58
votes
What happens if I buy Bitcoins and the price goes down?
If you bought a bar of gold at $1200 / ounce, then the price of the gold drops to $600 / ounce, you wouldn't actually lose any money at all unless you decided to sell your gold at that time. However, ...
- 1,569
28
votes
What happens if I buy Bitcoins and the price goes down?
If you bought one bitcoin and the price goes down, you still have one bitcoin. If the price goes up...still one bitcoin.
This is just like everything else, including groceries, gasoline, gold, stock ...
- 8,822
19
votes
What would it take to create my own Bitcoin exchange?
Setting up and operating an exchange can be quite involved.
A few tiers to start thinking about: legal, banking, tech+security, and volume.
Legal
The first question is whether you want to operate ...
- 291
18
votes
Accepted
Bitcoin market hours (open/close prices)
In 24 hour markets High and Low usually mean "highest/lowest price in last 24 hours".
Open generally refers to the price at 12:01 AM UTC of any given day and close generally refers to the price at ...
- 6,324
17
votes
Anyone know of an API I can get historical price time series for multiple coins
I am developing the ccxt cryptocurrency trading library, check it out on GitHub:
https://github.com/kroitor/ccxt
It is a library for cryptocurrency trading and e-commerce with support for many ...
- 428
13
votes
What happens if I buy Bitcoins and the price goes down?
tl;dr- This is called a capital loss. You're said to realize the capital loss if you sell the Bitcoins at the lower price, such that you lost money due to having bought/sold them. However, note ...
- 251
11
votes
What happens if I buy Bitcoins and the price goes down?
The answer is not unique to bitcoin. It would be the same if you're dealing with (non-crypto) foreign currency, stock, a stock derivative or commodity or commodity futures.
When you buy something ...
- 211
9
votes
What happens if I buy Bitcoins and the price goes down?
Yes, you lose a quantity of your money, at the time you gave it away in exchange for the bitcoin you received. Subsequent changes in the exchange rate only vary the hypothetical value of what you ...
9
votes
Accepted
How to tell if a cryptocurrency exchange or trading platform is trustworthy?
Here's a few checks I'd advise anyone to do.
Does it promise to earn you more than 10% profit in less than a month? If so it is a fraud.
Does it make implausibly impressive claims like "SEC ...
- 25.2k
8
votes
Anyone know of an API for RSI and other indicators?
I had the same problem, couldn’t seem to find a good API that supported most of the popular indicators, and at the same time covered all the exchanges. So I decided to start up a project for this. So ...
- 91
7
votes
Losses when trading with bitcoins
Yes, absolutely. Here's just one example of how this can happen:
You invest Bitcoins worth $100 in some kind of high interest scheme.
You cash out of the scheme and get Bitcoins worth $200.
You ...
- 51.4k
7
votes
Limit order versus Market order
In a limit order, you specify how much of the asset (in this case BTC) you want to buy or sell, and the price you want. If there are matching orders on the book (e.g. someone who wants to sell at the ...
- 23k
7
votes
Accepted
Anyone know of an API I can get historical price time series for multiple coins
Found the data on crypto compare
const endpoint = 'https://min-api.cryptocompare.com/data/histoday?aggregate=1&e=CCCAGG&extraParams=CryptoCompare&fsym='+ ticker.toUpperCase() +'&limit=...
- 461
6
votes
Accepted
How to read an exchange order book?
Irrespective of bullish or bearish outlook, there are two attitudes a trader can have in the market: active or passive.
Limit orders and stop orders are "passive" trades because they don't move ...
- 609
5
votes
Accepted
Why do most trading platforms require ID Verification?
In the US, these are called "Know your Customer", and "Anti Money Laundering" (KYC/AML) laws and is enforced by FINCEN (financial crimes enforcement network) in the US for any businesses that ...
- 2,072
5
votes
Algorithmic trading python library?
Check out my ccxt library on GitHub: https://github.com/kroitor/ccxt
With it you can access market data and trade bitcoin, ether and altcoins with many crypto currency exchanges. It is used to ...
- 428
5
votes
Bitcoin market hours (open/close prices)
For the Gemini exchange the closing price is at the time of their daily auction at 4pm ET.
You can read more about the auction here:
https://gemini.com/marketplace/
And why it is considered their "...
5
votes
Anyone know of an API I can get historical price time series for multiple coins
http://www.cryptocoincharts.info
Advance API to more than 100 exchanges: cryptocurrency pricing, OHLC and volume data from multiple exchanges.
BTC38, BTCC, BTER, Bit2C, Bitfinex, Bitstamp, Bittrex, ...
- 59
5
votes
Why is the USD spread of the order book on GDAX kept very low most of the time?
GDAX offers 0% fee to maker (traders who's trades are being matched by a seller or buyer). That incentives traders to try to match bid and ask as close as possible thus reducing spreads.
- 1,274
5
votes
Trading Bitcoins through binary miner
Their homepage advertises them as:
WORLD'S BEST RISK FREE FOREX, BINARY AND BITCOIN INVESTMENT
Any entity that advertises any form of trading as risk free is a scam. Essentially all binary options,...
- 16.9k
5
votes
Do I have to pay taxes on a Bitcoin investment when I'm withdrawing it to my US bank account before I actually received the money?
You are definitely being scammed - you should write off the $500 as an expensive lesson and never deal with these people again.
No legitimate company operates in such a way. $200 on a $18500 profit is ...
- 16.9k
4
votes
Bitcoin market hours (open/close prices)
Traditional markets are not open for trade all day, so the opening and closing price refer to the first and last price of the day. They are used as measurements for the trading activity of a day.
...
- 72.6k
4
votes
Accepted
What is the purpose of XBTEUR.d tradable pair?
The difference between XBTEUR and XBTEUR.d is that the former is on the "regular" kraken exchange whereas the latter is on a dark pool.
In substance, dark pool orders are only visible to the exchange ...
- 156
4
votes
Anyone know of an API for RSI and other indicators?
You can calculate it yourself. Use an API to get the gains and losses over an period of 14 points and put it into the formula described here: http://stockcharts.com/school/doku.php?id=chart_school:...
- 141
3
votes
Accepted
Are price movements of Bitcoin and altcoins inversely coupled?
The idea that bitcoin rising leads to altcoins falling is an unproven hypothesis, it is something that traders have noticed, but due to the various flaws in human observation, we cannot say for ...
- 411
3
votes
How to access market price from Python?
Perhaps you can use the Python library CCXT:
https://github.com/kroitor/ccxt
It offers an homogeneous interface for accessing market data at different exchanges like Kraken, Coinbase, Bitstamp, etc.....
- 131
3
votes
Why is the USD spread of the order book on GDAX kept very low most of the time?
That's how market making works. GDAX has 0% for them, so is very attractive for liquidity providers.
I'm trying to be one of them, and I don't really care where the market is, as long as I can get rid ...
- 131
3
votes
Whom am I buying bitcoin futures from?
Chak is not entirely correct. The exchange is the matching engine, but there will be someone else on the other side of the trade. The exchange does not have its own position in futures.
That said, ...
- 141
3
votes
BTC/USD price changes approximately the same way over many exchanges at the same time, how?
To be more specific about the "arbitrage strategies" in Tanmay's answer:
Suppose there were a difference in price between two exchanges: at A the price is $10,000 and at B it is $10,100. Then, in ...
- 23k
3
votes
Accepted
Why are there no very low bids/very high asks on GDAX?
It appears that the GDAX main page only shows orders that are fairly close to the market price, probably to keep the user interface manageable. You can see a wider range by increasing the aggregation....
- 23k
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