started was because back in the days of 2011, forks of Bitcoin appeared in the markets. The forks, or clones, each aspire to serve a niche area, aiming to be ‘better’ than Bitcoin. Since then countless new crypto has emerged, eroding away Bitcoin’s crypto market cap dominance. These altcoins are gaining market share at an alarming speed. Ten times or more growth has been observed in a time span as short as six weeks (see PIVX, an altcoin). Cryptocurrency, Stocks, and Fiat The currencies we know are referred to as ‘fiat’ by the cryptocurrency community. Although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies. When you purchase some cryptocurrency, you are in fact buying some tech stock, a part of the blockchain and a piece of the network. Cryptocurrency Exchanges The most common place where people buy and trade cryptocurrency is on the exchanges. Exchanges are places where you may buy and sell your crypto, using fiat. There are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness. Out of all these, I find Coinbase as the best exchange hands down. It has a beginner-friendly user interface, and an unbeatable 100% crypto insurance. After setting up an intermediary bank account and verifying your details with Coinbase, you are only five simple steps away from a Bitcoin purchase:
Access the ‘Buy/Sell Bitcoin’ tab
Select the payment method using the drop-down menu
Enter the desired amount
Click ‘Buy Bitcoin Instantly.’
View your credited Bitcoins on your dashboard
When you get acquainted with buying crypto and start to itch for some crypto trading (e.g. BTC/ETH), simply perform an instant transfer from Coinbase to GDAX free of charge and start trading. Think of Coinbase as the place to conveniently buy and store your crypto and GDAX as your margin trading platform. Transfers between the two are instant and free. As you slowly get familiar with other currencies, you might want to have the option of investing in them. Bittrex and Polo are two exchanges that offer a wide selection range. When signing up on these exchanges for the first time, do make it a point to verify your account with the required documents early, as you do not want to be caught in the middle of some tedious and slow admin work when the trading opportunity comes. Verification on these exchanges may take days, and purchase/withdraw limits may only increase gradually as you trade. An additional point to note: if you are using a currency other than USD, do check out the exchange’s ease of funding and withdrawal. You do not want your exchange to come into fiat withdrawal problems like Bitfinex did recently. Cryptocurrency Wallets Exchanges have inbuilt online wallets to keep the cryptocurrency you purchased. However, for those who heard of the Mt. Gox hack, you might feel uneasy to put on an exchange. If you do not wish to keep your crypto holdings on the exchange, you have the option to either use a paper wallet service like myetherwallet.com or spend 99 USD on a hardware wallet like KeepKey. Both serve the purpose of removing platform risk, at the cost of taking up the responsibility of keeping your cryptocurrency safe. To transfer your crypto from exchanges to your hardware wallet for long term storage, simply follow these steps, using Coinbase and KeepKey as an example:
Plug in your KeepKey USB cable
Open your KeepKey Client (on Google Chrome under Apps)
Find your wallet address on the KeepKey Client UI
Access Coinbase ‘Send/Request’ tab and input your KeepKey wallet address
Confirm amount and click ‘Send Funds’
Take note to first send a tiny amount (e.g. 0.0001 BTC) for testing before sending the bulk, lest an error occurred and the transfer amount is lost. A small network transfer fee might be charged. Personally, I own a hardware wallet, as I love the feeling of a having around a tangible reminder of my crypto holdings. Also, the hardware wallet’s user interface makes it easy to keep multiple coins, which is especially handy when you participate in ICOs (Initial Coin Offering) in the future.
Cryptocurrency as a Percentage of Your Investment Portfolio
This part will be wildly subjective. Crypto has the potential to realize many ‘rags to riches’ stories, but its volatility makes it unpredictable. As a precaution, the money you put in crypto should be money that you are fine with losing. I cannot emphasize the importance of this as we often underestimate how the volatility affects our emotional capacities. The upside is huge, but it comes with lots of risks and, if I may put it, emotional torment. A conservative portfolio I would suggest is as follows: < 30 years old (max) 30% Crypto, 50% Traditional Investments 30 – 40 years old (max) 20% Crypto, 60% Traditional Investments > 40 years old (max) 10% Crypto, 70% Traditional Investments This is not meant to be age discriminatory but considers the fact that one takes up more financial responsibilities (mortgage, family) as he grows older. Within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.
Show Me the Money! Cryptocurrency Investing
Now, this is where it gets exciting. How do we pick the winner? How do we avoid picking the loser? Note that crypto is now in a huge bull market and anything could rise over time. Also, do not dismiss the possibility that we may be in a bubble like the-dot-com boom back in 2000. Still, ask yourself these questions before you decide to invest in a coin:
Are my investments safe with the dev team? The first rule of investing should always be the preservation of capital. Can you trust the dev team with your money? Are you about to leave your money with founders who have been involved in previous scams? If you see these telling signs, back off immediately. The coin’s price might grow for all you care, but it is just not worth it to put your capital at such risk.
Does my coin of interest have a long-term plan? If you cannot understand their yellow paper, at least read their white paper. What are the team trying to achieve? Do they have the means, or have they already worked towards their goals? What are the timelines and milestones?
Does my coin of interest seem like a well-marketed plan with no backup? Lots of ICOs these days just have a pretty webpage, and then they’re shipped out to sell. Watch out for these: are they able to deliver?
How long should I stay in this? Do I have an exit plan? There will be coins where you do not want to hold forever, but wish to flip for some short-term gains. In this case, be sure to set a timeframe, or an exit price, to reduce to effect of emotions on your trades. Stick to your plan and watch your emotions.
Does it have a real-world use case? Some coins seem to keep increasing in value simply due to supply-demand factors. This trend might not be sustainable. For a coin to have long term supported value, it must have a real-world use case eventually. Look out for coins that look too much like a get-rich-quick scheme.
Short Term Trading with Margin Once you get familiarized with crypto, you may want to trade on your ‘stash’ in hopes of increasing it. For the experienced forex traders, this is nothing new. But for the new crypto investor, you may want to brief up on how to make a leveraged trade. Short-term trading takes advantages of incoming news to make a quick buck. If you foresee good news from an upcoming release of a coin, you may want to open a long and see how it goes. Remember, buy the rumor, sell the news; act fast and be daring if you wish to make a profit with short term trading. Mining For those who are more comfortable with a predictable form of reward, mining is the way. Mining involves setting up of a rig, consisting of GPUs or CPUs and an investment in the electricity. Mining is only possible on cryptocurrencies that follow the Proof of Work protocol. It takes some effort to setup and gets things running, but it is attractive as a long-term passive income as long as you frontload the work. Staking Staking is the Proof of Stake version of ‘mining.’ Think of this as making dividends on your stock. The reward rate and staking method differ greatly among Proof of Stake coins, but in general, it takes less effort as compared to mining. Arbitraging As you get a hand in multiple exchanges, you may wish to buy from one exchange and sell on another to make ‘arbitrage’ gains when you spot an arbitraging opportunity. Take note of two things if you wish to do so: remember to factor in fees, and remember that the price could change when you are transferring your coin between exchanges, especially during volatile times. USD tends to be liquid so this happens less for it, but for other currencies such as CAD (Canadian dollar) and SGD (Singapore dollar), there may exist more arbitraging opportunities to exploit. That’s about all I have, for now, invest smart and most importantly, don’t forget to have fun!
I recently introduced a friend to our humble, little subreddit and they quickly pointed out that the language spoken here did not appear to be English. I suppose we do toss around a fair amount of acronyms, memes, and slang. I put together a quick glossary of terms for them and figured I should post it here in case any other new ethtraders can benefit from it:
Trading Related:
Exchange Websites where you can buy and sell crypto-currencies. Some popular exchanges in North America are: Coinbase GDAX Gemini Bittrex Poloniex Quadriga Kraken
Whale Someone that owns absurd amounts of crypto-currency.
limit order / limit buy / limit sell Orders placed by traders to buy or sell a crypto-currency when the price meets a certain amount. They can be thought of as 'for-sale' signs. These orders are what are bought and sold against when traders place market orders.
sell wall / buy wall Using a depth chart, traders can see the current limit buy and sell points. The graphical representation on the depth chart looks like walls: http://media.coindesk.com/uploads/2015/05/image-1.png
market order / market buy / market sell A simple purchase or sale on an exchange at the current price. Market buys purchase the cheapest ETH available on the order book, and market sells fill the most expensive buy order on the books.
margin trading The act of 'magnifying' the intensity of your trades by risking your existing coins. (NOTE: Very risky, only for experienced traders and only on certain exchanges even then)
going long A margin trade that profits if the price increases.
going short A margin trade that profits if the price decreases.
bullish An expectation that price is going to increase.
bearish An expectation that price is going to decrease.
ATH All-Time-High. We've gotten a lot of these the past couple months.
Altcoin Generally any crypto-currency other than Bitcoin or Ethereum. (Though some Bitcoin folks would probably still say Ethereum is an altcoin)
ETH The crypto-symbol for Ether. Kind of like stock market symbols. (i.e., the crypto equivalent of AMZN meaning Amazon stock)
Symbols of some other crypto-currencies that are regularly discussed/shilled around here: BTC - Bitcoin LTC - Litecoin ANS - Antshares SC - Siacoin XRP - Ripple ETC - Ethereum Classic FCT - Factom (described as a software license more than a coin, but can still be traded)
Tokens Refers to the 'currency' of projects built on the ethereum network that have raised money via issuing their own tokens. Some common tokens discussed on this sub: GNT - Golem REP - Augur BAT - Basic Attention Token ICN - Iconomi
ICO Initial Coin Offering, somewhat similar to an IPO in the non-crypto world. Startups issue their own token in exchange for ether. This is essentially crowdfunding on the ethereum platform.
Shilling / pumping Someone essentially advertising another crypto-currency. If a coin is promised to cure cancer or be the second coming of Jesus, it's being shilled.
stable coin A crypto-currency with extremely low volatility that can be used to trade against the overall market.
arbitrage Taking advantage of a difference in price of the same commodity on two different exchanges. Often mentioned when it comes to comparing ETH prices on Korean exchanges against US exchanges.
FOMO Fear Of Missing Out. The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket.
FUD Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.
FUDster Someone that is spreading FUD.
Pump And Dump The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.
Bagholder Someone still holding an altcoin after a pump and dump crash. Can also just refer to someone holding a coin that is sinking in value with few future prospects.
Market Cap The total value held in a crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit. This site shows a great run-down of each coin's market cap: http://coincap.io/
ROI Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).
TA Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.
MACD Moving Average Convergence Divergence. A trend indicator that shows the relationship between two moving averages of prices. More info: http://www.investopedia.com/terms/m/macd.asp
Crypto-currency related, but not really specific to Ethereum:
blockchain The classification of technology that Ethereum falls into. Blockchains are distributed ledgers, secured by cryptography. They are essentially public databases that everyone can access and read, but the data can only be updated by the data owners. Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide. More detailed information available at: https://en.wikipedia.org/wiki/Blockchain
node A computer that possesses a copy of the blockchain and is working to maintain it.
mining The process of trying to 'solve' the next block. It requires obscene amounts of computer processing power to do effectively, but is rewarded with ether.
mining rig A computer especially designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high-end graphic processors (GPUs) to maximize their processing power.
Fork A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new 'governance rules' are built into the blockchain's code. Some more information available at: https://en.wikipedia.org/wiki/Blockchain#Hard_forks
POW Proof-of-work. The current consensus algorithm used by Ethereum.
POS Proof-of-stake (not piece of shit). The proposed future consensus algorithm to be used by Ethereum. Instead of mining in its current form, people that own ETH will be able to 'lock up' their ether for a short amount of time in order to 'vote' and generate network consensus. The plan is that these stakeholders will be rewarded with ETH by doing so.
sharding A scaling solution for blockchains. Typically, every node in a blockchain network houses a complete copy of the blockchain. Sharding is a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
software wallet Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources. MyEtherWallet (MEW) is one of the popular. (more on MEW below)
hardware wallet A device that can securely store crypto-currency. Hardware wallets are often regarded as the most secure way to hold crypto-currency.
Ledger Nano S / Trezor Two of the most popular hardware wallet models.
cold storage The process of moving crypto-currency 'offline', as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used: ---Printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box. ---Moving the files of a software wallet onto a USB drive and storing it somewhere safe. ---Using a hardware wallet.
Terms more specific to Ethereum
smart contract Code that is deployed onto the Ethereum blockchain, often directly interacting with how money flows. Not my quote, but: "A normal transaction allows you to send money from A to B. Smart contracts allow you to send money from A to B, on the condition that C happens."
solidity One of the most popular languages that smart contracts can be written in. Has some similarities to Javascript.
Dapp Decentralized Application. This refers to an application that uses an Ethereum smart contract as it's back-end code.
The Flippening A potential future event wherein Ethereum's market cap surpasses Bitcoin's market cap, making Ethereum the most 'valuable' crypto-currency. This site shows the progress of the Flippening in real-time: http://www.flippening.watch/
gas A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.
gas price The amount of ether to be spent for each gas unit on a transaction. The initiator of a transaction chooses and pays the gas price of the transaction. Transactions with higher gas prices are prioritized by the network.
Wei The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (1018)
Gwei Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (109)
Raiden Network An upcoming protocol change to Ethereum that will enable high-speed transfers across the network. It is similar in some aspects to Bitcoin's planned Lightning Network. The name, I assume, comes from the Mortal Kombat character named Raiden that can shoot lightning. More reading available at: https://themerkle.com/what-is-the-raiden-network/
Frontier, Homestead, Metropolis, Serenity The four planned stages of the Ethereum development roadmap. We are currently in the Homestead phase. The Metropolis update is likely to be available sometime in the next year.
MEW MyEtherWallet. A free site that can generate ethereum software wallets for you.
EEA Enterprise Ethereum Alliance. A coalition of startups and corporations trying to figure out the best way to use this dang thing.
DAO Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016. The hack stole about a third of the DAO's funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum's biggest stumbles thus far.
Here is All IN 1 Quick Guide for people with less time!
The Absolute Beginner’s Guide to Cryptocurrency Investing
References are made wherever possible. All statements are based on the author’s experiences. I take pride in informing the public and helping as many as I can through sharing my experiences with my readers. That said, no one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing. If you would like to learn more about the techlogogy behind cryptocurrencies, please check out our blockchain courses on crypto. When I first started taking an interest in cryptocurrency I thought I was so lost in this huge sea of unknowns. Where do I start? What are the useful keywords to look up and keep in mind? What are the available helpful resources? This cryptocurrency investing guide is written so that in just 20 minutes, you would have a sense of what to expect of your upcoming crypto journey, and how to best go about starting it. Enjoy it, it might just be the most exhilarating ride of your life. Rise of the Cryptocurrencies As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once skeptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now? Current Makeup of the Cryptocurrency Space You would have heard of Bitcoin and the ‘altcoins.’ How this naming convention started was because back in the days of 2011, forks of Bitcoin appeared in the markets. The forks, or clones, each aspire to serve a niche area, aiming to be ‘better’ than Bitcoin. Since then countless new crypto has emerged, eroding away Bitcoin’s crypto market cap dominance. These altcoins are gaining market share at an alarming speed. Ten times or more growth has been observed in a time span as short as six weeks (see PIVX, an altcoin). Cryptocurrency, Stocks, and Fiat The currencies we know are referred to as ‘fiat’ by the cryptocurrency community. Although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies. When you purchase some cryptocurrency, you are in fact buying some tech stock, a part of the blockchain and a piece of the network. Cryptocurrency Exchanges The most common place where people buy and trade cryptocurrency is on the exchanges.Exchanges are places where you may buy and sell your crypto, using fiat. There are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness. Out of all these, I find Coinbase as the best exchange hands down. It has a beginner-friendly user interface, and an unbeatable 100% crypto insurance. After setting up an intermediary bank account and verifying your details with Coinbase, you are only five simple steps away from a Bitcoin purchase:
Access the ‘Buy/Sell Bitcoin’ tab
Select the payment method using the drop-down menu
Enter the desired amount
Click ‘Buy Bitcoin Instantly.’
View your credited Bitcoins on your dashboard
When you get acquainted with buying crypto and start to itch for some crypto trading (e.g. BTC/ETH), simply perform an instant transfer from Coinbase to GDAX free of charge and start trading. Think of Coinbase as the place to conveniently buy and store your crypto and GDAX as your margin trading platform. Transfers between the two are instant and free. As you slowly get familiar with other currencies, you might want to have the option of investing in them. Bittrex and Polo are two exchanges that offer a wide selection range. When signing up on these exchanges for the first time, do make it a point to verify your account with the required documents early, as you do not want to be caught in the middle of some tedious and slow admin work when the trading opportunity comes. Verification on these exchanges may take days, and purchase/withdraw limits may only increase gradually as you trade. An additional point to note: if you are using a currency other than USD, do check out the exchange’s ease of funding and withdrawal. You do not want your exchange to come into fiat withdrawal problems like Bitfinex did recently. Cryptocurrency Wallets Exchanges have inbuilt online wallets to keep the cryptocurrency you purchased. However, for those who heard of the Mt. Gox hack, you might feel uneasy to put on an exchange. If you do not wish to keep your crypto holdings on the exchange, you have the option to either use a paper wallet service like myetherwallet.com or spend 99 USD on a hardware wallet like KeepKey. Both serve the purpose of removing platform risk, at the cost of taking up the responsibility of keeping your cryptocurrency safe. To transfer your crypto from exchanges to your hardware wallet for long term storage, simply follow these steps, using Coinbase and KeepKey as an example:
Plug in your KeepKey USB cable
Open your KeepKey Client (on Google Chrome under Apps)
Find your wallet address on the KeepKey Client UI
Access Coinbase ‘Send/Request’ tab and input your KeepKey wallet address
Confirm amount and click ‘Send Funds’
Take note to first send a tiny amount (e.g. 0.0001 BTC) for testing before sending the bulk, lest an error occurred and the transfer amount is lost. A small network transfer fee might be charged. Personally, I own a hardware wallet, as I love the feeling of a having around a tangible reminder of my crypto holdings. Also, the hardware wallet’s user interface makes it easy to keep multiple coins, which is especially handy when you participate in ICOs (Initial Coin Offering) in the future.
Cryptocurrency as a Percentage of Your Investment Portfolio
This part will be wildly subjective. Crypto has the potential to realize many ‘rags to riches’ stories, but its volatility makes it unpredictable. As a precaution, the money you put in crypto should be money that you are fine with losing. I cannot emphasize the importance of this as we often underestimate how the volatility affects our emotional capacities. The upside is huge, but it comes with lots of risks and, if I may put it, emotional torment. A conservative portfolio I would suggest is as follows: < 30 years old (max) 30% Crypto, 50% Traditional Investments 30 – 40 years old (max) 20% Crypto, 60% Traditional Investments > 40 years old (max) 10% Crypto, 70% Traditional Investments This is not meant to be age discriminatory but considers the fact that one takes up more financial responsibilities (mortgage, family) as he grows older. Within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.
Show Me the Money! Cryptocurrency Investing
Now, this is where it gets exciting. How do we pick the winner? How do we avoid picking the loser? Note that crypto is now in a huge bull market and anything could rise over time. Also, do not dismiss the possibility that we may be in a bubble like the-dot-com boom back in 2000. Still, ask yourself these questions before you decide to invest in a coin:
Are my investments safe with the dev team? The first rule of investing should always be the preservation of capital. Can you trust the dev team with your money? Are you about to leave your money with founders who have been involved in previous scams? If you see these telling signs, back off immediately. The coin’s price might grow for all you care, but it is just not worth it to put your capital at such risk.
Does my coin of interest have a long-term plan? If you cannot understand their yellow paper, at least read their white paper. What are the team trying to achieve? Do they have the means, or have they already worked towards their goals? What are the timelines and milestones?
Does my coin of interest seem like a well-marketed plan with no backup? Lots of ICOs these days just have a pretty webpage, and then they’re shipped out to sell. Watch out for these: are they able to deliver?
How long should I stay in this? Do I have an exit plan? There will be coins where you do not want to hold forever, but wish to flip for some short-term gains. In this case, be sure to set a timeframe, or an exit price, to reduce to effect of emotions on your trades. Stick to your plan and watch your emotions.
Does it have a real-world use case? Some coins seem to keep increasing in value simply due to supply-demand factors. This trend might not be sustainable. For a coin to have long term supported value, it must have a real-world use case eventually. Look out for coins that look too much like a get-rich-quick scheme.
Short Term Trading with Margin Once you get familiarized with crypto, you may want to trade on your ‘stash’ in hopes of increasing it. For the experienced forex traders, this is nothing new. But for the new crypto investor, you may want to brief up on how to make a leveraged trade. Short-term trading takes advantages of incoming news to make a quick buck. If you foresee good news from an upcoming release of a coin, you may want to open a long and see how it goes. Remember, buy the rumor, sell the news; act fast and be daring if you wish to make a profit with short term trading. Mining For those who are more comfortable with a predictable form of reward, mining is the way. Mining involves setting up of a rig, consisting of GPUs or CPUs and an investment in the electricity. Mining is only possible on cryptocurrencies that follow the Proof of Work protocol. It takes some effort to setup and gets things running, but it is attractive as a long-term passive income as long as you frontload the work. Staking Staking is the Proof of Stake version of ‘mining.’ Think of this as making dividends on your stock. The reward rate and staking method differ greatly among Proof of Stake coins, but in general, it takes less effort as compared to mining. Arbitraging As you get a hand in multiple exchanges, you may wish to buy from one exchange and sell on another to make ‘arbitrage’ gains when you spot an arbitraging opportunity. Take note of two things if you wish to do so: remember to factor in fees, and remember that the price could change when you are transferring your coin between exchanges, especially during volatile times. USD tends to be liquid so this happens less for it, but for other currencies such as CAD (Canadian dollar) and SGD (Singapore dollar), there may exist more arbitraging opportunities to exploit. Link the original blog post: https://blockgeeks.com/cryptocurrency-investing/
Hola Compadres! It is me u/poop_dragon here with another guide. Today I would like to run through a list of ETH exchanges. This is just Part 1 of this list, and it covers established exchanges. Soon I will post Part 2 and 3 which will go into some other types of exchanges (derivative markets, coin converters, decentralized, and foreign exchanges) Side note, I have given rating to these exchanges based on some comparisons, news, and information which I have found online. Recently, EVERY exchange has been slow/unresponsive in their customer service due to the huge influx of new users. My intention is to help educate new users about the exchanges available. I am not trying to discredit, advertise, pump up, or damage reputations. If you feel something is inaccurate, please respectfully bring it up in the comments. I will be editing as we go. Last thing of note, I have only included the lowest level trading tier to calculate trading fees, which assumes the highest rates. Most exchanges offer lower fees for bigger orders, but I have gone with the assumption that everyone here is not dropping whale amounts of cash.
00 – Concepts and Definitions
What is an Exchange? An exchange is a digital market place where you can buy or sell one kind of currency for another, whether that be digital or real (fiat) assets.
What is Fiat? Fiat currencies are national currencies which can be represented in hard cash amounts. For example, US Dollars, Euros, British Pounds, Japanese Yen, etc.
What are a Deposit/Withdrawal Fees? This is the price for putting currency in or taking your currency out of an exchange and your associated wallet. In the case of fiat this could be depositing or withdrawing money via bank transfer or credit card. For digital currency, the exchange may charge a fee to send your ETH, in my opinion this should be free, but they have to cover gas fees.
What is a Maker Fee? When you place an order which is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, you are considered the maker. Maker fees are generally lower than taker fees on most exchanges.
What is a Taker Fee? When you place an order at the market price that gets filled immediately, you are considered a taker. In cases of very large orders it is possible to only pay a taker fee for a portion of your order that gets partially filled. The remainder of the order is placed on the order book and, when matched, is considered a maker order. Fees for takers are usually between .1 to .35% on most exchanges.
What are Verification Tiers? Most exchanges will not allow trading without verifying your identity in some way. This can be accomplished through your email, phone number, copies of your passport/driver’s license, bank statements, recent utility bills, etc. Exchanges then allow for higher trading limits depending on how much verifying information you provide.
What is 2FA? This is short for Two-Factor Authentication. In most cases this uses your site password (what you know) and your cellphone (what you have). When logging in you will need to confirm your log in attempt with a code sent to your cell phone. It adds an additional step to prevent someone hacking your account. In my opinion any trustworthy exchange should offer this and you should research the pros and cons of Google AuthenticatoAuthy App/SMS before using it.
What is a DDoS Attack? It stands for Distributed Denial of Service. Usually it is when a series of bots or a botnet which tries to flood the bandwidth or resources of a targeted system. It can cause websites to become slow or unresponsive.
01 –Digital Exchanges
Poloniex
Overview: The highest volume of ETH currently goes through Poloniex, undisputed leader in crypto currency trading. Its popularity comes from the fact that the exchange offers the widest selection of small and alt coin trading. Add to that minimal registration requirements and it is a recipe for lots and lots of users.
Withdrawal/Deposit Fees:No Fiat Deposit/Withdrawals. Minimum Deposit of 1 ETH in Exchange Wallet. Withdrawal fee of .005 ETH when sending to other wallets
Trading Fees:
Exchange Type
Maker
Taker
All Currencies
.15%
.25%
Security: Perhaps a red flag here would be the DDoS Attacks this May. This affected Kraken as well, and a lawsuit is being filed on behalf of users who had their positions liquidated. I don’t believe there was foul play, but I won’t speculate either. Less recently, they were hacked and 97 Bitcoin were stolen in 2014. However, they returned all funds to the users, which I believes says something about their integrity.
Feature
Details
2FA
Google Authenticator Available
Wallet Security
‘Majority’ of Funds in cold storage
Personal Information
Encrypted and Stored Off-Site
Verification:
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
KYC
Limits
Level 1
X
X
$2,000 USD Daily Withdrawal Limit
Level 2
X
X
X
X
X
X
$7,000 USD Daily Withdrawal Limit
Level 3
X
X
X
X
X
X
$25,000 USD Daily Withdrawal Limit
Level 4
X
X
X
X
X
X
X
X
>$25,000 USD Daily Withdrawal Limit
What is a KYC? It stands for Know Your Customer Documentation. This varies between exchanges. However, like most things, if you have to ask, you probably can’t afford it.
Customer Service: The biggest difference between Poloniex and other exchanges iswas their use of their Trollbox chat feature. However, due to the chat being used more for ignorant comments rather than help it ~is a waste of time~~ has been discontinued. A quick search for customer service reviews from Poloniex shows poor results – extremely long wait times (counted in months not days), withdrawal issues, frozen accounts without notice, and a range of other complaints. Most other exchanges have similar complaints about slow response times, so I think this is a temporary issue. In a press release it was stated their user count rose 600% since January. However, the chronic lack of communication and transparency seems to have some in the community up in arms and should be addressed.
Bottom Line: Being the biggest fish in the ocean means you constantly have a target on your back. With issues from the DDoS attacks to laggy trading service to poor customer support, it may seem that Poloniex is not worth your trust. But if you are looking to trade obscure altcoins, and do it without many verification hurdles, there really is no other marketplace. Personally I think they are trying their best and I believe they are improving when u/Mike-Poloniex says stuff like this
Bittrex
Overview: Based in Las Vegas, Bittrex also offers lots of altcoin pairs with no fiat support, similar to poloniex. This allows for faster verification of activating accounts and moving funds. In the past, there were criticisms of the verification process for more some altcoins: some pairs had very low liquidity while other coins were just straight up scams. Especially Deaf Coin, a LiteCoin clone that was exclusively offered through Bittrex was delisted along with 35 other scam coins in February 2015 (compared to Poloniex at 17 removed in 2014). Since then a more thorough vetting process has been applied and it now labels ‘Verified Markets’
Withdrawal/Deposit Fees:No Fiat Deposit/Withdrawals. Deposits are free and Withdrawals vary by coin to cover the gas fee
Trading Fees:
Exchange Type
Maker
Taker
All Currencies
.25%
.25%
Security: Positively the team has a solid background in system security – the CEO and top developers cut their teeth at places like Blackberry, Microsoft, and Amazon working in security services. I found no reports of hacks.
Feature
Details
2FA
Google Authenticator Available
Wallet Security
Multi-stage wallet Majority’ of Funds in cold storage
Personal Information
IP Whitelisting restricts trading from new addresses
Verification:
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
KYC
Limits
Basic
X
X
X
3 BTC or less daily
Enhanced
X
X
X
X
X
X
100 BTC or less daily
Customer Service: The Support Center pledges to answer tickets within 24 hours of submission, but between the hours of 9 to 6. Searching for reviews seems to confirm this, and very few complaints can be found. I find their FAQ, Announcements, and Online resources a little hard to navigate, but it answers almost everything.
Bottom Line: The complaints about scam coins might seem to damage Bittrex’s reputation, but my take is that no one was forcing people to trade risky assets in the first place. Perhaps it’s a bit negligent to allow trading them, but it’s the responsibility of the trader not the exchange to manage their money. Customer support and security also seems a step above the competition.
02– Fiat Exchanges - USA
Coinbase (GDAX)
Overview: Coinbase is the largest and debatably the most established name in crypto and GDAX is an exchange based on its services. While Coinbase allows users to buy ETH direct at market price through a wallet, GDAX allows limit and stop orders for the more advanced trader. Recently there have been complaints about the site going down and placed orders not going through. I think with the size and reputation to uphold, they will work quickly to fix this problem as they would like to keep their customers from going elsewhere.
Customer Service: Negative reports are abound with Coinbase, going well into last year. Like look what BTC has to say Anyways I feel that they have their work cut out for them if they want to remain a premier service and continue to expand.
Bottom Line:– Coinbase is an established and reliable exchange. It’s worth making the distinction though between Coindesk to GDAX. Transferring between the two seems like an unnecessary step that charges high fees for users not clever enough to see the difference. Fees are very high when buying at market from Coinbase, yet low on GDAX in comparison to other exchanges. Additionally, they seem to have outgrown themselves and some customers seem dissatisfied and quick to recommend their competitors. However, their service extends to a variety of countries/currencies and their mobile app puts them in front the competition. In this way, it is a superior service and is on the forefront of making crypto mainstream.
Kraken
Overview: Supposedly CEO Jesse Powell was inspired by the 2011 bankruptcy of the Japanese exchange Mt. Gox. As he worked as a bankruptcy trustee of what was then the largest crypto exchange, he developed his vision for a secure, well-run exchange site. Kraken then aggressively expanded by acquiring existing companies like Coinsetter (NYC), CaVirtex (Canada), Clevercoin (Netherlands), Cryptowatch (Swiss), and Glidera (Chicago). This has helped the San Francisco based firm to lead the market in ETH to Euro and CAD trading.
Withdrawal/Deposit Fees:.005 ETH Withdrawal Fee. And they really want US customer to sign up for Synapse Pay, which can reduce your fees.
Country
Linked Bank Account
Wire Transfer
EUR
Free
SEPA €5-10 (€0.09 Withdrawal)
US
Free
SWIFT $10 ($60 Withdrawal)
UK
Free
SWIFT £10 (£60 Withdrawal)
CAN
Free
SWIFT Free ($10 Withdrawal)
Trading Fees:
Exchange Type
Maker
Taker
ETH/FIAT
.16%
.26%
ETH/BTC
.16%
.26%
Verification:
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
KYC
Limits
Level 0
X
No Trading Allowed
Level 1
X
X
X
X
No Fiat, Unlimited Crypto
Level 2
X
X
X
X
Fiat $2,000Day/$10,000Mo
Level 3
X
X
X
X
X
X
Fiat $25,000Day/$200,000Mo
Level 4
X
X
X
X
X
X
X
X
Fiat $100,000Day/$500,000Mo
Security: Kraken was also affected by a DDoS attack in May 2017. Afterwards those who had positions liquidated were not compensated and were merely pointed towards the legal page of the website.
Feature
Details
2FA
Google Authenticator, Master Key Available
Wallet Security
Majority Assets in Cold Storage
Personal Information
PGP Encrypted Emails, Global Settings Lock
Digital Currency Insurance
Maintain Full Reserves
Bug Bounty
Multiple bounties
Customer Service: The Kraken subreddit is a bit of a ghost town, but a couple of the staff including the CEO pop in from time to time in other subreddits. Even a year ago though, there are reports that the average response time is 2 to 3 weeks. For how quickly they have grown, it seems their customer support has not kept pace.
Bottom Line: Kraken’s website is well-organized and their policies for verification, security, and support are very clear. Their fees are reasonable for depositing, withdrawing, and trading. The recent hack and complaints about service have made some doubters recently, but the exchange has maintained its status. Its added quite a few altcoins too which increases its usefulness.
Gemini
Overview: This is a newer exchange started in 2015 by the Winklevoss Twins (Yes, those twins, the ones from that Facebook movie). It is registered in New York State and is FDIC Insured.
Trading Fees: There is a lot of complicated stuff written about rebates and other stuff, but basically it is this.
Exchange Type
Maker
Taker
ETH/ALL
.10-.25%
.25%
Verification:
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
KYC
Limits
Individual
X
X
X
X
X
X
X
None - Except for ACH
Security: According to their website, security seems to be taken seriously.
Feature
Details
2FA
Google Authenticator, Authy Available
Hot Wallet Security
Hot Wallet Hosted by Amazon Web Services
Cold Wallet
Stored in 2 tiers of cold and 'cryo' multi-sig storage
Personal Information
Encrypted in Transit and Stored Offline
Digital Currency Insurance
Fidelity bond by 'top-tier insurance company'
Fiat Insurance
Up to $250,000 by FDIC
Customer Service: The one thing that stands out about Gemini is their customer service. Seriously reddit search this and you will see 5 recommendations for every complaint. Even with the huge influx recently, users have been praising their response time and professionalism.
Bottom Line: Before the rush of new users, I saw people criticize the liquidity of Gemini, saying that it was too small of a market compared to the larger exchanges. Now their smaller size seems to be paying off because it has helped them offer better customer service. I personally dislike their user interface (their charts are very limited), that the website is geared towards BTC, and that fiat deposit clearance times are longer (3-5 compared to 1-3 days). However, they deserve credit for running an above average exchange with a clean track record thus far.
03– Fiat Exchanges - Hong Kong
Bitfinex
Overview: Based in Hong Kong, Bitfinex is a OG in the crypto game. In 2014, it was the largest exchange in terms of USD/BTC, but in August of 2016, Bitfinex was the victim of the second largest hack in crypto history. Reeling from losing almost 120,000 BTC (worth about $70 million), they came up with a solution to issue BFX tokens, worth dollar-for-dollar the amount lost. These tokens would then be bought back by Bitfinex from those who lost their assets. They successfully bought back 100% in April 2017, essentially paying back all outstanding IOU’s. Expensive Lesson. Bitfinex also recently had to suspend USD withdrawals due to a conflict with remitting money with Wells Fargo Bank. This has caused currencies to inflate on their exchange and force users to take out Tether USD (which Bitfinex has a considerable stake in) to transfer to another exchange and then sell. However, Tether also is in a quagmire of legal/financial trouble and cannot be counted on as reliable. This has caused lots of users to abandon the exchange in search of safer waters.
New IP Addresses locked for 24 hours, require verification and detection
System Security
Hosted and Backed-up on Linux, protection from DDoS
Personal Information
Email encryption with OpenPGP
Wallet Security
Only .5% of funds are stored in hot wallets
Customer Service: I actually think that Bitfinex has one of the cleaner websites out there. The security features have toggles that allow you to customize your account security. Also their Support Center, Knowledge Base, and Blog Posts seem a little more complete than some of the other exchanges. Searches show some complaints of unprofessional behavior when completing support tickets, but the mod over at bitfinex seems pleasant. Anyone with personal experience please feel free to contribute here.
Bottom Line: It would be almost impossible to recommend this exchange due to recent developments. Until this withdrawal issue is fixed at least, probably don't count on this exchange. That said the reliability of Bitfinex is tougher to judge because it has been around longer. In crypto terms, it is a dinosaur. Whether that tarnishes or glorifies their record is up to you to decide. I believe the handling of BFX started as a clusterfuck and ended up showing some resilience. Their deposit fees are a little high in my opinion, but they do offer a mobile app to justify the price.
EDIT : Thank you to u/Ginger_Bearded_Man for the suggestion. Bittrex has been added.
A little late, but as promised here is Part 2 of the Beginner’s Guide to Exchanges. I would like to sincerely thank everyone for their support and feedback in making these. Link to Part 1 This time I also made a Google Docs survey in the hopes of sharing the results with the community. I thought we could share what we use as a whole and why redditors choose the exchanges they do. For skeptics (as you all should be), I assure you that I am not collecting personal information. This is for recreation and if you are still wary, then by all means abstain! Link to Survey In Part 3 I will be wrapping up this series by covering decentralized, semi-decentralized, and derivative exchanges. Here it goes!
00 – Concepts and Definitions (Continued)
What is FinCEN? This is an agency within the US Dept. of Treasury that collects and analyzes information about financial transactions. It is meant to prevent financial crimes and money laundering both by businesses and individuals. In 2011, FinCEN defined digital currencies as fiat and started cracking down on those in the crypto world. Since then, every exchange serving US citizens has been trying comply with regulations otherwise they face severe penalties. Thank them when exchanges as for your Address and an ID.
What is the ICO (UK Regulatory Body)? This stands for the Information Commissioner’s Office and it is the UK counterpart to FinCEN - a regulatory office that reports directly to Parliament. ICO oversees compliance of the Data Protection and Freedom of Information Acts. It is meant to help companies and individuals keep their private information private, and can enforce this with penalties up to £500,000 when personal information is recklessly stored or leaked.
What is APR? Stands for Annual Percentage Rate.
What is Arbitrage? Arbitrage trading means to take advantage of price differences between markets. For example, say Poloniex lists ETH at $400, while Kraken lists it at $500. Buy low at Poloniex and then sell high on Kraken and you just made yourself a hundred bucks. Simple!
What is a Coinswap/Crypto-converter? Basically, a coinswap is a broker. If liken an exchange to a marketplace where buyers and sellers meet to agree on a price, then a Coinswap is a person who goes to the market on your behalf. Give them what you want to sell, and they will come back with what you want to buy. They take a small commission, give you a fair market rate (or close to it), and sometimes don’t even ask for your identity. Coinswaps are popular because they are convenient and offer coin pairs that exchanges sometimes cannot.
Overview: Founded in late 2013 by Gerald Cotton in Vancouver, Quadriga should be a source of national pride. While 4 major Canadian exchanges suddenly closed between 2015 and 2016, Quadriga survived. Then In 2015, Quadriga became the first exchange to attempt being listed publicly by enrolling for enlistment on the Canadian Stock Exchange (CSE). However, it ultimately failed to do so after being confronted with restrictions and regulations.
Withdrawal/Deposit Fees: Low deposit and withdrawal fees in comparison to other exchanges. A little unorganized on their official site
Country
Linked Bank Transfer
Wire Transfer
Paypal
Credit/Debit
Crypto Transfer
CAD
Deposit 1%/ Withdraw Free
Free
Free (Withdraw Only)
1% (Withdraw Only)
Free
USD
-
Free
Free (Withdraw Only)
-
Free
Trading Fees:
Exchange Type
Maker
Taker
Fiat
.5%
.5%
BTC/ETH
.2%
.2%
Security: Quadriga was quite notably lost of 67,000 ETH earlier this month, after an expensive mistake involving the Geth 1.5.9 upgrade. Apparently, outgoing addresses were incorrectly entered without 0x at the beginning of addresses and the sent ETH became trapped. Yet Quadriga has taken full responsibility and reassured customers that it will not affect their accounts.
Feature
Details
2FA
Google Authenticator or Email 2FA Available
Wallet Security
Undisclosed amount of funds in cold storage
Web Security
3rd Party Security provided by CloudFlare
Bug Bounty
Expired $50 bounties
Verification: Quadriga CX enables alternative instant verification with an Equifax Credit Score Report.
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
Credit Score
Limits
Basic Account
X
X
Digital only, Limits Vary
Verified Account
X
X
X
X
X
X
Limits Vary
Customer Service: Negative reviews are hard to come by, but perhaps that is due to the smaller size of this exchange. The FAQ is a little disorganized with a lack of tabs or categories on the site. However, support offers a direct phone line and email support. Also u/QuadrigaCX seems very active and responsive in the Bitcoin CA subreddit.
Bottom Line: The handling of the ETH loss was handled professionally and quickly. And as a Canadian, lower deposit and withdraw fees are probably impossible to find somewhere else. Trading fees are a little high, but that is the trade off. It seems they have weathered some ugly storms other Canadian exchanges could not and are a trustworthy exchange going into the future.
05 – Fiat Exchanges – Europe
CEX.IO
Overview: CEX.io is started in London in 2013 both as an exchange and a cloud mining provider with its acquisition of Ghash.io. In 2014, Ghash was the largest Bitcoin mining pool contributing to over 42% of the mining power and mining over $200 million in BTC. In October of 2014 Ghash closed yet CEX.io lived on as an exchange.
Verification: With a lot of backlash from the Bitcoin community, CEX has registered with FinCEN and ICO in the UK, while also implementing Anti-Money Laundering (AML) and Know-your-Customer (KYC) policies. Once these policies came into effect and ID verification was requested, many original Ghash users abandoned the exchange. Exchange allows for linking of Facebook and Google+ accounts. Not a good option IMO.
Tier Level
Name
Email
DOB
Phone
Address
ID + Photo
Bank Info
KYC
Limits
Basic Account
X
X
X
Digital only
Verified Account
X
X
X
X
X
X
$10,000 Daily/$100,000 Monthly
Customer Service: Customer complain are abound here, and for justified reasons with hidden deposit and withdrawal fees. However it seems the company is quick about inquiries and verification, stating that most inquiries are filled in 24 hours. The FAQ is comprehensive which you should come to expect from established exchanges. Despite some unhappy customers, tt is good to see that they care about their reputation and their product.
Bottom Line: If you are already invested in crypto, CEX.io has some of the lowest trading fees in the game. However, they are clearly taking advantage of inexperienced users and those looking to exchange fiat for the first time. When purchasing with their FOK buying service (using instant credit card transactions), not only is the buy rate not at market price, but a 7% fee is added. This is price-gouging, this is FOK-ing unreasonable. I understand that this service offers something not found elsewhere, but additionally 1% crypto and $50 USD withdrawal fees makes these actions questionable if not just plain greedy.
BTC-E / XBTC-E
Overview: BTC-e is has been operating out of Russia since 2011 and provides language support in English, Chinese, and Russian. Perhaps due to this flexibility, it has high volumes of BTC, LTC, and ETH. It has an unclear connection to xBTCe, but both link to each other in the FAQ of the respective sites. A feature that is provided by BTC-e not seen elsewhere is software for trading called MetaTrader 4. This software seems a little clunky, but includes some TA features.
Security: BTC-e was hacked way back in 2013/2014 and reportedly $35,000 of BTC was stolen. Since then it has had a relatively clean record. This Digiconomist review is a thorough and detailed read, but unsure.
Feature
Details
2FA
Google Authenticator Available
Password Expiration
Must be changed every 6 months
DDoS Protection
3rd Party Security Services provided by CloudFlare
Verification: Since late May, there have been a shit storm of reports claiming BTC-e is locking funds for previously unverified users. In the FAQ users are asked to register at XBTC-e and within 10 days the account will be unblocked. It is unclear how the websites are connected or related to each other and 10 days is eons in crypto time.
Tier Level
Name
Email
DOB
Phone
Address
Official ID
Bank Info
KYC
Limits
Verified User
X
X
X
X
X
No Stated Limits
Customer Service: Live Chat is supported during operating hours and the FAQ is listed in Russian and English. Resources are a little unorganized, but complete none-the-less. Bad reviews and complaints are plentiful with the long history of the exchange and the recent troubles with account verification for some long time users.
Bottom Line: I’ve got to be honest that I personally despise the interface at these 2 sites. Both give Yahoo! GeoCities and the original SpaceJam website a run for their money in terms of web design. Perhaps it makes up for it with some free TA software and a large daily volume. But it comes to say that the longevity of this exchange is its biggest strength.
Liqui.io
Overview: Liqui is based out of Kiev, Ukraine. As a digital exchange, it does not support fiat currencies and is competing with the likes of Bittrex and Poloniex as it lists dozens of altcoins. The feature that differentiates Liqui is its ‘Interest’ feature which was introduced to increase traffic and volume to the newer exchange. It works similarly to depositing money into a savings account - deposit ETH into an account and earn 24% APR (or .066% daily interest) which is deposited every 24 hours. There is some fine print about deposit limits and interest calculations, but how it is presented is clear and straightforward. Unfortunately the limit of 1000 ETH needed by Liqui is currently full, so you will need to wait until others withdraw ETH or the limit is increased to participate.
Verification: There are no deposit/withdrawal limits and no verification levels. In order to start trading, all that is needed is an email address.
Customer Service: Searching for user reviews shows mixed results about Liqui’s customer service. The fact that it supported on several platforms, is reassuring. Contact Support@liqui.freshdesk.comBy Twitter@Liqui_ExchangeBy Telegram@Liqui
Bottom Line: The design and simplicity of Liqui stands out in my opinion. It is like what Poloniex could be if they just cleaned the UI/UX a bit. I like that it immediately gets into the trading charts without having to click around and if you miss the trollbox then this is your site. Like other smaller exchanges there are doubts over the reputation and reliability due to the opaque nature of the operations and development team. If you are looking for an alternative to Bittrex or Poloniex, this exchange may be worth investigating.
06 – Fiat Exchanges – South Korea
안녕하세요 여러분! 혹시 우리 한국인 친구 이 보고서를 한국어로 읽고 싶어한다면 알려주세요. 관심이 많이 있다면 간단한 한국어 보고서도 만들 수 있습니다. This year, ETH has taken off like a rocket in the Land of the Morning Calm. With a population of just 50 million, South Koreans account for almost 30% of daily ETH trade volume. Even more surprising is that currently the daily volume of ETH is about 5 times higher than that of Bitcoin on Korean exchanges. Since demand is high, ETH is trading at a premium on Korean exchanges. Some users have been talking about capitalizing off this imbalance by trading on arbitrage between exchanges. For those who have no connection to Korea and hope to do so, I have bad news – all Korean exchanges require a National ID number and access to a Korean bank account. This makes Korean exchanges virtually closed to Korean nationals and those with long-term visas. Sorry everyone.
Bithumb
Overview: Bithumb has all the features of horrid Korean web design - pop-up ads, flashing side-banners, disorganized pull downs, links to cafes/blogs, and generic stock images with embedded text. You can’t even see the exchange before making an account with your email or mobile number. It does support 4 languages, but reveals only poor translation done by Google Translate. In the face of this, this exchange has been trading a daily volume only second to Poloniex. On the bright side, they have the unique options to buy gift certificates/vouchers and remit money overseas.
Overview: Coinone is the second largest Korean exchange, and its design is a breath of fresh air compared to its rival. It offers service in English and Korean and allows for the trading of Bitcoin, ETH, ETC, and Ripple. It has a very comprehensive chart that is highly customizable, but sadly is only gear towards BTC currently. This makes it perfect for margin trading, and in the future I hope they add ETH. They also offer overseas remittance through their service Cross. Coinone support seems above average in their customer service with a PDF guide and an unprecedented landline number for direct support.
Overview: As the smallest of the 3 Korean exchanges, Korbit benefits from its simplicity. It by far has the best design and English support with clear links to services - including remittance, global payment, and their company bio. Like CoinOne they offer a direct phone line for customer inquiries and an extensive FAQ in 2 languages. Similar to the other exchanges, it has insanely low fees for deposits and withdrawals. This is largely thanks to the Korean banking system where wire transfers and mobile banking are commonly used. I recommend anyone interested in Korean exchanges to start here as they also have a reddit presence on u/korbitBTC
With a great deal of anticipation, major Chinese exchanges started trading ETH this summer. Since these exchanges deal huge volumes of Bitcoin already, naturally it was expected that they invest heavily into ETH as well. So far this hasn’t quite lived up to the hype with many exchanges still favoring Bitcoin, Litecoin, Altcoins, and even Ethereum Classic (Gulp). Three of these exchanges underwent inspections by the Peoples Bank of China earlier this year and will be working closely with the government to ease fears of money laundering and market manipulation. There are a lot of Chinese sites, and since my Chinese is non-existent this list is basically just for name recognition. In many ways these sites are very similar in regards to security, verification, and fees compared to their western counterparts; just marketed at a different audience and currency. If users are seriously interested in these exchanges and making reviews, please contribute or ask!
OK Coin
Overview: Number one in Chinese ETH trading, currently overtaking the volume of exchanges like GDAX and Kraken. CoinOne is very accessible with a mobile app, PC trading software, live chat customer support, and wallet services. OK Coin has English for the basic interface, but no detailed information in the FAQ.
Overview: Second in Chinese ETH volume, Huobi mirrors its rival OKCoin in many ways. It has a solid interface, a mobile access, and even the same rumors of faking trading data! Huobi also started with the ambitious motive of having zero trading fees, only to introduce them in January of this year.
Overview: ShapeShift is the leading Coin-converter site and has been since 2014 when it was founded. With great effort put into to eliminating verification requirements and allowing for the exchange of dozens of altcoins, ShapeShift provides a relatively seamless and simple service. The big buttons and bright color scheme immediately differentiates it from other exchanges.
Trading Fees: From the website ShapeShift does not charge a specific fee. Instead, we offer an exchange rate for each coin which changes every 30 seconds with market conditions. We try to earn revenue by offering a profitable exchange rate, and typically we earn in the range of 0.5% (50 basis points). You receive exactly what the exchange rate shows, there is no additional fee (except the tiny miner fee). There are complaints about the fees not being calculated fairly, but no one is forcing any of these users to exchange at the unbalanced rate. Or you could just read what CEO u/evoorhees has to say about it over at the Ethereum subreddit.
Security: After losing $230,000 from a possible internal hack in 2016, ShapeShift contracted the Canadian Security firm LedgerLabs. Afterwards they permanently hired Michael Perklin as Chief Security Information Officer. ShapeShift claims the only information stored during exchanges is the logs of wallets and the transfers between them. This is protected by storing the data across servers in multiple countries with none based in the US.
Verification: None
Customer Service: Customer service is necessary for the inevitable ‘entered the wrong wallet address’ problem from new users. Along with complaints about slow transfers, a simpler platform does not exempt ShapeShift from dealing with tons of angry customers and their problems. I take many of the complaints about unfair exchange rates with a grain of salt, because the problem could have been avoided by the customer. It does seem however that ShapeShift is very responsive, with a presence on almost every social platform imaginable. Even right here on reddit at shapeshiftio
Bottom Line: Especially after the release PRISM, it is obvious that no one is better at simplifying than the ShapeShift team. In order for crypto trading to become mainstream, it need to be easy enough that your grandma could do it. Erik Voorhees understands better than anyone. Instead of being confronted by esoteric graphs, unfamiliar ticker symbols, and a list of registration requirements, ShapeShift differentiates itself from other exchanges in both its interface and ease of use.
Changelly
Overview: Changelly is a prototype project that was created by developers associated with MinerGate 2013. It has a slightly less sleek interface than ShapeShift, but is still quite intuitive in terms of its pull down exchange bars and other information. Changelly offers Credit Card services like CEX.io, but the fees are currently so expensive that it is hardly worth it. Another downside is the recently introduced email requirement.
Trading Fees: 0.5% Commission Fee with .00042 ETH Network Fee.
Security: It offers 2FA with Google Authenticator and HTTPS protocol.
Verification: A confirmed email address is all that is needed to start trading. You could easily use a throwaway email if there are concerns over privacy. There are also links to your Google+ or Facebook Profile, which seems a little uneccessary.
Customer Service: Like ShapeShift, Changelly suffers in its reviews due to inexperienced users. Those using Credit Cards especially will feel ripped off despite a clear disclaimer stating that rates are high. They have an extensive FAQ, but do not appear to have a ticket system for complaints and their social media pages are more geared for press releases than support. Their subreddit is a similar story in changelly, but their support staff u/changelly_com runs circles trying to solve issues. Because of the honest effort, I believe they can do better and can improve.
Bottom Line: When it comes to criticisms of Changelly, the apple does not fall far from the tree with MinerGate. Users rightfully have some distrust about the lack of opacity in the management and operations of this exchange. I feel that they are more honest and fair in the Credit Card services than CEX.io, but still should cut the service as it generates a ton of bad experiences. If you are looking to convert coins, it seems to be an acceptable service, but some of the benefits are lost with having to verify an email address. In this way it is hard to compete with ShapeShift.
That is not the case, as a lot of buy orders were effectively filled by this odd trading behavior. Moreover, a lot of margin traders on GDAX lost good chunks of money because their orders got GDAX, the cryptocurrency exchange run by Coinbase, has added margin trading to the platform. Eligible traders can now trade up to 3X leveraged orders on Bitcoin, Ethereum and Litecoin order books. If you’re unfamiliar with trading and exchanges, margin trading is when you borrow money from your broker to buy or sell more stock than you can For that particular pair, GDAX lets you access up to $10,000 in margin. However, if you want to trade the BTC/EUR pair, GDAX offers 2x leverage and a funding limit of €3,000. Kraken Margin Trading. Kraken bases the amount of margin you can borrow on verification tiers. To access greater leverage, you need to provide more information to the GDAX.com: A Detailed Cryptocurrency Exchange Platform Review. GDAX (Global Digital Asset Exchange) is a widely known website for cryptocurrency exchange operations.GDAX and an extremely popular site Coinbase have the same owners. Both provide the similar services, however GDAX is a more suitable option for professional traders.. An interesting fact is that the largest financial players like In comparison to GDAX, Kraken is an example of a popular cryptocurrency exchange that doesn’t have as many obstacles for smaller investors to get started with margin trading. On Kraken, Tier 1-4 investors can all participate in margin trading.
Stop-limit order How to set the limit Coinbase Pro - GDAX
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