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58

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, if you wait until the price of gold rises to $1800 / ounce, then sell it, you will gain money. The key is an ounce of gold is still an ounce of gold, ...


28

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 certificates, etc... Measurements of value in fiat (such as dollars) does not affect the amount something you own, only the price at which you will be able to ...


20

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 globally (e.g. Bitfinex or BitStamp) or focus on a national market (e.g. FlowBTC, meXBT). The next step is to seek legal counsel to help decide where you want ...


18

You need three components: A user account system that allows users to register, maintain a balance, deposit and withdraw BTC and other currencies, and place buy and sell orders. You'll need to integrate this with a payment processor to support currency deposits and withdrawals. A matching engine that looks at the current buy and sell orders and matches ...


17

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 bitcoin/ether/altcoin exchange markets and merchant APIs. With it you can access market data and trade bitcoin, ether and altcoins with more than 70 (!!!) ...


16

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 11:59 PM UTC of any given day.


14

Yes, if someone buys at a particular price, someone else must sell at that price. But they didn't place their orders at the same time. The buy/sell indicates the direction of the filled order. This is needed to make sense of the price. Imagine an apple exchange where no trades are occurring. Then someone walks in and buys or sells an apple for $1. Do you ...


13

New offers and orders are matched respectively with the best order and offer available until they are fulfilled. If there is more than one entry at the same price, the oldest entry will be matched first. If a new entry cannot be matched completely, it will remain in the order book until the remainder is matched or it expires. See an example below: The ...


13

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 that this isn't legal advice and I'm unsure about what the current legal statutes are surrounding Bitcoin. Bitcoin's a capital asset (at least conceptually; dunno ...


11

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 like the above, you are giving up your "real money" (fiat currency) to take possession of said commodity/stock/bitcoin/etc (let's call these assets in general). ...


9

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 would get if you wanted to trade back.


8

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 check out https://taapi.io . We cover 200+ indicators, pattern recognitions etc… I’m a big fan of free products myself, so taapi.io is free as well. If your ...


7

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 same price, or lower, as the price at which you want to buy), your order will be filled immediately. If not, your order will stay on the book until matching ...


7

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 invest those Bitcoins. You lose them. The high interest scheme turns out to be a Ponzi scheme. You are sued to clawback the $100 value of the Bitcoins that were ...


7

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=365&tryConversion=false&tsym=' + currency.toUpperCase();


7

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 awards {businessname} as one of the best Trading platform of 2018 with 247 contact"? (hint: that's not the sort of thing the SEC ever does). Are there very ...


6

Bitcoin exchange is not a giant, what all you need is running daemons of the coins in the backend on your server, a front end PHP website which deals with the transactions taking place on the website. You also don't need a bank account, you can accept USD with so many online payment gateways which do not connect with banks. So what actually happens is you ...


6

Something I am currently looking into, and a huge issue that nobody has really mentioned earlier is blockchain time. 1) Bitcoin is traded on a number of exchanges, however the entire process of buying on one exchange, transferring to another exchange and selling on that second exchange can take on the order of magnitude of 30 minutes(~10 minutes per block ...


6

Their claims are, IMO, implausible. If they're not in it for an honest profit, what are they in it for? If they are in it for an honest profit, what do they need your money for? They're essentially borrowing money from their customers and saying that they are very, very likely to pay off at an above-market interest rate. Well, why would they do that? Any ...


6

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 market price. These types of orders are offers to buy or sell bitcoin at a certain price. Passive orders are placed in the exchange order book and remain waiting ...


5

BTX Trader will let you create stop-loss orders on top of your account on Bitstamp, BTC-E, Mt. Gox, BTC China and CampBX. It's not same as an exchange-hosted stop-loss order but a close second. Disclosure: I'm one of the founders of BTX Trader.


5

A fee is charged over the filled portion. Either the whole order or partial. If an order was cancelled before a trade took place (0% filled), no fee is charged. If an order was cancelled after a portion was already filled, the remaining part is cancelled and no fee is charged over the remaining.


5

1) The exchange that has your bitcoin should have the option to withdraw bitcoins. It will then ask you to what bitcoin address you want to withdraw and how much. 2) The exchange you want to transfer the bitcoin to should have the option to deposit bitcoins, which will give you a bitcoin address to transfer to. 3) You can then directly withdraw your ...


5

How do you transfer your potatos into rice? You go to market, find somebody who wants to "transfer" his rice into potatos and exchange it with him. There's no direct way of transfering one commodity into another (except perhaps alchemy). So no, you can't transfer cryptocoins across different cryptocoin daemons, that's impossible. But there's plenty ...


5

Check out xchange on github:: https://github.com/timmolter/XChange It works on multiple exchanges, and is written in Java.


5

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 qualifies as a "Money Service Business" or "Money Transmitter". This guidance published on March 2013, http://fincen.gov/statutes_regs/guidance/html/FIN-2013-G001....


5

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 "end of day" price here: http://www.coindesk.com/winklevoss-exchange-gemini-bitcoin-auctions/ with a quote from one of their founders.


5

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 connect and trade with crypto markets and payment processing services worldwide. It provides quick access to market data for storage, analysis, visualization, ...


5

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, CCEDK, Cexio, Coinbase, Coinfloor, Coinse, Coinsetter, Cryptopia, Cryptsy, Gatecoin, Gemini, HitBTC, Huobi, itBit, Kraken, LakeBTC, LocalBitcoins, MonetaGo, ...


5

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.


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