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What is Margin Trading in Cryptocurrency?

What is margin trading in cryptocurrency?

When we stepped into the world of cryptocurrency, we did came to know that it is a two sided coin game where on one side there is hell lot of risk and on the other side there are handful of rewards.

A particular person does needs to understand the basics and then only invest if he cares of his hard earned bucks.

Take an example

You invest $1000 and after almost weeks, you get $2000

Isn’t it amazing?

But you do need to understand that your $1000 can be reduced to $500 also. YUP!! Thats the truth!

Today we are about to discuss about one such trading method which included all the equal amount of risks and rewards.

What exactly is margin trading

Margin Trading is nothing but a process of borrowing cryptocurrencies based on the number of existing cryptocurrencies that are already owned in order to buy more and more.

Its is also known as margins or leverage trading. It is an old age method used in traditional market now-a-days.

This concept was first practiced in USA and now the whole world is adapting to the same. It got a boom after the rise of cryptocurrency and has been a main part of the cryptocurrency world too.

The traditional market margin trading is tangled by loads and loads of rules and regulation while the cryptocurrency market margin trading is quite simple and helpful.

Let Me provide an example on this

You want to invest around $1000 in BTC, but you have only $500 with you right now. In Order to get those extra $500, you borrow the same through margin of 2:1 (2x, it means you will give an additional $1 for every dollar you took)

Now imagine the price of BTC suddenly increases by 50%, your investment also did!

So the $1000 you invested is worth $1500. You can now now back back the $500 to the lender and enjoy those extra $500.

This way, Margin trading can be rewarding as well as risky too at the same time. That is the sole reason, one should not try margin trading if you are not aware about the basics and risks.

If you are a complete newbie and have no clear idea, you can use help of delta.exchange in margin trading.

Who are these lenders or investors and why?

I clearly know that you must be thinking who exactly are these individuals or lenders to give their money and why so?

These people are normal brokers or individual who simply act as lenders in terms of providing the money or cryptocurrency in exchange of a fee or a fixed interest rate.

Whenever the portfolio of margin trader becomes weak, the broker immediately turns the status to refund so that the lenders are saved and their principals and interests gets cleared in the first priority itself.

In other case, if the portfolio turns out to be improving or risings, the lenders are given their fee or interest on regular basis which depends on their agreed terms.

I am pretty sure that you guys might be thinking where to trade cryptocurrency on margin basis.

Here are few margin trading crypto exchange facilities.

Crypto exchanges which gives margin trading facility

  1. Bitmex
  2. Whaleclub
  3. Delta Exchange
  4. Kraken

These are few of the best margin trading exchange facilities available on the internet.

Take a note of this important stuff

Margin trading is not at all for noobs as you need to understand the sudden ups and downs of crypto market too.

The golden rule is always invest what you can lose.

This simply means that you need to invest the exact amount that you can lose in the market, no matter whatever the situation maybe.

That was all from my views that I have drafted in this article and I’m sure that I have contributed enough knowledge on margin trading in cryptocurrency market.

You can also help in contributing to this article by filling out the comment box below

If you have got any additional info or any other and better method than marginal trading, do add the same in the comment box below and we would love to add the same in the article.

Do share this article if you found it useful.

Happy Investing!!

 

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India’s Bitcoin scam case may be Worth Rs.13 Billion

India’s Bitcoin Scam Case May be Worth Rs.13 Billion

Though India is not a supporter of any digital currency, the crime involving bitcoin case within the country could total about Rs.13 billion in local currency. Gujarat CID has been probing the case that could expose the scam. As the investigators dig into it deeply, it appears that they are getting more and more information about the possibility of an increased crime than initially expected. Interestingly, bitcoin is the most that were involved any scam not only in India but also around the world. That is mainly because of its significant value and higher adoption rate.

Kidnapping Deal

The kidnapping of a software engineer in February early this year involved approximately 200 bitcoins that were worth Rs.120 million. However, the big catch is something else, i.e., the administrator of a bitcoin investment firm. There also an unnoticed event of a kidnapping. It had never come on record. However, the kidnappers of that kidnapping case extorted about 1,850 bitcoins. Incidentally, the two kidnapping happened in the same place of Amreli in Gujarat. The value of those bitcoins were about Rs.920.50 million since the engineer was well aware of the password of the e-wallet, times of India reported quoting a CID Crime official.

The official stated that the kidnappers came under the pretext of income tax officers. However, this person and his wife have managed to escape from the country. Incidentally, the person’s wife is a software engineer. The duo is said to be having approximately 22,000 bitcoins. This is valued over Rs.13 billion that belonged to investors. Criminals are not worried about the potential government actions as they feel that they are capable of avoiding them. They are confident that they could sell or make money out of the stolen bitcoins outside the country too.

Officials probing the case indicated that a parallel inquiry has also been going on on the previous kidnap case that involved bitcoin as ransom. Another key point is that a number of people in Surat have indulged in diverting their black money to bitcoins after November 2016. That is when the government announced demonetization to crack a whip on black money. Incidentally, the company that dealt with bitcoin has been in existence since the year 2009.…

Bitcoin cash infrastructure continues to Grow

Bitcoin Cash Infrastructure Continues To Grow

It seems that Bitcoin cash (BCH) infrastructure continued to witness growth nearly two weeks ahead of the hard fork scheduled for May 15. That means adding the block size to 32MB apart from re-enabling some OP_Codes too. The digital coin price has already delivered more than 139 percent returns in the last six-month period while the last seven days saw its price jumping about 13 percent. Significantly, bitcoin was the most traded virtual coin that was swapped for bitcoin cash on Thursday capturing as much as 39 percent of total trades.

Infrastructure Support Increased Significantly

Bitcoin cash infrastructure, as well as, support witnessed significant increase due to a number of projects apart from the announcements made this week. For instance, Blockchain wallet disclosed that balances of BCH could be visible in iOS mobile wallets. This apart, Memo platform witnessed some upgrades. As a result, there was a bunch of traction. Aside from these, a fresh social media app, known as Block press, was also launched on Thursday. This is much like the Memo app, news.bitcoin reported. These are few catalysts that show the increasing importance of bitcoin cash infrastructure.

Currently, the BCH chain is more than 7,500 blocks, which is well ahead of a leader in the cryptocurrency segment, bitcoin core (BTC) chain. This apart, the operation level of BCH is about 15.21 percent of bitcoin core’s difficulty while it is profitable by over three percent to mining bitcoin cash today. Incidentally, BCH is the hot coin that demonstrated the most swapping in the top digital currency exchanges of Okex, Bithumb, Bitfinex, Upbit, and Houbi. As a result, BCH crypto community remains positive on the virtual coin.

Branding

The branding of bitcoin cash symbol among the automobiles was seen throughout the world this week. This apart, BCH is also trending on the social media platform for 4chan. Another key release this week was the BRD Wallet’s ‘Augustus’ version. It would fully support in-wallet trades, as well as, bitcoin cash. On top of these issues, Bitpay developers have upgraded Bitcore-lib-cash protocol that extends support for the upcoming week’s event of the hard fork for new OP_Codes apart from bigger blocks and updated carrier size.

As far as the swapping of currency, the Korean’s domestic currency has made a significant increase in bitcoin cash pairs in the last week. The volume from Upbit and Bithumb supported these metrics. There are about 17.108 million bitcoin cash in circulation. This meant a market value of more than $25 billion.

BCH Economy

On the whole, the proponents of bitcoin cash are the excited lot with not only the recent developments but also the future of the BCH economy. The proponents are confident about the increasing development environment as the hard fork is nearing close. This meant that supporters are keen to have the next upgrade since they are expecting additional strong features to the network of bitcoin cash.

Aside from these, there are also commitments of construction of UTXO and modifying the Difficulty Adjustment Algorithm (DAA). These would enhance BCH block times and at the same add a PID control algorithm.…

Indonesia is Keen to Fix its inaccurate Data with Blockchain Technology

Indonesia Is Keen To Fix Its Inaccurate Data with Blockchain Technology

Indonesia has shown its keen interest in blockchain technology to fix its inaccurate data. The country has not been able to keep accurate records like other emerging economies. This was primarily due to lack of expertise apart from the availability of resources. As a result, this poses a big challenge to them and the private and public sectors are now focusing on overcoming the challenges. This is one more instance of how the technology is getting adopted despite skepticisms about it.

Best Known Technology

The advantage with blockchain technology is that it offers a shared record of information that is not only maintained but also updated through a computers’ network, Reuters reported. The technology provides decentralized authority whereas another technology provides centralized authority. Indonesia is looking to use this key factor in its tax system and Online Pajak, a tech firm, has already unveiled a blockchain-power application. That would enable customers to share encrypted tax data with institutions. This included tax and treasury offices apart from the commercial banks and the central bank. The technology is also hailed for its transparency and for quickness apart from cost savings.

The country thinks that the blockchain technology-powered app could cut down the errors rate and reduce paperwork. That would mean that taxpayers have paid their dues and that is for sure. This was the comment given by Charles Guinot of Online Pajak founder. This should be a great relief to the people as there is no proof that taxpayers have paid their taxes earlier. That suggested the current status of the data in the country.

Aside from that, the verification process of blockchain could also come in handy to address doubts about elections hangover in countries such as Indonesia. An Australian firm, Horizon State, indicated its intention to introduce a phone application in July on Sumatra Island. That would enable direct polling on different domestic policy issues. The company’s co-founder, Nimo Naamani, said that the verification system with the help of blockchain could cut down the voting fraud, as well as, address the electrical challenges that big populated countries are facing.

It is not only the Indonesian government, but the banking sector to is keen on the technology. This was demonstrated in a survey published last year by Bain and Company. The survey pointed out that 80 percent of financial institutions’ executives believe that blockchain technology could impact markets significantly.

Trade Financing

Indonesia’s second-largest bank, Bank Mandiri’s digital banking and technology director, Rico Usthavia, disclosed that it is looking onto introducing blockchain for trade financing. However, lenders are waiting for regulators to provide guidelines. The country’s policymakers expect the technology to cut down graft in public programs. This included subsidies that are allocated to the States.

Director of the Financial Services Authority, Fithri Hadi, said that a dedicated team was established to study blockchain technology and how it could support the industry. The technology is gaining traction in emerging economies like Estonia that has deployed it since 2012 for a variety of services.…

How Dubai Police used AI to arrest a gang of Bitcoin Heist?

Dubai police have arrested a gang of ten members for their alleged involvement in a cryptocurrency heist. The gang has been accused of stealing $1.9 million worth of bitcoin. This is not the first time that the specific digital coin is involved in a theft. More than $1 billion worth of virtual currencies has been stolen by hackers in less than a decade. This is further evidence of the virtual currencies growth despite tightening of regulations.

Nabbed Quickly

The latest episode of stealing happened only on Wednesday last. The Dubai police have quickly rounded up the ten-member gang on Saturday itself. One of the reasons is that they tried to lead a millionaire lifestyle and it failed to last long. It is tough to say whether the idea of those accused is practical though it might have looked it to be better on paper. Coingeek reported that the ten-member gang has taken over an empty office. They have pretended that they were acquiring the space for their new office.

This followed setting up their nefarious plan in action. The gang sought possible victims in AI market Muraqqabat using the trick that it was keen on acquiring cryptocurrency. This resulted in finding at least two candidates. Incidentally, both of them are brothers. They have also agreed to meet the buyers in their office. The drama has unfolded only after that much like the cinemas.

Once the brothers reached the gang’s office, they were assaulted at will. On top of it, they have robbed the two at gunpoint. Three of the gang of ten was keeping a watch outside the office whereas other six persons waited at the office. The tenth person was busy in arranging the Cristal champagne for them. The two brothers have managed to free themselves after being left inside the office. They were also tied up. Immediately after their escape, the two brothers have gone to the police on the same day.

The two were also in a position to recognize the leader of the group. The police found them in a neighboring emirate. They have confessed to the crime, and the police have taken them into their custody. The key factor is that within a span of two days, all the ten suspects were found in four different emirates. Once they found the place, it was a question of time to arrest them.

Smart Programs

Criminal Investigation Affairs’ Assistant Commander-in-Chief, Major General, Khali Ebrahim Al Mansouri, disclosed that the police could use artificial intelligence and small programs to keep track of the gang. That resulted in locating the gang members in four emirates.

The current year has seen a lot of high-profile thefts involving cryptocurrency. For instance, a Russian crypto blogger has carried away in January as he has amassed wealth from virtual currency. He reportedly had about $380 million rubles that were stolen after being assaulted. Earlier this month, a Malaysian was attacked in Singapore and was robbed about $365,000 though it was later termed as a bogus sale.…

Bitcoin transactions depict laws of Nature Stanford University

According to a study undertaken by the Stanford University, a pattern was recognized between the digital currency network and natural process. The study released on April 23, 2018, revealed that the laws of nature share a distinct similarity with bitcoin transactions.

Being the most popular digital financial instrument in the world; bitcoin has become a case study for many scientists. Amidst several research studies being conducted on bitcoin William Gilpin, a doctoral student and head of The Stanford National Academy of Sciences has come up with a strange hypothesis. He claims that his studies can help in streamlining and validating procedure in the production of drugs. He added that the study had the capability of discovering a new theory of the universe.

To be precise, his findings explain the homogenous principles shared by digital currency transactions and swirling liquids. A complex mathematical sequence called the cryptographic hash encrypts the transactions on the blockchain. Gilpin informs that hash functions mathematically change the digital information contained in a unique cryptographic output key that protects the input.

He claims that the prominent governing laws of swirling liquids operate in the same manner. The study states, “An essential component of digital communication is hashing, in which a complex piece of information (a document, video, etc.) is mathematically transformed into a unique signature that can later be used to identify the original piece of data. Here, we show that this process bears a strong similarity to the chaotic behavior of certain types of flows observed when ordinary fluids mix, such as the stirring of dye into the water. We use this analogy between rearranging information and stirring a fluid to construct a fluid-based hash function with comparable properties to traditional algorithms.”

Gilpin was able to find the connection between cryptographic hash functions and the equations involved in mixing a fluid through a principle called chaotic mixing. He said, “I wasn’t expecting it to perform that well. When it looked like it satisfied every property of a hash function I started getting really excited. It suggests that there’s something more fundamental going on with how chaotic math is acting.”

Gilpin’s finding has gained attraction due to its capability of creating better ways of protecting information. Moreover, the theory can be applied in the development of drugs that involve mixing numerous fluids at specific points in time. As both the operations have the same dynamics, it becomes easy to minimize the margin of error.

He adds, “If you don’t form the correct arrangement when you’re done, then you know that one of your processes didn’t go right. The chaotic property ensures that you’re not going to accidentally get a final product that looks correct.”

As far as Gilpin’s credentials are concerned, he is not a drug developer or computer scientist himself. He has interest in learning more about the behavior of fluids in nature apart from connecting the digital and physical fields. For him, “the idea that we can start to use some of these ideas from computer science is pretty exciting.”…