MtGox ANNOUNCEMENT TO STOP BTC WITHDRAWALS : Bitcoin
MtGox ANNOUNCEMENT TO STOP BTC WITHDRAWALS : Bitcoin
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This fucking community (re: Gox)
"C'mon everyone, ignore Gox! Remove Gox from all charts! Pretend it doesn't exist!" No. That's not how this works. If someone in your small town gets robbed, you don't go "let's pretend this didn't happen so that our town will still be thought of as safe!" Well hey, actually in real life that does happen. Politicians and governments everywhere - the exact people you hate and bitch about all the time in this community - do that sort of shit as a means of propaganda to make themselves seem better than they really are to everyone else. This Gox situation is very real. Lots of people are losing a ton of money because of this. Moreover, they're losing their trust in bitcoin. The drop in price at Gox is EXACTLY what people are afraid of when they buy bitcoin, though the general thought is that it'd be more of a flash crash down to nothing, which is probably in Gox's future but it's been more of a slow death since people still have hope. I'm seeing a lot of people that have absolutely no sympathy for those who are getting screwed - focusing entirely on either "yay Gox is dead" or "oh crap, don't let this affect my holdings at my other exchange or overall confidence in bitcoin", lots of the usual "this isn't BAD news it's GREAT news" that goes on here anytime actual bad news happens. Don't ignore this, because I guarantee you people in the non-bitcoin world won't be. This is a microcosm of what many people feel will eventually happen to bitcoin, so trying to ignore this or sweep it under a rug is going to immediately alienate anyone who had any doubts about bitcoin after seeing this news. Stop thinking of yourself for once in your life. There are a lot of people incredibly affected by this, and a massive amount more that are not affected by this but see this as a huge issue with bitcoin, that this sort of thing can happen and there's nothing anyone can do because no regulation. Care about those people and their concerns - don't ignore them. Unless you want to see your holdings torpedo regardless of where it is because confidence in bitcoin shoots down while you all have your heads in the sands worrying only about yourselves.
An extensive guide for cashing out bitcoin and cryptocurrencies into private banks
Hey guys. Merry Xmas ! I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively. The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow. I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
A. What is required to open an account in a Private bank when you made your fortune through crypto.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise. *The origin of your crypto wealth *Your background (residence, citizenship and probity) These two aspects must be documented in-depth. How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit. 1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start. Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice. 2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand. Let’s have a look at a few examples and how to document the few profiles I mentioned earlier. The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous. The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here: *proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early. *story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day. *micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning. *signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ? *ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow. The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow: *Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig. *Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful. *Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened. *Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet. *Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time. The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me. The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative. The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point. Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria: *Seriousness of the project Extensive study of the whitepaper to limit the reputation risk *AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted *Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises... *Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
B. The tax issue I am not a tax specialist, but I can say that this year I have seen it all. Again I am not judging. You made $100m hodling, and still wouldn’t pay your taxes ? Your decision.I personally advise everyone to pay their taxes, but also to be generous, to give to charities. I mean you eventually made it. Good for you. What about you contribute to make the world a better place now? I will stop patronizing you. It’s just my 2cts, and it’s your money.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me. First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards. For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t. EU tricks Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible. Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand. Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really. Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way. Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids? Dubaï
Set up a company in Dubaï, get your resident card.
Spend one day every 6 month there
Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen. The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains). The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again. Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly. “Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out. The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
C. The cash out itself So you have accumulated patiently a good amount of wealth. For some of us who have been involved in crypto since 2010, it took years. Remember when BTC was stuck at 200$ for months? I personally feel like it was yesterday. There is no way you screw up your wealth by cashing out in a hurry or with low security standards. Here is how the cash out takes should place.
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;) What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight. The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard. Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp, The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny. Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts. Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks. Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier) Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around. Your options: DIY or going through a regulated financial intermediary. Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately. The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused. Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them! The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax. The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million. Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction. Cheers. @swisspb on telegram
Not sure if bitcoin has heard already but Gox is opening their very own Bitcoin Café right under their offices. I live in Tokyo and decided to visit the offices to get help with my stuck funds (Japanese yen). The secretary said they wouldn't see me but she gave me a paper I could fill out that she would send up to them. I did so, and my problem was attended to within minutes. I stuck around to see if I could catch Mark (didn't). I decided to look around the premises noticed on their mailbox 'Bitcion Café'. http://i.imgur.com/26iJm5l.jpg I looked to the other side of the building and sure enough a suite was under construction. Here is the exact location http://goo.gl/maps/Iq7Pm I was with a friend and he knocked on the door. A woman came out and I grabbed a horribly blurry shot while the door was open. http://i.imgur.com/mSaXzpQ.jpg He asked with her but she refused to answer most questions. She did say that it will be opening in March. I took one more shot over the screen on the windows. http://i.imgur.com/8mPFZZO.jpg I am a crap photographer and had a horrible headache and wanted to get home, so would have taken more, but the one interesting thing I saw was a guy working on a table with a ton of wires coming out the top of it. Looks like the kind of thing that would have little ipad stations built into the table. Make of this post what you will, it just reminds us yet again that Gox's priorities are not where they should be.
Tether is the new MTGOX Willy bot. Any exchange that has Tethers is going to become insolvent and make you lose money, even if you don't own Tethers.
I have seen it said a few times recently, but I want to say this again. MTGOX manipulated prices. They were a "trusted" exchange that was at the time the biggest exchange. All caution was thrown to the wind when people used MTGOX because they saw arbitrage opportunities. Many of you may not have been around for this, but on MTGOX the price was regularly 100 USD or 200 USD higher than any other exchange for the Bitcoin price. They(the exchange itself) used a bot called Willy to manipulate the price upwards in their favor. The bot was credited with "money" that they "printed or generated" on their internal site, which nobody else could see. What is the difference between Willy bot and Tether? We can see Tether being generated. They are doing it out in the open and it "looks" above board. From the countless threads I have been reading here, it is clear that everytime Tether is printed and sent to an exchange(or 2 or 3 exchanges) the price of cryptocurrencies go up. This is unsustainable. MTGOX was unsustainable. I caution every single person to not have ANY of your funds on any exchange that has UDST on it. You might be thinking(incorrectly) that you are safe keeping money on an exchange, because hey "I don't have any of it in Tether" I only trade in the pairs of BTC or ETH!". Well, you would be wrong. When an exchange goes under what have they historically done? They issue tokens. When the FBI came in and raided BTC-E, what happened? EVERYONE who had coins was affected. The FBI took somewhere around 1/3 of all coins on the exchange. The exchange didn't give anyone 100% of their funds, instead they let you withdraw 65% of your funds at 100% and gave you tokens for the remaining 35%. The token price overtime is bought back and if you hold it until the end they promise to pay you back at 100%(I have 1 Ether token tied up in BTC-E, now called WEX). I know the pain, though small. What happens when Tethers become worth nothing? Every exchange who has USDT now has to write them off. Funny how that is going to work, writing off a token and they will then have to issue their own tokens to buy back customers funds. If you are holding any funds in HITBTC they use USDT, or BItfinex and others. If you have it in other places with USDT you should fully expect those Tethers to be worth 0 and the exchange having to issue everyone tokens. They will have to write off hundreds of millions of USD of Tethers, which will cause them to become insolvent. When they become insolvent they have to issue you tokens, just like BItfinex did, Just like BTC-E did. Hold your own funds, and if you want to trade coins between other coins use Shapeshift. You control your own wallet and private key with Jaxx app and Shapeshift is built in. That is just something I am reccomending based on my limited expeirence, if anyone has another thing that is better (maybe bitshares decentralized exchange?) feel free to let us know.
Questions about the BTC-e Situation and Possible Connection to Alphabay's Recent Demise? (Long post)
Foreword: I am a geek for all things hackebitcoin related drama. I think this stuff plays out like a soap opera and it's beautiful. It's due to the simple fact that the BTC community is made up of a diverse set of people: Hackers, Entrepreneurs, Nerds, Drug Dealers, Fraudsters, etc. So I think for historical purposes it is great to note all the events that happen during huge events like this, because should bitcoin take off, this will be stuff of the history books. So if you have any information to share, please do, and let's try to make archives of all information as websites come and go.
The recent BTC-e post by wizsec is a very big deal, possibly more than most people here realize. BTC-e was an integral part of the crypto trading industry. However, there is still a lot of missing information that greatly affects the narrative and I would like anyone to chime in with educated opinions.
So I have a couple questions about the role btc-e played in laundering funds in the past and what their involvement with the mtgox hack is.
What evidence do we have that Vinnik actually had direct knowledge of the source of the funds he was dealing with? I imagine it's possible that such a large deposit into his exchange would lead him to move them in a manual manner. Obviously he would make a connection on his own due to the size and timing of the deposits, but there is a significant difference between direct involvement and knowledge in the laundering of hacked funds and simply having them show up in your exchange.
The timing of alphabay's admin's arrest is suspect because of he was also Russian and(thanks monerofan33, i've been huffing freon since ab went down) I can imagine btc-e being used to launder alphabay's funds.
What role did btc-e play in the actual hacking of mtgox and other exchanges? Multiple posts by prominent members of the Bitcoin community state in no uncertain terms that btc-e hacked mtgox. Wizsec simply states involvement in laundering of the hacked funds, which is an important distiction. It's hard to imagine that btc-e was responsible for all the hackings, so I personally suspect btc-e's activity to be limited to laundering. Perhaps the reason the funds ended up in Vinnek's non-excange  related addresses is because he traded clean btc-e from btc-e deposits and then used the stolen funds in mass for himself.
EDIT NEW QUESTION: Was the seizure (link) legitimate? I read in a comment that the seizure page was only served to US ip's, is there any truth to that? The whois info was updated on the 28th and name server updated to 74-208-15-160.sinkhole.shadowserver.org which, according to this krebs article, is the same thing that happened to liberty reserve when it was shut down.
I had more questions ealier but I can't remember them at this time, so I'll edit this post as I remember them. If you have any questions you think should be displayed above, post the and I'll edit them in. I appreciate any input on this situation because I find it downright fascinating and I have the feeling it goes deeper than we think.
Why LTC on GOX might hurt cryptos once its implemented. (Wall of text)
I know most people have been very optimistic about GOX carrying LTC. Let me explain why I think they might be mistaken and why LTC has a serious risk of crashing to $1 in the near future. Right now it is extremely difficult to get USD out of GOX in a timely manner. This has been going on for months and won’t be resolved until GOX can find a bank that can support their withdrawals. Currently, the only quick way to get USD out of GOX is to convert it to BTC and then sell it on an exchange that allows USD withdrawals. The price on BTC-e is $99 and $120 on GOX. In other words, GOX users are buying BTC at a premium and selling at a ~20% discount because they either need USD or think GOX won’t deliver in the future. This price difference is called arbitrage. The point to take from this is that people are paying a premium to convert their BTC into USD. Why does this matter for LTC? Lets pretend that LTC trading is implemented on GOX tomorrow. More than likely, this will result in a significant price increase for LTC. What it also represents is a chance for people who want to convert BTC into USD, but who also don’t want to pay the GOX premium, to cash out using LTC as an option. How does that work? People will convert their BTC into LTC. They will then transfer it out of GOX and onto another exchange, convert it into BTC again, and then ultimately cash out for USD. The point to take from this is that people are going to be selling BTC which will cause prices to fall. As the price of BTC on GOX decreases it will result in a contagion effect as other exchanges follow the price on GOX. IMO, this is the catalyst that starts an overall downward trend of BTC that won’t be able to be stopped by the best bots or the biggest whales. This is a zero sum game though; it’s obvious to get into LTC instead, right? This is where you guys probably aren’t going to like me. Let me preface this by me saying I love LTC. I think its fundamentals are great and I like it more than BTC. However, as I am sure most of you have already noticed, the price of LTC has been directly tied to speculation of GOX these past few months. We have all seen what happens when GOX floats a rumor. Prices instantly increase. This trend has been going on since April. Four months of people buying LTC on speculation that once GOX implements the price will rise. Let me say that again. Four months worth of speculators buying LTC. I have no doubt that the price will rise for LTC once it hits GOX. I do, however, think it will be short lived. The higher prices might last a few days and it even might last as long as a week. What will ultimately occur is four months worth of LTC speculators dumping once the price stops rising. I think this new price will be lower than current market values. As big as the market share of Mt Gox, there really aren’t any Cyprus like events that can give cryptos the boost they saw last spring. This is where panic will come into play. People who held LTC on the premise of high prices on GOX are going to be reassessing why they have LTC. While fundamentally it is a good coin, the speculators will have no rumor to follow and will sell. Obviously, some will hold, but the amount of sellers is going to outweigh the amount of buyers. The result is a snowball effect and lots of volatility. This is where price correction occurs. Price will be based on fear and I don’t know how low it will go. ~$1.10 seems like it could be the low of a longer-term trend and a good buying opportunity. With all that being said there a few things that could null my theory. The biggest one is that GOX finds a bank to carry their USD withdrawals. This will end the arbitrage of BTC prices. If this were to happen it would probably result in a sell off, but in the long term add a lot of stability. The other thing that could change is financial collapse. Whether it is in the Euro zone or in the States when people lose faith in fiat currency Cryptos rally. If this happened and GOX added LTC the price would go up due to new demand from fiat fears. This actually might occur in a relatively short period of time. With the US stock market flashing signals of the Hindenburg omen and a historically overbought bull rally we could hit a correction fairly soon. I personally think something like that will happen, but not until very late 2013/early 2014 when we see the transition of the fed chairman. One last thing that might occur is people might hold LTC in anticipation of the arbitrage like they have seen with BTC. They might hold in anticipation that at some point they will be able to get USD out, but think it will be a long time and don’t mind taking the risk of holding long term. There are other variables that could also change the outcome, but at this moment in time I think these are among the most likely. The last thing to take from this is that I am not saying that these things will happen, just that they could happen. Take it FWIW and make you own conclusions. Happy trading ☺
Mysterious disappearance of Tom Butterfield? (Bitcoin blogger)
Does anyone know what happened, or is happening, with Tom Butterfield? (He's the blogger who conducted the "sting" a few weeks ago on Bitcoin news websites to expose those that accept paid-for articles on bitcoin products and services) Just a few days ago, he posted a link here to a new blog entry on medium.com wherein he claimed to have definitive proof that Jon Matonis and others in the Bitcoin Foundation are corrupt, involved with the Willy Bot on MtGox, and that they were even able to withdraw millions of dollars from MtGox after it was shut down in February for everyone else. He claimed to have all their financial transaction data, shell company information, and even emails proving all of the above. However, just two days ago, he started posting some of the financial data here on reddit and stated that he was in the middle of uploading the rest of the evidence to his blog. That's when things got really strange. First, his Twitter account was deleted or blocked, and then his reddit account here (with gold), was also deleted completely. (Note: the original financial data he posted is still here, so I doubt the mods took action against his account for posting it). His blog at medium.com has sat untouched since (likely because it's tied to his deleted Twitter account), and I haven't seen him post anywhere else either. Anyone know what happened or where this guy went? Did anyone see the rest of his evidence before he disappeared? Inquiring minds want to know... His blog: https://medium.com/@TomOnBTC Article on the alleged corruption: https://medium.com/@TomOnBTC/pissed-about-bitcoin-prices-some-of-the-blame-falls-on-the-bitcoin-foundation-bae91f981d1 Original reddit thread from a few days ago: http://www.reddit.com/Bitcoin/comments/2c6tps/pissed_about_bitcoin_prices_some_of_the_blame/ Edit: Ok, immediately after writing this post, I started getting fucked up messages on Twitter from @gordonflarp (name listed as "Jennifer Baumgartner"), and they're referencing this post in the tweet. Anyone with tor running and the right skills feel like digging into that ID for me? With the number of followers he/she/it has, it looks like it might be a compromised Twitter account trying to run some bots against people who tweet back.... maybe? I don't know. wtf?
Bitstamp recently paid me out over USD 1m. I wanted to write this post to thank Bitstamp and to assure other users waiting for big payouts. Having lost coins on MtGOx I was extremely nervous. Here’s a summary of what happened: Early January – requested a withdrawal but I realized Bitstamp would change the amount from USD to euros and I wanted to keep it in dollars, so I cancelled the withdrawal. Bitstamp acknowledged the cancellation and requested more Know Your Client information: eg proof that I had purchased the bitcoins on another exchange and my occupation to which I sent them screenshots of my bank statements and my Linkedin account. I replied to the KYC request the same day Early to mid-January – requested a USD SEPA withdrawal to Metro Bank. They refused as Metro Bank reject any Bitcoin related payment. Bitstamp also requested more KYC information End January - requested a USD withdrawal to a Barclays USD account via International Transfer. The delay here was waiting for Barclays to open the USD account which took five days against Metro Bank who instantly opened the account. The international transfer cost about USD 1000 but it ensured Bitstamp would not convert to euros. The USD 1000 charge felt like tipping the dealer. Bitstamp requested more KYC information but did say they would process the withdrawal despite the outstanding KYC information. 7 February – received the money to a USD account The money has been life changing and enabled me to retire in my fifties. It feels like winning the lottery but unlike winning the lottery in the UK I will have to pay tax on it. Please don’t send me any begging letters. If they are anything like the ones I used to send they will break my heart
Want to relay my recent experience to help other canucks entering the cryptocurrency scene. I wanted to invest 100K in both main coins and some alt coins. Depositing that amount can’t be done using ETF/bank-transfeetc. – the only reasonably quick way is to wire funds. For wires, most exchanges have a percentage based deposit fee – something that makes absolutely no sense to me. Whether you wire 1K or 1MM, the amount of work for the exchange is identical, so it should be a flat fee. Deciding on an exchange is more complicated than that though: each one has their own rules for minimums/maximums, trading fees, supported coins, holding periods, and withdrawal fees. They also can vary greatly on the amount of time verification takes. One thing to note is that pretty much all exchanges don’t charge a fee for inbound crypto transfers. 2 months ago I signed up for 10 exchanges (Coinbase/GDAX, Binance, Coinsquare, Kraken, ezBTC, QuadrigaCX, Bitfinex, Gemeni, Bittrex, Poloniex) and was verified on 7 of them (I’m still in queue for Gemeni, Bittrex, and Poloniex). Verification times gave me what I thought was a decent indicator of the level and quality of support I would receive. Of these exchanges, some have what I believe to be relatively high trading fees (Gemeni .25%, Bittrex, .25%, ezBTC .30%, QuadrigaCX .50%) vs lower maketaker fees (GDAX 0/.3%, Binance .1/.1%, Gitfinex .1/.2%, Coinsquare .1/.2%, Kraken .16/.26%). Still others have high percentage based wire fees. And finally, there’s a big disparity between withdrawal fees: free on some exchanes, vs fixed rate based on the coin for others, vs Coinsquare’s insane fixed 0.0025 BTC regardless of what coin or the amount being withdrawn. So here are some observations on the exchanges. Please note that the below is not a reflection on any of the people who work at the exchanges. I’m sure they are working as hard as they can and are doing their best. It’s just my experience. It’s also not financial advice. Also, I’m only human so feel free to offer corrections or better advice. Coinsquare: amazingly fast verification time, and for very large deposits seems to likely be the best option as they will let you speak to a human being by phone and will waive the deposit fee (I didn’t know this until later though). I excluded them because of their high 0.5% percentage based deposit fee and their crazy high withdrawal fee. They also only have support for 6 coins. QuadrigaCX: I had a terrible initial experience with QuadrigaCX’s support, so I immediately excluded them. They have high trading fees and there are many complaints of support tickets being ignored or having extremely lengthy wait times. They have a crazy high 1% percentage based CAD wire fee, but offer free USD wires. Note that they only support wires for large amounts. GDAX/Coinbase: Loads of good reviews, but only has support for 4 coins. Seems like they also don’t have a fee for crypto withdrawals. You also can’t seem to wire CAD or USD funds directly to GDAX. I think you may have to wire USD funds to Coinbase and then transfer them over to GDAX (for free). Kraken: I created an account but the verification page just appeared blank for me. After a few days, their support team got back to me telling me that they had a bug and that I needed to create a new account using a different email address and try again. That worked. I decided to use them as they seemed like the best all-around alternative. I was impressed with their support response (they gave me an answer that worked and responded in days as opposed to weeks), they offer a no-fee inbound CAD wire, support 16 coins, and have low (though not free) crypto withdrawal fees. They have also been around a while and have a good reputation (They were picked to handle MtGox claims). Wiring funds to them was a hair-raising experience though. You basically need to send your funds to an unknown bank in Tokyo, Japan. Kraken also has two slightly different sets of wire instructions: one that is on their website, and the other that their support folks send out. Only one of them mentions that you should tell your bank not to use an intermediary that will convert your currency. If you do things properly, and are lucky, you end up only paying ~$40 in fees. But chances are, you don’t, and end up paying 4%! (see https://www.reddit.com/BitcoinCA/comments/7rd6k8/fees_when_sending_to_krakencom/). You also have no idea how much the fees will be until the money finally shows up in your account. That’s tremendously unsettling. Luckily my bank branch manager was familiar with crypto currency wires and helped me do things properly. But, the wire took over 2 weeks to show up (Jan 18th), and Kraken support is so overloaded that they didn’t’ respond, despite me escalating my support ticket several times. I eventually had to resort to a reddit post to get a response to my support ticket. I gave support my wire receipt and answered lots of additional questions to help them try to “locate” it. Perhaps the worst part of my entire experience was that while my wire was being located, the entire crypto market tanked by 50%...and no one would respond to my support ticket…I felt helpless. A Kraken support rep a few days ago said that they are handing >50K new user registrations per day and have >20K new support tickets per day. I feel they should turn off new user registrations until they are capable of servicing existing customers. This is what their competitors have done. I found it disheartening to learn that the only way to get a response to my support ticket was to complain via social media --- many others have found the same. While I was waiting for my wire to appear Kraken had a >48h outage. Prior to the outage, the site was almost unusable as you’d receive constant 50x errors (I found this out prior to wiring my funds). After the outage, I find that their site is still barely usable. Pages take 10-15 seconds to load and when they do load many times they display errors so you have to continually retry until things work. At the end of the day though, they did come through for me: my wire arrived safely. So with my funds in Kraken, I tried to use them to purchase crypto. But no matter what I tried, none of the CAD dollar trading pairs would appear. I logged out and back in a few times and 15 minutes later, it suddenly started appearing. With the flakiness in Kraken’s platform, I had no choice but to transfer everything to a more stable and faster exchange: Binance: These guys have their shit in order. Super simple site navigation once you get used to it, fast verification times, blazingly fast website and trading engine, more than 50 coins supported, etc. But, they don’t support fiat – you must use one of the other exchanges to buy crypto with fiat and then transfer in your crypto. Gotta say it again: everything is super fast. Not just the page loads, but also trading, email confirmations, and withdrawals. Trading takes a bit of getting used to as you aren’t really buying or selling crypto…you are instead “trading” one crypto coin for another. Depending on the coin you want to purchase, you might have to trade your coin for BNB (binance’s own coin) and then trade BNB for the coin you desire. Be Your Own Bank: One final word of advice. Binance is awesome, but don’t trust anyone as despite everyone’s best intentions: no matter how secure a platform is, it can and will be hacked. As soon as you have done your shopping, transfer your coins off to your own wallet. This is why withdrawal fees are important. You might be asking: in hindsight, if I had to do it all over again, what would I do differently? To wire CAD funds I would try to use Coinsquare if it’s a big amount (after re-reading other people’s recent reviews). For USD wires, I might try using Gemeni, but I still haven’t been verified by them and have been waiting for almost 2 months. Before using either I would re-test how long it takes for a support ticket to be responded to. If you do wire funds, don't wire an exact round amount like "10,000.00", instead I would wire "10,070.45" so that it's easier to locate if things go wrong. Once the account has been funded I wouldn’t hesitate to transfer everything to another exchange if I wasn’t happy with the platform, the number of coin offerings, or quality of service I was receiving: you can always come back when things improve. Things change so quickly so not sure how helpful this will be…just wished I had known some of the above before starting.
Hello all, Wanted to hear if I'm the only one who suddenly is being asked a lot of questions when trying withdraw my money from Bitstamp. Ive used bitstamp for a few years, and Mtgox when it was still alive. Last december it took 2 months for my withdrawal to go through. Now I tried to lift the rest of my holdings to my bank account. Bitstamp sent me a bunch of questions to answer. Standard KYC questions (why Im withdrawinbg etc). No problem with that. BUT THEN the next thing support wants me to explain some withdrawals of bitcoin from MARCH 2017... ???? This is NOT normal and I feel like maybe bitstamp has a liquidity problem??? I mean, I used shapeshifter at those times. I sold some coins to a friend (cash in real life). There is NOTHING suspicious.. BUT how can they require that users should document somehow all the transactions and deposits and withdrawals? So.. my money is now apparently stuck bistamp.. does someone else have similar problems. Please warned that this could mean liqiudity problems at bitstamp. Unless they make this go through. I will just move the coins to a nother exchange... I mean. How stupid aint this? I'm incredibly sad to have my HONEST euros stuck and I cant get to them now.. was planning to go travel... now bitstamp fucked it up. - Joakim
This exchange is no longer trustable, many people are having issues withdrawing their money, their bitcoins, some even had their accounts frozen or vanished. This cards exchange should not be in the sidebar of this subreddit anymore. I feel really bad for the current mtgox users trying to get their money out for fking months now and having customer support giving them bad excuses or simply ignoring them, so I dont think anyone new to Bitcoin should see MTgox as a viable exchange, unless they want to lose their money. Please mods, take into consideration my request, newcomers should not be put into that situtation of having their accounts frozen, their money dissapearing when using an exchange that is -still- recommended in this sub. Thanks edit: Looks like the mods added a warning next to mtgox in the sidebar, thats good enough!
Hey folks. Buying low and selling high isn't exactly a new idea, but something interesting about bitcoin is peaking my interest. In most currency exchanges across the world, the price is usually the same, give or take a few cents. But here with bitcoin, there is a massive disparity between the Bitstamp price and the Mt Gox price. As of right now, bitstamp is $290, while Mt Gox is $310. So what is stopping anyone from buying 10 BTC from bitstamp, selling them on Mt. Gox, and rinsing and repeating? I feel like I'm missing something, because I feel that something so obvious would be discussed here more often.
Hello! My name is Slava Mikhalkin, I am a Project Owner of Crowdsale platform at Platinum, the company that knows how to start any ICO or STO in 2019. If you want to avoid headaches with launching process, we can help you with ICO and STO advertising and promotion. See the full list of our services: Platinum.fund I am also happy to be a part of the UBAI, the first educational institution providing the most effective online education on blockchain! We can teach you how to do ICO/STO in 2019. Today I want to tell you how to sell and transfer cryptocurrencies. Major Exchanges In finance, an exchange is a forum or platform for trading commodities, derivatives, securities or other financial instruments. The principle concern of an exchange is to allow trading between parties to take place in a fair and legally compliant manner, as well as to ensure that pricing information for any instrument traded on the exchange is reliable and coherently delivered to exchange participants. In the cryptocurrency space exchanges are online platforms that allow users to trade cryptocurrencies or digital currencies for fiat money or other cryptocurrencies. They can be centralized exchanges such a Binance, or decentralized exchanges such as IDEX. Most cryptocurrency exchanges allow users to trade different crypto assets with BTC or ETH after having already exchanged fiat currency for one of those cryptocurrencies. Coinbase and Kraken are the main avenue for fiat money to enter into the cryptocurrency ecosystem. Function and History Crypto exchanges can be market-makers that take bid/ask spreads as a commission on the transaction for facilitating the trade, or more often charge a small percentage fee for operating the forum in which the trade was made. Most crypto exchanges operate outside of Western countries, enabling them to avoid stringent financial regulations and the potential for costly and lengthy legal proceedings. These entities will often maintain bank accounts in multiple jurisdictions, allowing the exchange to accept fiat currency and process transactions from customers all over the globe. The concept of a digital asset exchange has been around since the late 2000s and the following initial attempts at running digital asset exchanges foreshadows the trouble involved in attempting to disrupt the operation of the fiat currency baking system. The trading of digital or electronic assets predate Bitcoin’s creation by several years, with the first electronic trading entities running afoul of the Australian Securities and Investments Commission (ASIC) in late 2004. Companies such as Goldex, SydneyGoldSales, and Ozzigold, shut down voluntarily after ASIC found that they were operating without an Australian Financial Services License. E-Gold, which exchanged fiat USD for grams of precious metals in digital form, was possibly the first digital currency exchange as we know it, allowing users to make instant transfers to the accounts of other E-Gold members. At its peak in 2006 E-Gold processed $2 billion worth of transactions and boasted a user base of over 5 million people. Popular Exchanges Here we will give a brief overview of the features and operational history of the more popular and higher volume exchanges because these are the platforms to which newer traders will be exposed. These exchanges are recommended to use because they are the industry standard and they inspire the most confidence. Bitfinex Owned and operated by iFinex Inc, the cryptocurrency trading platform Bitfinex was the largest Bitcoin exchange on the planet until late 2017. Headquartered in Hong Kong and based in the US Virgin Island, Bitfinex was one of the first exchanges to offer leveraged trading (“Margin trading allows a trader to open a position with leverage. For example — we opened a margin position with 2X leverage. Our base assets had increased by 10%. Our position yielded 20% because of the 2X leverage. Standard trades are traded with leverage of 1:1”) and also pioneered the use of the somewhat controversial, so-called “stable coin” Tether (USDT). Binance Binance is an international multi-language cryptocurrency exchange that rose from the mid-rank of cryptocurrency exchanges to become the market dominating behemoth we see today. At the height of the late 2017/early 2018 bull run, Binance was adding around 2 million new users per week! The exchange had to temporarily disallow new registrations because its servers simply could not keep up with that volume of business. After the temporary ban on new users was lifted the exchange added 240,000 new accounts within two hours. Have you ever thought whats the role of the cypto exchanges? The answer is simple! There are several different types of exchanges that cater to different needs within the ecosystem, but their functions can be described by one or more of the following: To allow users to convert fiat currency into cryptocurrency. To trade BTC or ETH for alt coins. To facilitate the setting of prices for all crypto assets through an auction market mechanism. Simply put, you can either mine cryptocurrencies or purchase them, and seeing as the mining process requires the purchase of expensive mining equipment, Cryptocurrency exchanges can be loosely grouped into one of the 3 following exchange types, each with a slightly different role or combination of roles. Have you ever thought about what are the types of Crypto exchanges?
Traditional Cryptocurrency Exchange: These are the type that most closely mimic traditional stock exchanges where buyers and sellers trade at the current market price of whichever asset they want, with the exchange acting as the intermediary and charging a small fee for facilitating the trade. Kraken and GDAX are examples of this kind of cryptocurrency exchange. Fully peer-to-peer exchanges that operate without a middleman include EtherDelta, and IDEX, which are also examples of decentralized exchanges.
Cryptocurrency Brokers: These are website or app based exchanges that act like a Travelex or other bureau-de-change. They allow customers to buy or sell crypto assets at a price set by the broker (usually market price plus a small premium). Coinbase is an example of this kind of exchange.
Direct Trading Platform: These platforms offer direct peer-to-peer trading between buyers and sellers, but don’t use an exchange platform in doing so. These types of exchanges do not use a set market rate; rather, sellers set their own rates. This is a highly risky form of trading, from which new users should shy away.
To understand how an exchange functions we need only look as far as a traditional stock exchange. Most all the features of a cryptocurrency exchange are analogous to features of trading on a traditional stock exchange. In the simplest terms, the exchanges fulfil their role as the main marketplace for crypto assets of all kinds by catering to buyers or sellers. These are some definitions for the basic functions and features to know: Market Orders: Orders that are executed instantly at the current market price. Limit Order: This is an order that will only be executed if and when the price has risen to or dropped to that price specified by the trader and is also within the specified period of time. Transaction fees: Exchanges will charge transactions fees, usually levied on both the buyer and the seller, but sometimes only the seller is charged a fee. Fees vary on different exchanges though the norm is usually below 0.75%. Transfer charges: The exchange is in effect acting as a sort of escrow agent, to ensure there is no foul play, so it might also charge a small fee when you want to withdraw cryptocurrency to your own wallet. Regulatory Environment and Evolution Cryptocurrency has come a long way since the closing down of the Silk Road darknet market. The idea of crypto currency being primarily for criminals, has largely been seen as totally inaccurate and outdated. In this section we focus on the developing regulations surrounding the cryptocurrency asset class by region, and we also look at what the future may hold. The United States of America A coherent uniform approach at Federal or State level has yet to be implemented in the United States. The Financial Crimes Enforcement Network published guidelines as early as 2013 suggesting that BTC and other cryptos may fall under the label of “money transmitters” and thus would be required to take part in the same Anti-money Laundering (AML) and Know your Client (KYC) procedures as other money service businesses. At the state level, Texas applies its existing finance laws. And New York has instituted an entirely new licensing system. The European Union The EU’s approach to cryptocurrency has generally been far more accommodating overall than the United States, partly due to the adaptable nature of pre-existing laws governing electronic money that predated the creation of Bitcoin. As with the USA, the EU’s main fear is money laundering and criminality. The European Central Bank (ECB) categorized BTC as a “convertible decentralized currency” and advised all central banks in the EU to refrain from trading any cryptocurrencies until the proper regulatory framework was put in place. A task force was then set up by the European Parliament in order to prevent and investigate any potential money laundering that was making use of the new technology. Likely future regulations for cryptocurrency traders within the European Union and North America will probably consist of the following proposals: The initiation of full KYC procedures so that users cannot remain fully anonymous, in order to prevent tax evasion and curtail money laundering. Caps on payments that can be made in cryptocurrency, similar to caps on traditional cash transactions. A set of rules governing tax obligations regarding cryptocurrencies Regulation by the ECB of any companies that offer exchanges between cryptocurrencies and fiat currencies It is less likely for other countries to follow the Chinese approach and completely ban certain aspects of cryptocurrency trading. It is widely considered more progressive and wiser to allow the technology to grow within a balanced accommodative regulatory framework that takes all interests and factors into consideration. It is probable that the most severe form of regulation will be the formation of new governmental bodies specifically to form laws and exercise regulatory control over the cryptocurrency space. But perhaps that is easier said than done. It may, in certain cases, be incredibly difficult to implement particular regulations due to the anonymous and decentralized nature of crypto. Behavior of Cryptocurrency Investors by Demographic Due to the fact that cryptocurrency has its roots firmly planted in the cryptography community, the vast majority of early adopters are representative of that group. In this section we cover the basic structure of the cryptocurrency market cycle and the makeup of the community at large, as well as the reasons behind different trading decisions. The Cryptocurrency Market Cycle Bitcoin leads the bull rally. FOMO (Fear of missing out) occurs, the price surge is a constant topic of mainstream news, business programs cover the story, and social media is abuzz with cryptocurrency chatter. Bitcoin reaches new All Timehigh (ATH) Market euphoria is fueled with even more hype and the cycle is in full force. There is a constant stream of news articles and commentary on the meteoric, seemingly unstoppable rise of Bitcoin. Bitcoin’s price “stabilizes”, In the 2017 bull run this was at or around $14,000. A number of solid, large market cap altcoins rise along with Bitcoin; ETH & LTC leading the altcoins at this time. FOMO comes into play, as the new ATH in market cap is reached by pumping of a huge number of alt coins. Top altcoins “somewhat” stabilize, after reaching new all-time highs. The frenzy continues with crypto success stories, notable figures and famous people in the news. A majority of lesser known cryptocurrencies follow along on the upward momentum. Newcomers are drawn deeper into crypto and sign up for exchanges other than the main entry points like Coinbase and Kraken. In 2017 this saw Binance inundated with new registrations. Some of the cheapest coins are subject to massive pumping, such as Tron TRX which saw a rise in market cap from $150 million at the start of December 2017 to a peak of $16 billion! At this stage, even dead coins or known scams will get pumped. The price of the majority of cryptocurrencies stabilize, and some begin to retract. When the hype is subsiding after a huge crypto bull run, it is a massive sell signal. Traditional investors will begin to give interviews about how people need to be careful putting money into such a highly volatile asset class. Massive violent correction begins and the market starts to collapse. BTC begins to fall consistently on a daily basis, wiping out the insane gains of many medium to small cap cryptos with it. Panic selling sweeps through the market. Depression sets in, both in the markets, and in the minds of individual investors who failed to take profits, or heed the signs of imminent collapse. The price stagnation can last for months, or even years. The Influence of Age upon Trading Did you know? Cryptocurrencies have been called “stocks for millennials” According to a survey conducted by the Global Blockchain Business Council, only 5% of the American public own any bitcoin, but of those that do, an overwhelming majority of 71% are men, 58% of them are between the ages of 18 and 35, and over half of them are minorities. The same survey gauged public attitude toward the high risk/high return nature of cryptocurrency, in comparison to more secure guaranteed small percentage gains offered by government bonds or stocks, and found that 30% would rather invest $1,000 in crypto. Over 42% of millennials were aware of cryptocurrencies as opposed to only 15% of those ages 65 and over. In George M. Korniotis and Alok Kumar’s study into the effects of aging on portfolio management and the quality of decisions made by older investors, they found “that older and experienced investors are more likely to follow “rules of thumb” that reflect greater investment knowledge. However, older investors are less effective in applying their investment knowledge and exhibit worse investment skill, especially if they are less educated and earn lower income.” Geographic Influence upon Trading One of the main drivers of the apparent seasonal ebb and flow of cryptocurrency prices is the tax situation in the various territories that have the highest concentrations of cryptocurrency holders. Every year we see an overall market pull back beginning in mid to late January, with a recovery beginning usually after April. This is because “Tax Season” is roughly the same across Europe and the United States, with the deadline for Income tax returns being April 15th in the United States, and the tax year officially ending the UK on the 6th of April. All capital gains must be declared before the window closes or an American trader will face the powerful and long arm of the IRS with the consequent legal proceedings and possible jail time. Capital gains taxes around the world vary from jurisdiction to jurisdiction but there are often incentives for cryptocurrency holders to refrain from trading for over a year to qualify their profits as long term gain when they finally sell. In the US and Australia, for example, capital gains are reduced if you bought cryptocurrency for investment purposes and held it for over a year. In Germany if crypto assets are held for over a year then the gains derived from their sale are not taxed. Advantages like this apply to individual tax returns, on a case by case basis, and it is up to the investor to keep up to date with the tax codes of the territory in which they reside. 2013 Bull run vs 2017 Bull run price Analysis In late 2016 cryptocurrency traders were faced with the task of distinguishing between the beginnings of a genuine bull run and what might colorfully be called a “dead cat bounce” (in traditional market terminology). Stagnation had gripped the market since the pull-back of early 2014. The meteoric rise of Bitcoin’s price in 2013 peaked with a price of $1,100 in November 2013, after a year of fantastic news on the adoption front with both Microsoft and PayPal offering BTC payment options. It is easy to look at a line going up on a chart and speak after the fact, but at the time, it is exceeding difficult to say whether the cat is actually climbing up the wall, or just bouncing off the ground. Here, we will discuss the factors that gave savvy investors clues as to why the 2017 bull run was going to outstrip the 2013 rally. Hopefully this will help give insight into how to differentiate between the signs of a small price increase and the start of a full scale bull run. Most importantly, Volume was far higher in 2017. As we can see in the graphic below, the 2017 volume far exceeds the volume of BTC trading during the 2013 price increase. The stranglehold MtGox held on trading made a huge bull run very difficult and unlikely. Fraud & Immoral Activity in the Private Market Ponzi Schemes Cryptocurrency Ponzi schemes will be covered in greater detail in Lesson 7, but we need to get a quick overview of the main features of Ponzi schemes and how to spot them at this point in our discussion. Here are some key indicators of a Ponzi scheme, both in cryptocurrencies and traditional investments: A guaranteed promise of high returns with little risk. Consistentflow of returns regardless of market conditions. Investments that have not been registered with the Securities and Exchange Commission (SEC). Investment strategies that are a secret, or described as too complex. Clients not allowed to view official paperwork for their investment. Clients have difficulties trying to get their money back. The initial members of the scheme, most likely unbeknownst to the later investors, are paid their “dividends” or “profits” with new investor cash. The most famous modern-day example of a Ponzi scheme in the traditional world, is Bernie Madoff’s $100 billion fraudulent enterprise, officially titled Bernard L. Madoff Investment Securities LLC. And in the crypto world, BitConnect is the most infamous case of an entirely fraudulent project which boasted a market cap of $2 billion at its peak. What are the Exchange Hacks? The history of cryptocurrency is littered with examples of hacked exchanges, some of them so severe that the operation had to be wound up forever. As we have already discussed, incredibly tech savvy and intelligent computer hackers led by Alexander Vinnik stole 850000 BTC from the MtGox exchange over a period from 2012–2014 resulting in the collapse of the exchange and a near-crippling hammer blow to the emerging asset class that is still being felt to this day. The BitGrail exchange suffered a similar style of attack in late 2017 and early 2018, in which Nano (XRB) was stolen that was at one point was worth almost $195 million. Even Bitfinex, one of the most famous and prestigious exchanges, has suffered a hack in 2016 where $72 million worth of BTC was stolen directly from customer accounts. Hardware Wallet Scam Case Study In late 2017, an unfortunate character on Reddit, going by the name of “moody rocket” relayed his story of an intricate scam in which his newly acquired hardware wallet was compromised, and his $34,000 life savings were stolen. He bought a second hand Nano ledger into which the scammers own recover seed had already been inserted. He began using the ledger without knowing that the default seed being used was not a randomly assigned seed. After a few weeks the scammer struck, and withdrew all the poor HODLer’s XRP, Dash and Litecoin into their own wallet (likely through a few intermediary wallets to lessen the very slim chances of being identified). Hardware Wallet Scam Case Study Social Media Fraud Many gullible and hapless twitter users have fallen victim to the recent phenomenon of scammers using a combination of convincing fake celebrity twitter profiles and numerous amounts of bots to swindle them of ETH or BTC. The scammers would set up a profile with a near identical handle to a famous figure in the tech sphere, such as Vitalik Buterin or Elon Musk. And then in the tweet, immediately following a genuine message, follow up with a variation of “Bonus give away for the next 100 lucky people, send me 0.1 ETH and I will send you 1 ETH back”, followed by the scammers ether wallet address. The next 20 or so responses will be so-called sockpuppet bots, thanking the fake account for their generosity. Thus, the pot is baited and the scammers can expect to receive potentially hundreds of donations of 0.1 Ether into their wallet. Many twitter users with a large follower base such as Vitalik Buterin have taken to adding “Not giving away ETH” to their username to save careless users from being scammed. Market Manipulation It also must be recognized that market manipulation is taking place in cryptocurrency. For those with the financial means i.e. whales, there are many ways in which to control the market in a totally immoral and underhanded way for your own profit. It is especially easy to manipulate cryptos that have a very low trading volume. The manipulator places large buy orders or sell walls to discourage price action in one way or the other. Insider trading is also a significant problem in cryptocurrency, as we saw with the example of blatant insider trading when Bitcoin Cash was listed on Coinbase. Examples of ICO Fraudulent Company Behavior In the past 2 years an astronomical amount of money has been lost in fraudulent Initial Coin Offerings. The utmost care and attention must be employed before you invest. We will cover this area in greater detail with a whole lesson devoted to the topic. However, at this point, it is useful to look at the main instances of ICO fraud. Among recent instances of fraudulent ICOs resulting in exit scams, 2 of the most infamous are the Benebit and PlexCoin ICOs which raised $4 million for the former and $15 million for the latter. Perhaps the most brazen and damaging ICO scam of all time was the Vietnamese Pincoin ICO operation, where $660million was raised from 32,000 investors before the scammer disappeared with the funds. In case of smaller ICO “exit scamming” there is usually zero chance of the scammers being found. Investors must just take the hit. We will cover these as well as others in Lesson 7 “Scam Projects”. Signposts of Fraudulent Actors The following factors are considered red flags when investigating a certain project or ICO, and all of them should be considered when deciding whether or not you want to invest. Whitepaper is a buzzword Salad: If the whitepaper is nothing more than a collection of buzzwords with little clarity of purpose and not much discussion of the tech involved, it is overwhelmingly likely you are reading a scam whitepaper. Signposts of Fraudulent Actors §2 No Code Repository: With the vast majority of cryptocurrency projects employing open source code, your due diligence investigation should start at GitHub or Sourceforge. If the project has no entries, or nothing but cloned code, you should avoid it at all costs. Anonymous Team: If the team members are hard to find, or if you see they are exaggerating or lying about their experience, you should steer clear. And do not forget, in addition to taking proper precautions when investing in ICOs, you must always make sure that you are visiting authentic web pages, especially for web wallets. If, for example, you are on a spoof MyEtherWallet web page you could divulge your private key without realizing it and have your entire portfolio of Ether and ERC-20 tokens cleaned out. Methods to Avoid falling Victim Avoiding scammers and the traps they set for you is all about asking yourself the right questions, starting with: Is there a need for a Blockchain solution for the particular problem that a particular ICO is attempting to solve? The existing solution may be less costly, less time consuming, and more effective than the proposals of a team attempting to fill up their soft cap in an ICO. The following quote from Mihai Ivascu, the CEO of Modex, should be kept in mind every time you are grading an ICO’s chances of success: “I’m pretty sure that 95% of ICOswill not last, and many will go bankrupt. ….. not everything needs to be decentralized and put on an open source ledger.” Methods to Avoid falling Victim §2 Do I Trust These People with My Money, or Not? If you continue to feel uneasy about investing in the project, more due diligence is needed. The developers must be qualified and competent enough to complete the objectives that they have set out in the whitepaper. Is this too good to be true? All victims of the well-known social media scams using fake profiles of Vitalik Buterin, or Bitconnect investors for that matter, should have asked themselves this simple question, and their investment would have been saved. In the case of Bitconnect, huge guaranteed gains proportional to the amount of people you can get to sign up was a blatant pyramid scheme, obviously too good to be true. The same goes for Fake Vitalik’s offer of 1 ether in exchange for 0.1 ETH. Selling Cryptocurrencies, Several reasons for selling with the appropriate actions to take: If you are selling to buy into an ICO, or maybe believe Ether is a safer currency to hold for a certain period of time, it is likely you will want to make use of the Ether pair and receive Ether in return. Obviously if the ICO is on the NEO or WANchain blockchain for example, you will use the appropriate pair. -Trading to buy into another promising project that is listing on the exchange on which you are selling (or you think the exchange will experience a large amount of volume and become a larger exchange), you may want to trade your cryptocurrency for that exchange token. -If you believe that BTC stands a good chance of experiencing a bull run then using the BTC trading pair is the suitable choice. -If you believe that the market is about to experience a correction but you do not want to take your gains out of the market yet, selling for Tether or “tethering up” is the best play. This allows you to keep your locked-in profits on the exchange, unaffected by the price movements in the cryptocurrency markets,so that you can buy back in at the most profitable moment. -If you wish to “cash out” i.e. sell your cryptocurrency for fiat currency and have those funds in your bank account, the best pair to use is ETH or BTC because you will likely have to transfer to an exchange like Kraken or Coinbase to convert them into fiat. If the exchange offers Litecoin or Bitcoin Cash pairs it could be a good idea to use these for their fast transaction time and low fees. Selling Cryptocurrencies Knowing when and how to sell, as well as strategies to inflate the value of your trade before sale, are important skills as a trader of any product or financial instrument. If you are satisfied that the sale itself of the particular amount of a token or coin you are trading away is the right one, then you must decide at what price you are going to sell. Exchanges exercise their own discretion as to which trading “pairs” they will offer, but the most common ones are BTC, ETH, BNB for Binance, BIX for Bibox etc., and sometimes Tether (USDT) or NEO. As a trader, you decide which particular cryptocurrency to exchange depending on your reason for making that specific trade at that time. Methods of Sale Market sell/Limit sell on exchange: A limit sell is an order placed on an exchange to sell as soon as (also specifically only if and when) the price you specified has been hit within the time limit you select. A market order executes the sale immediately at the best possible price offered by the market at that exact time. OTC (or Over the Counter) selling refers to sale of securities or cryptocurrencies in any method without using an exchange to intermediate the trade and set the price. The most common way of conducting sales in this manner is through LocalBitcoins.com. This method of cryptocurrency selling is far riskier than using an exchange, for obvious reasons. The influence and value of your Trade There are a number of strategies you can use to appreciate the value of your trade and thus increase the Bitcoin or Ether value of your portfolio. It is important to disassociate yourself from the dollar value of your portfolio early on in your cryptocurrency trading career simply because the crypto market is so volatile you will end up pulling your hair out in frustration following the real dollar money value of your holdings. Once your funds have been converted into BTC and ETH they are completely in the crypto sphere. (Some crypto investors find it more appropriate to monitor the value of their portfolio in satoshi or gwei.) Certainly not limited to, but especially good for beginners, the most reliable way to increase your trading profits, and thus the overall value and health of your portfolio, is to buy into promising projects, hold them for 6 months to a year, and then reevaluate. This is called Long term holding and is the tactic that served Bitcoin HODLers quite well, from 2013 to the present day. Obviously, if something comes to light about the project that indicates a lengthy set back is likely, it is often better to cut your losses and sell. You are better off starting over and researching other projects. Also, you should set initial Price Points at which you first take out your original investment, and then later, at which you take out all your profits and exit the project. That should be after you believe the potential for growth has been exhausted for that particular project. Another method of increasing the value of your trades is ICO flipping. This is the exact opposite of long term holding. This is a technique in which you aim for fast profits taking advantage of initial enthusiasm in the market that may double or triple the value of ICO projects when they first come to market. This method requires some experience using smaller exchanges like IDEX, on which project tokens can be bought and sold before listing on mainstream exchanges. “Tethering up” means to exchange tokens or coins for the USDT stable coin, the value of which is tethered to the US Dollar. If you learn, or know how to use, technical analysis, it is possible to predict when a market retreatment is likely by looking at the price movements of BTC. If you decide a market pull back is likely, you can tether up and maintain the dollar value of your portfolio in tether while other tokens and coins decrease in value. The you wait for an opportune moment to reenter the market. Market Behavior in Different Time Periods The main descriptors used for overall market sentiment are “Bull Market” and “Bear Market”. The former describes a market where people are buying on optimism. The latter describes a market where people are selling on pessimism. Fun (or maybe not) fact: The California grizzly bear was brought to extinction by the love of bear baiting as a sport in the mid 1800s. Bears were highly sought after for their intrinsic fighting qualities, and were forced into fighting bulls as Sunday morning entertainment for Californians. What has this got to do with trading and financial markets? The downward swipe of the bear’s paws gives a “Bear market” its name and the upward thrust of a Bull’s horns give the “Bull Market” its name. Most unfortunately for traders, the bear won over 80% of the bouts. During a Bull market, optimism can sometimes grow to be seemingly boundless, volume is rising, and prices are ascending. It can be a good idea to sell or rebalance your portfolio at such a time, especially if you have a particularly large position in one holding or another. This is especially applicable if you need to sell a large amount of a relatively low-volume holding, because you can then do so without dragging the price down by the large size of your own sell order. Learn more on common behavioral patterns observed so far in the cryptocurrency space for different coins and ICO tokens. Follow the link: UBAI.co If you want to know how do security tokens work, and become a professional in crypto world contact me via Facebook to get all the details: Facebook
Hello! My name is Inna Halahuz, I am a sales manager at Platinum, the largest listing service provider for the STO and ICO projects. We know all about the best and most useful STO and ICO marketing services. By the way, we developed the best blockchain platform: [Platinum.fund] (https://platinum.fund/sto/) We also created the UBAI, the unique educational project with the best and most useful online courses. We not only share our knowledge but also help the best graduates to find a job! After finishing our courses you will know all about crypto securities, ICO and STO advertizing and best blockchain platforms. What a Blockchain Wallet is? What is its purpose? Find the answer after reading this article. Public/Private Key The public key is the digital code you give to someone that wants to transfer ownership of a unit of cryptocurrency to you; and a private key is what you need to be able to unlock your own wallet to transfer a unit of a cryptocurrency to someone else. The encoding of information within a wallet is done by the private and public keys. That is the main component of the encryption that maintains the security of the wallet. Both keys function in simultaneous encryption systems called symmetric and asymmetric encryption. The former, alternatively known as private key encryption, makes use of the same key for encryption and decryption. The latter, asymmetric encryption, utilizes two keys, the public and private key, wherein a message-sender encrypts the message with the public key, and the recipient decodes it with their private key. The public key uses asymmetric algorithms that convert messages into an unreadable format. A person who possesses a public key can encrypt the message for a specific receiver. Accessing wallets Methods of wallet access vary depending on the type of wallet being used. Various types of currency wallets on an exchange will normally be accessed via the exchange’s entrance portal, normally involving a combination of a username/password and optionally, 2FA (Two factor authentication, which we explain in more detail later). Whereas hardware wallets need to be connected to an internet enabled device, and then have a pin code entered manually by the user in possession of the hardware wallet in order for access to be gained. Phone wallets are accessed through the device on which the wallet application has been downloaded. Ordinarily, a passcode and/or security pattern must be entered before entry is granted, in addition to 2FA for withdrawals. Satoshi Nakamoto built the Satoshi client which evolved into Bitcoin in 2009. This software allowed users to create wallets and send money to other addresses. However, it proved to be a nightmarish user experience, with many transactions being sent to incorrect addresses and private keys being lost. The MtGox (Magic the Gathering Online exchange, named after the original intended use of the exchange) incident, which will be covered in greater detail later, serves as a reminder of the dangers present in the cryptosphere regarding security, and the need to constantly upgrade your defenses against all potential hacks. The resulting loss of 850k BTC is a still unresolved problem, weighing heavily on the victims and the markets at large. This caused a huge push for a constantly evolving and improving focus on security. Exchanges that developed later, and are thus considered more legitimate and secure, such as Gemini and Coinbase, put a much greater emphasis on vigilance as a direct result of the MtGox hacking incident. We also saw the evolution of wallet security into the physical realm with the creation of hardware wallets, most notable among them the Ledger and Trezor wallets. Types of Wallets & Storage Methods The simplest way to sift through the dozens of cryptocurrency storage methods available today, is to divide them up into digital and non-digital, software and hardware wallets. There are also less commonly used methods of storage of private keys, like paper wallets and brain wallets. We will examine them all at least briefly, because in the course of your interaction with cryptocurrencies and Blockchain technology, it is essential to master all the different types of hardware and software wallets. Another distinction must be made between hot wallets and cold wallets. A hot wallet is one that is connected to the internet, and a cold wallet is one that is not. Fun fact: The level below cold storage, deep cold storage has just recently been implemented by the Regal RA DMCC, a subsidiary of an internationally renowned gold trading company licensed in the Middle East. After having been granted a crypto trading license, Regal RA launched their “deep cold” storage solution for traders and investors, which offers the ability to store crypto assets in vaults deep below the Almas Tower in Dubai. This storage method is so secure that at no point is the vault connected to a network or the internet; meaning the owners of the assets can be sure that the private keys are known only to the rightful owners. Lets take a quick look at specific features and functionality of varieties of crypto wallets. Software wallets: wallet applications installed on a laptop, desktop, phone or tablet. Web Wallets: A hot wallet by definition. Web Wallets are accessible through the web browser on your phone or computer. The most important feature to recognize about any kind of web wallet, is that the private keys are held and managed by a trusted third party. MyEtherWallet is the most commonly used non-exchange web wallet, but it can only be used to store Ethereum and ERC-20 tokens. Though the avenue of access to MEW is through the web, it is not strictly speaking a web wallet, though this label will suffice for the time being. The MEW site gives you the ability to create a new wallet so you can store your ETH yourself. All the data is created and stored on your CPU rather than their servers. This makes MEW a hybrid kind of web wallet and desktop wallet. Exchange Wallets: A form of Web Wallet contained within an exchange. An exchange will hold a wallet for each individual variety of cryptocurrency you hold on that exchange. Desktop Wallets: A software program downloaded onto your computer or tablet hard drive that usually holds only one kind of cryptocurrency. The Nano Wallet (Formerly Raiwallet) and Neon wallet for storage of NEO and NEP-5 tokens are notable examples of desktop wallets Phone Wallets: These are apps downloaded onto a mobile phone that function in the same manner as a desktop wallet, but actually can hold many different kinds of cryptocurrency. The Eidoo Wallet for storing Ethereum and its associated tokens and Blockchain Wallet which currently is configured to hold BTC, ETH and Bitcoin Cash, are some of the most widely used examples. Hardware wallets — LedgeTrezoAlternatives Hardware wallets are basically physical pathways and keys to the unique location of your crypto assets on the Blockchain. These are thought to be more secure than any variety of web wallet because the private key is stored within your own hard wallet, an actual physical device. This forcibly removes the risk your online wallet, or your exchange counter party, might be hacked in the same manner as MtGox. In hardware wallet transactions, the wallet’s API creates the transaction when a user requests a payment. An API is a set of functions that facilitates the creation of applications that interact and access features or data of an operating system. The hardware then signs the transaction, and produces a public key, which is given to the network. This means the signing keys never leave the hardware wallet. The user must both enter a personal identification number and physically press buttons on the hardware wallet in order to gain access to their Blockchain wallet address through this method, and do the same to initiate transfers. Paper Wallets Possibly the safest form of cryptocurrency storage in terms of avoiding hacking, Paper Wallets are an offline form of crypto storage that is free to set up, and probably the most secure way for users, from beginners to experts, to hold on to their crypto assets. To say it simply, paper wallets are an offline cold storage method of storing cryptocurrency. This includes actually printing out your public and private keys on a piece of paper, which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the security or condition of a piece of hardware, nor do you have to worry about hackers on the net, or any other piece of malware. You just need to take care of one piece of paper! Real World Historical Examples of Different Wallet Types Web Wallet: Blockchain.info Brief mechanism & Security Blockchain.info is both a cryptocurrency wallet, supporting Bitcoin, Ethereum and Bitcoin cash, and also a block explorer service. The wallet service provided by blockchain.info has both a Web Wallet, and mobile phone application wallet, both of which involve signing up with an email address, and both have downloadable private keys. Two Factor Authentication is enabled for transfers from the web and mobile wallets, as well as email confirmation (as with most withdrawals from exchanges). Phone Wallet: Eidoo The Eidoo wallet is a multi-currency mobile phone app wallet for storage of Ethereum and ERC-20 tokens. The security level is the standard phone wallet level of email registration, confirmation, password login, and 2 factor authentication used in all transfers out. You may find small volumes of different varieties of cryptocurrencies randomly turning up in your Eidoo wallet address. Certain projects have deals with individual wallets to allow for “airdrops” to take place of a particular token into the wallet, without the consent of the wallet holder. There is no need to be alarmed, and the security of the wallet is not in any way compromised by these airdrops. Neon Wallet The NEON wallet sets the standard for web wallets in terms of security and user-friendly functionality. This wallet is only designed for storing NEO, Gas, and NEP-5 tokens (Ontology, Deep Brain Chain, RPX etc.). As with all single-currency wallets, be forewarned, if you send the wrong cryptocurrency type to a wallet for which it is not designed, you will probably lose your tokens or coins. MyEtherWallet My Ether Wallet, often referred to as MEW, is the most widely used and highly regarded wallet for Ethereum and its related ERC-20 tokens. You can access your MEW account with a hardware wallet, or a different program. Or you can also get access by typing or copying in your private key. However, you should understand this method is the least safe way possible,and therefore is the most likely to result in a hack. Hardware: TrezoLedger Brief History Mechanism and Security A hardware wallet is a physical key to your on-chain wallet location, with the private keys contained within a secure sector of the device. Your private key never leaves your hardware wallet. This is one of the safest possible methods of access to your crypto assets. Many people feel like the hardware wallet strikes the right balance between security, peace of mind, and convenience. Paper Wallet Paper wallets can be generated at various websites, such as https://bitcoinpaperwallet.com/ and https://walletgenerator.net/. They enable wallet holders to store their private keys totally offline, in as secure a manner as is possible. Real World Example — Poor Practices MtGox Hack history effects and security considerations MtGox was the largest cryptocurrency exchange in the world before it was hacked in 2014. They were handling over 70% of BTC transactions before they were forced to liquidate their business. The biggest theft of cryptocurrency in history began when the private keys for the hot wallets were stolen in 2011 from a wallet.dat file, possibly by hacking, possibly by a rogue employee. Over the course of the next 3 years the hot wallets were emptied of approximately 650000 BTC. The hacker only needed wallet.dat file to access and make transfers from the hot wallet, as wallet encryption was only in operation from the time of the Bitcoin 0.4.0 release on Sept 23rd 2011. Even as the wallets were being emptied, the employees at Mt Gox were apparently oblivious to what was taking place. It seems that Mt Gox workers were interpreting these withdrawals as large transfers being made to more secure wallets. The former CEO of the exchange, Mark Karpeles, is currently on trial for embezzlement and faces up to 5 years in prison if found guilty. The Mt Gox hack precipitated the acceleration of security improvements on other exchanges, for wallets, and the architecture of bitcoin itself. As a rule of thumb, no small-to-medium scale crypto holders should use exchange wallets as a long-term storage solution. Investors and experienced traders may do this to take advantage of market fluctuations, but exchange wallets are perhaps the most prone to hacking, and storing assets on exchanges for an extended time is one of the riskiest ways to hold your assets. In a case strikingly similar to the MtGox of 2011–2014, the operators of the BitGrail exchange “discovered” that approximately 17 million XRB ($195 million worth in early 2018) were missing. The operators of the exchange were inexplicably still accepting deposits, long after they knew about the hack. Then they proceeded to block withdrawals from non-EU users. And then they even requested a hard fork of the code to restore the funds. This would have meant the entire XRB Blockchain would have had to accept all transactions from their first “invalid” transaction that were invalid, and rollback the ledger. The BitGrailexchange attempted to open operations in May 2018 but was immediately forced to close by order of the Italian courts. BitGrail did not institute mandatory KYC (Know your customer) procedures for their clients until after the theft had been reported, and allegedly months after the hack was visible. They also did not have 2 factor authentication mandatory for withdrawals. All big, and very costly mistakes. Case Study: Good Practice Binance, the Attempted Hack During the 2017 bull run, China-based exchange Binance quickly rose to the status of biggest altcoin exchange in the world, boasting daily volumes that surged to over $4 billion per day in late December. Unfortunately, this success attracted the attention of some crafty hackers. These hackers purchased domain names that were confusingly similar to “binance.com”. And then they created sufficiently convincing replica websites so they could phish traders for their login information. After obtaining this vital info, the scammers created API keys to place large buy orders for VIAcoin, an obscure, low volume digital currency. Those large buy orders spiked VIA’s price. Within minutes they traded the artificially high-priced VIA for BTC. Then they immediately made withdrawal requests from the hacked BTC wallets to wallets outside of the exchange. Almost a perfect fait accompli! But, Binance’s “automating risk management system” kicked in, as it should, and all withdrawals were temporarily suspended, resulting in a foiled hacking attempt. Software Wallets Web/Desktop/Phone/Exchange Advantages and Limitations As we said before, it is inadvisable to store crypto assets in exchange wallets, and, to a lesser extent, Web Wallets. The specific reason we say that is because you need to deliver your private keys into the hands of another party, and rely on that website or exchange to keep your private key, and thus your assets, safe. The advantages of the less-secure exchange or web wallets, are the speed at which you can transfer assets into another currency, or into another exchange for sale or for arbitrage purposes. Despite the convenience factor, all software wallets will at some point have been connected to the internet or a network. So, you can never be 100% sure that your system has not been infected with malware, or some kind of keylogging software, that will allow a third party to record your passwords or private keys. How well the type of storage method limits your contact with such hazards is a good way to rate the security of said variety of wallet. Of all the software wallets, desktop and mobile wallets are the most secure because you download and store your own private key, preferably on a different system. By taking the responsibility of private key storage you can be sure that only one person has possession of it, and that is you! Thereby greatly increasing the security of your crypto assets. By having their assets in a desktop wallet, traders can guard their private key and enjoy the associated heightened security levels, as well keep their assets just one swift transfer away from an exchange. Hardware Wallets Advantages and Limitations We briefly touched on the features and operation of the two most popular hardware wallets currently on the market, the Ledger and Trezor wallets. Now it will be helpful to take a closer look into the pros and cons of the hardware wallet storage method. With hardware wallets, the private keys are stored within a protected area of the microcontroller, and they are prevented from being exported out of the device in plain text. They are fortified with state-of-the-art cryptography that makes them immune to computer viruses and malware. And much of the time, the software is open source, which allows user validation of the entire performance of the device. The advantages of a hardware wallet over the perhaps more secure paper wallet method of crypto storage is the interactive user experience, and also the fact that the private key must at some stage be downloaded in order to use the paper wallet. The main disadvantage of a hardware wallet is the time-consuming extra steps needed to transfer funds out of this mode of storage to an exchange, which could conceivably result in some traders missing out on profits. But with security being the main concern of the vast majority of holders, investors and traders too, this slight drawback is largely inconsequential in most situations. Paper Wallets Advantages and Limitations Paper wallets are thought by some to be the safest way to store your crypto assets, or more specifically, the best method of guarding the pathways to your assets on the Blockchain. By printing out your private key information, the route to your assets on the Blockchain is stored 100% offline (apart from the act of printing the private key out, the entire process is totally offline). This means that you will not run the risk of being infected with malware or become the victim of keylogging scams. The main drawback of using paper wallets is that you are in effect putting all your eggs in one basket, and if the physical document is destroyed, you will lose access to your crypto assets forever. Key things to keep in mind about your Wallet Security: Recovery Phrases/Private Key Storage/2FA/Email Security Recovery phrases are used to recover the on-chain location for your wallet with your assets for hardware wallets like ledgers and Trezors that have been lost. When you purchase a new ledger for example, you just have to set it up again by entering the recovery phrase into the display and the lost wallets will appear with your assets intact. Private key storage is of paramount importance to maintain the safety of your on-chain assets! This should be done in paper wallet form, or stored offline on a different computer, or USB device, from the one you would typically use to connect to the 2 Factor Authentication (2FA) sometimes known as “two step authentication”. This feature offers an extra security layer when withdrawing funds from cryptocurrency wallets. A specialized app, most commonly Google Authenticator, is synced up to the exchange to provide a constantly changing code. This code must be entered within a short time window to initiate transfers, or to log into an exchange, if it has also been enabled for that purpose. You must always consider the level of fees, or the amount of Gas, that will be needed to carry out the transaction. In times of high network activity Gas prices can be quite high. In fact, in December 2017 network fees became so high that some Bitcoin transactions became absolutely unfeasible. But that was basically due to the anomalous network congestion caused by frantic trading of Bitcoin as it was skyrocketing in value. When copying wallet addresses, double check and triple check that they are correct. If you make a mistake and enter an incorrect address, it is most likely your funds will be irretrievably lost; you will never see those particular assets again. Also check that you haven’t input the address of another one of your wallets that is designed to hold a different variety of cryptocurrency. You would similarly run the very great risk of losing your funds forever. Or, at the very least, if you have sent the wrong crypto to a large exchange wallet, for example on Coinbase, maybe you could eventually get those funds back, but it would still entail a long and unenjoyable wait. How to Monitor Funds There are two ways to monitor you funds and your wallets. The first is by searching for individual wallet addresses on websites specifically designed to let you view all the transactions on a particular Blockchain. The other is to store a copy of your wallet contents on an application that tracks the prices of all cryptocurrencies. Blockchain.info is the block explorer for Bitcoin, and it allows you to track all wallet movements so you can view your holdings and all the historical transactions within the wallet. The Ethereum blockchain’s block explorer is called Ether scanner, and it functions in the same way. There is a rival to Ether scanner produced by the Jibrel Network, called JSearch which will be released soon. JSearch will aim to offer a more streamlined and faster search method for Ethereum blockchain transactions. There are many different kinds of block explorer for each individual crypto currency, including nanoexplorer.io for Nano (formerly Rai Blocks) and Neotracker for NEO. If you simply want to view the value of your portfolio, the Delta and Blockfolio apps allow you to easily do that. But they are not actually linked to your specific wallet address, they just show price movements and total value of the coins you want to monitor. That’s not all! You can learn how to transfer and monitor the funds in and out of your wallet by clicking on the link. To be continued! UBAI.co Contact me via Facebook, Instagram and LinkedIn to learn more about the best online education: LinkedInFacebookInstagram
So my bank just called me with some questions about Bitcoin...
Sixty days ago I wired 10k to Mtgox from my local bank. Today I received a call from my bank asking why I send the money. I told them in was none of their business. The bank said this company is involved in bitcoin trading and asked if I used the money to buy bitcoins. Again, I said none of your business. Finally they asked if I was involved in buying and selling any virtual currency, to which I replied I would not be answering any more questions about my transactions. What the hell is going on? EDIT- After gathering my wits and reading opinions here I went back to the bank. First off, understand this this bank is not a national bank. They are regional with about 10-15 branches in my suburban area. I chose this bank because I am very untrustworthy of banks, especially big ones. When opening my account I felt a connection with the branch manager and some employees. I have banked here for several years. They know my name. Some tellers remember my account number. We have a good relationship. My plan was to sit with the branch manager and answer the questions (since he knew the answers anyway) and then find out why I was being questioned. If things went poorly I planned on asking why I should keep my money at the bank instead of choosing a better one. None of this happened. Instead, I walked in and immediately saw the branch manager wasn't there. So I sat down with the personal banker who called me. I told her that I didn't want to get her in trouble so I had changed my mind and was there to answer her questions. I asked if she had already told what happened earlier to her supervisors and she said no. So that was good. She pulled out a pad of paper where she had written my responses and explained that her district manager had asked her to make the inquiries about my account. She said the branch manager was on vacation this week. When I asked if the branch manager usually does this kind of stuff she said yes, the regional was covering for the branch manager. She also mentioned that the regional manager was relatively new. She opened an email. I can see the email she had received from her supervisor on her computer screen and saw that he had a number of things for her to do. One of them was to question me. I volunteered to help her answer the email so she looks good to the new boss. She agreed. We read the email together. Turns out the guy researched Mtgox on his own and became curious about bitcoins. The way he had worded his email was not threatening but more like he was on a quest for more information. The final question he wrote his banker was to find out what I thought about bitcoins in general. There was also some nonsense about me withdrawing a lot of money in cash which didn't happen, but that's another story. Anyway, she ripped up my earlier comments and we wrote out a better response. I got to proofread her email as she typed a response to the regional. I followed evoorhees's advice and said I bought them as a one time investment and did not plan on doing it again. The personal banker said in the email that I would love to speak with the boss personally and gave him my number. I left the bank feeling 10 pounds lighter.
I have been trying to get a feel for the state of mtgox transactions other than the fact that they are extremely delayed. It appears that some people are being offered so-called "manual" withdrawals for a whopping 5% fee that are coming through within weeks. I made significant withdrawals from Mt Gox through Dwolla before/during the April run-up and crash. I have first hand experience of one unprocessed withdrawal from early November. Have you iniated and received a mtgox withdrawal? Have you initiated and not received a withdrawal? How long has it been? What country are you in? What was the amount? I have also seen people claiming small SEPA withdrawals are coming through quickly while larger ones are sitting dormant. Most of this conversation is happening on the bitcointalk forums and is littered with complaints and way too noisy to parse. I am humbling requesting that if you have first hand knowledge of receiving or not receiving a mtgox withdrawal you post it here. I will keep this thread updated.
10,000 USD initiated Nov 4th -- NOT RECEIVED
5,000 USD(?) initated mid september -- NOT RECEIVED
1,000 USD (?) intiated late october -- NOT RECEIVED
6,000 EUR (?) -- intiated late october -- RECEIVED
I've been loyal to Bitstamp since before MtGox collapsed. As far as I know they were the first and still are the only Exchange with a banking licence (in Europe), which made me feel 'safe' to hodl some BTC on their platform. However I didn't like their stance on BCC, they made me withdraw my BTC to claim my Bitcoin cash tokens and thought it was some kind of theft on their part no matter how high or low this new token would be worth. I was seriously considering to leave them after this episode, but I'm just to lazy and re-deposited some BTC on their platform for some trades. Is this list accurate and if so, how do fellow hodlers - who think SegWit2x will go through - asses the situation this time ?
The MtGox's drama is the new Waterloo's battle. Remember how the Rothschilds took control over the Central Bank of England back in 1815? MtGox or someone in collusion with them may be trying to take control of the Bitcoin's economy in 2014 almost 200y later, I believe.
I have the feeling that MtGox or someone in collusion with MtGox is engineering a panik sell right now. And I want to draw a compelling parallel with the battle of Waterloo and the Rothschilds. The story is as follows: (A): Watterloo's battle The Rothschilds (1) knew in advance that the French has lost the battle (2). They started to sell off huge quantity of stocks (3) of the Central Bank of England. That caused a panic sell among British holders (4). Just before the official agents of the government got the news of the French defeat (5), the Rothschilds bought back the stocks for peanuts. That gave them complete control of the British economy (6). The possible parallel that we could draw is as follows: (B): MtGox's drama MtGox or someone in collusion with them (1) knew in advance that they were solvent and that the bitcoin withdrawals would be renabled (2). They started to sell off huge quantity of bitcoins (3). That caused a panic sell among Bitcoins holders (4). Just before announcing that they were renabling the withdrawals (5), MtGox or the people in collusion with them bought back the bitcoins for peanuts. That gave them complete control of the Bitcoin economy (6). Some possible differences between scenario (A) and (B): If (1) is not MtGox or someone in collusion with them, it is at least someone with insider information. If (6) is not completed control of the Bitcoin economy, it is at least a good chunk. I believe MtGox is solvent and will renable withdrawals ultimately. But I also believe that the MtGox drama is an attack on Bitcoins and an attempt to take control of the Bitcoin's economy. Your thoughts? EDIT1: space EDIT2: space
Source: https://bitcointalk.org/index.php?topic=476535.msg5255853 Hello, I am in Japan and have deposited 12.499 million Yen (about USD 122,000) at MtGox from October to December 2013. I currently have 175 BTCs and 13,000 Yen in cash at their exchange. I also have a Premium status account. Please let me know how to proceed. That was most of my retirement money. Hi. My name is xxx and I live in Sweden, Malmö. I am writing for me and for my girlfriend and my dad. We all bought and sold bitcoins a last years and made some money. We have taken out some money when we need to and right now me and my girlfriend was going to buy a house and start a family so we tried to withdraw the money in January. Since the money didn't show up after 4 weeks I tried to contact them but still nothing. I hope that together with you and some others get at least some money back. If you need any proof of the withdrawals or such I can provide some of it. We had in total $49000 on the accounts. we are unsure how to proceed. Help! I have about 90 BTC and no USD in my mtgox account, which I would very much like to receive back at some point. It's only just sinking in that it might all be gone.. I can't believe I waited so long before getting it out somewhere safe, but.. here we are. Hey there, I am interested in being a plaintiff as well. I had about 70k in Mtgox in Dec due to the price explosion in November and attempted to withdraw some funds since I wasn't comfortable having that amount hosted there. I ran into the withdrawal issue back in Dec and opened a support ticket in which I got the run around until they finally officially announced what the problem was. As the moment, I don't have any $$ in Mtgox but around 180 BTC. My stomach has been in knots all week :-( Hello, at the time that the withdrawal stopped I have over $3MM in fiat at Gox. I now have ~5,400 BTC there. It maybe sizeable enough for your attorneys to consider taking on a BTC claim? In any case, if they think that I can sue based on my fiat balance prior to withdrawal suspension, based on the idea that any subsequent trading was essentially fraudulent, well then I would be interested in join the effort. Hi, My name is xxxxxx and I am from California (if that matters). I have about 650 BTC in Gox. I haven't slept in days and haven't been able to tell my wife how much I've lost. I was an early adopter, just mining in my basement, and I can't imagine all of my time and work vanishing like this. Please contact me with what I need to do I am a French citizen. I would like to know how to try and join you in reclaiming my lost funds. I had almost 100.000 EUR in my account. It will be a complete disaster for me if it is stolen. I cannot reasonably afford to lose the funds I have at Mtgox. I currently hold the majority in USD, but also significant amounts of EUR and BTC. I would like to join your action lawsui as co-paintiff. I try to keep this short since you are probably getting tons of PMs. I'm resident of Germany and I'm waiting for ~5700 Euros (~7800 US$) to be withdrawn by MTGOX. I also have about 9 BTCs on my account there. I successfully received a MTGOX-withdrawal of 990 EUR on 2013/12/30, which was ordered on 2013/12/03. I'm a student and this is almost all of my money I have left (I actually have a lot of debt, which I intended to pay back with that money). I'm really panicking right now and not sure what to do!!! I'm in Tokyo as well and I lost ~8 BTC and 500,000 in JPY. Please let me know how your case progresses and whether at any time you think it would be possible to get others involved. I really hope I can get at least some of that money back. I need it. I am very interested in your proposal of suing Mt.Gox to get what is ours. I would need to sue for more than 70000EUR or over 90000USD. The ammount depends of the bitcoin price - not the manipulated Mt.Gox price, but like the Bitcoin price index on coinbase.com. Although it would be best if Mt.Gox let me simply withdraw my more than 170BTC. So many people are angry about Mt.Gox and me too. They act like scamers. I have CSV's, screenshots + multiple records everything for owning 994.90514041 BTC through my mtgox accounts. Hi, I had 100BTC but a friend had $14000 USD on Gox. Can you put me into contact with whomever is organising the class action lawsuit? I had some 125BTC & $1000 on MtGox. I'd prefer to recover the BTC but if not possible, USD is better than nothing. Technically at the last price the total is well above the $10000 limit. Can you count me in? What should I do next? Hey, I'd like to get involved in this as well. Gox has yet to deliver a withdrawal of funds from late last year and currently has all my coins locked up because of their withdrawal lock. Email is below, let me know if you need any other info. Thanks, (originally I tried to withdraw $30,000.00, but Mt.Gox cancelled my withdraw and asked me to change to GBP. Funds never arrived Mt.Gox confirmed they were unable to wire funds, but funds are not re-instated to my account. Mt.Gox admits in the e-mail funds are mine.) I'm interested in joining as a co-P in Japan, I have $200k+ in cash balance (no bitcoins) locked up on their site right now. Let me know how many other co-Ps will be represented and the estimated legal costs. Do we have an update on the status of Mt Gox? They haven't filed for bankruptcy just yet. I'm a verified member so I'm thinking they might resume operations and just send us a check, but I'm interested in others' opinions on that. I found your post just today after the Gox closed the site. I had 10,200 USD with them, which I traded just last week for gox coin. I initially deposited USD from bank account on November 2013, and traded on Gox just about 2 weeks ago, not knowing there was a trouble to withdraw any BTC from them. I do have screen shots from last week from trading and all my history since November 2013. My initial deposits in November have been 8000 USD and 2200 USD, so whatever trading I did in last weeks was for vain since gox did not let any BTC out of the site. Current standing on my account is about 27 BTC and around 2200 USD but since gox coin was never a real BTC, as I just learnt recently, I consider Gox owing me 10200 USD which I initially deposited. I wish to be include in the class action lawsuit, I an non-us (EU) and have lost 50 BTC and 24,600€. I have 93BTC at stake in mtgox. Money used to acquire it was 29k EUR. I would like to join the lawsuit if there is any chance of getting the either the BTC or EURO-equivalent at the price determined at the time of judgement. I want to participate. I have 85 BTC on Mt Gox. Please update me and let me know, which further steps I have to take to participate. I had $28500 in, and purchased 50btc @ $570. So now I have the 49.7btc still in and no fiat. Have been waiting for withdrawal to resume to clean myself of gox forever. I was very lucky, having pulled out the bulk of my btc holdings from gox in mid-January. Please respond if whether I can or can't participate. i too am a Gox victim. I have 69 BTC stuck on Gox. At this stage i would be very reluctant to take such a haircut and convert to USD. Has the lawyer you hired totally ruled out BTC cases? Is he even taking on new cases? I have roughly $100K in my account, so it might be worth it for the lawyer to squeeze me in. I have 50BTC in MTGOX and would be interested in joining. If yes, how large would the fees be? If Mtgox is indeed gone and finished, I would like to know what the status of this suit is and who I can contact regarding it. I had about 111.777 BTC on gox. I have 158 btc on MtGox and would like to take part to your lawsuit. Most of our savings were in bitcoin, and at market rates on other exchanges, I had over $40,000 while my friends had $300,000 to 400,000. I have 154 BTC and 0 USD in MTGOX. I live in Malta but would like to know what my options are for joining your case? I'm a very credible trader who pays his American taxes yearly. I feel so stupid for holding the majority of my BTC exposure on mt gox in hindsight...... I have 301 BTC on mt gox and under $10 USD, my account on gox was a verified account as well. TL;DR: Maybe they were foolish for trusting the community too much, but they didn't deserve what they got.
*This is just speculation. * We have two crypto-currencies now: BTC and GoxBTC. We also have 3 markets, where you can trade: 1) MtGox where you can trade GoxBTC for GoxUSD (hard to withdraw USD equivalent) 2) BitcoinBuilder, various forums where you can trade GoxBTC for BTC or USD – I will call it "free market". 3) exchanges, where you can trade BTC for USD The paradox is that on MtGox price of GoxBTC (45%) is nearly two times lower than on free market (65-80%). This is what needs to be explained. Why it is so weird: 1) There's no reason to assume, that people selling GoxBTC on MtGox are that much more pessimistic en masse than people selling GoxBTC on free market. On the contrary: maybe someone selling GoxBTC outside MtGox has to be quite desperate to find those places, so he/she is very active in his/her pursuit to get rid of GoxBTC. 2) People on MtGox are trading their GoxBTC for GoxUSD, not freely exchangeable BTC or USD. For a long time this caused the price of GoxBTC to be 10-20% higher than on other exchanges. 3) This may be debatable, but I don't find latest statements from MtGox very disappointing (as our expectations are rather low already). We didn't learn anything that should cause sellout. So, in my opinion, GoxBTC price on MtGox should be equal or higher than on BitcoinBuilder or forums. But it is not. So there are some market participants, which are 1) Very, very pessimistic about GoxBTC value, willing to sell it for $220 even if two months ago it was $1220 2) Have access to a lot of GoxBTC 3) Cannot withdraw GoxBTC (converting it to "real BTC") 4) For some reason don't want use BitcoinBuilder even if it would give them 100% premium 5) Convinced that (for them) GoxUSD still has some value. What I see is massive sellout. Price on Gox tanks because someone is SELLING. Not because there is no one to buy. Someone is actively selling GoxBTC in batches of 200. Only explanation which I have is, that it is some kind of inside trading. Someone knows that something is going very wrong with Gox, and is willing to sell Gox for $200-250. And the only market actor who 1) has intel what will happen on Monday and aferwards; 2) has a lot of Gox BTC to sell is... MtGox. Feel free to point me to weaknesses in this speculation (or offer a better explanation of the paradox). I would really like it not to be true. Weak points I can see: 1) MtGox can withdraw GoxBTC. So why would it sell for $220, when it can sell it for $630? – possible reason it's not MtGox, but some employee, friends of employee? 2) Bitcoinbuilder or dealing with forum members is risky, that's why there's the premium. But is it more risky than GoxUSD? I doubt. 3) Other explanation: it's not a sellout it's rather "short and distort" ("pump and dump", reversed). So there is someone who knows something about MtGox future, and the news will be positive, but for now he tries to keep price low to buyback a lot of GoxBTC later.
Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. In a single withdrawal, hackers siphoned $40 million in bitcoin from one of the largest cryptocurrency exchanges in the world. Binance said it would suspend all deposits and withdrawals for at ... MtGox, the oldest and once-largest bitcoin exchange, appears to have a serious problem. Since about a week ago, clients’ bitcoin withdrawals have been deducted from their account, but the clients never received the money – the money withdrawn was effectively disappeared into thin air. The community is furious and as of now, MtGox has racked up over USD 38 million in such unfulfilled ... Mt. Gox’s creditors will meet today, March 25, as part of a compensation process that seems to go on and Throughout the first-half of 2013, Mt. Gox commanded a very high share of bitcoin trading volume, leaving many feeling that, in spite of its withdrawal issues, Mt. Gox was still a viable option ...
Exkash.com is an instant to withdraw Bitcoins from Blockchain, mtgox, bitstamp, Coinbase and BTC-e to Bank Account, Send Bitcoin and Get cash in your Bank Account worldwide, Bitcoin To Bank. Transcript: Hello, I'm Roger Ver, long time Bitcoin proponent. About 7 months ago, purely as a favor to Mtgox, I made a video stating that their fiat withdrawal problems were not being caused by a ... Withdraw Bitcoins from Blockchain to Your Bank Account, withdraw bitcoins from mtgox to Bank Account, withdraw bitcoins from bitstamp To Bank Account, withdraw bitcoins from btc-e to Bank Account ... Who Will EXPLOIT The Looming BITCOIN CRASH as MT. GOX Stops All Withdrawals A temporary halt on withdrawals from the bitcoin exchange Mt. Gox on Friday and s... Feb. 10 (Bloomberg) -- Matt Miller reports on Bitcoin exchange Mt. Gox's cash withdrawal woes on Bloomberg Television's "In The Loop." (Source: Bloomberg)