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It is no doubt Grayscale’s booming popularity as a mainstream investment has caused a lot of community hullabaloo lately. As such, I felt it was worth making a FAQ regarding the topic. I’m looking to update this as needed and of course am open to suggestions / adding any questions. The goal is simply to have a thread we can link to anyone with questions on Grayscaleand its products. Instead of explaining the same thing 3 times a day, shoot those posters over to this thread.My hope is that these questions are answered in a fairly simple and easy to understand manner. I think as the sub grows it will be a nice reference point for newcomers. Disclaimer: I do NOT work for Grayscale and as such am basing all these answers on information that can be found on their website / reports. (Grayscale’s official FAQ can be found here). I also do NOT have a finance degree, I do NOT have a Series 6 / 7 / 140-whatever, and I do NOT work with investment products for my day job. I have an accounting background and work within the finance world so I have the general ‘business’ knowledge to put it all together, but this is all info determined in my best faith effort as a layman. The point being is this --- it is possible I may explain something wrong or missed the technical terms, and if that occurs I am more than happy to update anything that can be proven incorrect Everything below will be in reference to ETHE but will apply to GBTC as well.If those two segregate in any way, I will note that accordingly.
ETHE is essentially a stock that intends to loosely track the price of ETH. It does so by having each ETHE be backed by a specific amount of ETH that is held on chain. Initially, the newly minted ETHE can only be purchased by institutions and accredited investors directly from Grayscale. Once a year has passed (6 months for GBTC) it can then be listed on the OTCQX Best Market exchange for secondary trading. Once listed on OTCQX, anyone investor can purchase at this point. Additional information on ETHE can be found here.
So ETHE is an ETF?
No. For technical reasons beyond my personal understandings it is not labeled an ETF. I know it all flows back to the “Securities Act Rule 144”, but due to my limited knowledge on SEC regulations I don’t want to misspeak past that. If anyone is more knowledgeable on the subject I am happy to input their answer here.
How long has ETHE existed?
ETHE was formed 12/14/2017. GBTC was formed 9/25/2013.
How is ETHE created?
The trust will issue shares to “Authorized Participants” in groups of 100 shares (called baskets). Authorized Participants are the only persons that may place orders to create these baskets and they do it on behalf of the investor. Source: Creation and Redemption of Shares section on page 39 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here Note – The way their reports word this makes it sound like there is an army of authorizers doing the dirty work, but in reality there is only one Authorized Participant. At this moment the “Genesis” company is the sole Authorized Participant. Genesis is owned by the “Digital Currency Group, Inc.” which is the parent company of Grayscale as well. (And to really go down the rabbit hole it looks like DCG is the parent company of CoinDesk and is “backing 150+ companies across 30 countries, including Coinbase, Ripple, and Chainalysis.”) Source: Digital Currency Group, Inc. informational section on page 77 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here Source: Barry E. Silbert informational section on page 75 of the “Grayscale Bitcoin Trust (BTC) Form 10-K (2019)” – Located Here
How does Grayscale acquire the ETH to collateralize the ETHE product?
An Investor may acquire ETHE by paying in cash or exchanging ETH already owned.
Cash: The investor pays the subscription amount in cash and the Authorized Participant will use that cash to purchase ETH.
ETH: The investor transfers the ETH to the Authorized Participant, which will contribute the ETH in-kind to the Trust.
Source: Creation and Redemption of Shares section on page 40 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Where does Grayscale store their ETH? Does it have a specific wallet address we can follow?
ETH is stored with Coinbase Custody Trust Company, LLC. I am unaware of any specific address or set of addresses that can be used to verify the ETH is actually there. As an aside - I would actually love to see if anyone knows more about this as it’s something that’s sort of peaked my interest after being asked about it… I find it doubtful we can find that however. Source: Part C. Business Information, Item 8, subsection A. on page 16 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Can ETHE be redeemed for ETH?
No, currently there is no way to give your shares of ETHE back to Grayscale to receive ETH back. The only method of getting back into ETH would be to sell your ETHE to someone else and then use those proceeds to buy ETH yourself. Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Why are they not redeeming shares?
I think the report summarizes it best:
Redemptions of Shares are currently not permitted and the Trust is unable to redeem Shares. Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program. Because the Trust does not believe that the SEC would, at this time, entertain an application for the waiver of rules needed in order to operate an ongoing redemption program, the Trust currently has no intention of seeking regulatory approval from the SEC to operate an ongoing redemption program.
Source: Redemption Procedures on page 41 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the fee structure?
ETHE has an annual fee of 2.5%. GBTC has an annual fee of 2.0%. Fees are paid by selling the underlying ETH / BTC collateralizing the asset. Source: ETHE’s informational page on Grayscale’s website - Located Here Source: Description of Trust on page 31 & 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
What is the ratio of ETH to ETHE?
At the time of posting (6/19/2020) each ETHE share is backed by .09391605 ETH. Each share of GBTC is backed by .00096038 BTC. ETHE & GBTC’s specific information page on Grayscale’s website updates the ratio daily – Located Here For a full historical look at this ratio, it can be found on the Grayscale home page on the upper right side if you go to Tax Documents > 2019 Tax Documents > Grayscale Ethereum Trust 2019 Tax Letter.
Why is the ratio not 1:1? Why is it always decreasing?
While I cannot say for certain why the initial distribution was not a 1:1 backing, it is more than likely to keep the price down and allow more investors a chance to purchase ETHE / GBTC. As noted above, fees are paid by selling off the ETH collateralizing ETHE. So this number will always be trending downward as time goes on. Source: Description of Trust on page 32 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
I keep hearing about how this is locked supply… explain?
As noted above, there is currently no redemption program for converting your ETHE back into ETH. This means that once an ETHE is issued, it will remain in circulation until a redemption program is formed --- something that doesn’t seem to be too urgent for the SEC or Grayscale at the moment. Tiny amounts will naturally be removed due to fees, but the bulk of the asset is in there for good. Knowing that ETHE cannot be taken back and destroyed at this time, the ETH collateralizing it will not be removed from the wallet for the foreseeable future. While it is not fully locked in the sense of say a totally lost key, it is not coming out any time soon. Per their annual statement:
The Trust’s ETH will be transferred out of the ETH Account only in the following circumstances: (i) transferred to pay the Sponsor’s Fee or any Additional Trust Expenses, (ii) distributed in connection with the redemption of Baskets (subject to the Trust’s obtaining regulatory approval from the SEC to operate an ongoing redemption program and the consent of the Sponsor), (iii) sold on an as-needed basis to pay Additional Trust Expenses or (iv) sold on behalf of the Trust in the event the Trust terminates and liquidates its assets or as otherwise required by law or regulation.
Source: Description of Trust on page 31 of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here
Grayscale now owns a huge chunk of both ETH and BTC’s supply… should we be worried about manipulation, a sell off to crash the market crash, a staking cartel?
First, it’s important to remember Grayscale is a lot more akin to an exchange then say an investment firm. Grayscale is working on behalf of its investors to create this product for investor control. Grayscale doesn’t ‘control’ the ETH it holds any more then Coinbase ‘controls’ the ETH in its hot wallet. (Note: There are likely some varying levels of control, but specific to this topic Grayscale cannot simply sell [legally, at least] the ETH by their own decision in the same manner Coinbase wouldn't be able to either.) That said, there shouldn’t be any worry in the short to medium time-frame. As noted above, Grayscale can’t really remove ETH other than for fees or termination of the product. At 2.5% a year, fees are noise in terms of volume. Grayscale seems to be the fastest growing product in the crypto space at the moment and termination of the product seems unlikely. IF redemptions were to happen tomorrow, it’s extremely unlikely we would see a mass exodus out of the product to redeem for ETH. And even if there was incentive to get back to ETH, the premium makes it so that it would be much more cost effective to just sell your ETHE on the secondary market and buy ETH yourself. Remember, any redemption is up to the investors and NOT something Grayscale has direct control over.
Yes, but what about [insert criminal act here]…
Alright, yes. Technically nothing is stopping Grayscale from selling all the ETH / BTC and running off to the Bahamas (Hawaii?). BUT there is no real reason for them to do so. Barry is an extremely public figure and it won’t be easy for him to get away with that. Grayscale’s Bitcoin Trust creates SEC reports weekly / bi-weekly and I’m sure given the sentiment towards crypto is being watched carefully. Plus, Grayscale is making tons of consistent revenue and thus has little to no incentive to give that up for a quick buck.
That’s a lot of ‘happy little feels’ Bob, is there even an independent audit or is this Tether 2.0?
Actually yes, an independent auditor report can be found in their annual reports. It is clearly aimed more towards the financial side and I doubt the auditors are crypto savants, but it is at least one extra set of eyes. Auditors are Friedman LLP – Auditor since 2015. Source: Independent Auditor Report starting on page 116 (of the PDF itself) of the “Grayscale Ethereum Trust Annual Report (2019)” – Located Here As mentioned by user TheCrpytosAndBloods (In Comments Below), a fun fact:
The company’s auditors Friedman LLP were also coincidentally TetheBitfinex’s auditors until They controversially parted ways in 2018 when the Tether controversy was at its height. I am not suggesting for one moment that there is anything shady about DCG - I just find it interesting it’s the same auditor.
“Grayscale sounds kind of lame” / “Not your keys not your crypto!” / “Why is anyone buying this, it sounds like a scam?”
Welp, for starters this honestly is not really a product aimed at the people likely to be reading this post. To each their own, but do remember just because something provides no value to you doesn’t mean it can’t provide value to someone else. That said some of the advertised benefits are as follows:
Access to trading within a tax advantaged retirement account
Institutions can easily and safely get exposure to crypto in a more legal-friendly manner
Ease of use for those who are not very technologically savvy
Ease of access for someone who doesn’t want to set up a Coinbase account
Perceived trust in institutional platforms over something like Coinbase or Kraken
Degen traders who just want access to the volatility ETHE provides that have no interest in crypto beyond that
So for example, I can set up an IRA at a brokerage account that has $0 trading fees. Then I can trade GBTC and ETHE all day without having to worry about tracking my taxes. All with the relative safety something like E-Trade provides over Binance. As for how it benefits the everyday ETH holder? I think the supply lock is a positive. I also think this product exposes the Ethereum ecosystem to people who otherwise wouldn’t know about it.
Why is there a premium? Why is ETHE’s premium so insanely high compared to GBTC’s premium?
There are a handful of theories of why a premium exists at all, some even mentioned in the annual report. The short list is as follows:
ETHE is NOT redeeming shares and as such doesn’t have an effective arbitrage mechanism
ETHE has a 1 year wait to be sold on the secondary market, again negating the ability to effectively arbitrage the premium
People may simply be willing to pay a premium for the benefits stated above.
Why is ETHE’s so much higher the GBTC’s? Again, a few thoughts:
ETHE hasn’t been around as long, so there is less secondary market supply to go around
ETHE was listed at an insanely high premium to begin with
ETHE might simply be more popular at the moment
Could just be sheer stupidity (investors think ETHE is a 1:1 ratio not 1:11)
Are there any other differences between ETHE and GBTC?
I touched on a few of the smaller differences, but one of the more interesting changes is GBTC is now a “SEC reporting company” as of January 2020. Which again goes beyond my scope of knowledge so I won’t comment on it too much… but the net result is GBTC is now putting out weekly / bi-weekly 8-K’s and annual 10-K’s. This means you can track GBTC that much easier at the moment as well as there is an extra layer of validity to the product IMO.
I’m looking for some statistics on ETHE… such as who is buying, how much is bought, etc?
There is a great Q1 2020 report I recommend you give a read that has a lot of cool graphs and data on the product. It’s a little GBTC centric, but there is some ETHE data as well. It can be found here hidden within the 8-K filings.Q1 2020 is the 4/16/2020 8-K filing. For those more into a GAAP style report see the 2019 annual 10-K of the same location.
Is Grayscale only just for BTC and ETH?
No, there are other products as well. In terms of a secondary market product, ETCG is the Ethereum Classic version of ETHE. Fun Fact – ETCG was actually put out to the secondary market first. It also has a 3% fee tied to it where 1% of it goes to some type of ETC development fund. In terms of institutional and accredited investors, there are a few ‘fan favorites’ such as Bitcoin Cash, Litcoin, Stellar, XRP, and Zcash. Something called Horizion (Backed by ZEN I guess? Idk to be honest what that is…). And a diversified Mutual Fund type fund that has a little bit of all of those. None of these products are available on the secondary market.
Are there alternatives to Grayscale?
I know they exist, but I don’t follow them. I’ll leave this as a “to be edited” section and will add as others comment on what they know. Per user Over-analyser (in comments below):
As asked by pegcity - Okay so I was under the impression you can just give them your own ETH and get ETHE, but do you get 11 ETHE per ETH or do you get the market value of ETH in USD worth of ETHE?
I have always understood that the ETHE issued directly through Grayscale is issued without the premium. As in, if I were to trade 1 ETH for ETHE I would get 11, not say only 2 or 3 because the secondary market premium is so high. And if I were paying cash only I would be paying the price to buy 1 ETH to get my 11 ETHE. Per page 39 of their annual statement, it reads as follows:
The Trust will issue Shares to Authorized Participants from time to time, but only in one or more Baskets (with a Basket being a block of 100 Shares). The Trust will not issue fractions of a Basket. The creation (and, should the Trust commence a redemption program, redemption) of Baskets will be made only in exchange for the delivery to the Trust, or the distribution by the Trust, of the number of whole and fractional ETH represented by each Basket being created (or, should the Trust commence a redemption program, redeemed), which is determined by dividing (x) the number of ETH owned by the Trust at 4:00 p.m., New York time, on the trade date of a creation or redemption order, after deducting the number of ETH representing the U.S. dollar value of accrued but unpaid fees and expenses of the Trust (converted using the ETH Index Price at such time, and carried to the eighth decimal place), by (y) the number of Shares outstanding at such time (with the quotient so obtained calculated to one one-hundred-millionth of one ETH (i.e., carried to the eighth decimal place)), and multiplying such quotient by 100 (the “Basket ETH Amount”). All questions as to the calculation of the Basket ETH Amount will be conclusively determined by the Sponsor and will be final and binding on all persons interested in the Trust. The Basket ETH Amount multiplied by the number of Baskets being created or redeemed is the “Total Basket ETH Amount.” The number of ETH represented by a Share will gradually decrease over time as the Trust’s ETH are used to pay the Trust’s expenses. Each Share represented approximately 0.0950 ETH and 0.0974 ETH as of December 31, 2019 and 2018, respectively.
Bonjour à tous, Je suis ravi de découvrir un sub francophone sur le FIRE ! Pour différentes raisons, autant structurelles que culturelles à mon avis, j’ai l’impression que nous ne sommes pas encore nombreux les Français à courir après cette indépendance. 🙂 Il y a quelques années mon épouse et moi avions décidé que nous procéderions à un changement radical de vie dès que nous pourrions financièrement nous le permettre. En toute honnêteté, nous n’avions à ce moment là pas encore entendu parler du mouvement FIRE et nous l’avons découvert il y a seulement deux ans. Je précise que nous avons tous les deux 45 ans et un enfant qui va entamer des études supérieures. Nos objectifs étaient alors relativement simples : pouvoir abandonner nos carrières respectives (qui nous ont pleinement satisfaite, nous ne sommes pas du tout malheureux sur ce plan), et d’une manière plus générale n'avoir plus aucune dépendance vis à vis d’un quelconque employeur, pour retrouver une maîtrise totale de notre temps et pouvoir le consacrer à des projets beaucoup plus personnels. Parmi nos projets personnels, certains ont le potentiel de générer des revenus, mais nous souhaitions ne pas avoir de pression financière pour les réaliser et tout revenu généré serait pris comme un bonus. Sauf erreur de calcul de notre part dans le Google Sheet qui héberge notre projet depuis quelques années, nous ne sommes maintenant plus qu’à quelques mois de notre FIRE. 2020 sera, sauf erreur ou accident, l’année de notre indépendance financière. Notre stratégie se base sur des fondamentaux : 1) la constitution d’un capital, 2) une stratégie d’investissement pre-FIRE et une autre post-FIRE, 3) une diminution future du coût de notre vie sans sacrifice de notre niveau de vie actuel. Nous sommes sur le point de terminer 1) par la constitution d’un capital de 800 K€ (une partie de ce capital finira de se concrétiser par des plus-values immobilières d’ici 2 à 3 ans, mais nous n’avons pas besoin d’attendre cela pour FIRE). C’est un capital construit de zéro et qui a été alimenté principalement par un salaire unique (mais élevé), par une belle opération en Bitcoin, et par une politique de défiscalisation immobilière qui nous a permis d’une part de mettre de l’argent de côté de manière plus agressive et d’autre part de faire des plus-values immobilières. Concernant le point 2) nous sommes toujours en train de construire notre stratégie d’investissement car la structure de notre patrimoine va devoir considérablement évoluer pour la prochaine étape de notre projet. Nous avons encore quelques mois pour faire les premiers arbitrages. Pour le point 3) nous avons déjà choisi notre solution depuis quelques années : l’expatriation dans un pays de l’Union Européenne avec lequel nous sommes très familiers et qui nous permettra de conserver notre niveau de vie actuel (qui est vraiment tout à fait standard) tout en réduisant nos besoins financiers de moitié. Nos besoins locaux oscilleront autour de 2 000 € / mois (ils sont actuellement d’un peu plus de 4 000 €). Et pour être un peu original, ce n’est pas le Portugal. 😉 Pour reprendre une terminologie FIRE, j'ai l'impression que cela nous situe quelque part entre lean FIRE et fat FIRE car nous ne sacrifions rien à ce qui fait notre bonheur matériel, mais nous n'avons pas non plus d'appétit pour le luxe. Notre définition personnelle du bonheur est juste de savoir que notre journée nous appartient, de profiter d'une pièce de vie cozy avec une cheminée pour lire au coin du feu (nous n'aimons pas les climats chauds), de beaux paysages à portée de nos jambes, pas de voisins et une bonne connexion Internet. Nous avons un capital aujourd’hui très axé sur l’immobilier et nous allons le faire évoluer vers quelque chose de plus mixte avec une plus grande proportion exposée aux marchés actions ou trackers. Et même si la réalité pourra nous donner tort, nous sommes partis du principe que nous ne toucherons aucune retraite, tout en ayant cotisé plus de vingt ans en tant que salarié (et donc potentiellement à perte). Nous ne sommes pas encore au bout du chemin, mais nous ne voyons plus beaucoup d’obstacles sur la route et nous sommes plus motivés que jamais ! Voilà pour notre témoignage. N’hésitez pas si vous avez des questions, ou si vous souhaitez challenger notre stratégie car nous n’avons bien sûr aucune certitude sur nos choix. Notre futur est aujourd’hui encore contenu dans un tableur, et nous savons tous que Excel et Google Sheets sont les plus puissants logiciels de réalité virtuelle au monde. 😉
Leverage, as the name suggests, can magnify the result of an investment at a fixed rate, whether being a gain or a loss. In the cryptocurrency realm, leverage is a tool that has been widely applied in both leverage trading and contract transactions, among them, most investors would select the margin mechanism in contract trading and use a 10x to 100x leverage to achieve the goal of magnified profits. Let’s take a look at the details about leverage. 1.What can leverage do? As an investment strategy, leverage trading can bring mutual benefits to both the market and investors. Benefits to Market: 1) “Strongly Accelerate” market demands for assets; 2) Brings more liquidity to the market when investors use the capital for multiple transactions. Benefits to Investors: 1) Effective use of capital 2) Release capital 3) Use leveraged investments to earn multiple returns 4) Arbitrage and hedging And this is why “leverage” is popular with professional investors. 2. 1x vs. 10x Leverage Currently, the leverage on the market ranges from the lowest 1x to the highest 100x. Let’s take an example to see the difference between 1x and 100x leverage. When the BTC price is $5,000, an investor uses 1 BTC as the margin and selects 1x leverage to trade a contract worth 1 BTC. When BTC rises to $5,050, his profit will be $50, equivalent to 0.0099 BTC. In contrast, if the investor uses 1 BTC as the margin and selects 10x leverage, the contract value will be 10 BTC. When BTC rises by 1% from $5,000 to $5,050, his profit will be $500, equivalent to 0.099 BTC. Compared to 1x leverage, the actual earning by using the 10x leverage is 9 times the 1x leverage. It can be seen that with the margin system, investors can use small amounts of capital costs to achieve greater returns. Let’s take a look at the 100x leverage in the market. If Bitcoin worth 8,000 USDT, and the value of a single contract 1 USDT. If to open short 80 contracts with 100 leverage, ignoring the fee, 80 USDT is required as the margin. That said, investors can complete an 8,000 USDT transaction with the cost of only 80 USDT. When the BTC price rises from 8,000 USDT to 8,050 USDT, the comparison between 1x and 100x leverage is as follows: This is the 100x leverage under the margin system. To leverage large funds with small funds, rich leverage is essential. Concerning this issue, many investors will choose an authoritative exchange in the industry, such as 58COIN. 58COIN pioneered the 100x perpetual contract in Asia, exceeding 80% of the old and new exchanges in the industry. At present, there are eight leverages available at 58COIN, 2x, 3x, 5x, 10x, 20x, 33x, 50x, and 100x, providing investors with a variety of leverage options. 4. Co-existence of Benefits and Risks Notably, the use of leverage is a double-edged sword, lying in the fact that the profit or the loss it generates can be substantial. When calculating the profit and loss after using leverage, instead of applying the used margin, the result is based on the enlarged amount of funds. Suppose that the Bitcoin price is $8,000, an investor believes in the bullish trend and pays 1%, $80 as the margin to open long. If the BTC price indeed rises and soars to $9,000, then the investor makes a net profit of $1,000, equivalent to 0.11BTC, with a profit rate of 1250%. However, if the BTC price falls and drops to $7,000, then the net loss of the investor is $1,000, equivalent to 0.14BTC, and the yield becomes -1250%. Assets borrowed via leverage can be applied to multiple financial tools, bringing potential returns to investors. Also, professionals attach great importance to leverage, which allows them to trade a large number of positions without having to invest all their capital in spot transactions with a certain risk. Website: https://www.58ex.com/ Twitter: https://twitter.com/58_coin Facebook: https://www.facebook.com/coin.58COIN Telegram: https://t.me/official58 Medium: https://medium.com/@58coin_blog
Newscrypto Platform BEGINNER TIER ● NEWS 📰 A feature that analyses the news and searches for pieces of new information whilst filtering and providing the right ones to our members. We will also have vloggers, bloggers, and journalists on our team, all being paid with our tokens. Therefore, in order for them to make money, they will have to provide the best pieces of news and information possible. ● CHARTS 📈 They answer the basic questions, for instance: What is the price action?; What do charts show us? What are price candles? Price movement; Trend Lines; Support Resistance lines; Orders; Order books explained and much more giving users a whole package of useful knowledge about charts. ● COIN CALENDAR 🗓️ A cryptocurrency event calendar to keep updated on events regarding the coins or tokens you are interested in or currently holding. The coin calendar can be managed and updated to the member’s portfolio. ● ALTCOIN POLICE 👮 A feature that shows your action behind the desired coin or token. If a project’s development isn’t active you can confidently assume it is dead and vice versa so you can act appropriately to it. ● COIN TRACKER 〽️ Database where users can import all of their trades. You can build your portfolio and calculate the current balance and sell/buy trade options for the coins you are currently holding 🔹🔹🔹🔹🔹🔹🔹 INTERMEDIATE TIER ● TRADING ™️ An option of trading available for our members that automatically places buy and sell orders in their name to a cryptocurrency of their choice. The user can set all the details (limit, token amount, rate, etc.) in advance. ● EXCHANGE RATES AND ARBITRAGE 💱 A feature analyzing all current exchange rates and their differences in different exchange markets. This allows users to choose the market where their selected currency has the best price for them to buy or sell it. As we know, the crypto world is decentralized, which means there can be vast differences between different crypto exchange markets. ● PERFORMANCE 🔧 Display of all cryptocurrencies and crypto exchanges that shows their performance in the desired time ratio from 1 day to 1 month. ● SENTIMENT 📏 A feature that consists of professional technical analysis for top cryptocurrencies to evaluate investments and identify trading opportunities. The options are arranged from 1 minute to 1 month showing you the buy/sell opinion by focusing on patterns of price movements, trading signals, and various other analytical charting tools. 🔹🔹🔹🔹🔹🔹🔹 ADVANCED TIER ● WHALE ALERTS 🐋 Whale alerts are instant notifications for so-called whale moves. They provide insight into big amounts of money or so-called smart money being entered or exited from one currency into another. These moves are normally made on some type of verified information and we enable our users to react accordingly to it. ● CORRELATION ➗ Indicator that shows the biggest price difference between Bitcoin and other major coins. It can be used to monitor the movement and analyzing the market. ● INFLOW INDICATOR 🔺 A special feature constructed on an exact calculation of FIAT flowing into and out of different crypto exchanges. ● CRYPTO MINING ⛏️ Indispensable tool for everyone interested in crypto mining. It shows digital asset staking rewards & dividends for most promising mining crypto coins. https://imgur.com/a/fIQgrKX Become NWC Member and register an account for free at 🔹 REGISTER https://newscrypto.io/users/login/ 🔹 SOCIAL MEDIA https://linktr.ee/nwc_public https://imgur.com/a/fIQgrKX NewsCrypto Team
Lastupdated2018-01-29 This post is a collaboration with the Bitcoin community to create a one-stop source for Lightning Network information. There are still questions in the FAQ that are unanswered, if you know the answer and can provide a source please do so!
Lightning Network White Paper - The protocol has changed since this original paper, but covers the mid-level mechanics of the Lightning Network with an emphasis on the smart contracts that make it trustless
If you can answer please PM me and include source if possible. Feel free to help keep these answers up to date and as brief but correct as possible
Is Lightning Bitcoin?
Yes. You pick a peer and after some setup, create a bitcoin transaction to fund the lightning channel; it’ll then take another transaction to close it and release your funds. You and your peer always hold a bitcoin transaction to get your funds whenever you want: just broadcast to the blockchain like normal. In other words, you and your peer create a shared account, and then use Lightning to securely negotiate who gets how much from that shared account, without waiting for the bitcoin blockchain.
Is the Lightning Network open source?
Yes, Lightning is open source. Anyone can review the code (in the same way as the bitcoin code)
Who owns and controls the Lightning Network?
Similar to the bitcoin network, no one will ever own or control the Lightning Network. The code is open source and free for anyone to download and review. Anyone can run a node and be part of the network.
I’ve heard that Lightning transactions are happening “off-chain”…Does that mean that my bitcoin will be removed from the blockchain?
No, your bitcoin will never leave the blockchain. Instead your bitcoin will be held in a multi-signature address as long as your channel stays open. When the channel is closed; the final transaction will be added to the blockchain. “Off-chain” is not a perfect term, but it is used due to the fact that the transfer of ownership is no longer reflected on the blockchain until the channel is closed.
Do I need a constant connection to run a lightning node?
Not necessarily, Example: A and B have a channel. 1 BTC each. A sends B 0.5 BTC. B sends back 0.25 BTC. Balance should be A = 0.75, B = 1.25. If A gets disconnected, B can publish the first Tx where the balance was A = 0.5 and B = 1.5. If the node B does in fact attempt to cheat by publishing an old state (such as the A=0.5 and B=1.5 state), this cheat can then be detected on-chain and used to steal the cheaters funds, i.e., A can see the closing transaction, notice it's an old one and grab all funds in the channel (A=2, B=0). The time that A has in order to react to the cheating counterparty is given by the CheckLockTimeVerify (CLTV) in the cheating transaction, which is adjustable. So if A foresees that it'll be able to check in about once every 24 hours it'll require that the CLTV is at least that large, if it's once a week then that's fine too. You definitely do not need to be online and watching the chain 24/7, just make sure to check in once in a while before the CLTV expires. Alternatively you can outsource the watch duties, in order to keep the CLTV timeouts low. This can be achieved both with trusted third parties or untrusted ones (watchtowers). In the case of a unilateral close, e.g., you just go offline and never come back, the other endpoint will have to wait for that timeout to expire to get its funds back. So peers might not accept channels with extremely high CLTV timeouts. -- Source
What Are Lightning’s Advantages?
Tiny payments are possible: since fees are proportional to the payment amount, you can pay a fraction of a cent; accounting is even done in thousandths of a satoshi. Payments are settled instantly: the money is sent in the time it takes to cross the network to your destination and back, typically a fraction of a second.
Does Lightning require Segregated Witness?
Yes, but not in theory. You could make a poorer lightning network without it, which has higher risks when establishing channels (you might have to wait a month if things go wrong!), has limited channel lifetime, longer minimum payment expiry times on each hop, is less efficient and has less robust outsourcing. The entire spec as written today assumes segregated witness, as it solves all these problems.
Can I Send Funds From Lightning to a Normal Bitcoin Address?
No, for now. For the first version of the protocol, if you wanted to send a normal bitcoin transaction using your channel, you have to close it, send the funds, then reopen the channel (3 transactions). In future versions, you and your peer would agree to spend out of your lightning channel funds just like a normal bitcoin payment, allowing you to use your lightning wallet like a normal bitcoin wallet.
Can I Make Money Running a Lightning Node?
Not really. Anyone can set up a node, and so it’s a race to the bottom on fees. In practice, we may see the network use a nominal fee and not change very much, which only provides an incremental incentive to route on a node you’re going to use yourself, and not enough to run one merely for fees. Having clients use criteria other than fees (e.g. randomness, diversity) in route selection will also help this.
What is the release date for Lightning on Mainnet?
Would there be any KYC/AML issues with certain nodes?
Nope, because there is no custody ever involved. It's just like forwarding packets. -- Source
What is the delay time for the recipient of a transaction receiving confirmation?
Furthermore, the Lightning Network scales not with the transaction throughput of the underlying blockchain, but with modern data processing and latency limits - payments can be made nearly as quickly as packets can be sent. -- Source
How does the lightning network prevent centralization?
How would the lightning network work between exchanges?
Each exchange will get to decide and need to implement the software into their system, but some ideas have been outlined here: Google Doc - Lightning Exchanges Note that by virtue of the usual benefits of cost-less, instantaneous transactions, lightning will make arbitrage between exchanges much more efficient and thus lead to consistent pricing across exchange that adopt it. -- Source
How do lightning nodes find other lightning nodes?
Does every user need to store the state of the complete Lightning Network?
According to Rusty's calculations we should be able to store 1 million nodes in about 100 MB, so that should work even for mobile phones. Beyond that we have some proposals ready to lighten the load on endpoints, but we'll cross that bridge when we get there. -- Source
Would I need to download the complete state every time I open the App and make a payment?
No you'd remember the information from the last time you started the app and only sync the differences. This is not yet implemented, but it shouldn't be too hard to get a preliminary protocol working if that turns out to be a problem. -- Source
What needs to happen for the Lightning Network to be deployed and what can I do as a user to help?
Lightning is based on participants in the network running lightning node software that enables them to interact with other nodes. This does not require being a full bitcoin node, but you will have to run "lnd", "eclair", or one of the other node softwares listed above. All lightning wallets have node software integrated into them, because that is necessary to create payment channels and conduct payments on the network, but you can also intentionally run lnd or similar for public benefit - e.g. you can hold open payment channels or channels with higher volume, than you need for your own transactions. You would be compensated in modest fees by those who transact across your node with multi-hop payments. -- Source
Is there anyway for someone who isn't a developer to meaningfully contribute?
Sure, you can help write up educational material. You can learn and read more about the tech at http://dev.lightning.community/resources. You can test the various desktop and mobile apps out there (Lightning Desktop, Zap, Eclair apps). -- Source
Do I need to be a miner to be a Lightning Network node?
Do I need to run a full Bitcoin node to run a lightning node?
lit doesn't depend on having your own full node -- it automatically connects to full nodes on the network. -- Source LND uses a light client mode, so it doesn't require a full node. The name of the light client it uses is called neutrino
How does the lightning network stop "Cheating" (Someone broadcasting an old transaction)?
Upon opening a channel, the two endpoints first agree on a reserve value, below which the channel balance may not drop. This is to make sure that both endpoints always have some skin in the game as rustyreddit puts it :-) For a cheat to become worth it, the opponent has to be absolutely sure that you cannot retaliate against him during the timeout. So he has to make sure you never ever get network connectivity during that time. Having someone else also watching for channel closures and notifying you, or releasing a canned retaliation, makes this even harder for the attacker. This is because if he misjudged you being truly offline you can retaliate by grabbing all of its funds. Spotty connections, DDoS, and similar will not provide the attacker the necessary guarantees to make cheating worthwhile. Any form of uncertainty about your online status acts as a deterrent to the other endpoint. -- Source
How many times would someone need to open and close their lightning channels?
You typically want to have more than one channel open at any given time for redundancy's sake. And we imagine open and close will probably be automated for the most part. In fact we already have a feature in LND called autopilot that can automatically open channels for a user. Frequency will depend whether the funds are needed on-chain or more useful on LN. -- Source
Will the lightning network reduce BTC Liquidity due to "locking-up" funds in channels?
When setting up a Lightning Network Node are fees set for the entire node, or each channel when opened?
You don't really set up a "node" in the sense that anyone with more than one channel can automatically be a node and route payments. Fees on LN can be set by the node, and can change dynamically on the network. -- Source
Can Lightning routing fees be changed dynamically, without closing channels?
Yes but it has to be implemented in the Lightning software being used. -- Source
How can you make sure that there will be routes with large enough balances to handle transactions?
You won't have to do anything. With autopilot enabled, it'll automatically open and close channels based on the availability of the network. -- Source
How does the Lightning Network stop flooding nodes (DDoS) with micro transactions? Is this even an issue?
BEGINNER TIER ● NEWS 📰 A feature that analyses the news and searches for pieces of new information whilst filtering and providing the right ones to our members. We will also have vloggers, bloggers, and journalists on our team, all being paid with our tokens. Therefore, in order for them to make money, they will have to provide the best pieces of news and information possible. ● CHARTS 📈 They answer the basic questions, for instance: What is the price action?; What do charts show us? What are price candles? Price movement; Trend Lines; Support Resistance lines; Orders; Order books explained and much more giving users a whole package of useful knowledge about charts. ● COIN CALENDAR 🗓️ A cryptocurrency event calendar to keep updated on events regarding the coins or tokens you are interested in or currently holding. The coin calendar can be managed and updated to the member’s portfolio. ● ALTCOIN POLICE 👮 A feature that shows your action behind the desired coin or token. If a project’s development isn’t active you can confidently assume it is dead and vice versa so you can act appropriately to it. ● COIN TRACKER 〽️ Database where users can import all of their trades. You can build your portfolio and calculate the current balance and sell/buy trade options for the coins you are currently holding ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- INTERMEDIATE TIER ● TRADING ™️ An option of trading available for our members that automatically places buy and sell orders in their name to a cryptocurrency of their choice. The user can set all the details (limit, token amount, rate, etc.) in advance. ● EXCHANGE RATES AND ARBITRAGE 💱 A feature analyzing all current exchange rates and their differences in different exchange markets. This allows users to choose the market where their selected currency has the best price for them to buy or sell it. As we know, the crypto world is decentralized, which means there can be vast differences between different crypto exchange markets. ● PERFORMANCE 🔧 Display of all cryptocurrencies and crypto exchanges that shows their performance in the desired time ratio from 1 day to 1 month. ● SENTIMENT 📏 A feature that consists of professional technical analysis for top cryptocurrencies to evaluate investments and identify trading opportunities. The options are arranged from 1 minute to 1 month showing you the buy/sell opinion by focusing on patterns of price movements, trading signals, and various other analytical charting tools. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ADVANCED TIER ● WHALE ALERTS 🐋 Whale alerts are instant notifications for so-called whale moves. They provide insight into big amounts of money or so-called smart money being entered or exited from one currency into another. These moves are normally made on some type of verified information and we enable our users to react accordingly to it. ● CORRELATION ➗ Indicator that shows the biggest price difference between Bitcoin and other major coins. It can be used to monitor the movement and analyzing the market. ● INFLOW INDICATOR 🔺 A special feature constructed on an exact calculation of FIAT flowing into and out of different crypto exchanges. ● CRYPTO MINING ⛏️ Indispensable tool for everyone interested in crypto mining. It shows digital asset staking rewards & dividends for most promising mining crypto coins. https://preview.redd.it/6xs1q0k413q31.png?width=1903&format=png&auto=webp&s=597b69b44f8eac08a5267e2d8463d869110f8948
The first iteration of the block reward scheme was announced in the previous weekly update. An immediate concern raised from the community was that the emission was too aggressive in the initial year and rewards dropped off fast beyond the 5 year mark. Taking Bitcoin’s emission as an example, the emission curve has been updated to target 2% emission after 10 years. !(https://miro.medium.com/max/2384/1*gqBLvJOl2G4n3IHW1rViKg.png) The Block Reward equation is given by the following recurrence equation: g(n+2) = ((R - (g(n+1) + g(n))) / x) / y Which evaluates to: !(https://miro.medium.com/max/1624/1*ttpsRd7HUs2-7hvDGO6elg.png) where: R = Reserve, x = 6 (Arbitrary Emission Factor) y = (seconds per day / seconds per block) / days per year y = (86400 / 5) * 365.2425 The final curve thus has a Day 0 emission of 25%, Year 1 emission of 20% and Year 10 emission of 2%.
The original plan for BEPSwap (prior to the Yggdrasil liquidity breakthrough) was to have it as a separate mainnet before launching the real THORChain in 2020 with cross-chain support. Now THORChain has in-built cross-chain support and a clear roadmap to 99 nodes. This means the mainnet launch will have public, community-run nodes at the start. The community has been fielding many questions about how to run a node, and the mechanics in doing so. Since the THORChain team will not be running any nodes, it is necessary to have a full-rehearsal with the community at launch. As such, the plan is for a public ChaosNet on 03 January 2020. ChaosNet will have the following key differences: * Minimum bond of 100k RUNE. * Maximum of 12 Nodes. * Churn cycle of 1 day. * Maximum stake amount of 600k RUNE total. * 2.7m RUNE Protocol Reserve to emit Bond and Stake rewards. * Hard-coded Ragnorök at 6 weeks. Any member who wishes to join ChaosNet to get accustomed to running a node can do so, and will receive Block Rewards roughly equivalent to mainnet (25%). They will be setting up nodes, churning in, servicing the network and earning rewards. The system will hold up to 600k Rune, at which point it will refund any additional staked amount. The community can stake small amounts of real assets, prepare arbitrage bots, set up telegram alert bots and more. In short, it is a public rehearsal with the entire community across all facets (nodes, stakers, traders) so that everyone will have access to the same information and not unfairly benefit when the real mainnet launches. Additionally, the system will be hard-coded to perform a Ragnorök 6 weeks later, which will refund all the remaining reserve as well as bonded and staked assets. This will go a long way in re-assuring the community that the system can tolerate all levels of risk, including black-swan events, and that funds are safe at all times.
A new feature will be launched that will allow users to use internal arbitrage. This is an asymmetrical withdrawal to Rune, then immediately followed by a asymmetrical stake of Rune in another pool. A trader may want to do this instead of doing transactional arbitrage in order to exploit price differences between two pools the fastest way possible. Instead of an outgoing transaction being processed, followed by another incoming transaction, Rune balances and stakeUnits are swapped internally, being completed inside of a few seconds.
Fee-based Transaction Prioritisation
Currently there is no prioritisation to the order of transactions, all transactions are simply processed in order of time received. In moments of high demand of network resources (such as when there are large arbitrage opportunities and users are racing to exploit them), transactions will queue in the mempool. If the system cannot respond fast enough, then the reason for high demand will persist (the large arbitrage opportunity). The solution is to remove the reason for high demand in the first place, which is the large arbitrage opportunity, at the same time as collecting the maximum revenue for the system. As such, in the checkTx method (which can triage the mempool), transactions will be sorted and ordered in the value of the fee of the swap transaction. Assuming rational actors, the following transactions will then be prioritised over all others: * A transaction from an impatient swapper who is willing to pay a large fee. * A transaction from a trader who is able to arbitrage out a price discrepancy (and still make a gain). This then means the system can collect as much income as possible (good for the stakers) at the same time as prioritising transactions that can arbitrage out large price discrepancies quickly. This then means swaps from transient swappers will experience a market price that accurately matches the reference price at all times.
The team are working on 4 parallel streams of effort. Cross-chain infrastructure has now been merged into a single repo called “THORNode”. * THORChain * Midgard Public API * Threshold Signature Scheme implementation * Front-end Integration for BEPSwap
Mother Telegram Technology is an English cryptocurrency mining company
Mother Telegram Technology is an English cryptocurrency mining company. Officially registered in the UK since August 2019, Mother Telegram Technology, however, has an earlier history of creation and formation (for details, see the History of the company). Since January 2017, the company has been working professionally and quite successfully with Bitcoin ATM operators. 2018 has been manufacturing their own brands of cryptomatic, production takes place in Austria. Cryptomate the most powerful and modern equipment that support the exchange of all major altcoins, as well as perform the role of stores to entire retail chains. Recently Mother Telegram Technology does not only exchange e-gold for himself, rents cryptomate from different parts of the world out, and provides the ability to start without investments. Customers can choose the location and profitability of the leased terminal, calculate its profitability, payback period, size and volume of net profit. Since may this year, the company has been steadily increasing its own base of terminals, gaining momentum, launching Beta Mother Wallet in Telegram messenger. In the world of profitable crypto-currency programs at the moment there is hardly a better offer for earnings. And it's not just that the Mother Telegram Technology is a private telegram platform, decent interest rate, reasonable terms, etc. the Matter of stability and reliability, which we show are proud of, which we offer to our partners. Mother Telegram Technology has been developing steadily, showing medium-high rates of profit growth since its inception. The main goal is to increase the total number of terminals, competitiveness and efficiency. Achieve Mother Telegram Technology * Platform created in conjunction with Telegram. • The most reliable Telegram wallet. * Arbitrage revenue system within the Telegram network. * Conclusion of profitable contracts with terminal operators in more than 25 countries. * Creation of own software for terminals. The introduction of innovative business models for cryptomatic, their functionality is very broad and allows you to cover the outlets and the casino. * High interest rates on rental terminals for our tenants. Mother Telegram Technology is an excellent rental interest, the lowest prices for the cost of terminals, as well as an interesting and profitable affiliate program. More info https://motherwallet.net telegram @motherwalletbot
What is crypto arbitrage and is it effective? Cryptocurrency arbitrage allows you to earn on the difference in the value of assets. This type of trading came from traditional financial markets and has become widely used by crypto traders.
Types of cryptocurrency arbitrage
There are two main types of crypto arbitrage:
The first and most common way is to buy cryptocurrency on one exchange at a lower price and sell it on another at a higher price. There are many factors to consider in this approach: spread, fees, transaction speed, price movement speed, trend direction and so on. The second method is more complex, but less risky, because all transactions are made on the same exchange, and the work goes faster. A popular scheme is the so-called intra-exchange triangle, based on the difference in the rates of several cryptocurrencies. Two or more cryptocurrencies are involved in the trade. For example, the first bitcoin is bought, then BTC is exchanged for XLM, which is sold for dollars.
Disadvantages of crypto arbitrage
The method is quite difficult for beginners and requires a certain set of skills. It is necessary to carry out complex calculations and take fees into account: both trading and cryptocurrency deposit and withdrawal fees. It is profitable to engage in inter-exchange arbitrage only when the trader has a sufficiently large deposit since the total fee can be up to 200 or more dollars. This increases the risks significantly. When conducting inter-exchange arbitrage with cryptocurrencies such as BTC or ETH, the rate can change significantly due to fairly slow transactions, which, under high load on the network, can hang for several hours.
How effective is crypto arbitrage
Arbitrage can be effective due to high volatility and rapid changes in the exchange rate of cryptocurrencies. But for the same reason, it can lead to losses as the price can quickly level off or become lower at the time of sale. It is more appropriate to use intra-exchange arbitrage. Trade-mate.io service, which allows you to manage assets in a single window, will help you a lot. Currently, three major exchanges can be connected: Binance, Bitmex, and Poloniex. If you decide to use inter-exchange arbitrage, you can track prices and quickly sell on two exchanges at once. For example, open long on Binance and short on Bitmex without withdrawing funds to save time.
For those of you who don’t know VanEck and SolidX have submitted their 3rd ETF proposal for Bitcoin. I highly encourage you read the proposal so you can understand how it may affect the prices of Bitcoin and other cryptocurrencies. There was a massive public misperception of what the BTC futures would do to price which, in my opinion, led to the incredible rise and fall in Bitcoin’s price. Also, I would like to supply some topics you could present to SEC during their call for public comments. Here is the ETF proposal as submitted on June 5, 2018. This initial document is what I have used to base the following post on. Here is a slightly updated proposal that the SEC has requested public comment on dated June 26, 2018. ETF vs Futures A Bitcoin ETF increases Bitcoin scarcity and liquidity which is bullish for price whereas BTC futures contracts has no direct effect on BTC markets with the exception of removing longs. Since Bitcoin futures removes longs they are bearish for price. Let me explain. The futures contracts introduced in late 2017 are cash settled, they do not directly result in ANY buying or selling of Bitcoin. They are contractually enforced bets on the outcome of price. Because they do not result in the buying (demand) or selling (supply) of Bitcoin they do not affect price directly. Before futures existed if a US investor wanted to go long on Bitcoin they had to buy Bitcoin (increase demand), there was no other option. However, with the creation of futures contracts Bitcoin bulls gained a new option for going long: Bitcoin futures. It is somewhat understandable why an investor would go from buying actual Bitcoin via frequently hacked and regularly overloaded crypto exchanges to highly regulated legacy exchanges that don’t carry the risk of losing Bitcoin to a hack and have clear tax laws. Unfortunately this resulted in a loss of demand for Bitcoin as some investors moved from the physical market to the derivatives market. Also, the public did not understand the supply and demand implications of the Bitcoin Futures contracts resulting in the price runup and subsequent crash upon their opening. The proposed Bitcoin ETF, on the other hand, will result in the buying and selling of actual Bitcoin. This means anyone with a brokerage account will have the ability to buy and sell Bitcoin indirectly through the ETF. It will have major implications for supply and demand and, subsequently, price. I implore you to read the top link but for the lazy I will discuss some topics I find interesting in the proposed ETF. Summary p.8-11, 53-57 Each share of the XBTC ETF initially represents 25 Bitcoins. This value will decrease as BTC are sold to pay fees associated with the fund. Shares will be created and redeemed in baskets of 5 shares by “Authorized Participants” using cash OR Bitcoin. This means any brokerage firm can buy or sell the shares in the ETF which represent actual Bitcoin. These brokerages can then offer the ETF shares to their customers allowing any average Joe and grandma to (indirectly) buy Bitcoin. Here we can see the major implications of a BTC ETF. While it will not necessarily increase adoption it will increase liquidity. The ETF allows for the most technologically naive investor to buy Bitcoin. It also increases market efficiency as “smart money” can buy and sell shares to the SolidX trust using cash or Bitcoin, in other words, smart money can arbitrage. Interestingly, the ETF plans to do all transactions in the OTC markets… Settlement via OTC markets p.39-42 The Bitcoin ETF plans to do all of its buying and selling of Bitcoin via OTC markets. If this is not possible they will look to general cryptocurrency exchange markets for settlement, specifically GDAX, BitStamp, Gemini, iBit, BitFlyer, Kraken (p.41-42). As they plan to buy Bitcoin in chunks of $500,000 or more they do not want to singlehandedly alter the spot price of Bitcoin. This is why they plan to use OTC markets. They have not named the OTC markets they plan to use. Price Determination p.60 The price of Bitcoin will be calculated at the end of every trading day by the MIVS OTC Bitcoin Index (MVBTCO) which primarily aggregates price from several, yet to be named, OTC markets (p. 60-61). It would be nice to know who these OTC markets are but essentially the price of Bitcoin will be determined at the end of each trading day by aggregating the price across multiple markets. This will reduce issues with price discrepancy across exchanges. At the end of the day Net Asset Value of the ETF is determined by multiplying Bitcoin price (obtained by the MVBTCO) by the number of Bitcoins held by the ETF and finally adding the value of any cash held (p.60-61). Great Discussion of Risk The proposers have a great discussion of risk, including the risks inherent to the security of blockchain (p.13-17) such as early investors (Satoshi?) dumping all their Bitcoin, 51% attacks, and collusion of miners. They need to elaborate more on my favorite risk: forks. Bitcoin will fork again. One of these forks, like BCash, will be successful from a financial standpoint. Who at the ETF decides which is the real Bitcoin? Will they sell one of the forked coins, add it to the valuation of XBTC, or offer a new ETF...XXXBTC anyone? If you want to comment to the SEC, this is one area that needs clarification. No one wants their BTC ETF to decide to hold Bitcoin Diamond because of a bad executive decision. Another risk is big after hours swings as Bitcoin is traded 24x7x365 but the ETF will only be traded during market hours. This isn’t a new risk but it leaves ETF holders vulnerable to market swings at times of zero liquidity. A final risk is regulation and they have a great discussion of changing regulatory status on pages 27-28. They seem equally frustrated by the lack of clear regulatory guidance. They have a good understanding of how Bitcoin works but look at p.36 for a comical depiction of a Bitcoin Miner. While the XBTC ETF does not increase adoption directly it will indirectly benefit the crypto space. The increased visibility of Bitcoin and blockchain in general will give the public comfort in the space. They will no longer think Bitcoin is just for buying fentanyl and other drugs. With increased comfort will come increased research and investment. Hopefully the ETF is fuel for the next leg of innovation is this transformative space.
I've seen lots of posts about people complaining about the "hidden" cost of buying bitcoin between Coinbase Mobile and Coinbase Pro. Here is my stupid little calculator that will compare the cost of various buys and sells against pro.coinbase.com. It can run in any python console or on android as well with the help of a launcher
Coinbase Mobile seems to run at about a 3.5 % premium compared to Pro which usually only has about a 0.15-0.20 % premium.
CashApp Buy $100 BTC
CoinbaseMobile Buy $100 BTC
CoinbaseMobile Buy $100 in ETH
CoinbaseMobile Buy $100 in LTC
CoinbaseMobile Convert BTC->ETH
CoinbaseMobile Convert BTC->LTC
Basically, Coinbase Mobile seems to be running a 3.5% premium over just using Coinbase Pro. The "Free Conversion" feature runs about a 1% premium over just doing it on the Coinbase Pro exchange. If you have to use mobile, CashApp is substantially cheaper. Note: I'm only referencing Coinbase Pro. Most of the time, most of the US exchanges BTC/USD order books are within 0.10% of each other. There is arbitrage, but for the numbers I'm looking at, I consider it mostly insignificant. Enjoy! Disclaimer:Costsoccurinmanyforms.Thecostsonthefeescheduleareoneofthosecosts,butothersmayincludethesizeoftheorderbookspreadororiginationcosts.
At this time the global financial system is at the “Wile E. Coyotee cliff” moment. Apologies to those that have to Google it. The humor from the resulting list of Youtube videos should make up for the inconvenience.
Don’t Panic. Every Central banker around the globe at this moment worth their finance degree has a fist full of antacids in one hand and an expensive bottle of liquor in the other. No one wants to be the one that starts the panic that I have been calling the “Days of Vantablack” in the markets. The market is going to panic and there is nothing or no one that can stop it. Don’t panic, it will be alright. I am not here to blame the system or the people pulling the strings of the system that have forced this inevitable event that has been building over the last few decades. In the past few decades the periodic collapse of bubbles in the market place has seen money run to safety to wait out the time of uncertainty while the equity markets stabilized. The problem with the markets this time around is that the bubble is in both the equity markets and the bonds markets to which equity money runs to safety. The realization will take hold that there is no safe place for money to run to as both sides will be in simultaneous collapse and we will be on the brink of the “Nightmare Scenario”. This will be the end of fiat currencies and the fractional reserve lending systems that accompany it. How ever both the “Gold Bugs” and the crypto currency pushers have it wrong. For the crypto currency pushers they ignored a fatal weakness in the core premise their desired system. When you have a system that has to account for bad actors the higher the percentage of bad actors that the system has to account for the higher the drag coefficient of the system. This drag can be ignored for systems where few to no actors are trusted as long as the transaction rate is small. The drag increases geometrically with the rate of transactions. A bitcoin like system would require the computing power of Asimov’s Universal Univac computer to process the rate of the average days worth of world wide credit card transactions. The Gold bugs would have been correct in the world economy prior to the 1980’s. Since the 1980’s if not four decades prior, the need to be able to expand the money supply to account for economic growth would not be possible. The amount of new gold that would have been required to be added to the system could only have been extracted from the Earth’s core or the asteroid belts. If the monetary system would return to the Gold Standard, the constraint of not being able to add gold at a sufficient rate to the system would cause a fatally acute deflationary bias. There is only one item that can back currency that would naturally balance the inflationary and deflationary pressures in an expanding or contracting economy. Most of the activity of our economic system that keeps us alive and with our creature comforts can be reduced to MoMA. MoMA stands for Move or Manipulate Atoms. I pronounce it as a long o and a short a i.e. “moe ma” with the accent on “moe”. Any manufacturing or chemical process is Manipulating Atoms. Everything else is Moving those same Atoms from one place to another. At this moment only a tiny part of all MoMA is done with physical labor and the trend is for the percentage of physical labor to become infinitesimal if not zero. When a person purchases a physical object from a company the company exchanges said item for money and then proceeds to replace the item. The entire chain of production can be simplified to the company paying out some of the money to people for there services and then purchases energy that is then used to mine the raw material, transport the raw material to a manufacturing plant, process the raw material into the final product and then transport the product to the customer. In the current system the fluctuation of energy cost is the dominant factor in the purchasing power of money. From this it can be concluded that beginning with the industrial revolution and continuing to the future the value of money is approaching its purchasing power of energy. Granted there are differing forms of energy delivery but this has been shown to equalize with the markets ability to arbitrage. Money is equal to the promise to deliver some unit of energy in a particular form to a particular location and time. For us humans energy in the form of food what drives us. Food in its wide forms of production also follows the above example with the added processes that plant growth is powered by the light coming from the sun and animal growth is powered from the consumption of a portion of the grown plants. For economists this is a new “Stand up and shout”1. For anyone that is a biologist, rocket and/or satellite engineer this is as basic as water is wet. ALL budgets are fundamentally an energy budget. I need take the opportunity to make a public apology and point out who the real hero or heroes are that laid the foundation for the saving grace to our current situation. After the the 2011 Fukushima disaster a German politician/bureaucrat or group there of altered German policy to abandon the current atomic energy policy. Upon reading this change in policy I screamed at my computer screen uttering insults to the shortsightedness and disastrous consequences in following the fear mongering of nuclear power. I was wrong. They were right. Because of this change in the allocation of government directed investment into solar power a critical point was reached in 2017 where the full cycle of energy invested into a solar farm would be repaid in energy output in eight years with a continuing trend in the reduction of the EROEI, energy return on energy invested. This new dynamic created the situation that the growth of renewable energy sources can and will grow faster that the population growth indefinitely (well until we consume all the material resources of the entire solar system). Back of the napkin business plan: Lets combine the resources of all interested pension funds and create a co-op that take the premise to exchange any current debt instrument for a new promissory note to pay an energy equivalent of the current debt instrument’s energy value (take the current debts instruments value and calculate the energy equivalent of what it could purchase in oil and extract its full theoretical energy content) to be paid out at a future date accumulating a 6.5 percent annual interest compounding until fulfillment of the note. This co-op then takes these incoming funds and begins to build monstrous solar farm reinvesting the energy output into expansion of the farm until its critical mass is reached and it then can start paying off its energy note obligations. The excess energy can be distributed as short term notes to the population where the population can trade these notes for goods and services.
Knowledge is power! In the age of rapid IT development every self-respecting crypto trader has to be prepared. Analytic tools capabilities are improving every day providing investors lots of resources for successful trading. Growing number of platforms are constantly adding new features allowing traders to make more relevant decision based on bigger amount of data. The analysis of the relatively recent years shows that small percent of traders shows stable results in the long run. Complex and fundamental analysis of crypto projects, search for best strategy, choice of the trading platform, high volatility, constant track of prices make trader’s job laborious and busy that affect trader’s mental perception and consequently reasonability of this or that decision connected with trading activity. To beginner and experienced traders’ come special tools mainly created to optimize traders’ performance and in some cases to fully automate some actions.
Progressive analytical service Coinhills attracts its users not only with a simplified control algorithm and a lot of useful functions, but also with a convenient structure of the main sections, where ratings, position of Bitcoin’s main competitors, foreign news aggregator, ICO news can be viewed.
The Gekko trading bot is one of the many crypto bots available on the market. This is an open-source trading bot that can collect real-time data, price data, calculate indicators, and complete transactions. It can also test trading strategies using real data. Gekko is essentially an entry-level trading bot for people who are just learning and experimenting with different strategies. Its functionality is very limited compared to others competitors on the market. This allows users to take advantage of arbitrage and minimize risk. This is a good tool for those who try themselves as a crypto trader for the first time. The main functional features of the bot are the following: Aggregation of real market data Calculation of indicators Execution of current orders Imitation of order execution Calculation of profit and risk metrics Displaying results in the web interface Managed and imported historical market data Simulation of live markets using historical data
Investy is a trading blockchain platform providing its users with advanced functionality for working on cryptoexchanges. A distinctive feature of the product is the ability to copy each other’s orders and make profit with the use of the success fee system. All operations pass through the API crypto exchange without direct transfer of assets. The platform has a wide range of tools — solutions:
Easy Trade — a trading terminal with an extended range of trader’s tools.
Easy Trade dashboard — detailed statistics for your exchange accounts.
TradeBattle — a tool that will allow you to unlock the talents of a crypto trader.
Ability to work on any device from PC to mobile phone.
Operations on several exchanges via one window.
Security of personal data while using the service.
CoinSpectator is a free cryptocurrency news aggregator that allows traders, investors and enthusiasts to track thousands of industry news sources in real time mode. The site allows you to quickly respond to the latest cryptocurrency news, market volatility, investment tips, the ICO schedule, project phases and much more. Every investor, who has been in cryptospace for a long period of time, understands that markets are not driven by just technical or fundamental indicators. In fact, it is a complex network of interactions with social media, news publications, rumors, as well as more typical technical and fundamental indicators that you can expect to see on traditional markets. CoinSpectator provides the ability to track data interactions. CoinSpectator is a valuable tool for assessing the industry and learning, whether you are a blockchain enthusiast, a cryptocurrency trader or a crypto skeptic.
Bitcoincharts is a website dedicated to cryptocurrency statistics that contains information about Bitcoin price, trading volumes and other information related to the Bitcoin network. The portal provides detailed information on the total hashrate of the network, the number of blocks processed per hour and the total number of BTC in circulation. You can also get a general view of the bitcoin trading market based on data from exchanges. There are some of the most valuable statistics published on Bitcoincharts:
Market Cap (based on the latest prices)
Transactions over the past 24h
Average number of transactions per hour
Bitcoins sent over the last 24 hours
Bitcoins sent over the past hour, on average
Blocks over the past 24h
Average number of blocks per hour
Next difficulty upgrade (by number of blocks)
Network hashrate (terahashs/s)
Network hashrate (petaFLOPS)
Being in a dynamic space such as the blockchain and the cryptocurrency market, any trader regardless of experience should always be in touch with the most up-to-date information. Trade in the cryptocurrency market continues to gain popularity, and according to estimates by various consulting agencies the market capitalization of cryptocurrencies will exceed one trillion US dollars by 2030. The potential of blockchain technology is great, and along with it the profession of a crypto trader is becoming increasingly popular. The presented selection will help you to start your way to the industry correctly, leaving behind a large number of risks faced by all novice traders.
I built an arbitrage system that finds arbitrage opportunities between cryptocurrency exchanges
It took me about 6 months of coding to get where I am now and I'm letting cryptocurrency try it out for free. This is literally the first time I am posting about it to see how people would react to such a system. Currently it is able to find arbitrage opportunities between Binance, Bittrex, Cryptopia, Bitfinex, YoBit, HitBTC, Kraken and Poloniex with many more to come. It is not like the average arbitrage bots you see mine works by calculating the profit you will make buying on one exchange and selling it on another. It is able to detect which exchanges are doing maintenance on wallets so you dont waste time with false arbitrage opps. It was able to find a 17% arbitrage opp on Game Credits and I was able to make 15% by purchasing it on Bittrex and selling it on Poloniex 2 days ago. It took me about 7 minutes transfer time. I was also able to buy Bitcoin Gold from Binance and transfer it to Bittrex and sell it for a 20% profit which took me around 30 minutes. My system is designed to eliminate trading risk by keeping your money out of the market as much as possibles. The purpose is to detect when there is a large price gap between exchanges and capitalize off of it which means get in and get out as fast a you can. The only risk becomes the time it takes to transfer from one exchange to another but the ERC20 tokens transfer pretty fast so it works well with most digital currencies. Also have to be aware of the volume in relation to how much you money you trade with. I would like to see how many people were able to successfully profit from arbitrage also who would be interested in such a system. Here is an image of how the system displays the arbitrage opps https://ibb.co/iBWafx and the system can be accessed at Arbiswap.com ----------------------------TRY IT OUT--------------------------------------------------- ATTENTION!!! Some hater keeps changing the password so I cannot make a test account anymore so it is best everyone create a free trial account and I will make it so the system can be accessed by everyone here at crytocurrency. It is free to start the trial and will expire in 14 days so make use of it and see if you can find any deals with my system. I suggest you only do ones of 9% or more. Login here http://arbiswap.com/cryptocurrency-arbitrage/ Dont forget to cancel before 2 weeks ends if my system sucks for you. Keep in mind the system works but you have to be on at the right time to find deals and it updates every 15 minutes. Right now I am working on an alert system which will alert you of the most promising arbitrage opps 9% profit or more on high volume exchanges. Thanks for the amazing feedback I am building this for you guys and it will be limited memberships so work with me and I will with you. Update: Thank everyone for the support...Email alerts are now active to subscribed members... it checks exchanges every 5 minutes for possible arbitrage opps and when it finds one you will be notified. Anyone can see past alerts on site but they are delayed 3 hours. Update: here is a medium article I published to try and explain more details about how the system works https://medium.com/@chasarcaulon/presenting-arbiswap-crytocurrency-arbitrage-platform-4dd12b99fd36
Do you really think it is an arbitrage opportunity? No! It works very differently; you need to do trading in fiat currency which is not that easy. Buy coin with lower price in Exchange A and transfer to Exchange B to sell it. After booking profit, you need to transfer the fund back to bank and it is time consuming to repeat it. Arbitrage Calculator Calculates total value attained (positive or negative) from a completed multiway scalp and calculates bet size on each outcome to fully smooth results. (takes Decimal or US Odds) ArbiTool has a built-in advanced transaction profitability calculator that will help user calculate if opportunity is really profitable. The calculator imports transfer costs from exchanges and substitutes them for calculations. ArbiTool is a very advanced tool but very easy to use and very intuitive. Bitcoin arbitrage calculator. This Tables are still under development. You can support the project Trading From Remitano to Luno I made a cryptocurrency arbitrage calculator (UPDATED) TOOL. I just finished coding v1.5 of my cryptocurrency arbitrage program, so if you guys want to make some money trading with it check it out: investing, trading, miscellaneous market-related subjects and other relevant technology. Tags: ETH, BTC, Bitcoin, Augur, REP, DGD, ICN, MRK, MKR
Any questions please don't hesitate to ask This is a quick tutorial on how to get free Bitcoins using Arbitrage. it simple enough that most beginners can use it A. bitcoin arbitrage 2017, bitcoin arbitrage calculator, is bitcoin arbitrage legal, cryptocurrency arbitrage reddit, cryptocurrency arbitrage calculator, crypto arbitrage calculator, ARBITRAGE TRADING BITCOIN sell bitcoin, earn with bitcoin, how to arbitrage and trade bitcoin How to Use Stock Market Scanners A cryptocurrency arbitrage opportunity calculator and trading bot Theoretically you could make millions after 3 clicks. Convert Rands to Dollars, Dollars to Bitcoin and Bitcoin back to Rands using these three sites and you have a potential arbitrage opportunity ...