Bitcoin Cash, Litecoin and Ripple Daily Analysis – 20/12/17

Bitcoin Cash Breaks the $3,000 Barrier and Climbing

What a week for Bitcoin Cash and it’s just got better this morning, with gains of 20.3% to hit $3,211 at the time of writing.

It’s all about Bitcoin and investors are searching for alternatives, with the Bitcoin futures markets having done little by way of support to Bitcoin Cash’s big brother.

Bitcoin’s woes have certainly fuelled the Bitcoin Cash fire and we could be seeing a changing of the guards, with prominent members of the cryptoworld continuing to talk down Bitcoin’s outlook.

As we saw last week, Bitcoin’s network has seen some instability of late. Concerns over transaction speeds have done their rounds and with it has come an increased acceptance of Bitcoin Cash across the leading cryptocurrency exchanges.

The very fact that the crypto exchanges are changing their stance on Bitcoin Cash, with many exchanges having held back from allowing Bitcoin Cash trading following the August fork, suggests that the demand is now there.

For Bitcoin Cash to really put some pressure on big brother, there’s going to need to be increased attention from miners that are needed to verify the transactions, with Bitcoin Cash also needing to see a shift in acceptance as an alternative payment system within the business community.

With such heavy gains in the early part of the day, the rising interest in Bitcoin Cash could see more investors switching out of Bitcoin, providing further upside, with $3.500 the next target for Bitcoin Cash to then have a run towards $4,000 levels.

Comparing hashrates between Bitcoin and Bitcoin Cash this week, while Bitcoin hashrates continue to sit well above that of Bitcoin Cash, there has been some convergence, with miners looking for earnings potential. We are some way off the 12th November hashrate switch that saw Bitcoin Cash hashrates surpass Bitcoin’s, but a narrowing will provide further evidence that there has been a shift in sentiment of late.

BCHUSD201217

Litecoin in Retreat

It’s been a bad start to the day for Litecoin, with the recent volatility in Bitcoin seeming to have weighed on sentiment towards Bitcoin’s other competitor in the cryptoworld.

Investors can be quite unforgiving and with Bitcoin Cash the headline grabber this week, there’s just cause for many to be locking in recent Litecoin gains as the search continues for the cryptocurrency that can deliver 15,000 plus returns for next year

Litecoin’s failure to recapture $400 levels this week has contributed to the softer prices, though it’s too early to be completely writing off Litecoin.

On the price front, Litecoin is down 4.88% to 333.56, with Litecoin managing to recover from an intraday low $275.01. For the day ahead, while we expect support at sub-$300 levels, another move towards today’s intraday low could see Litecoin struggle to recover losses for a 2nd time. We’re going to need to see $380 levels for investors to expect another run at $400, which hasn’t been touched for a week now.

LTCUSD 201217

Litecoin Chart by Trading View

Ripple’s fall from Grace

Ripple’s start to the day has not been much better this morning, with prices having tumbled to an intraday low $0.63437 before a partial recovery.

There’s been little incentive for the markets to jump back into Ripple, following the escrow move by the Ripple team that saw prices hit $0.88. Announcements of seasoned financiers joining the Ripple board have also provided little upside, as the markets continue to consolidate on recent gains and find rallies elsewhere in the crypto world.

At the time of writing, Ripple was down 5.30% at $0.6946 and things could get a lot worse should sub-$0.68 support levels be tested for a 2nd time today. With only Bitcoin Cash in positive territory amongst the top 5 cryptocurrencies, one wonders how much of an impact the ever-increasing number of cryptocurrencies is having on the likes of Ripple.

XRPUSD 201217

Ripple Chart by Trading View

Bitcoin Gold DASH and Monero Price Forecast December 20, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold fell significantly after initially trying to rally during the day on Tuesday, testing the $340 level above. By doing so, it looks as if the $300 level is being challenged as support. I think there is plenty of support just below, so it makes sense that we will try to bounce again. If we do bounce from here, I think will go looking towards the $340 handle. Otherwise, we could drift as low as the $280 level to look for support. This has been slow and gradual moved to the upside, and therefore I think that we will continue to see buyers coming in on dips, albeit in a slow and steady manner.

Get Into Dash Trading Today

BTG/USD DASH USD and XMR USD Video 20.12.17

DASH/USD

DASH rallied initially during the day as well but pulled back towards the $1100 level underneath. That was an area that was massively resistive, and now looks likely to offer significant support. I think that a bounce from there makes sense as it would continue the overt uptrend. I think that breaking above the $1250 level above signals that we are going to continue to go higher, and currently I think that the “floor” in the market is closer to the $1000 handle underneath. I believe that longer-term, cryptocurrencies will do well, but DASH, in particular, has done well over the last couple of weeks. Currently, I think that the idea of faster transactions in the cryptocurrency space is continuing to drive a lot of the bullish pressure here.

DASH/USD daily chart, December 20, 2017
DASH/USD daily chart, December 20, 2017

Monero

Monero rallied a bit during the trading session on Tuesday, reaching towards the $400 level but failing to hang on to the gains. We pulled back to the $350 handle, but now look as if we are trying to build a bit of a base here. We are oversold in the stochastic oscillator on the hourly chart, so I think that we are ready to continue the uptrend in general. Pulling back from the $400 level makes sense, and I think that this recent pullback is probably an opportunity to build up momentum to finally break out longer term. I think that happens, but this time year is going to be a little less liquid than others, and retail traders will probably be on the sidelines for the most part, as Christmas is next Monday. That being said, I don’t have any interest in shorting this market anytime soon.

Buy & Sell Cryptocurrency Instantly

Monero/USD daily Chart, December 20, 2017
Monero/USD daily Chart, December 20, 2017

Negative Bitcoin Chatter on the Rise

The Day Before

We were expecting the Bitcoin world to pop upon the launch of CME Bitcoin futures on Monday, but instead it’s been more of a whimper for Bitcoin.

The moves through Monday were certainly not what the cryptomarkets are usually accustomed to, with Bitcoin moving within a relatively tight range for a cryptocurrency that normally sees more significant intraday moves.

Bitcoins failure to make another run at $20,000 was largely down to the fall in the January Bitcoin Futures price back down to $19,000 levels on the CME futures exchange, with the Cboe Bitcoin futures contract for January only just managing to hold on to $19,000 levels.

Adding to the pressure on Bitcoin this week has been an increase in speculation that Bitcoin may now be on the high side, price wise and may well see a correction as investors consider Bitcoin’s network stability, which has been tested of late.

Talk of members of the crypto fraternity shifting from Bitcoin to Bitcoin Cash won’t be doing Bitcoin any good and as we have seen before, once the negative chatter starts, it’s hard to stop it.

We’ve yet to see the futures markets reflect the negative sentiment, with January contracts on both exchanges sitting above Bitcoin’s current value. We have also seen the prices on the Cboe and CME futures exchanges converge, which will be good news, though when the smart money begins to pull down the Bitcoin futures prices remains to be seen, with investors playing it safe for now.

As it Stands

At the time of writing, Bitcoin is down 1.16% to $18,719.94 and is the only one of the top 5 in the red, with the rest of the pack finding some solid support through the early part of the day.

While Bitcoin has been on the back foot this morning, the futures markets have painted a different story, with the CME Group’s January contract up $320 to $19,420 and the Cboe contract up $325 to $19,380.

Get Into Cryptocurrency Trading Today

For the Day Ahead

Sentiment towards what’s next for Bitcoin has been mixed and, while some are suggesting that the end is near, there are others in the market continuing to call for $400,000 or even $1,000,000 values down the road.

The recent failure to make a successful run through to $20,000 levels suggests that there may be more downside for Bitcoin through the week, though as has been the case on numerous occasions, investors are quick to jump in.

For Bitcoin to avoid a move back to sub-$18,000 levels, it’s going to need to return back to this morning’s intraday high $19,160.79.

For those looking towards the Bitcoin futures markets for  direction, it’s still early days and Bitcoin continues to be impacted more from market chatter than the futures markets, with the institutional money less sensitive to the speculative talk that has been doing the rounds this week.

Some have missed the rally and are looking to burst the bubble. It may not be the speculators that ultimately bring down the Bitcoin house however, with the sheer demand for Bitcoin and the unstable network that results considered to be a key risk to price stability.

Buy & Sell Cryptocurrency Instantly

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 19/12/17

Bitcoin Cash Breaks the $2,000 Barrier

Bitcoin Cash jumped from $1,840 to $2,318.7 in a matter of hours on Monday to hit a new record high, with the gains coming off the back of Bitcoin’s sideways moves through the day.

A number of factors are likely to have contributed to Bitcoin Cash’s new found lease of life including the fall in CME Bitcoin January Futures, which appears to have stifled Bitcoin’s 2017 record breaking runs.

Another driving force could also be increased speculation that Bitcoin could be getting ready for a tumble. Concerns over Bitcoin network stability have raised doubts over whether investors will stick with Bitcoin or begin switching out into Bitcoin Cash and Litecoin, which are considered to be Bitcoin’s main competitors.

We had seen the effects of transaction backlogs on Bitcoin’s valuations last week and another similar outage could see Bitcoin futures and Bitcoin fall back to sub-$17,000 levels. If the institutional money begins to show doubts over the future prospects of Bitcoin through the futures markets, things could get worse, which would be a positive for Bitcoin Cash.

At the time of writing, Bitcoin Cash is down 0.70% at $2,134, with Bitcoin also in the red, down 0.3% to $18,884.06.

Rising support for Bitcoin Cash should support $2,100 levels, with the next target for Bitcoin Cash being $2,500, which could be hit in the coming days should more prominent members of the cryptoworld step out in support of Bitcoin Cash.

BCHUSD191217

Get Into Bitcoin Cash Trading Today

Litecoin on the Move

Litecoin is on the move this morning, up 3.64% to $372.49 at the time of writing. Interestingly, the negative sentiment towards Bitcoin that seems to be doing its rounds this week has provided greater support for Litecoin over Bitcoin Cash, with investors holding on to Monday’s gains through the early part of today.

We could begin to see Litecoin benefitting from any downward pressure on the CME and Cboe Bitcoin futures prices, with today’s fall in Bitcoin providing strong support for Litecoin.

How the futures markets perform through the day will be of importance, as will be any further negative chatter on Bitcoin through the day. Breaking through $375 levels could give Litecoin a run at $400, which hasn’t been breached since 12th December.

LTCUSD 191217

Buy & Sell Cryptocurrency Instantly

Ripple makes another splash

The cryptophoria has certainly gripped the major cryptocurrencies in recent weeks and Ripple is amongst them. We saw Ripple pull back from $0.88 record high going into the weekend, hitting the low $0.70s

The latest bounce in Bitcoin Cash and Litecoin has seen Ripple move back to $0.80 levels to lead the pack through the early part of the day, gaining 8.95% to $0.8226.

Sentiment towards Ripple’s blockchain technology is central to the continued support seen for Ripple at current levels. With Ripple having put into escrow the vast majority of their coins, market appetite for Ripple will likely build in the coming weeks, as investors search for viable blockchain technologies to park their money in. Bitcoin’s current levels and the issues faced on the Bitcoin network will be of particular support.

For the day ahead, we’ll need to see Ripple break past $0.88 levels to have a good run at $1.00, which would be quite a milestone when considering the fact that Ripple was priced at just $0.24 last week.

XRPUSD 191217

Buy & Sell Cryptocurrency Instantly

Bitcoin Gold DASH and Monero Price Forecast December 19, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold rally during the trading day on Monday, reaching above the $300 level. I think that the market is going to continue to go higher though, and as a Americans pick up the ball, looks like they are willing to try to drive to the upside. I think if we can break above the $315 level, the market is likely to go looking towards the $350 level above, which of course was resistance. Pullbacks at this point seem to be offering value, extending down to at least the $270 level.

Get Into Dash Trading Today

BTG/USD DASH USD and XMR USD Video 19.12.17

DASH

DASH/USD continues to go sideways in general, as the market is hovering just above the $1040 level. I think the $1000 level underneath continues to offer massive support, as it is a large, round, psychologically significant number. At this point, I believe it’s only a matter of time before we rally and go looking towards the $1200 level above. I think that every time we pull back, traders are willing to pick up the market and take advantage of what would be perceived value. However, we are getting close to the holidays, and we have not seen the crypto currency space trade during these illiquid times previously, least not with the type of volume that we have seen during most of the year. Because of this, I remain cautious and recommend that we only pick up little bits and pieces, adding slowly as the next major search might be after New Year’s Day.

DASH/USD daily chart, December 19, 2017
DASH/USD daily chart, December 19, 2017

Monero

Monero markets rallied a bit during the trading session on Monday, breaking towards the $350 level. I think that we are ready to break out to the upside and a move above the $360 level should send this market towards $400 longer-term, with a short-term barrier at the $375 level. I think that the market continues to be very bullish in general, and if you squint just hard enough, you can see a decent uptrend line on the hourly chart. I have no interest in shorting Monero, I believe there is a “hard floor” at the $300 level underneath.

Buy & Sell Cryptocurrency Instantly

Monero/USD daily Chart, December 19, 2017
Monero/USD daily Chart, December 19, 2017

Bitcoin Price Forecast December 19, 2017, Technical Analysis

Bitcoin continues to be choppy but has settled down since the futures market has come to life. Because of this, I think that we are going to see Bitcoin come down and that the days of 20% gains are probably just about over. If we do get a 20% move during the day, it’s probably going to be a massive breakdown as we have been overbought for some time. However, during the short term, it’s likely that we will continue to grind sideways overall, and I think that the market is probably going to be a “buy on the dips” type of market, but for short-term trades only. If we break down below the $17,000 level, that could be a very negative sign, perhaps on the market back down to the $15,000 level.

Get Into Bitcoin Trading Today

BTC/USD Video 19.12.17

In general, I think that it’s going to be difficult to break above the $20,000 level, but once we do it could be a very positive sign. There is a certain amount of psychological resistance with these large, round, psychologically significant numbers, as we had previously seen near the $10,000 handle. We may get a violent pullback, but I suspect in the end it went to be in a buying opportunity, offering a certain amount of value in a market that has been so bullish.

Volatility is going to continue to be an issue on short-term charts, but it does look like the momentum continues to be slowing down on the longer-term charts. I think Bitcoin has entered a phase where it might be more of an investment than a trade, something that we haven’t seen for the last year. Remember, the markets were down $19,000 below where we are now just a year ago. This is a market that has overextended the rally, and therefore the “easy money” has already been made. I believe that the market is going to continue to be noisy, and therefore it’s probably best to enter slowly, especially if you do not have a core position already. In fact, if you don’t have a core position, you might be better off waiting for the inevitable drop that we get occasionally.

Buy & Sell Bitcoin Instantly

How to Short Bitcoin – A Complete Guide

Buy low.  Sell high.  Just not necessarily in that order.

A simple example will show why this is the case. An investor borrows a Bitcoin from a friend and sells it at a price of $15,000. After the price drops to $10,000 the investor buys a Bitcoin back and returns it to the friend. This is a classic short sale, and the investor in the example made $5,000.

The most the investor could have made is $15,000 which would happen if Bitcoin became worthless. Of course, the risk is that the price of Bitcoin goes up and the investor has to buy it at a higher price in order to return it to the friend. Given the increase in price, there seems to be no practical limit to the amount that the investor could lose in the transaction.

Shorting Bitcoin Via Exchange

The first problem with implementing this strategy is finding someone who is willing to lend you the Bitcoin. Many exchanges offer this service which falls under the category of a “margin account”. Because you are borrowing something, there is an interest charge on the loan in addition to other transaction fees.

The terms of borrowing – how much you can borrow and what rate you will be charged – varies by exchange. The terms and the qualifications for a margin account are changing very quickly as the market for Bitcoin and cryptocurrencies, in general, continues to develop. Kraken reports margin fees of .01% for every 4 hours the trade is open, a time frame that demonstrates how quickly active traders open and close margin positions.

Investors interested in establishing a margin account for short selling need to do some serious research to find the terms that best suit their intended trades.  Some websites offer an overview of the different trading platforms and are a great place to start. Keep in mind that many of the trading platforms are unregulated and so have a larger embedded risk.

Margin trading platforms are now available across a large number of Bitcoin brokers, including AvaTrade and Plus500 *(72% of retail CFD accounts lose money, Availability subject to regulation).

Shorting Bitcoin through Contract for Differences(CFD’s)

One of the key points to understand about shorting is that it isolates the change in the price. This is easy to understand on the “long” side – where the investor buys Bitcoin with the expectation that the price will increase but can be a bit confusing on the short sale. This isolation of the change in price is the key to understanding a Contract for Difference (CFD).

A CFD is a derivative. This is a frightening word for newcomers, but it simply means that the value of the instrument is determined by the value of something else. In this case, the value of the CFD is determined by the change in the price of Bitcoin. Investors buying a CFD do not actually own Bitcoin. They only own the change in the price of Bitcoin.

Just like the terms of shorting, the terms of a CFD vary by broker. Again, investors need to do some homework and find a broker that meets their needs. This includes the financial requirements for trading. Among these brokers, you can find Plus 500 *(72% of retail CFD accounts lose money), AvaTrade and FXTM. Investors who meet the definition of an accredited investor have access to investment products and strategies that are not available to the general public under US securities law.

Furthermore, there are various brokers that provide CFD’s which allow you to short other cryptocurrencies. See the list below:

Shorting Bitcoin via Futures Market (Cboe/CME)

One the easiest parts of a CFD to understand is that it measures the difference in the price of Bitcoin over a period of time. In this sense, a CFD “buys” the future price of Bitcoin. This can be done directly through the latest development in Bitcoin trading, futures contracts in Bitcoin.

Futures are easy to understand by beginning with their origins in the agricultural sector. A farmer who plants a corn crop cannot know what price it will bring when the crop is harvested. To eliminate this uncertainty he can buy a futures contract that will give him the right to sell his corn at a started price when it is harvested. The actual price at that time – the “spot” price – may be higher or lower, but his price is fixed by the futures contract.

Bitcoin futures contracts are available for as few as a single Bitcoin and have expiration dates ranging from one week to three months. One of the benefits of a future is that they can be traded before the contract expires. This means an investor can buy a futures contract and realize some of the value from that contract (presuming it has value) before the expiration date by selling the contract to another investor.


Suggested Articles


Bitcoin Short – Pros and Cons

Shorting Bitcoin, or any financial asset for that matter, can get fairly complicated. However, the most important point to remember is that the most basic risk remains the same for the futures buyer as the straight short-seller. The potential loss has no cap, but the potential gain is limited to the current market price.

Investors use the strategies to short Bitcoin for a more important reason than just an expectation that the price will drop. Keep in mind that every strategy to short Bitcoin can be used to profit from a price increase. The most basic reason investors use margin, derivatives and futures is that these strategies employ leverage in one way or another.

These strategies allow the investor to own the change in price with a smaller investment than the current price of Bitcoin. In the case of a short, the price is the total transaction fees and interest. Leverage is a powerful financial tool used by every homeowner with a mortgage. Leverage multiplies the return on an investment that performs as expected, but also multiples the loss when it does not pan out.

Conclusion

Investors who have managed to grasp the relationship between blockchain and cryptocurrencies and then built on that to learn how to trade Bitcoin on exchanges have still only scratched the surface of how to profit from their knowledge. Understanding technical analysis –reading the patterns in the ups and downs of the market – is also only a step on the path to becoming a fully-equipped Bitcoin investor.

Gaining an understanding of how to profit from any movement in the price of Bitcoin could be the most important task the serious, savvy investor can undertake. Working through the math of how leverage increases Return on Investment (ROI) is part of understanding why margins, derivatives, and futures are so powerful. Working through the math of these instruments when they move in a bad direction is just as important to understanding the risk of leverage.

These building blocks are not always easy to acquire, but they are always worthwhile to have, even if the investor chooses not to use them. Understanding and tracking the futures market, for example, gives the investor insight into what other, perhaps more sophisticated investors, think will happen in the future.  That knowledge can be power.

Understand Bitcoin Futures: A Step-by-Step Guide

What is Bitcoin Future?

Within a futures market, an investor is able to trade futures contracts, which involves the purchase of an asset class at a particular price with a settlement date set at some point in the future.

The underlying value of the futures contract for a particular instrument is then priced according to the actual asset itself, whether gold, crude, an index or individual stock.

Futures markets have been prevalent in the financial markets for many years, with the first modern era futures market reported to have been the Dojima Rice Exchange, launched in Japan in 1710. Some suggest that the London Metal Exchange that was founded in the 19th century traces back to the 16th century and that’s before considering 1750 BC’s Code of Hammurabi that allowed the sales of goods and assets to be delivered for an agreed price at a future date.

Futures contracts contain the details of the asset class in question together with the purchase size, final trading day, maturity date and exchange on which the contract is being bought or sold. Futures contracts are created based on demand and do not get automatically created in the marketplace, involving two parties, where one party is going long on an asset class, while the other goes short.

Upon expiry of a futures contract, the settlement is either physical, in the case of commodities, or via a cash settlement in the case of Bitcoin, though the futures contracts are likely to change hands on numerous occasions before expiry. It is important to note that the futures market is used by investors looking to hedge exposures to a particular instrument or by speculators, neither of whom are actually looking for physical delivery that is akin to the spot /cash markets.

As investors have become more knowledgeable about the markets and the influences on asset classes, the futures markets have become a guide for investors on the likely direction of commodities, stocks and indexes on a given day, with crude oil futures, gold futures and the the Dow Jones reflecting investor sentiment towards the respective instruments and the direction based on the flow of information that influences supply and demand dynamics.

For investors looking to hedge, there will already be some form of an exposure to the spot or physical and the futures markets allow the company or investor to protect the upside or downside with a futures contract. As an example, airlines are well known to protect themselves against significant rises in crude oil prices, by buying a futures contract today with a specified price and delivery date in the future, on the assumption that oil prices will be on the rise over the period in question. In this case, the airline is exposed to the cost fluctuations of crude oil as a physical but is looking to protect itself in the futures market. If crude rises in value by $20 per barrel over the year and the airline has a futures contract at $5 per barrel above the current price, the impact on earnings is significantly less than without the execution of the futures contract. In this example, the airline would be taking a long position, while the party obligated to deliver the crude oil will be taking a short position, as they are the seller, while the airline is the buyer. An airline is unlikely to take a short position in crude oil, as declining prices benefit the bottom line.

In contrast to investors or companies looking to hedge exposures, speculators will be looking to benefit from the price fluctuations of an asset class without actually having a physical exposure to the asset class in question. The incentive for a speculator is profit from the general direction of contracts decided upon by their outlook on supply and demand for the particular instrument.

In summary:

Hedgers can go either long or short. Short positions are taken to secure a price now in order to protect the hedger from declining prices in the future, while long positions protect against rising prices in the future.

Speculators go short on the expectation of prices falling in the future while going long on the assumption that prices will be on the rise.

With Bitcoin now having been in existence since 2009 and become a sizeable instrument by market cap comparable to some of the largest listed companies on the U.S equity markets, it comes as a little surprise that futures exchanges have moved ahead on offering investors with the option of Bitcoin futures contracts.

The Cboe futures exchange launched Bitcoin futures on 10th December 2017 and is considered to be the first step in the evolution of Bitcoin into a mature asset class, with the futures market providing investors with greater liquidity, transparency and an efficient price discovery system.

CME Group followed Cboe with the launch of Bitcoin futures on 18th December, with both exchanges providing hedgers with a platform to hedge existing exposure to Bitcoin, while both allow exposure to Bitcoin without actually owning Bitcoin, opening the door for the speculators.

For Bitcoin, miners will receive some relief from the launch of the futures market, with the sizeable investments into mining equipment, not to mention exponential gains, needing some protection against price declines, while the speculator may be looking for the rally to continue and reach the stratospheric heights predicted by some in the marketplace, or in some cases, for the bubble to burst.

Bitcoin Futures Specifications: Cboe and CME

While Cboe Bitcoin futures was the first to launch, the CME Group is considered to be the world’s largest futures exchange.

Both exchanges have opened the door for the larger institutional investors to get in on the Bitcoin game through a more regulated, transparent and liquid market.

Since Bitcoin is a virtual currency, settlements will be cash-based and in U.S Dollars and unlike the cryptomarkets, where trading is 24-7, the futures exchanges are not, with more regular trading hours and limited to 6-days per week.

There are some key differences between the two exchanges and what’s on offer for those looking to hedge exposure to Bitcoin or speculate on future prices and some of the key differences include:

  • CME Group’s Bitcoin futures contract price will be based on a large number of exchanges, from which the CME CF Bitcoin Reference Rate (BRR) is derived on a daily basis. In contrast, the Cboe futures prices are based on a closing auction price of Bitcoin on a single Bitcoin exchange known as the Gemini exchange.
  • With cryptocurrencies having experienced significant volatility, it comes as no surprise that both exchanges have quite high margin requirements. CME Group’s Bitcoin futures margin requirement is 35%, whilst Cboe’s is 40%. The size of a margin requirement is a reflection of asset class volatility. To put it into perspective, the margin for an S&P500 futures contract is just 5%.
  • Both exchanges involve cash settlement of futures contracts on expiration date
  • On the Cboe futures exchange, a contract unit is equivalent to 1 Bitcoin, while on the CME Group exchange, one contract is equivalent to 5 Bitcoins.
  • Contract expirations also differ. The CME Group will have futures contracts that expire in the nearest 2-months in the March quarterly cycle and the nearest 2-months outside of the quarterly cycle. In contrast, the Cboe group will list 3 near-term serial month contracts, before including 4 near-term expiration weekly contracts, 3 near-term serial months and 3-month March quarterly cycle contracts.
  • Clearing on the CME Group exchange is via CME ClearPort, while the Options Clearing Corporation is used for the Cboe exchange.
  • Limits are also in place on how far the respective exchanges allow prices to move before temporary and permanent halts are triggered. On the Cboe exchange, contracts are subject to a 2-minute halt should the best bid or offer price, in the first contract to expire, move by 10% from the prior day’s close. Upon resumption of trade, should the contract price move by 20% above or below, trade is halted for 5-minutes. On the CME Group exchange, contracts will be halted on price move limits of 7%, 13%, and 20%
  • On the CME exchange one other distinct difference in the halt rules is that in the event of the contract hitting the 7% or 13% limit, trading continues without a halt as long as the price remains within the price limit for a 2-minute period. In event that the price falls back from the limit, the halt limit is raised to the next, whether 13% or 20%. In event that the contract price hits the 20% limit, there is no halt in trading and trading will simply continue within the 20% limit through the remainder of the session.

How to Buy and Sell Bitcoin Futures?

Bitcoin futures based on Gemini’s auction prices are available for trading solely on Cboe’s Futures exchange. Brokers that offer the trading of XBT (Cboe Bitcoin futures) futures include Advantage Futures, Interactive Brokers, Straits Financial, and TradeStation.

For CME Group Bitcoin futures, trading is made available on CME Group’s own site, whilst CME Group also provides a list of brokers and block liquidity providers for those looking to execute block trades or are looking for an intermediary.

For those looking to enter the Bitcoin futures market, the first and fundamental question is whether the motivation is speculative or to protect current Bitcoin earnings from any downside.

Choice of exchange may be considered arbitrary, but it would be best to go with the exchange with the greatest number of futures contracts issued, as both will be considered liquid from an investor perspective.

As we addressed before, contract sizes differ on the respective exchanges as do margin requirements, so these are also considerations.

When looking to trade with margin, this is essentially the funding component of the trade executed on the futures exchange. As investors will not actually own Bitcoin itself, there is no need for the full value of the purchase to be paid in advance of the contract expiry date. In the event of an investor holding a contract until the expiration date, the amount paid, if out of the money, is limited to the difference between contract price and the actual price. The margin is placed on a margin funding account as collateral for the trade.

In addition to the collateral, also referred to as initial margin, investors are required to meet Mark-to-Market calls during the duration of the futures contract. The Mark-to-Market (“MTM”) margin is the difference between the cost of the position held and the current market value (“CMV”) of the position. In the event of a loss, the exchange will fund any margin shortfalls stemming from a MTM call from the investor’s margin funding account. The reverse is also possible, where the exchange funds the account where the investor has margins in excess of the required amount.

In the event that the margin funding account falls below acceptable levels, the investor will then be required to fund the account to meet future MTM requirements.

As we mentioned above, contract sizes between the 2 exchanges are different, with the minimum contract size on the CME Group exchange being 5 Bitcoins, compared with 1 Bitcoin on the Cboe exchange. For institutional investors this may be less of an issue, but for a retail investor, that’s a minimum margin of $33,250 based on a Bitcoin value of $19,000 on the CME Group exchange, compared with a margin of $7,600 on the Cboe exchange, assuming an investor is looking for the smallest size contract.

Final settlement on both exchanges is in U.S Dollars, with no actual Bitcoins held during the duration of the contract that requires settlement. With futures contracts being a 2-sided market, involving a buyer and a seller, counterparty risk on the final settlement is absorbed by the respective clearing houses and not the party in the money.

It’s worth noting that, while those looking to hedge Bitcoin’s value are likely to hold futures contracts through the expiration, speculators are likely to be buying and selling Bitcoin ahead of expiration, taking advantage of daily movements in response to market noise. For this reason, market liquidity is particularly important for those holding futures contracts as an inability to find a buyer can have quite dire consequences to the futures market and the price of Bitcoin itself.


Suggested Articles


How Can Bitcoin Futures Affect Bitcoin Trading?

Since the launch of the Cboe and CME Bitcoin futures, Bitcoin has received a double bounce in value, with the upside in Bitcoin coming off the back of Bitcoin futures valuations on each of the individual launch dates.

The gains have come off the back of Bitcoin futures seeing an uptick in value above Bitcoin’s actual value at the time of launch of each of the respective exchanges. With the general theory being that the smarter institutional money is going into the Bitcoin futures market, investors in Bitcoin will be looking towards the futures market as a guide to the future direction of Bitcoin, based on information available in the marketplace.

Added to the influence of both the Cboe and CME group Bitcoin futures is the fact that both provide investors with the option to go long or short. Increased appetite for lower prices would see the value of Bitcoin futures contracts decline, which would likely lead to price declines in Bitcoin itself. When we look at the Dow mini or the S&P500 futures, daily movements have a material impact on the direction of the main indexes each day, barring the arrival of new information to which investors respond during normal trading hours.

For now, the number of contracts is considered relatively small and investors may take less direction from the respective exchanges, but we will expect the number of contracts to grow over time and provide some idea on which direction Bitcoin will take on a given day.

We would expect the CME Group contracts to have a greater impact on the price of Bitcoin since the futures price will be based on Bitcoin’s price from a number of Bitcoin exchanges, not to mention the CME Group’s status in the futures market.

For those looking for the latest futures contract prices on the respective exchanges: CME GroupCboe

For those who are interested in Bitcoin and other cryptocurrencies trading, below is a list of our recommended brokers.

Bitcoin Futures Bearish on CME’s Debut

Bitcoin broke into unchartered territory on Sunday, ahead of the launch of the CME Group’s Bitcoin futures market, with investors looking to position ahead of a likely upbeat value on the first contracts rolling out.

While the CME Group’s January contract opened well above Bitcoin’s valuation at the time, with a January expiry opening price of $20,650, things turned bearish soon after, with the January contract falling to an intraday low $18,345 before recovering to $19,215 at the time of writing.

It certainly wasn’t the fanfare that the markets had anticipated, leaving Bitcoin range bound through the early part of the day, down 0.89% to 18,784.98 at the time of writing.

Get Into Cryptocurrency Trading Today

It wasn’t all bad, with Bitcoin’s CBE Group February contract sitting at $20,000, having recovered from an intraday low $19,600, with the March contract leading the way, sitting at $20,030 at the time of writing.

Unsurprisingly, trading volumes are significantly heavier on the January contract, with volumes for February, March and June particularly light.

Focus will be on the direction of the January contract and with the price decline from today’s open, pressure will likely remain on Bitcoin through the day as the markets look to gauge the degree of influence the Bitcoin futures markets will have on Bitcoin’s value.

Interestingly the January contracts have already diverged between the two exchanges, with the Cboe’s January contract valued at $19,030 at the time of writing.

Volumes on the Cboe exchange are currently on the higher side, with the CME Group’s Bitcoin futures having just launched, but we will expect trading volumes on the CME platform to catch up relatively quickly.

The good news for the CME Group is that there is greater activity with the CME launch, though volumes are generally on the lighter side with institutional investors testing the waters early on.

Time will tell whether the banks’ claims that it is too early for a Bitcoin futures market was a correct call, but one thing is for certain, volumes will need to pick up across the various contracts on both exchanges for the futures market to provide any guidance to Bitcoin investors going forward.

With Bitcoin on the back foot, pressured by the fall in its January futures contract price, Litecoin has also been under pressure, with Litecoin down 2.99% at $315.02 at the time of writing. Bitcoin’s going to need to face some more bad press for Litecoin to break new records, following last week’s rally.

While we won’t expect the CME Group and Cboe futures markets to have an impact on the likes of Ripple, Litecoin could well find itself under the influence, particularly in the early days. It’s not clear yet whether today’s bearish sentiment towards Bitcoin value on the futures market is purely a view on Bitcoin or on the cryptocurrency market as a whole.

For now January futures contracts are sitting above Bitcoin’s current value, which will provide some support to Bitcoin, though how the week unfolds will be pivotal in bringing Bitcoin more into the mainstream as an asset class.

Buy & Sell Cryptocurrency Instantly

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 18/12/17

Bitcoin Cash holding steady

Bitcoin Cash has joined the rest of the cryptocurrency majors in the red at the time of writing, down 0.97% to $1,811.5, though its faring relatively well compared with the competition, with Litecoin seeing a more significant decline in the early part of the day.

Bitcoin rallied to a weekend high of $19,666 following the launch of the CME Group Bitcoin futures that saw Bitcoin January 2018 contracts hit $20,000 levels in the first day of trading.

The good news for Bitcoin Cash is that we have seen the currency remain relatively resilient to downward pressures, with current levels not too far off last week’s $2,100 spike.

For Bitcoin Cash to hold on to current levels however, a move through to $1,900 levels will be needed in the early part of the week, though as we have seen with Bitcoin and the other cryptocurrencies, the markets have another dimension to consider with the launch of the Bitcoin futures markets.

BCHUSD181217

Get Into Bitcoin Cash Trading Today

Litecoin looking for a bounce

While Bitcoin managed to get to within touching distance of $20,000 on Sunday, Litecoin continued to sit well below last week’s highs, with the markets having taken preference for Bitcoin ahead of this week’s CME Group Bitcoin futures launch.

As was the case following the Cboe launch the previous week, expectations were for Bitcoin to get a boost and this was certainly the case, supported by the CME futures contracts for January expiry hitting $20,000. It’s always going to be tough for Litecoin to compete against Bitcoin in such instances, with Bitcoin’s gains coming at the expense of Litecoin’s overnight.

For the day ahead, Litecoin will need to break back to $330 levels hit through the early part of the weekend to have a run back up to higher $300 levels, with any sideways moves likely to see Litecoin test sub-$300 support levels. It’s looking ready to make a move, though much will depend upon the CME Bitcoin futures markets and where Bitcoin is priced.

LTCUSD 181217

Buy & Sell Cryptocurrency Instantly

Ripple goes sideways

Following last week’s fanfare over Ripple placing 55bn XRPs into escrow, there was little else for investors to consider through the weekend, with focus being placed squarely on the launch of the CME Group Bitcoin futures market.

The decline since last week’s $0.8839 has been quite telling. At the time of writing, Ripple was up 1.67% at $0.7209, having recovered from an intraday low $0.66529 hit earlier this morning.

While Litecoin may be feeling pressure from Bitcoin, Ripple’s likely to be considered a safer play as the markets look to see what impact the launch of the futures markets have on the big-4 cryptocurrencies this week.

Having found strong support at sub-$0.70 levels, Ripple will need to make a move through to $0.75 levels to have another run at $0.80 levels, though there’s likely to be plenty of resistance following the sideways moves through the weekend.

XRPUSD 181217

Buy & Sell Cryptocurrency Instantly

Bitcoin Gold DASH and Monero forecast for the week of December 18, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold rallied during the trading this past week, reaching as high as the $350 level. Ultimately, that area offered enough resistance to turn things around, and we have fallen below the $300 level as I record this on Friday. I think that given enough time, we will eventually break out above the $350 level, but it won’t be easy to do. I suspect that buying and holding is probably the best way to deal with this market, or buying on the dips on short-term charts if you have the ability. Overall, expect a lot of noise but I do anticipate that we will revisit the $400 handle.

Get Into Dash Trading Today

DASH/USD

DASH continue to show bullish pressure during the week, reaching over the $1000 level at one point. We have pulled back significantly from that area though, and as I record this we are below $900. I think that the $800 level will offer support though, so this pullback should be a buying opportunity. He will probably have to find supportive candles on daily charts or lower time frames in order to continue to buy this market in bits and pieces, but I think eventually we will build up enough momentum to try to break above the $1000 handle, which of course has a massive amount of psychological importance attached to it.

DASH/USD weekly chart, December 18, 2017
DASH/USD weekly chart, December 18, 2017

XMR/USD

Monero broke above the $300 level on Friday, and it looks likely to continue to go higher. We are bit overextended at this point, and the stochastic oscillator is crossing over in the overbought area. Because of this, I am waiting to see if we get a significant pullback that I can take advantage of, as it would offer value in what is a very promising crypto currency. Pay attention to the US dollar, especially the US Dollar Index, as it gives you an idea as to how crypto currencies in general should do against the greenback, as if the US dollar falls, typically crypto currencies will go higher. I believe in buying Monero, but I also believe in finding decent pricing, something that we may be a little bit above right now.

Buy & Sell Cryptocurrency Instantly

Monero/USD weekly Chart, December 18, 2017
Monero/USD weekly Chart, December 18, 2017

Is Monetary Policy Supporting Bitcoin?

Thursday’s euphoria in the cryptomarkets shifted to profit taking on Friday, with Bitcoin Cash, Litecoin and Ripple all seeing red, while Bitcoin temporarily broke free of $16,000 levels before falling back to 16,720 at the time of writing, a 1.92% gain for the day.

The cryptomarkets look to be in a temporary rut with Bitcoin Cash leading the declines, down 11.63% to $1,711.4. Ripple managed to recover from heavier losses earlier in the day, to bounce back to $0.7936 at the time of writing, suggesting that, while this week’s success took its toll, further upside is on the horizon.

Get Into Cryptocurrency Trading Today

While the week has been a relatively uneventful one for Bitcoin, the general sentiment towards Bitcoin and its peers is a positive one, with few suggesting that there will be any kind of a correction next year.

While the entire ethos of Bitcoin and cryptocurrencies is independence from central banks and governments, the most recent monetary policy decision by the FED, the ECB and the BoE continue to support low funding costs through next year.

The FED may not have a direct influence on Bitcoin and its peers, but one does wonder whether the low interest environment is a key contributor to the ever increasing market caps and price gains seen through the year.

We are some way off seeing interest rates in key geographies reach levels that could slowdown capital flows into the cryptocurrencies, but it would certainly be interesting to see how the cryptomarkets would fare in a pre-global financial crisis interest rate environment.

Looking at the more mature asset classes and the returns on offer, one would hazard a guess that Bitcoin and the rest would be more resilient to a rising interest rate environment than the more mature markets. The returns on offer have been far more significant and, assuming that the bubble doesn’t burst anytime soon, will likely to continue to offer impressive returns through next year.

Taking a look at the Dow Jones Industrial Average’s year-to-date return of 24.02%, Bitcoin investors would have been somewhat disappointed with such a woeful return over the same period. The fact that the Dow is knocking on the door of 25,000 and has made just 24% must have an impact on investor sentiment towards the asset classes and see an increase in appetite for the likes of Bitcoin. The hype around the equity markets has been tremendous, but the returns pale into insignificance when compared with the cryptocurrencies.

Even if prospective investors are of the view that Bitcoin is a little toppy, the vast number of cryptocurrencies on offer and the upcoming initial coin offerings provide ample investment opportunity and even the most sceptical investor will have to eventual pay some attention to the cryptomarkets.

For now, institutional money continues to be biased towards the more established equity markets, but with ETFs and fund managers looking to get on the Bitcoin bandwagon, one does wonder how long it will take before the more traditional long-only funds begin to explore Bitcoin and other cryptocurrencies as an asset class to invest in. Fund mandates would need to be amended to permit such exposures, but if the mainstream wants to keep up with the cryptomarket phenomenon, asset managers will need to provide investors with an alternative to direct investment.

The launch of Bitcoin futures is likely to be the first in a series of steps to broaden the ways in which investors can gain exposure to the likes of Bitcoin. Once the ETFs and Bitcoin funds are up and running, it’s unlikely to be too long before the the more well known managers of this world follow suit, in spite of calling Bitcoin a bubble today.

Buy & Sell Cryptocurrency Instantly

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 15/12/17

Bitcoin Cash in Big Brother’s Shadow

Things were looking upbeat for Bitcoin Cash mid-week as it broke free of its recent ranges, but as has been the case since its creation, direction is ultimately hinged on appetite for Bitcoin. Bitcoin’s sideways moves through the first half of the week was a positive for Bitcoin Cash, but it’s an altogether different story this morning.

At the time of writing, Bitcoin is up 5.26% at $17,267.88, while Bitcoin Cash is down a whopping 13.01% to $1,684.8. The gains in Bitcoin were supported by a jump in hashrates from 13.1639E to 14.8789E, while Bitcoin Cash hashrates remained steady, with miners jumping back into Bitcoin in anticipation of another rally.

For the day ahead, direction for Bitcoin Cash will be hinged on appetite for Bitcoin. Bitcoin will need to break through to $17,500 to make a run at $18,000 to keep Bitcoin Cash at bay. Bitcoin Cash has found strong support in its new ranges, but will need to make a move back to $1,800 levels if it’s going to avoid another move back towards sub-$1,500 levels in the near-term.

BCHUSD151217

Get Into Bitcoin Cash Trading Today

Litecoin takes a breather

It was a run to remember, but with Bitcoin having broken out of its $16,000 ranges, pressure on the altcoins has returned and Litecoin has paid the price.

Having hit a $420 high mid-week, it’s been downhill ever since, with the markets looking ahead to Monday’s CME Bitcoin futures launch that could see another boost for Bitcoin should the futures market point to a plus-$18,000 value for Bitcoin.

With Litecoin’s relationship with Bitcoin, the jump in demand for the front runner has seen a broad based decline in Bitcoin’s peers, though Litecoin has done better than most this morning, down just 2.4% to $276.98.

Litecoin will need to hold on to $270 levels to avoid a drop back to sub-$260, with some profit taking likely to be pressuring Litecoin following a strong week of gains. We’re unlikely to see a fall back to sub-$200 levels over the near-term however.

LTCUSD 151217

Buy & Sell Cryptocurrency Instantly

Ripple stumbles

Ripple became a victim of its own success this morning. Gains through to the middle of the week saw Ripple hit $0.88 levels, much of which came off the back of a 93% rally on Thursday. Gains were seen across the cryptocurrencies through the middle of the week as Bitcoin treaded water.

Unsurprisingly, Bitcoin’s upside through the early part of the day has weighed on the cryptocurrencies, with investors moving back out in search of a new Bitcoin rally. Ripple investors have benefitted from close 288% gains to this week’s peak and some profit taking would certainly have been justified.

At the time of writing, Ripple was down 12.24% to $0.72802. We would expect strong support at sub-$0.70 levels and we should see some price recovery from intraday lows, with any moves beyond $0.75 likely to support another run at $0.80 levels going into the weekend.

The Ripple team certainly influenced with the moving of XRPs into escrow.

XRPUSD 151217

Buy & Sell Cryptocurrency Instantly

How to Buy Bitcoin in Australia?

What is Bitcoin?

Bitcoin is a virtual currency that lives on the internet highways and does not have the physical characteristics of fiat money.

It was the brainchild of Satoshi Nakamoto, with Bitcoin being released in 2009 in the wake of the global financial crisis.

Satoshi’s intent was to eliminate the control of governments and central banks on currencies and payment systems, by creating a decentralized digital currency.

The independence of Bitcoin through its decentralization is evidenced by the need for each and every transaction within the Bitcoin world to be logged and then independently verified. The verification of transactions is a process called mining. Miners will use computer software and hardware to solve puzzles, which is essentially the verifying and placing in order of transactions, and once complete add the information through a new block onto Bitcoin’s blockchain.

The blockchain is the much talked about decentralized public ledger that sits on all of the computers linked to the Bitcoin network and each computer has a synchronized ledger, with no master ledger in existence.

The miners receive Bitcoins as a reward for the verification process and it’s quite a lucrative though somewhat monopolized business.

In addition to the decentralized nature of Bitcoin, anonymity for buyers, sellers, and holders of Bitcoin has also made it attractive, with investors clear of government agency access to public information held on centralized banking and investment platforms.

How to Buy Bitcoin in Australia?

There are a number of ways acquiring Bitcoin, the most common method to purchase Bitcoin being via a Bitcoin exchange. Purchasing Bitcoin via exchange might be difficult for some and restrict trading strategies. For that reason, one can choose brokers like FXTM as an alternative to exchanges as brokers provide a contract for differences (CFD’s) as a way to buy and sell bitcoin. Yet, if you wish to invest in Bitcoin and hold the currency as in an exchange, here is a list of Recommended Australian Bitcoin exchanges:

One of the top leading and reliable Bitcoin exchanges is CEX.IO. The exchange has a low trading fee of just 0.2% and allows customers to buy Bitcoins with credit cards, bank transfers, SEPA transfers, cash or AstroPay. Credit card purchases are immediate. Below is a complete guide to buying Bitcoin via CEX.IO in 4 easy steps.

Step 1 – Open a Digital Wallet

A digital wallet is where you hold your cryptocurrencies and interacts others via the blockchain technology. There are many providers of digital wallets, however, it is important to make a deep research before you decide which one is the best for you. Currently, the most popular digital wallets provider is Blockchain.info.

Step 2 – Register & Open an Account

Once you enter CEX.IO website, register and open an account that can provide you with their service.

CEX.IO Login
CEX.IO Login

Step 3 – Receive the 2FA Code

This is the authentication code as well as your password when you access CEX.IO.  The code will be generated by an application and will be delivered to you by SMS.

CEX.IO F2A Code
CEX.IO F2A Code

Step 4 – Purchase Bitcoin

Now you can easily purchase Bitcoin and other cryptocurrencies. Note that you can always buy fractions of Bitcoin and CEX.IO allows you to choose fixed amounts with your own currency.

CEX.IO - Buy Bitcoin
CEX.IO – Buy Bitcoin

Choose the payment option that is most convenient for you.

CEX.IO Payment
CEX.IO Payment

In order to complete the purchase, the broker will ask you to verify your identity with documents and various details.

CEX.IO Verification
CEX.IO Verification

Apart from CEX.IO, there are other Bitcoin exchanges that provide their services in the US:

Coinbase – Supports 32 countries with more than 10m customers served and allows the purchase of Bitcoin for Australian Bitcoin buyers using credit and debit cards. The fees are 3.99% per purchase and the Bitcoins are delivered almost immediately. For purchases of more than A$130 via one of its links, Coinbase rewards buyers with A$13 worth of free Bitcoins. The only issue with using Coinbase is the length of time it takes to purchase Bitcoin with bank transfers.

Coinmama: For purchases of under $150, there is no requirement to verify identity, though there is a transaction fee of around 6% for customers buying Bitcoins with credit or debit cards, which is very high.

GDAX: Considered to be one of the larger U.S Bitcoin exchanges and customers can transfer funds via bank transfer, SEPA or bank wire. The exchange is also considered competitive from a fee perspective.

CoinCorner – Allows the use of 3D secure enabled credit to immediately purchase Bitcoins, debit cards to deposit funds into an account for the purchase of Bitcoins or currency deposits made by SEPA bank transfers.

There are others and it does require some amount of research to find the best exchange that addresses buy and seller requirements on fees, security, etc.

If the sound of a Bitcoin exchange is off-putting, the alternative is to buy and sell Bitcoins via a Bitcoin ATMs, though most will only accept cash for a purchase, or face-to-face.

Where can I Use Bitcoin in Australia?

The use of Bitcoin is relatively limited in Australia when considering the size of the country. Vast areas of the country are remote and made up of farmland, which will not be Bitcoin-friendly.

Merchants accepting Bitcoin range from bars and restaurants, hotels, with Subway Australia the largest merchant accepting Bitcoin, with 1,400 stores in Australia. Retailers that are currently accepting Bitcoin are located in the country’s biggest cities including Adelaide, Perth, Melbourne, Sydney, and Brisbane. Melbourne and Sydney have been leading the Bitcoin evolution across the retail space.

How to Trade Bitcoin in Australia in 4 Easy Steps

As is the case in other asset classes, the digital characteristic of Bitcoin means that access to Bitcoin is global and can reach anyone with access to a computer and the internet.

Compared with the more advanced markets of the U.S, Asia, and Europe, Australia’s Bitcoin evolution has been slower but certainly not missing, with Bitcoin exchanges and Australian brokers provide investors and traders with the necessary platforms to buy, sell and trade Bitcoin.

For the Bitcoin trader, these are likely to be less sticking points than the fees, security, and liquidity of the exchange. Bitcoin traders can ill afford to wait days for proceeds from sales to reach their accounts or for it to take days for Bitcoins to be released into the trader’s Bitcoin wallet.

For traders looking to take advantage of an increased Bitcoin product offering, with Bitcoin CFDs and leverage on offer, FXTM provides cryptocurrency trading. Below is a complete guide to buying Bitcoin via FXTM in 3 steps:

Step 1 – Register and Open an Account

To open an account with FXTM is a simple process. Click here to proceed.

FXTM 1

Step 2 – Download FXTM Trading Platform

Following your registration and funding the account, you can download FXTM’s trading platform (MT4) in order to start to buy and sell Bitcoin as well as other cryptocurrencies.

FXTM 2 Trading Platform

Step 3 – Fund Your Account

The next step is to fund your account. Following your registration, you will be able to insert the funds into your account. FXTM accepts various payment methods such credit card, wire transfer, Skrill, Bitcoin, Qiwi, etc..

fxtm deposit

fxtm deposit 2

Step 4 – Buy and Sell Bitcoin

Now you are ready to go. Choose Bitcoin as your preferred instrument and click on the trade button. You can choose the size of the position and the amount you wish to invest.


Suggested Articles


Bitcoin ATMs in Australia

Bitcoin ATMs provide buyers and, on occasion, sellers of Bitcoin to buy and sell Bitcoin away from the Bitcoin exchanges. The ATMs are linked to the Bitcoin network via the internet and are not linked to the banking networks, as is the case with the more traditional ATM.

Fees for transactions tend to be on the higher side, whilst the limits on buying and selling Bitcoins are on the lower side. The process is particularly generic and with no need for verification of identity, provides anonymity to those looking to buy and sell Bitcoins.

There are a total of 23 Bitcoin ATMs in Australia. 7 are in Melbourne, 6 in Sydney, 5 in Perth and 4 in Brisbane.

In Australia, the buying fees are perhaps slightly more competitive than the global average, while the fees for the sale of Bitcoins, though few in number, are particularly competitive and as low as 1.5% of the value of Bitcoins being sold.

The average buy fee is 8.54% (based on 1,126 ATMs that support the purchase of Bitcoins), while the average sell fee is 7.03% (Based on 410 ATMs that support the sale of Bitcoins)

To find the nearest Bitcoin ATM, Coin ATM Radar is a good website to search for the nearest Bitcoin ATM. For many, the distances will certainly too great to travel in order to buy or sell Bitcoin, which would leave buying and selling via an exchange or on sites such as LocalBitcoin.

Conclusion

It’s perhaps unsurprising that the use of Bitcoin is less widespread in Australia, with the number of merchants accepting Bitcoin for purchases on the lower side. The country has vast expanses of farmland and desert, with the majority of the wealth concentrated in the largest and wealthiest cities located on the coasts.

When also considering the wealth demographics, Australia is likely to remain a smaller Bitcoin market when compared with the U.S, Europe, and Asia, though when only considering the big cities, we will expect the use of Bitcoin to widen, whilst not completely replacing the Aussie Dollar.

Will Bitcoin Collapse or Grow to Reach 100K?

The activation of Segwit and the Lightning Network wasn’t sufficient to cope with the CBOE’s launch of Bitcoin futures, leading to approximately 200K incomplete transactions on the Bitcoin network.

In addition, Bitcoin payment fees have increased approximately 100 times, from 20 cents to $20, and companies have started to react to this change. Steam, the digital distribution platform, has announced that it will no longer accept payments in Bitcoin.

The high speculative demand for Bitcoin could lead to a technical collapse and, as a consequence, investors could start to dump the asset, provoking a large-scale and lengthy correction. If this is the case, the price of Bitcoin may fall to as low as $3,300 in 2018, a price it last reached on 15 September, when the speculative demand surrounding Bitcoin began.


Suggested Articles


Altcoins could see significant growth throughout 2018, with DASH in high demand due to its decentralized governance system and Monero due to the anonymity it provides as well as IOTA due to its innovative technology. Waves may also be in demand as, like Ethereum, it allows users to create new tokens on the platform, but with the added benefit of being able to pay transaction fees in the native Waves token.

In fact, Bitcoin may become the ‘Yahoo’ of the cryptocurrency market, once an industry-leader, only to be surpassed by innovative competitors, the ‘Googles’ of the cryptocurrency world. Countless BTC forks could disappear, while the market balance could change drastically, as speculative mania is replaced by demand for the technology itself.

However, if the Bitcoin network’s technical problems can be solved, this may inspire investors and reinforce a rally, which could see Bitcoin soar to reach the popular forecast of 100K per coin.

This article is written by FxPro

Ripple, Ether and Bitcoin Cash Leave Bitcoin Behind

Ripple continued to make a splash this morning, gaining another 23% at the time of writing to hit $0.565 levels.

For those looking for a Bitcoin move, Bitcoin saw early losses reverse to move up 2.55% to $16,664.8 at the time of writing, though with the markets accustomed to double digit gains on an intraday basis, things are going to need to start moving for Bitcoin, if it’s to avoid yet another day in the shadow of its peers, with even Bitcoin Cash hitting an intraday $2,100 high before easing back to sub-$1900 levels.

Amongst the major cryptocurrencies that have made a move this week, Ethereum has also bounced, jumping to $700 levels, though the gains this morning are less impressive, up just 2.82% at the of writing.

All the news at the moment is surrounding the launch of the futures markets and the potential upsides for some of the altcoins including Litecoin. We have also been seeing a lot of news on a possible shift in the regulatory landscape for cryptocurrencies and Bitcoin in particular.

Get Into Cryptocurrency Trading Today

The launch of the futures market and anticipated jump in institutional investor money will certainly have added pressure on regulators to explore ways in which the cryptomarket should be monitored going forward. The reality is however that, unless a regulator from the top 3-cryptomarkets begin to raise the prospects of regulatory oversight, the likely impact of regulatory oversight in smaller markets is likely to be limited at best. After all, in the digital world investors not only enjoy anonymity, but are also able to trade cryptocurrencies offshore.

Just this morning, news hit the wires that the South Korean government was planning to introduce regulations on Bitcoin and altcoins, with the regulations expected to be introduced before the end of the year.

Perhaps one of the most interesting proposals was to restrict trading on South Korean exchanges by foreigners looking to circumvent domestic trading restrictions. The most alarming will have been a proposed temporary suspension of investing in cryptocurrencies by both institutional and retail investors.

The good news for the cryptoworld is that the South Korean government is particularly mindful of the possible adverse impact that regulatory oversight can have on the markets and potential losses for both retail and institutional investors.

For this reason, the South Koreans have looked to focus on finding ways to protect cryptocurrency investors as opposed to shut down the South Korean market that is by no means small.

The very fact that the major cryptocurrencies were in positive territory at the time of writing, in spite of the news from South Korea suggests that some degree of protection for investors is a welcome move. When considering the exponential gains this year and the market caps of the respective cryptocurrencies, to have zero protection could ultimately leave the markets in disarray and cleaning up the mess from a burst bubble.

Perhaps if governments had taken a more pragmatic approach during the Dot.Com era, things would have turned out differently. There was certainly a lack of protection back then.

Buy & Sell Cryptocurrency Instantly

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 14/12/17

Bitcoin finally breaks out

It’s been a long time coming, but perhaps worth the wait, with Bitcoin Cash surging 23.14% to $1,947 in the early part of the day in what is likely to be a move to $2,000 levels.

Bitcoin Cash had plenty of support through the first half of the week, managing to avoid a slide back to $1,200 levels and below. The lack of moves by Bitcoin certainly helped the cause for this morning’s rally, with the Bitcoin futures market failing to deliver a much talked about spike in Bitcoin value.

It will be too early to celebrate when considering the speed with which a Bitcoin rally can ensue, but as things stand Bitcoin Cash could be looking at a solid end to the year and closing the year at $2,000 levels would certainly be a positive one, affirming the view that Bitcoin and Bitcoin Cash can in fact co-exist, for now.

BCHUSD141217

Get Into Bitcoin Cash Trading Today

Litecoin holds on

Following an impressive run to $400 levels before easing back, Litecoin has failed to make another run towards this week’s all-time high, with Litecoin trading within tight ranges through much of Wednesday and the early part of today.

The Bitcoin inadequacy driven rally looks to have run out of steam, with Bitcoin also having treaded water. For Litecoin to make a move, Bitcoin is going to need to break out of its current ranges, with Big brother having failed to break into unchartered territory for perhaps the longest spell since mid-November.

Litecoin and Bitcoin are expected to have a greater degree of correlation and, while Litecoin is unlikely to provide Bitcoin with direction, Bitcoin is capable of providing the necessary impetus for Litecoin.

We have seen strong support for Litecoin at current levels, but for Litecoin to be able to hold on to $300s, a move through to $350 is going to be needed in the near-term, or we could see Litecoin fall back to $290s.

At the time of the report, Litecoin is up just 0.09% at $313.17, with Bitcoin Cash and Ripple the big stories of the day.

LTCUSD 141217

Buy & Sell Cryptocurrency Instantly

Ripple makes another splash

For those investors who managed to grin and bear the lack of momentum in Ripple leading into this week, the rewards have been exceptional.

We had seen prices wedged between $0.20 and $0.25 levels for quite some time, whilst the other cryptocurrencies grabbed the headlines. The shift this week has been an impressive on, with Ripple moving from a Sunday night $0.2323 to a record high $0.6254 this morning.

At the time of writing, Ripple is up 20.31% to $0.5521 for the day, with the gains for the current week sitting at 138%.

With Bitcoin having been stuck in a rut through the week, the altcoins have certainly enjoyed the week, with Bitcoin Cash and Litecoin also making strong gains, as the markets look towards the alternatives for buying opportunities.

Ripple’s technology has had plenty of press, but as we have seen with the other cryptocurrencies, a catalyst is needed to drive prices northwards and this week’s announcement of Ripple’s XRPs being placed into escrow seems to have done the trick.

XRPUSD 141217

Buy & Sell Cryptocurrency Instantly

The Bitcoin Week: Bitcoin Mania Continues as Prices Remain Near All Time High

Demand from retail investors topped expectations and saw the futures exchange halt trading twice in an effort to control volatility. CBOE’s website also crashed under the volume of traffic. Commentators were quick to point out that the crash corresponded with a spike in the Bitcoin price (the currency jumped from $14,500 to $15,736 in a matter of minutes), confirming that futures demand will likely drive Bitcoin price, and vice versa.

Sunday’s contract launch is a key step in the cryptocurrency’s journey towards mainstream, legitimate trading instrument. Bitcoin’s lack of intrinsic value – it is not tied to a physical asset or backed by a Central Bank – and massive speculative bubble remains a concern for many. A number of high profile commentators are on record discussing the cryptocurrency in less than favorable terms. However, for the moment at least, the currency continues to demonstrate an impressive resilience to such negativity and has so far weathered pessimistic statements from the likes of JP Morgan’s Jamie Dimon and, just yesterday, UBS’s Paul Donovan.

That said, concerns over its legitimacy have done little to deter the Bulls, as evident from the current price action. With prices breaking above $17,000 on Tuesday and Bulls showing no signs of tiring, we may even see Bitcoin conclude 2017 on $20,000. Bitcoin is trading at $16559, up +0.94 as of 10:00 GMT.

Dollar higher ahead of FOMC

The greenback flexed against a basket of major currencies during yesterday’s trading session, as optimism in US tax reforms continues to pick up the pace. While, on the face of it, Bulls are firmly in control, sluggish US inflation could yet present a headwind for the current upside.

With the recent wage growth figures in November printing below market estimates, the Dollar remains vulnerable to losses as for today’s FOMC statement dawns. Investors’ attention will be focused on Yellen’s last address, which is widely expected to conclude with the Federal Reserve raising US rates by 25 basis points.

Optimism from policymakers over the US economy is likely to support the greenback. Alternatively, if the tone of the meeting centers on concerns over low inflation, or fails to shine a light on Fed plans for rate hikes in 2018, the Dollar may find itself subject to selling pressure.

From a technical standpoint, the Dollar Index looks somewhat bullish on the daily charts, with prices breaking above 94.00 during Tuesday’s trading session. A decisive daily close above 94.00 could encourage a further incline towards the 94.50 mark. Alternatively, weakness below 93.70 may open a path towards 93.50.

Commodity spotlight – Gold

It’s shaping up to be another painful week for the yellow metal, which tumbled to $1240 on Monday and Tuesday – its lowest level in nearly five months. Gold continues to trade near the five-month low on Wednesday morning.

US tax reform optimism is the likely instigator of this fall, although a strengthening Dollar likely added to the downside. Yellen’s press conference today may pave the way for yet more punishment and, if FOMC hawks take to the stage, $1230 could become the next level of interest.

Taking a look at the technical picture, Gold is heavily bearish on the daily charts. There have been consistently lower lows and lower highs, while the MACD is trading to the downside. Previous support around $1250 may transform into a dynamic resistance that encourages a further decline towards $1230.

Gold Daily Chart
Gold Daily Chart

This article is written by Lukman Otunuga, a senior analyst at FXTM

Bitcoin Cash, Litecoin and Ripple Daily Analysis – 13/12/17

Bitcoin Cash Pulls Back

Bitcoin Cash has been on the back foot through the early part of the day, with a 4.79% decline to $1,523.3 at the time of writing.

A failure to break through $1,700 levels overnight has led to today’s declines, though we are seeing strong support at current levels that could fend off another slide to sub-$1,300 levels and provide the impetus for another run at $1,700 levels that could spur a move towards $2,000.

Bitcoin Cash has moved tentatively in recent days, which is in stark contrast to some of its peers, with a cryptocurrency frenzy seeing the likes of Ripple and Litecoin make sizeable gains through the first half of the week.

Bitcoin may be spoiling the party for now, with today’s decline considered minor in the grand scheme of things.

BCHUSD131217

Get Into Bitcoin Cash Trading Today

Litecoin Rally on Pause

Litecoin made the headlines yet again, with Bitcoin’s rival hitting an all-time high $420 on Tuesday before easing back to the low $300s in the early part of today.

Sentiment towards the advantages of Litecoin over Bitcoin continue to fuel demand for Litecoin, with transaction times significantly faster than those on Bitcoin’s blockchain, whilst also being able to deal with a significantly higher number of transactions. The combination of the two has been in the news of late as Bitcoin exchanges reported a sizeable number of pending transactions.

This week’s rallies in Litecoin and other cryptocurrencies has raised concerns over a bubble ready to burst, but for Litecoin, this week’s gains are more from the advantages on offer than a final hoorah before a fall into the abyss.

At the time of writing, Litecoin was down 5.59% to $332.39. While we won’t expect a fall back to sub-$200 levels any time soon, support could kick in at $320 levels and any fall below that could see Litecoin test sub-$300 support levels later in the day.

Following the latest spike, Litecoin will likely face stern resistance, with some consolidation to be expected following the recent surge in value, though Litecoin could find itself on a rebound should Bitcoin manage to make a move.

LTCUSD 131217

Buy & Sell Cryptocurrency Instantly

Ripple makes its move

Ripple finally managed to break free from its ranges on Tuesday, with a breakout beyond $0.27 giving it a much needed boost through the resistance levels on the day.

Following the solid gains on Tuesday, unlike its peers, there’s been further upside through the early part of today, with Ripple up 8.02% to $0.4244, whilst off from an intraday high $0.4636.

What a difference a day makes and the latest surge is all down to Ripple placing the lion’s share of its XRPs into escrow.

The news has certainly provided much needed interest, with Ripple having lagged behind its peers ahead of Tuesday’s rally.

For the day ahead, we will expect Ripple to test sub-$0.42 support levels, with any moves back towards its record high $0.48104 supporting a move towards $0.50, though with the rest of the majors in the red, today may not be the day for the move.

XRPUSD 131217

Buy & Sell Cryptocurrency Instantly

Bitcoin Gold DASH and Monero Analysis December 13

Bitcoin Gold

Bitcoin Gold rallied a bit during the trading session on Tuesday, breaking above the $250 level. It looks as if we are going to go looking towards the $280 level above, which is resistance. If we can break above the $280 level, the market should then go to the $300 level. I believe that the 20 SMA in the middle of the Bollinger Band indicator has been offering support, I believe that the $240 level underneath is the “floor” in the market, so I think that buying the dips should continue, as we have a nice gradual grind on the chart suggesting that we have a nice uptrend forming.

Get Into Dash Trading Today

BTG/USD DASH USD and XMR USD Video 13.12.17

DASH/USD

DASH when parabolic during the trading session, breaking towards the $950 level. We have been consolidating for several weeks between the 600 and $800 levels, and a breakout should have sent this market to the $1000 level, but not in just a few hours. If you are not involved in this market, you should stay out as buying at these high levels is a great way to lose, as the freight train has left the station, but there is likely going to be a significant pullback. Unless you can deal with that type of volatility, you have no business being involved.

On the other hand, you certainly don’t want to short this market, even though a pullback is almost guaranteed. The main reason being of course that markets can remain irrational much longer than you can remain solvent, as the old expression goes. If you’re not involved in this market currently, you will have to wait for a pullback, otherwise you’re playing with fire and more than likely will lose money.

DASH/USD daily chart, December 13, 2017
DASH/USD daily chart, December 13, 2017

XMR/USD

Monero rally during the day, breaking above the $300 level. This is a significant break out, and we do of course have reasonable volume on the hourly candle that accomplish that move. Because of this, I think that short-term pullbacks are buying opportunities, and I look at the $300 level as a “floor” in this market. Out of the 3 currencies that are in this video, I believe that Monero is probably the most likely to continue to go higher for the longest time. This is a strong breakout, but not an unreasonable one, which makes it much more appealing.

Buy & Sell Cryptocurrency Instantly

Monero/USD daily Chart, December 13, 2017
Monero/USD daily Chart, December 13, 2017