Bitcoin Margin Trading Options for Beginners (2020 Updated)

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I am confused after margin trading in Bitfinex. Now I don't know what to do. Please help.

I am new to cryptocurrencies. After getting suggested by one of my friends, I bought around 1700 iota at 35 cents. Then I started exploring bitfinex platform. My net USD equivalent balance also rose to around 1300$ as I have also been margin buying iota. Last night, the US-Bitfinex incident happened. Incidentally I was margin trading. I was not sure of its working. When I suddenly logged in after 4hrs, I was devastated. Price fell from 70 to 52 cents. Only 500$ USD equivalent balance. I don't know what to do now. I have around 700 Miota. I have lost all confidence on me.
submitted by KrantiInIndianMusic to IOTAmarkets [link] [comments]

Bitfinex offering 100x margin trading, to get in that all-important "terminally degenerate gamblers" market. A trustworthy and dependable casino you can totally trust.

Bitfinex offering 100x margin trading, to get in that all-important submitted by dgerard to Buttcoin [link] [comments]

Bitfinex suddenly froze our corporate margin trading access WHILE we have large margin positions in play. In danger of getting liquidated.

Any suggestions what to do?
We've had a corporate account with Bitfinex since early 2017 and have traded relatively larger amounts on both the exchange and margin platforms. Our account is verified as 'corporate' and approved for both exchange, margin, and funding. We're also approved for OTC trading.
We've been making 6-figure trades on margin and currently have 2 margin positions open. On Feb 7th, made some trades in the morning and then later in the morning we were locked out of margin trading. No explanation or warning of why our account can't trade on margin. Worst yet, we can't manage our margin positions. Not good in this very volatile market. We've received a couple of liquidation warning emails as the market dived down yesterday.
We sent a support ticket #535263 and probably over 7 emails. No response from Bitfinex. It appears that they haven't even opened any of the emails.
Any suggestions from the community would be welcome. We're a bit panicked to be honest about what to do.
submitted by haroldrami90 to bitfinex [link] [comments]

New at Bitfinex: Opt-in to enable your BFX tokens as collateral for financed trading. See the new "Margin Trading" section on your Account page, or see the details now.

New at Bitfinex: Opt-in to enable your BFX tokens as collateral for financed trading. See the new "Margin Trading" section on your Account page, or see the details now.
BFX Tokens as Collateral Enabling BFX tokens as collateral for financing is an irreversible feature. Once enabled, this setting cannot be disable.
Further Terms, Conditions, and Disclosures
You are electing to use BFX tokens as collateral for financed trades on Bitfinex. You may not trade in BFX tokens on Bitfinex or use them as collateral in financed transactions if you are a U.S. Person as defined in our Terms of Service. In addition to the other provisions of our Terms of Service, you need to be aware that BFX tokens are volatile digital tokens whose value may fluctuate rapidly. If you use BFX tokens as collateral in financed transactions, we may—in addition to our other rights and obligations, and among other things—need to force-liquidate your position as set out in our Terms of Service. If that happens, we can only accord each BFX token its market value at the time; the market value must be used because the tokens are being used to repay financing provided by other customers, not by us. By using your BFX tokens as collateral in financed transactions on Bitfinex, you agree to this term, all of our other Terms of Service, and you release us from any and all liability for losses associated with such use.
submitted by mksmart to Bitcoin [link] [comments]

Lost seven fig a day with margin trading in BCH at Bitfinex

I got liquidated for almost seven figures last night due to BCH position which rekt my account.
Why is flash crashes happening so frequently on Bitfinex while other exchanges are okay? Almost everyone with a good margin on alt coins got wiped out last night.
The amount of flash crashes happening on Bitfinex are much higher as compared to other exchanges! If this flash crash is so frequent and it almost guarantees a wipeout perhaps you need to do something about this?
Also, Coinbase was showing the price of BCH as ZERO last night. How do we survive from such technical problems of exchanges?
submitted by suumithive to Bitcoincash [link] [comments]

Question about bitfinex: Why are losses so high when margin trading in bitcoin pairs???

My God, it has no justification... it seems minimum loss is .01 BTC when margin trading in BTC, it doesn't matter if you were staking .0001 BTC and the market moved against you by 1% (!).
I lost more than half my bitcoin thanks to this feature!!! Why is that??? What's the justification for it??? Can someone help me?! I opened a ticket to at least get an explanation, but they haven't answered yet. If you trade in USD pairs, losses are proportional and reasonable. I didn't find out about this until it was too late. :S
Edit: Here's a screenshot to show you: https://imgur.com/a/WIgwL
No, Look at the STOP P/L field: .01 BTC. How much is that? .01 is 5595%. the price of the position. It's 55.95 times the price of the two initial OMG!!!
And how much has the market moved against you in that example: .02%. That's correct as the calculator indicates, but what's charged for exiting even at this small disadvatange is a minimum of .01 bitcoin. It's exorbitant. My trades were very small... obviously because I didn't want to risk a lot of money. And if you ask why hadn't I used the caculator, it's because I hadn¿'t found the feature in the app.
submitted by jameswlf to CryptoMarkets [link] [comments]

Bitfinex’s LEO tokens now listed on Delta Exchange and available to trade. Long/ short LEO with up to 20x leverage. The contract is margined and settled in $USDC.

Bitfinex’s LEO tokens now listed on Delta Exchange and available to trade. Long/ short LEO with up to 20x leverage. The contract is margined and settled in $USDC. submitted by jeffyal to bitfinex [link] [comments]

Please help this noob understand how margin trading works in bitfinex

Hello,
Long time hodler here, I would like to put a very small amount of my coins into bitfinex into a leveraged long position. Just a few Qs about how to do this.
1) It seems bitfinex offers leverage of 3.3 only- you cannot choose anything else- is this correct?
2) I am betting that bitcoin will go up versus the dollar. Does that mean I have to convert my btc into USD first or something? Do I need to start with USD or BTC is essentially my question!
3) Does the maths of it work like this: if bitcoin goes up in value by 1/3.3 times (30%) would the value of my position double? And if the value goes down 30% I would be liquidated?
4) I intend to 'hodl' my position somewhat (I like hodling, it has worked well for me so far)- I would plan on closing it only after it has gone up significantly- or if it liquidates due to a drop. Maybe I would keep it open and untouched for a couple of years. Is this a ridiculous strategy for some reason? Perhaps the margin funding is prohibitively expensive over this timeline?
submitted by PumpkinFeet to BitcoinMarkets [link] [comments]

Using a bot in the margin trading of bitfinex

So I've made a bot for trading BTCUSD in bitfinex. But it is limited to the exchange because I didn't understand the concept of the positions. In the bitfinex API the only thing that I can do with active positions is claim. So I can't close my position with the API. Now I'm thinking if it's possible to make the bot trade in the margin trading without closing positions. I want to expand the bot for margin trading because them I can lend from margin funding to make more profit. So someone more experienced than me can answer if it's possible to make the bot trade in the margin trading without closing positions?
submitted by pantalipe to BitcoinMarkets [link] [comments]

Lost seven fig a day with margin trading in BCH at Bitfinex /r/Bitcoincash

Lost seven fig a day with margin trading in BCH at Bitfinex /Bitcoincash submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Can I margin trade/short bitcoin on Bitfinex with only a btc balance in my trading wallet?

I only have btc and want to short with leverage, and the margin trade page doesn't do anything when I click margin sell with a high limit as a test - no active order shows up and I don't get any error.
In my mind system should sell my btc and borrow any additional btc needed for leverage through btc swaps at the best available rate, that is what I'd expect. If I have 1 btc in my trading wallet I should be able to margin sell 2 btc because of 2:1 leverage. If the price of btc drops by about around half minus fees, I get liquidated.
When using fiat to margin sell with leverage, it looks like Bitfinex automatically picks up USD swaps at the best rate automatically. It is unclear when/if those swaps expire. Do I have to buy btc swaps manually when leveraging with a btc trading balance instead of fiat?
If buying btc swaps manually, what if I choose a swap with a 2 day range but end up needing to hold the short for 3 days? What if the swap range is 30 days but I don't need it after I am done shorting in 3 days, will I have to pay interest on the remaining days? This part is confusing and I haven't been able find the necessary information by googling.
Edit:
There was an error message, "Not enough balance". I just missed it. I entered a lower btc amount and it worked. Need sleep after yesterday's late night rally.
submitted by emice to BitcoinMarkets [link] [comments]

New at Bitfinex: Opt-in to enable your BFX tokens as collateral for financed trading. See the new "Margin Trading" section on your Account page, or see the details now. /r/Bitcoin

New at Bitfinex: Opt-in to enable your BFX tokens as collateral for financed trading. See the new submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Please help this noob understand how margin trading works in bitfinex /r/BitcoinMarkets

Please help this noob understand how margin trading works in bitfinex /BitcoinMarkets submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Using a bot in the margin trading of bitfinex /r/BitcoinMarkets

Using a bot in the margin trading of bitfinex /BitcoinMarkets submitted by BitcoinAllBot to BitcoinAll [link] [comments]

what currency on bitfinex can be trade in margin?

I am looking for a list of cryptocurrency on bitfinex that cand be trade in margin, I mean to keep ripple in margin acount for instance. But I just figure only BTC can be keept in margin.
What about stop loss? How do I setup stop loss to a trade on Bitfinex? Thank you!
submitted by Cippss to bitfinex [link] [comments]

Exchange listing speculation

Any exchange that is currently providing custody and ICO claiming services. So, major spot exchanges:
Confirmed: Bitfinex, Okex
Highly likely: Coinbase, Kraken, Binance
Bitfinex already has a ticker set up on trading view, so they're in. They also have a long/short ticker on Tradingview so I'd expect them to have futures available.
Okex has futures set up. I'd expect Binance to have futures at some point shortly after launch. I'd imagine even Bitmex wouldn't want to be left out and will likely set up a futures market for Dot. So major futures/margin exchanges:
Confirmed: Okex, FTX, Bitfinex
Highly likely: Binance
Probable: Bitmex

Heard through the grapevine that Cumberland DRW will be adding Dot for OTC trading as soon as possible after transfers are enabled.
Major OTC exchanges:
Highly likely: Cumberland DRW

In my opinion Dot will be this cycles Ethereum in terms of hype and growth. All the big boys are anticipating this as well and don't want to be left behind, which is why you see a lot of them setting up Dot custody and Dot listing behind the scenes. I'd expect announcements over the next couple of weeks to confirm. I even think it's possible we'll hear announcements concerning institutional investment e.g. Grayscale Trust and Galaxy Digital Asset Fund some point soon after exchange launch.
*This is speculation, but imo not unfounded.
submitted by crpt000 to polkadot_market [link] [comments]

Regulated exchange Free2ex is proud to be a partner of Bitfinex – the longest-running crypto exchange. Here's some interesting info about our liquidity provider.

Regulated exchange Free2ex is proud to be a partner of Bitfinex – the longest-running crypto exchange. Here's some interesting info about our liquidity provider.
Bitfinex started working in 2012, when Bitcoin was worth just $10. The headquarters is in Hong Kong. As of August 2020, it's in the top-10 on CoinMarketCap with a trading volume of over $220 million a day.
Bitfinex offers margin trading, OTC exchange, and margin funding. It's also the world's leading crypto derivatives exchange. Bitfinex is a very close partner of the Tether (USDT) project, with which it has common shareholders.
By sourcing liquidity from Bitfinex, Free2ex can offer uninterrupted trading and very low spreads. By the way, we also get liquidity from Kraken and Poloniex.
On Free2ex, you can buy Bitcoin with a credit card and trade it 100% legally.
Visit us on https://www.free2ex.com/
#free2ex #cryptoassets #cryptoexchange #belarus #regulated #blockchain #bitcoin

https://preview.redd.it/0a9o9evzxcj51.jpg?width=1200&format=pjpg&auto=webp&s=60632c965cd99d1a815c750bb9ee8cdb5134208b
submitted by free2ex to u/free2ex [link] [comments]

Staking tezos in bitfinex margin wallet?

Hey guys, wondering if anyone can help me. If I send say $100 of tezos to my margin account on bitfinex, will I earn staking rewards from them? Or do you only get staking rewards on your main account? Also, if you do get staking rewards in your margin wallet, are you able to trade with the xtz as margin, and still receive rewards? I did try posting in the bitfinex subreddit, but they don't let anyone post anything there, so thought I'd try here. Thanks in advance guys!
submitted by HC-DOGECOIN to tezos [link] [comments]

MXC Exchange – One-stop Service Provider

MXC Exchange – One-stop Service Provider
Established in 2018, MXC has become a one-stop service provider. It is now able to provide users spot, margin, contract, leveraged ETF, Index Products, Contract, PoS Staking, OTC services.
It emerges as one of the fastest growing exchanges in the world. In 2019, the daily trading volume of MXC took 5% of the world’s digital market. Besides, leveraged ETF products on MXC took lion share in the world of the same kind of products based on data from CryptoRank. On top of that, It obtained regulation-compliance licenses in many countries, like U.S., Canada, Australia, etc. and is able to carry out digital asset service in these countries.
https://preview.redd.it/xmdorlqtjt951.png?width=1298&format=png&auto=webp&s=b791ee9dc47ff43cca9bf281cacbc05a61fa2632
In the aspect of OTC trading, MXC established partnership with Simplex, a European regulation-compliance payment company, and Banxa, a legal payment company in South-east Asia, allowing users to use Visa and Mastercard to buy cryptocurrencies, like BTC, ETH, etc. directly.
In the aspect of spot trading, MXC now support over 200 trading pairs. In addition to the top market cap coins and token, it has listed many high-quality DeFi projects, like COMP, MKR, SNX, KNC, LEND, REN, BNT, IDEX, SWTH, OKS, RUNE, KAVA, BAL, UMA, etc. as well as projects of Polkadot ecosystem, like KSM, EDG, PCX, RING, etc.
In the aspect of margin trading, MXC supports the largest number of margin pairs among all exchanges across the globe, with 2 – 10x leverage available. The automatic loan and repayment functions are available. With the coming of the upgraded margin system, the depth, price difference, loan efficiency and matching efficiency have greatly updated.
In the aspect of leveraged ETF, MXC, learned from traditional financial products, introduced in re-balance system, so there’s no liquidation risks in buying leveraged ETF products. Leveraged ETF tracks the changes of the underlying assets with 3x leverage. “3L” products refer to 3x long, while “3S” products 3x short. Now it 3x leverage for 29 cryptocurrencies, including BTC, BCH, BSV, DASH, ZEC, ATOM, XTZ, ALGO, etc.
In the extreme market on March 12, 2020, BTC plummeted a high of 52.36% and the ordinary 3x leverage products for BTC plunged by 157.08%. However, with the re-balance system, the BTC3L product on MXC decreased by 92.96%, lower than the ordinary 3x leverage products and protect the interest of users in some extent. Furthermore, in the following market, the BTC3L product rose by 236%, higher than the 167.41% of ordinary 3x leverage product.
The leveraged ETF once became the label of MXC, "Huobi's OTC, OKex’s contract, MXC’s ETF and Binance's spot." The popularity of leveraged ETFs has attracted many exchanges to follow suit.
In terms of index products, MXC officially launched index products under the ETF zone, including decentralized storage asset index, mainstream cryptocurrency index, DeFi asset index, public chain index, 2020 halving cryptocurrency index.
MXC index products are similar to traditional financial fund products, and each index product is composed of multiple constituent cryptocurrencies. According to the announcement, the MXC Index product will be adjusted according to the average daily turnover ratio of the previous 30 days, that is, the proportion of the component cryptocurrency will be adjusted. If the target does not meet the representativeness and investability, the index may be removed from the product.
Decentralized storage combination components are STORJ, LAMB, GNX, BLZ; mainstream currency combination, components are BTC, ETH, LTC, EOS, ETC, BCH, BSV, XRP; DeFi asset components are KNC, ZRX, KAVA, NEST; Public chain combination, the components are TRX, VET, NEO, QTUM, BTM, ONT, IOST; halving index components are BTC, ETC, BCH, BSV, ZEC, DASH.
Index products can help users not miss the bull market. Any one of the constituent cryptocurrencies increase, the user can make gains. Secondly, it can help avoid the risk of a single cryptocurrency’s plunging. In addition, it can also help save investment time and improve investment efficiency.
In terms of contract transactions, MXC upgraded the contract trading system and launched a new version of the contract in June this year. MXC contract trading currently supports free adjustment of 1-100x leverage multiples. In the isolated margin mode, users can still adjust the leverage multiples after opening a position, and support isolated margin conversion to cross margin, which can help users pursue the market with all their strength.
It supports users to place stop profit and stop loss orders at the same time, while occupying only one margin. It supports Post Only (Maker only) and IOC (Immediately or cancel all) strategies. Under Post Only (Maker only), the user will not immediately place an order on the market when placing an order, to ensure that the order is always Maker (pending order), saving handling fees. IOC function, that is, if the order cannot be fully executed, the rest will be cancelled.
For example, the BTC price index of MXC selects the bitcoin spot prices of 6 exchanges, namely: Coinbase, Bitstamp, Binance, Huobi, OKEx, Bitfinex. If the spot price of an exchange deviates from the median of all exchanges by ±3%, the spot price of the exchange is calculated according to the median of ±3%. Use reasonable prices for liquidation, which are based on index prices.
In addition, underlined proper nouns on the webpage, as long as the mouse points up, the corresponding explanation will be displayed, which is convenient for users to understand.
In terms of PoS pools, MXC supports three types of PoS: Saving, Staking and Lending. Among them, PoS saving does not need to lock assets, and holding assets can obtain income.
submitted by SimonZhu666 to MXCexchange [link] [comments]

Paper trading is now available for derivatives

Paper trading is now available for derivatives
📣 Paper trading is now available for derivatives, exchange and margin trading, funding, and OTC.
Paper trading allows you to test your trading strategies and learn more about Bitfinex professional trading features in a simulated environment.
Find all the benefits of using Bitfinex Paper Trading ⬇️
https://www.bitfinex.com/posts/483
https://preview.redd.it/mrj4ird7v8951.png?width=1920&format=png&auto=webp&s=1e7b73f52f99e4cc40abe1c6e11e4e60949a07c5
submitted by news_bitfinex to bitfinex [link] [comments]

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)

Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging at Genesis Block.
https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player
This is the third post of Crypto-Powered — a new series that examines what it means for Genesis Block to be a digital bank that’s powered by crypto, blockchain, and decentralized protocols.
Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series.
97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit.
So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.

Stablecoins

Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility.
There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
The most popular USD-pegged stablecoins include:
  1. Tether ($10B): It’s especially popular in Asia. It’s backed by USD in a bank account. But given their lack of transparency and past controversies, they generally aren’t trusted as much in the West.
  2. USDC ($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
  3. DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Other notable USD-backed stablecoins include PAX, TrueUSD, Binance USD, and Gemini Dollar.
tablecoins are playing an increasingly important role in the world of DeFi. In a way, they serve as common pipes & bridges between the various protocols.
https://preview.redd.it/v9ki2qro12b51.png?width=700&format=png&auto=webp&s=dbf591b122fc4b3d83b381389145b88e2505b51d

Lending & Borrowing

Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid.
Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens.
Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive.
The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
I repeat, all loans are overcollateralized. If the value of the collateral depreciates significantly due to price volatility, there are sophisticated liquidation systems to ensure the loan always gets paid back.
https://preview.redd.it/rru5fykv12b51.png?width=700&format=png&auto=webp&s=620679dd84fca098a042051c7e7e1697be8dd259

Investments

Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments.
Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol.
Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery.
Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur.
And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio.
With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
https://preview.redd.it/agco8msx12b51.png?width=700&format=png&auto=webp&s=3bbb595f9ecc84758d276dbf82bc5ddd9e329ff8

Insurance

As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong.
Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k.
There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Two protocols that are leading the way on DeFi insurance are Nexus Mutual and Opyn. Though they are both still just getting started, many people are already using them. And we’re excited to start working with them at Genesis Block.
https://preview.redd.it/wf1xvq3z12b51.png?width=700&format=png&auto=webp&s=70db1e9587f57d0c470a4f9f4523c216929e1876

Exchanges & Liquidity

Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols.
Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth.
https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943
There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers.
Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound.
There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
Users can earn passive income by supplying liquidity to these markets. It usually comes in the form of sharing transaction fee revenue (Uniswap) or token rewards (Balancer).
https://preview.redd.it/wrug6lg222b51.png?width=700&format=png&auto=webp&s=9c47a3f2e01426ca87d84b92c1e914db39ff773f

Payments

As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto).
Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times.
The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW!
Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized).
Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum).
In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
https://preview.redd.it/svft1ce422b51.png?width=700&format=png&auto=webp&s=9a6afc9e9339a3fec29ee2ae743c07c3042ea4ce

Impact on Genesis Block

At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.”
https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8
When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be.
We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
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None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block.
So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions.
To look at more projects in DeFi, check out DeFi Prime, DeFi Pulse, or Consensys.
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submitted by mickhagen to genesisblockhq [link] [comments]

I have lost 1700$ and i wanna cry :(

I met bitcoin in 2014 but I never bought because I was 15 years old then and I had no money. I showed it to my mother but she didn't want to buy.

Now I had some money saved from the scholarships that the government gives me to study, $ 2000

Taking advantage of the fall of bitcoin by the COVID I put $ 1000 and to buy in margin trading and another $ 500 to secure my position.

I was very greedy and during the upload that was 6000-9000 I made a lot of money, my bitfinex account reached 5000 $

I did not sell on time and I stayed at $ 3,000. I wanted to get it back and I was trading in fear, canceling positions all the time until I lost half the money.

So I decided that I would buy and not touch it, but just when I did it a lot and it sold, just when it sold it went up again.

I stayed at $ 800, and kept trading until I lost and stayed at $ 670.

Then I put $ 300 more from my bank to recover more easily.

I bought Friday at $ 10,000 and decided to wait, I swore I would not sell because it always goes up at the end, but no, tonight it has dropped a lot and bitfinex has liquidated me. I stayed at $ 427

Today I have been traded and right now I have $ 318


I have lost my money and I am devastated, I am crying and I am afraid to tell my mother because she forbade me to do it and if she finds out she will kill me.
submitted by MaxRome to Bitcoin [link] [comments]

Margin Trading 101: How It Works - YouTube The basics of margin trading How to: Trade on Bitfinex Like a Pro [Complete Guide ... Margin Trading  Trading Terms - YouTube BITFINEX TRADING TUTORIAL! MARGIN TRADING REVIEW

Margin Trading Cryptocurrency. Its unique SMS system walks Bitfinex Review you through the entire process of buying, making it a good choice for first time buyers who want to purchase bitcoins with cash. Wall of Coins helps its customers buy and sell bitcoins for cash. Margin trading. Bitfinex allows up to 5x leverage trading by providing traders with access to the peer-to-peer funding market. Order types. Bitfinex facilitates a graphical trading experience with advanced charting functionality that allows traders to visualise orders, positions and price alerts, tap to modify order properties, and annotate Our margin funding feature goes hand in hand with margin trading. If you are not a trader and prefer safer investments, this feature is for you. Through your Funding Wallet, Bitfinex allows you to provide funding in any of our various funding currencies to traders.You can enter offers with your own chosen terms (return rate, duration, and amount). Margin trading, long a source of Bitfinex’s popularity, lets traders who want to place leveraged orders borrow from other Bitfinex customers. In this peer-to-peer process, lenders fund dedicated wallets that fund loans to margin traders, earning interest in the process. A rarity among US-based exchanges, Kraken also supports margin trading. Margin Trading on Bitfinex. Bitfinex offers 3.3:1 margin trading. Simply put, traders can borrow $7 for every $3 they have in their accounts. Since Bitfinex is the biggest Bitcoin exchange in the world by volume, traders should start there. You can read my complete Bitfinex review here.

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Margin Trading 101: How It Works - YouTube

Brian explains the basics of margin trading to answer this question. ... How to make profit while crypto prices dropping? (on Bitfinex) - Duration: 9:39. CryptoCoop 57,654 views. ... One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit comp... Kostenlos abonnieren: https://goo.gl/12TEw6 In diesem Video zeige ich euch die Basics vom Bitfinex Margin und Exchange Trading. NÄCHSTER 30X ICO? Review Kryptowährungen https://youtu.be/mvsyl ... Learn how to trade crypto on Bitfinex with this in depth guide / tutorial. NO MINIMUM DEPOSIT ON NOW: https://bitfinex.com/?refcode=M7lscFdR 1:09 - Create Yo... Tutorial Part 6 Lets Learn Margin Trading Bitfinex Trading Crypto Long Shorting Leveraging - Duration: 1:09:05. Mr Brian 14,438 views. 1:09:05. Cryptocurrency Portfolio Strategy ...

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