The Art of Liquidation: Part III – The BitMEX Insurance Fund

In the last two episodes we learned that some exchanges tend to socialize losses from big liquidations. The traders on the exchange have to take a haircut, the loss is carried by many shoulders and the exchange can keep on operating. That works, but it is not fair. Users that have not caused the loss have to take it. It reminds of the bailout 2008. The taxpayer had to bail out the system-relevant banks that were “to big to fail”. …

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Bloomberg Rival: “Eikon Terminal” To Deliver Access to BitMEX’s Derivatives Data

When it comes to institutional investors there are still a lot of hurdles for some of them. E.g. the data feeds, something like the Bloomberg terminal in addition with cryptocurrency data. Since Bloomberg does use some data, like the TOP10 of Huobis price index, but not much more, it is a serious weakness of their service bandwith. Now a competitor (Refinitiv) plans to tackle this weakness of Bloomberg to get an edge in a very important and stark growing market of the future: Institutional Bitcoin investors.

Refinitiv is a company owned by the Blackstone Group LP (55%) and Thomson Reuters (45%). They made $6.1B revenue in 2017 and have 18,500 employees. Their “Eikon Terminal” is a direct competitor to the Bloomberg terminal through a new collaboration with the infamous BitMEX exchange.

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BTX500: Bitcoin from $8800 to $85,000 to $6 With Enabled x500 Leverage

Bitcoin leveraged trading is risky. Very risky. But what happens when there is an exchange enabling their customers to trade Bitcoin with x500? Well, BTX500 “tested” this and the results where pretty clear: As loomdart reported on Twitter the price there went from $8800 to $85,000 to $6 within a matter of minutes. BTX500 claims to be regulated and licensed in Australia and that funds held are fully ensured by Lloyd’s of London. Even this is correct, to offer a …

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Suicide of Chinese Bitcoin Trader After Losing 2,000 BTC on x100 Leverage

A big story this week was the suicide of a Chinese Bitcoin trader who traded on x100 leverage and is assumed to lost 2,000 BTC through his trading according to 8btc. They reported that the trader, Hui Yi, lost this amount after going short. He was co-founder and CEO of the analysis platform BTE.TOP and died on the 5th June. Measured in current prices this were around 16M$, leveraged by 100 times this is an insane magnified loss. At this …

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Bitcoin Trading & Market Psychology

Emotions And High Volatility = Problem

The main problem with somebody who begins to trade in any asset-class is that there is no experience beforehand. No one is born the perfect trader; every successful one made a lot of mistakes and most of these mistakes are probably based on irrational actions caused by emotions.

This is a problem. Especially when you trade cryptocurrency markets like Bitcoin. Cryptocurrencies are, in perspective, a very new technology. Not only in general but in a technical way, it is different to anything available now, yet we still are seeing low adaptation and practical usage of the blockchain-technology. This paired with the fact that the market runs 24/7 means the emotional reactions of market participants are stronger than anywhere else.

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