BitMEX: The Next Generation of Bitcoin Derivatives

Introduction to The Bitcoin Mercantile Exchange (BitMEX)

The Bitcoin Mercantile Exchange (BitMEX) is a leading digital currency exchange platform that offers Derivatives, Futures, and Prediction contracts and markets for margin trading cryptocurrencies.

BitMEX offers a variety of contract types, and all contracts are bought and paid out in Bitcoin. It is the only platform that offers a “Perpetual P2P Swap”, a contract that trades like a future but never expires!

BitMEX touts itself to be a provider of “The Next Generation of Bitcoin Derivatives”, and quite rightfully so. The platform has been able to grow significantly, no doubt partly due to their ability to open traders up to various kinds of interesting derivative markets, and keeping their customers happy with transparency, open communication, having strong security in place, and most importantly, a highly advanced yet user-friendly trading platform.

BitMEX: Perpetual P2P Swap Contracts Do Not Expire

BitMEX offers 3 bitcoin markets, namely, Bitcoin/USD (XBT). Bitcoin/CNY (XBC), Bitcoin/JPY (XBJ), a variety of other alternative cryptocurrency markets, and even prediction markets.

Alternative cryptocurrency markets include Zcash (ZEC), Ethereum (ETH), Ethereum Classic (ETC), Monero (XMR), Ripple (XRP), Augur (REP), Litecoin (LTC), Factom (FCT), Dash (DASH), as well as other derivative prediction markets such as the likelihood of Bitcoin ETF Approval (COIN).

They also offer demo accounts for you to test trading strategies without risking any funds.

How Does Margin Trading on BitMEX Work?

BitMEX: Margin Trading Bitcoin up to 100x Leverage

Margin Trading refers to borrowing from the broker (trading platform) to either buy or sell a stock.

Depending on which market, BitMEX offers a flexible leverage of up to 100x for Bitcoin markets and up to 33x for Altcoin markets. But that doesn’t mean that you should use the maximum available leverage, and in fact, you shouldn’t unless you really know what you are doing!

My suggestion for the new traders here is to stick to a leverage of 5x or less, before moving to 10x or higher when you are more comfortable.

Getting Started – Sign Up & Fund Your BitMEX Account

For BitMEX, like most Bitcoin and cryptocurrency exchanges outside Australia, there is no need to go through KYC/AML document submission and approval process, and you can start trading immediately just by signing up and funding your account! You can fund your account using any of Australia’s Exchanges, such as CoinSpot

Keep Your Account SECURE!

After you set up your account, the first thing you should do is to keep your account secure, by enabling 2FA and setting a strong password.

1.  MUST DO: 2FA on both exchange and email account. Once this is done, you should not be able to get compromised, except in rare cases such as sim-jacking. Highly suggest using Google Authenticator / Authy type of 2FA, instead of SMS 2FA which is susceptible to sim-jacking with some social engineering and one lazy telco service operator customer care assistant.
2. MUST DO: Use strong passwords; minimum 20 characters with a mix of upper- and lower-case letters, numbers, and characters.
3. Optional: Use a separate email address for Bitcoin and cryptocurrency only.

BitMEX Trading Dashboard Walk-through

Now that we’ve got that out of the way, lets dive straight into navigating around the BitMEX exchange trading dashboard. Below is the landing page you’ll see upon logging into your BitMEX account.

For your easy reference, I have split the interface up into three segments:

A) Market Information

B) Account Information

C) Trading Tools & Management

A) Market Information

BitMEX Trading Dashboard Walkthrough: Market Information

1. Market Overview

Right at the top, you can find the ticker symbols of all the available markets. Clicking on the symbols on the left will toggle between showing the market data of the relevant market, namely current trading price and 24h % gain/loss.

2. Market Selection

You can find a row of markets and their associated tickers in this section. Clicking on each of the markets will load the relevant market information as below.

3. Market Information

In this section, you can find the charts powered by tradingview.com, the order book, and recent trade history. The market that is shown here is the market is chosen in the “Market Selection” section.

4. Market Contract Details

Here you will be able to see information about the contract or market that is chosen in the “Market Selection” section.

B) Account Information

BitMEX Trading Dashboard Walkthrough: Account Information

5. Dashboard Tabs

Trade, Account, Contracts, References, API

6. Balance

You can view your balance at the top right.

Alternatively, your available trading balance is also shown on the left side under the “Place Order” section.

7. Account Information & Settings

You may access your account information by clicking on your username at the top right, where you can change your currency denomination display, color theme, dashboard layout, and access other account/security and site preference settings.

Alternatively, you can also click on “Account” in the dashboard tabs section to access your account settings.

C) Trading Tools & Management

BitMEX Trading Dashboard Walkthrough: Trading Tools & Management

8. Place Order

This is where you place your orders by inputting the quantity, price, and other parameters where required.

9. Position Overview

Here you can see the overview of your open positions, including the number of contracts, entry price, Return on Equity (ROE), liquidation price, and leverage used. You are also able to adjust the leverage used in your open position.

10. Manage Orders & Positions

Active orders and open positions will appear in this section.

It also shows a history of your orders and fills.

BitMEX Trading Dashboard – Order Types

Now that you are familiar with how to navigate BitMEX‘s platform, let’s move on to the various order types, placing an order, and get to the actual trading proper! Click on the image below to view it in full size.

BitMEX Trading Dashboard Order Types: Overview

Again, for easy reference, I have split the 7 available order types into 3 groups:
A) Market & Limit Orders
B) Stop Orders
C) Take Profit Orders

Let’s go into more detail for each order type below.

A) Market & Limit Orders

Market and Limit orders are the most common types of orders used by traders to enter into a trade/position. These orders are immediately entered into the order book once opened.

1. Market Order

BitMEX Trading Dashboard Order Types: Market Order

Straightforward. Buys/sells at the nearest available price.

After clicking Buy or Sell, there will be a confirmation page, where you can adjust your desired leverage for the trade.

2. Limit Order

BitMEX Trading Dashboard Order Types: Limit Order

Next most commonly used order would be the Limit Order, which basically allows you to place a buy/sell at your desired price.

Similarly, there is a confirmation page where you adjust your desired leverage for the trade.

B) Stop Orders

Stop orders, unlike market or limit orders, do not appear on the order book immediately upon opening. These orders are associated with a trigger price, or “stop price” in the case of BitMEX, whereby your order is only entered into the order book after the stop price is hit.

3. Stop Market Order

BitMEX Trading Dashboard Order Types: Stop Market Order

A Stop Market Order is a market order that is triggered (opens) when your stop price is hit.

For example, if today’s BTC price is $1150, and you place a stop market buy order at $1200, your position will not trigger if price trades anywhere below $1199. Once a trade occurs on the market at $1200, your stop market buy order will trigger and a market buy is made.

4. Stop Limit Order

BitMEX Trading Dashboard Order Types: Stop Limit Order

In the same way that a market order differs from a limit order, a Stop Limit Order works in the same way as a Stop Market Order, except with an additional “limit price” parameter that is triggered only when your stop price is hit.

Further to the example above, if you enter $1200 as the stop price, and $1175 as the limit price, and when a trade occurs on the market at $1200, a limit order at $1175 will be placed.

Alternatively, if you enter $1200 as the stop price, and $1210 as the limit price, this will act almost like a market buy when your trade is triggered (unless there are not enough sells for your purchase quantity up to the limit price – in which case you need to increase the limit price or simply use a stop market order).

5. Trailing Stop Order

BitMEX Trading Dashboard Order Types: Trailing Stop Order

Instead of setting a stop price, a Trailing Stop Order makes use of a “Trail Value” parameter to determine when a market order gets triggered. This “Trail Value” is calculated against the market’s price at which you entered the position.

For example, if BTC price is $1150 and I have an active buy position, and I open a Trailing Stop Order by entering a “Trail Value” of $5, my active buy position will close when price goes to $1145. Whereas if BTC price is $1200, opening the same trailing stop order will close my active buy position when price goes to $1195.

C) Take Profit Orders

Take Profit Orders, as the name suggests, enables you to set a target price on an existing open position to close it and “take profit”. This can be done in the form of a market order or limit order.

It simply works in the same way as placing a limit order in the opposite direction of your active position (i.e. placing a limit sell order if you have an active buy position).

Interestingly, just like using a stop to buy a breakout, this order type can also be used to set an entry point for a new position. But unlike a stop order, triggers are set in the opposite direction. To use it in this way, untick the “Close on Trigger” option as this is for closing orders only and will automatically cancel any orders if used to enter/open a position.

See below for a closer look at the Take Profit Market Order and Take Profit Limit Order.

6. Take Profit Market Order

BitMEX Trading Dashboard Order Types: Take Profit Market Order

7. Take Profit Limit Order

BitMEX Trading Dashboard Order Types: Take Profit Limit Order

BitMEX Trading Dashboard – Manage Orders & Positions

Upon placing your order or if you have any open positions, you can view and manage them in the middle bottom section of the trading dashboard. You can also view your order history, fills, and closed positions in this section.

BitMEX Trading Dashboard Manage Orders & Positions: Positions Overview

1. Active Orders

Once you place a limit order (and it doesn’t immediately trigger), they will appear in this “Active Orders” tab. You can edit the quantity and price while the order is still open, although you can’t change a buy into a sell.

Stop orders and take profit orders will appear in the “Stops” tab.

BitMEX Trading Dashboard Manage Orders & Positions: Active Orders

2. Open Positions

Once your active order triggers, or when you place a market order, they will appear here in “Positions”. You are able to add/remove margin to your position, which changes the liquidation price of your position, as well as to easily place a limit or market order to close your position instead of having to place the order through the “Place Order” section.

BitMEX Trading Dashboard Manage Orders & Positions: Open Positions

If you want to change your leverage used on a particular position, you can adjust it with the slider on the left side of your dashboard, just below the “Place Order” section.

BitMEX Trading Dashboard Manage Orders & Positions: Your Position

3. Stop Loss & Take Profit

Active stop orders and take profit orders will appear here in the “Stops” tab. You can also edit some parameters, including the quantity, stop price, and limit price, as well as cancel the order.

BitMEX Trading Dashboard Manage Orders & Positions: Stop Loss & Take Profit

4. Order History

Lastly, you will be able to view all your order history, executed or not, in this “Order History” tab. You can then find all your filled order history in the “Fills” tab, and “Closed Positions” in the corresponding tab.

BitMEX Trading Dashboard Manage Orders & Positions: Order History

BitMEX Funding, Trading & Withdrawal Fees

Find below a snapshot of the funding, deposit, withdrawal, order execution, and swap fees. See it here: https://www.bitmex.com/app/fees.

BitMEX Funding Trading & Withdrawal Fees

BitMEX Funding Trading & Withdrawal Fees

BitMEX Security

Read about the security measures in place on BitMEX from wallet and trading engine security, to system and communication security: https://www.bitmex.com/app/security.

BitMEX API

The platform offers a fully featured REST API and a powerful streaming WebSocket API, making available all market and user data and updates in real-time: https://www.bitmex.com/app/apiOverview.

BitMEX Information Library

Bitmex has their own library of guides and tips on trading on their platform, which cover an extensive range of topics. So I tried to make this post more visual, and cover only what BitMEX themselves did not.

Take a look at these links to learn more about the BitMEX platform:

• Trading Overview: https://www.bitmex.com/app/tradingOverview
• Futures Guide: https://www.bitmex.com/app/futuresGuide
• Swaps Guide: https://www.bitmex.com/app/swapsGuide
• FAQ: https://www.bitmex.com/app/faq

They also have in-depth information about how their platform differs from competitors, for various parameters including liquidation events, contract loss mechanisms, max leverage, initial margin, maintenance margin, settlement mechanisms, minimum contract sizes, and many more!

See the comparison here: https://www.bitmex.com/app/whatsDifferent

The post BTC Exchange Tutorial: BitMEX Trading Platform – Beginners Guide on How to Margin Trade BTC & Altcoins Derivatives & Futures Contracts, and other Prediction Markets appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

Two of the most popular hardware wallets on the market today come courtesy of Trezor and Ledger. Below, we’ll compare the two products, and give a few reasons why the discerning cryptocurrency user should strongly consider investing in a hardware wallet.

Trezor and Ledger

Both wallets come from well-established companies with a proven track record of security. Like virtually any hardware wallet, these devices record coin data on the blockchain without requiring the use of a desktop or online environment. The physical nature of these wallets mean users do not need to employ the same counter-theft precautions as software-based wallets require, and are accessed using a physical PIN. Like software wallets, however, both Trezor and Ledger‘s physical wallets can be restored via “seed” words, meaning loss or destruction of the wallet does not means loss of your cryptocurrency. Either wallet can be treated much like a real-life wallet, and by employing the same common-sense precautions you would with physical currency, the risk of loss due to theft is substantially reduced.

Trezor Wallet

Trezor is an offline-only, highly-secure cold storage device. However, it also provides great flexibility and connectivity should the user need to exchange currency. Trezor is a highly-respected manufacturer of hardware wallets in the crypto community, and the Trezor wallet is remarkably small, roughly the size of a small mp3 player, and constructed from plastic. Trezor’s wallet connects via USB, does not require charging, and is compatible with Windows, MacOS, and virtually any Linux distro, as well as Android devices. Several browser extensions for Chrome and Firefox are available also.

Inside the box, the wallet is accompanied by a hanging strap, USB cable, user manual card, and two nifty recovery seed cards for storing your seed information.

Ledger Wallet

Ledger likewise maintains a small form factor, roughly the size of an average USB flash drive. Also a well-respected wallet manufacturer, Ledger is compatible with Windows and MacOS, though the manufacturer does not explicitly mention dedicated Linux support. The Ledger is also compatible with Chrome OS, and like Trezor, several browser extension downloads are also available.

Unlike Trezor, however, Ledger enjoys a sleek form factor and durable steel construction for heightened resistance to drops and damage. Both devices include small display screens, though Ledger’s screen is slightly smaller than the display on the Trezor (a requirement for Ledger’s sleek form-factor).

Like Trezor, Ledger includes a USB cable, instruction card, and seed recovery card. In addition, Ledger also ships with a handy keychain and lanyard for portability.

Ledge offers user’s a way to verify the integrity of their hardware wallet, which is also a nice touch.

User Interface

The Trezor wallet features a simple, clean interface, making it a snap to quickly view transactions. The menu on the top of the screen allows swapping through different currency types on the fly, and all boxes and menus are neatly labeled.

Likewise, the Ledger features a clean, minimalist interface will easy-to-read labels and menus. Both wallets allow you to monitor any of your cryptocurrency types on the same screen, as well as transacting in any currency type. Both boast a well-designed, user-friendly interface.

Trezor can store an enormous selection of cryptocurrencies, and the manufacturers are constantly adding support for new currencies. That being said, Trezor does not fully support all currencies, though the list is always growing. Trezor does provide full support, however, for virtually all popular coins, listed in the comparison below. For Dropbox users, Trezor’s interface can also automatically sync your transaction information via Dropbox, a feature Ledger lacks. Unlike Ledger, Trezor also supports master password administration, and boasts a slightly more robust firmware than Ledger’s more limited offerings.

Ledger, on the other hand, boasts full support for several additional currencies. It does this through the use of Chrome based apps, which may be deprecated sometime in the future. The Ledger apps are much simpler to use than the Trezor interfaces, however, can be confusing when using the Bitcoin wallet, due to confusion around whether to use Segwit compatibility or not. 

Both devices are always adding new features and currency support. For users with very diverse portfolios, it may be worthwhile to use both wallets.

Ease of Use

Both devices feature a quick setup process out of the box. For either, the user will first set up a pin code to access the device. The user is allowed three attempts at entering the correct pin; after three failed attempts, the device will automatically wipe all data on the device. In the event of a full data-wipe, recovery seeds can be used to restore the wallet data. Your seed is not displayed on the device screen, ensuring that any would-be thieves must be able to enter the correct PIN number within three tries.

Both devices feature two small scrolling buttons, used to navigate menus or select entries. No data can be accessed without a connection to a computer and the proper PIN code entry.

While the Trezor has a slight advantage in ease-of-use due to Its larger display, both devices are extremely simple to use with clear menus and easy entry of numbers. If you’re on the fence deciding between the two, it would be better to base your decision of the form-factor and currency support of the device, as both are relatively even in terms of usability.

Which is the Right Wallet for You?

Both devices are virtually identical in terms of usability, interface clarity, and transaction (send/receive) capability. That being said, Trezor is slightly more expensive: while Ledger can frequently be found for around $60 USD, Trezor typically runs closer to $100. While both wallets are constantly upgrading support for new currencies, at the moment, Ledger takes the win with a greater array of fully supported currencies. On the other hand, users with a smaller portfolio of currencies may enjoy Trezor’s more robust set of firmware features.

Ultimately, it’s difficult to label one as better than the other. Both are highly secure, well-made products from reputable companies, with a minimal difference in price. In either case, Trezor or Ledger will both grant the user a well-designed interface, unmatched cryptocurrency storage security, and support for a wide variety of currencies. The user’s decision should boil down to which device is more appealing in construction, and most importantly, which offers the best OS and currency support for your intended use.

The post Crypto Wallet Showdown: Trezor Wallet vs. Ledger Wallet appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

Due to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 a full identity check is required to be able to deposit or withdraw AUD from CoinSpot. Please note, you may receive a call from one of our team members to confirm the details on the account before it is verified

Steps to Verify your CoinSpot account:

1. Click on the ‘Account‘ page.

   

2. Then select the ‘Verification‘ page.

   

3. Verify your email address, your mobile phone number and then enter in your account holder details.
4. Select the CoinSpot account type.

   

5. You must upload the front and back of one or more of the following documents:
   
6. If you did not upload a drivers licence, then you need to upload one of the below documents:
   
7. Also upload a proof of residency document.

   

8. Take a high quality photo of yourself holding the hand written statement, see below example’s:

   NOTE: We need to be able to see your hands in the verification photo

   

9. Then press submit for verification.
10. The account holder details must show a yellow banner stating “In Progress” this means your verification details are under review.

    

Once you have successfully submitted the photos required for verification and the residency document, our verification team will review your submission and contact you via phone to ensure your identity.

You will either receive a call or an email once you have been verified.

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The post The Best Australian Cryptocurrency Exchanges appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

Exchange (see collection)
Websites where you can buy and sell crypto-currencies. Some popular exchanges are Binance, Coinbase, Kraken, Coinspot

FIAT
Government-issued currency, such as the US dollar.
https://en.wikipedia.org/wiki/Fiat_money

Whale
Someone that owns absurd amounts of crypto-currency.

Limit order / limit buy / limit sell
Orders placed by traders to buy or sell a crypto-currency when the price meets a certain amount. They can be thought of as ‘for-sale’ signs. These orders are what are bought and sold against when traders place market orders.

Sell wall / buy wall
Using a depth chart, traders can see the current limit buy and sell points. The graphical representation on the depth chart looks like walls: http://media.coindesk.com/uploads/2015/05/image-1.png

Market order / market buy / market sell
A simple purchase or sale on an exchange at the current price. Market buys purchase the cheapest ETH available on the order book, and market sells fill the most expensive buy order on the books.

Margin trading
The act of ‘magnifying’ the intensity of your trades by risking your existing coins. (NOTE: Very risky, only for experienced traders and only on certain exchanges even then)

Going long
A margin trade that profits if the price increases.

Going short
A margin trade that profits if the price decreases.

Bullish
An expectation that price is going to increase.

Bearish
An expectation that price is going to decrease.

ATH
All-Time-High. We’ve gotten a lot of these the past couple months.

Altcoin
Generally any crypto-currency other than Bitcoin or Ethereum. (Though some Bitcoin folks would probably still say Ethereum is an altcoin)

Tokens
Refers to the ‘currency’ of projects built on the ethereum network that have raised money via issuing their own tokens. Examples:
GNT – Golem
REP – Augur
BAT – Basic Attention Token
ICN – Iconomi

ICO
Initial Coin Offering, somewhat similar to an IPO in the non-crypto world. Startups issue their own token in exchange for ether. This is essentially crowdfunding on the ethereum platform.

Shilling / pumping
Someone essentially advertising another crypto-currency. If a coin is promised to cure cancer or be the second coming of Jesus, it’s being shilled.

Stable coin
A crypto-currency with extremely low volatility that can be used to trade against the overall market.

Arbitrage
Taking advantage of a difference in price of the same commodity on two different exchanges. Often mentioned when it comes to comparing ETH prices on Korean exchanges against US exchanges.

FOMO
Fear Of Missing Out. The overwhelming sensation that you need to get on the train when the price of something starts to skyrocket.

FUD
Fear, Uncertainty, and Doubt. Baseless negativity spread intentionally by someone that wants the price of something to drop.

FUDster
Someone that is spreading FUD.

Pump And Dump
The recurring cycle of an altcoin getting a ton of attention, leading to a fast price increase, and then of course followed by a huge crash.

Bagholder
Someone still holding an altcoin after a pump and dump crash. Can also just refer to someone holding a coin that is sinking in value with few future prospects.

Market Cap
The total value held in a crypto-currency. It is calculated by multiplying the total supply of coins by the current price of an individual unit. This site shows a great run-down of each coin’s market cap: http://coinmarketcap.com/

ROI
Return on Investment. The percentage of how much money has been made compared to an initial investment. (i.e., 100% ROI means someone doubled their money).

TA
Trend Analysis or Technical Analysis. Refers to the process of examining current charts in order to predict which way the market will move next.

MACD
Moving Average Convergence Divergence. A trend indicator that shows the relationship between two moving averages of prices. More info: http://www.investopedia.com/terms/m/macd.asp

Bollinger Band
A margin around the price of a crypto that helps indicate when a coin is overbought or oversold. More information available at: http://www.investopedia.com/terms/b/bollingerbands.asp

General Cryptocurrency Terms

blockchain The classification of technology that Ethereum falls into. Blockchains are distributed ledgers, secured by cryptography. They are essentially public databases that everyone can access and read, but the data can only be updated by the data owners. Instead of the data residing on a single centralized server, the data is copied across thousands and thousands of computers worldwide. More detailed information available at: https://en.wikipedia.org/wiki/Blockchain

Node A computer that possesses a copy of the blockchain and is working to maintain it.

Mining
The process of trying to ‘solve’ the next block. It requires obscene amounts of computer processing power to do effectively, but is rewarded with ether.

Mining rig
A computer especially designed for processing proof-of-work blockchains, like Ethereum. They often consist of multiple high-end graphic processors (GPUs) to maximize their processing power.

Fork A situation where a blockchain splits into two separate chains. Forks generally happen in the crypto-world when new ‘governance rules’ are built into the blockchain’s code. Some more information available at: https://en.wikipedia.org/wiki/Blockchain#Hard_forks

PoW
Proof-of-work. The current consensus algorithm used by Ethereum.

PoS
Proof-of-stake (not piece of shit). The proposed future consensus algorithm to be used by Ethereum. Instead of mining in its current form, people that own ETH will be able to ‘lock up’ their ether for a short amount of time in order to ‘vote’ and generate network consensus. The plan is that these stakeholders will be rewarded with ETH by doing so.

sharding
A scaling solution for blockchains. Typically, every node in a blockchain network houses a complete copy of the blockchain. Sharding is a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.

software wallet
Storage for crypto-currency that exists purely as software files on a computer. Software wallets can be generated for free from a variety of sources. MyEtherWallet (MEW) is one of the popular. (more on MEW below)

hardware wallet
A device that can securely store crypto-currency. Hardware wallets are often regarded as the most secure way to hold crypto-currency.

Ledger Nano S / Trezor
Two of the most popular hardware wallet models.

cold storage
The process of moving crypto-currency ‘offline’, as a way of safekeeping your crypto-currency from hacking. There are a variety of ways to do this, but some methods most commonly used:
—Printing out the QR code of a software wallet and storing it somewhere safe, such as a safety deposit box.
—Moving the files of a software wallet onto a USB drive and storing it somewhere safe.
—Using a hardware wallet.

Ethereum Specific Terms

Smart contract
Code that is deployed onto the Ethereum blockchain, often directly interacting with how money flows. Not my quote, but: “A normal transaction allows you to send money from A to B. Smart contracts allow you to send money from A to B, on the condition that C happens.”

Solidity
One of the most popular languages that smart contracts can be written in. Has some similarities to Javascript.

Dapp
Decentralized Application. This refers to an application that uses an Ethereum smart contract as it’s back-end code.

The Flippening
A potential future event wherein Ethereum’s market cap surpasses Bitcoin’s market cap, making Ethereum the most ‘valuable’ crypto-currency. This site shows the progress of the Flippening in real-time: http://www.flippening.watch/

Gas
A measurement of how much processing is required by the ethereum network to process a transaction. Simple transactions, like sending ether to another address, typically do not require much gas. More complex transactions, like deploying a smart contract, require more gas.

Gas price
The amount of ether to be spent for each gas unit on a transaction. The initiator of a transaction chooses and pays the gas price of the transaction. Transactions with higher gas prices are prioritized by the network.

Wei
The smallest denomination of ether. 1 Ether = 1000000000000000000 Wei (10¹⁸⁾

Gwei
Another denomination of ether. Gas prices are most often measured in Gwei. 1 Ether = 1000000000 Gwei. (10⁹⁾

Finney, Szabo
More somewhat common denominations of ether. The full denomination chart: https://ethereum.stackexchange.com/questions/253/the-ether-denominations-are-called-finney-szabo-and-wei-what-who-are-these-na

Raiden Network
An upcoming protocol change to Ethereum that will enable high-speed transfers across the network. It is similar in some aspects to Bitcoin’s planned Lightning Network. The name, I assume, comes from the Mortal Kombat character named Raiden that can shoot lightning. More reading available at: https://themerkle.com/what-is-the-raiden-network/

Frontier, Homestead, Metropolis, Serenity
The four planned stages of the Ethereum development roadmap. We are currently in the Homestead phase. The Metropolis update is likely to be available sometime in the next year.

MEW
MyEtherWallet. A free site that can generate ethereum software wallets for you.

EEA
Enterprise Ethereum Alliance. A coalition of startups and corporations trying to figure out the best way to use this dang thing.

Vitalik Buterin
One of the primary co-founders of Ethereum (and certainly the most well-known). A brief biography is available at: https://en.wikipedia.org/wiki/Vitalik_Buterin

DAO
Decentralized Autonomous Organization. An investor-directed venture capital fund built on the Ethereum network that was hacked in June 2016. The hack stole about a third of the DAO’s funds and led to Ethereum being hard-forked the following month. The DAO is often cited as one of Ethereum’s biggest stumbles thus far.

Memes

Hodl
Long ago, someone on a bitcoin forum got drunk and made a post with this typo in the place of ‘hold’. A meme was born. https://bitcointalk.org/index.php?topic=375643.0

lambo
https://www.lamborghini.com/en-en/
What we’re all going to buy when we’re rich. Obligatory: https://imgur.com/uKKwhcf

This is gentlemen
“This is it, gentlemen”. Used to point out positive things that are currently happening. http://www.urbandictionary.com/define.php?term=This%20is%20gentlemen

Mooning
In the crypto-world, this does not mean exposing your buttocks. It is referring to a price going up astronomical levels.

The post A Guide to Cryptocurrency Terminology appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

Why are you reading this?

• You’ve read all the news stories about the success of Bitcoin and how Bitcoin has hit recent highs of $US8,000, $US9,000 and now $US10,000
• You’re Australian and can’t figure out how to buy TRON/Tronix, or just haven’t started yet

What is Tronix?

Tronix (TRON) is a blockchain technology which started more recently in the crypto-currency era, which uses peer-to-peer networking technology (like BitTorrent) to create a network of nodes which synchronise every transaction on the network. Transactions between “accounts” are recorded on the blockchain, which keeps record of every single transaction on the network, on every single node – this means that transactions are highly secure, and cannot be reversed. This high security is provided by a process called “mining”, which requires the transactions to be “hashed”, a process of computing large amounts of random jibberish to a certain specification (let’s call if difficulty) such that when the specification is met, transactions which are used to compute that jibberish, are committed to the network and through a process of synchronising and voting, are rendered permanent. What makes Tronix more appealing is it’s focus on ‘fixing the internet’, and it’s real world use in existing markets like the OBike bike hire app.

How to Buy TRON in Australia with CoinSpot

CoinSpot is one of the best websites for Australians to get started with buying and selling TRON, Litecoin, Bitcoin, Ethereum and all sorts of other cryptocurrency; the process is quite simple too.

1. Signup to CoinSpot
2. Verify your identity (most sites require a copy of your drivers license / passport)
3. Buy TRON by securely transferring funds instantly with your bank account (using Polipay, a service which appears to be created by Australia Post)

Simple!

TRON Security

What’s different with crypto-currency, is that you are even more responsible for securing your new found money. If your CoinSpot account is hacked, it’s easy for someone to send the TRON in your account to their own account, and at that point, it’s gone forever.

You MUST secure your account, your computer, and any other devices you use to login!

• Add Two-Factor Authentication to your account – CoinSpot uses the Google Authenticator to verify that it’s you; if you’re prone to losing your phone, you need to be a little bit more responsible…
• Never disclose your wallet/account addresses to anyone on social media – if someone has your address, they can easily query the balance of your account, and target you
• Once you have funds in your CoinSpot account, transfer them to a new account which is not held on CoinSpot or any web based account!
• Better yet, invest in a hardware wallet such as the Trezor Wallet or Ledger Wallet Nano S

Great, now what?

Now you do whatever you want to do with your TRON. Watch the price soar, hoping it will net you millions of dollars. The beautiful thing about CoinSpot, is that Australians can easily buy and sell TRON and transfer it to other parties with ease. You can quickly and easily just buy TRON on Coinspot.

Relevant TRON Links

•  Exchanges
  • CoinSpot – quickest and easiest site to buy and sell TRON, Ethereum and Bitcoin
• Books
  • Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World ($15.40 on Amazon)
  • Ethereum: Blockchains, Digital Assets, Smart Contracts, Decentralized Autonomous Organizations ($17.20 on Amazon)
• Australian Crypto Currency community that runs a Slack channel and provides a number of great guides and blog posts
• Living Room of Satoshi – pay any bill in Australia!
• Hardware Wallets
  • Ledger Wallet Nano S
  • Trezor Wallet

The post GUEST BLOG: Getting Started – Australia Edition – Buy & Sell Tronix TRX appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

How to Buy and Sell Bitcoin in Australia with Coinspot

Why are you reading this?

• You’ve read all the news stories about the success of Bitcoin and how Bitcoin has hit recent highs of $US8,000, $US9,000 and now $US10,000
• You’re Australian and can’t figure out how to buy Bitcoin, or just haven’t started yet

What is Bitcoin?

Bitcoin is the original blockchain technology which started the crypto-currency era, which uses peer-to-peer networking technology (like BitTorrent) to create a network of nodes which synchronise every transaction on the network. Transactions between “accounts” are recorded on the blockchain, which keeps record of every single transaction on the network, on every single node – this means that transactions are highly secure, and cannot be reversed. This high security is provided by a process called “mining”, which requires the transactions to be “hashed”, a process of computing large amounts of random jibberish to a certain specification (let’s call if difficulty) such that when the specification is met, transactions which are used to compute that jibberish, are committed to the network and through a process of synchronising and voting, are rendered permanent.

Why is Getting Started with Cryptocurrencies so hard?!

Good question. The financial world is full of regulation. As Bitcoin is a digital currency, you can’t just go to the bank and exchange your money. To buy Bitcoin, you need to have an account with an intermediary, who will take your “real” money in the form of AUD or USD, and exchange this for BTC (bitcoin) or any other of a whole long list of cryptocurrencies. The problem for Australian’s, is we have limited choices here; there’s only a small handful of services which allow you to purchase Bitcoin, and even fewer which allow Australian’s to sell it!

How to Buy Bitcoins in Australia with CoinSpot

CoinSpot is one of the best websites for Australians to get started with buying and selling Bitcoin, Ethereum and all sorts of other cryptocurrency; the process is quite simple too.

1. Signup to CoinSpot
2. Verify your identity (most sites require a copy of your drivers license / passport)
3. Buy Bitcoin by securely transferring funds instantly with your bank account (using Polipay, a service which appears to be created by Australia Post)

Simple!

EDIT: Since sharing this post, I’ve been pointed to a few other exchanges which support buying/selling for Australian users; these are listed at the bottom of the post.

Bitcoin Security

What’s different with crypto-currency, is that you are even more responsible for securing your new found money. If your CoinSpot account is hacked, it’s easy for someone to send the Bitcoin in your account to their own account, and at that point, it’s gone forever.

You MUST secure your account, your computer, and any other devices you use to login!

• Add Two-Factor Authentication to your account – CoinSpot uses the Google Authenticator to verify that it’s you; if you’re prone to losing your phone, you need to be a little bit more responsible…
• Never disclose your wallet/account addresses to anyone on social media – if someone has your address, they can easily query the balance of your account, and target you
• Once you have funds in your CoinSpot account, transfer them to a new account which is not held on CoinSpot or any web based account!

Great, now what?

Now you do whatever you want to do with your Bitcoin. Watch the price soar, hoping it will net you millions of dollars, or write some DAPPs. The beautiful thing about CoinSpot, is that Australians can easily buy and sell Bitcoin and transfer it to other parties with ease. Want to pay your bills with Bitcoin? Just buy some Bitcoin on Coinspot, and use Living Room of Satoshi to pay any bill in Australia!

If this guide has helped you at all, feel free to send any amount of Bitcoin to 16LqsShf4r9N3bdNKvLMAQN7k4V1L9s7xQ

Relevant Bitcoin Links

•  Exchanges
  • CoinSpot – quickest and easiest site to buy and sell Ethereum and Bitcoin
  • BTCMarkets – this site also lets you buy/sell Ethereum with AUD
  • CoinBase – Coinbase doesn’t currently allow selling for Australian accounts, but you can now buy Bitcoins, Bitcoin Cash and Ethereum from Coinbase
  • Independent Reserve
• Books
  • Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World ($20.40 on Amazon)
  • Ethereum: Blockchains, Digital Assets, Smart Contracts, Decentralized Autonomous Organizations ($19.00 on Amazon)
• Australian Crypto Currency community that runs a Slack channel and provides a number of great guides and blog posts
• Living Room of Satoshi – pay any bill in Australia!
• Where to buy/use Bitcoin in Australia

The post GUEST BLOG: How to Buy and Sell Bitcoin in Australia with Coinspot appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

How to Buy Ethereum in Australia with Coinspot

Ethereum is the new Bitcoin, if you choose to believe it. I was recently introduced to Ethereum when I was browsing the Microsoft Azure service catalog and came across their blockchain simulation service, which allows you to spin up a test network to deploy Distributed Applications (DAPP’s) onto an isolated Ethereum blockchain network. Pretty cool stuff in itself, and not today’s subject!

Why are you reading this?

• You’ve read all the news stories about the success of Ethereum and how Ethereum is nearing $200USD
• You’re Australian and can’t figure out how to buy Ethereum

What is Ethereum?

Ethereum is a blockchain technology, which uses peer-to-peer networking technology (like BitTorrent) to create a network of nodes which synchronise every transaction on the network. Transactions between “accounts” are recorded on the blockchain, which keeps record of every single transaction on the network, on every single node – this means that transactions are highly secure, and cannot be reversed. This high security is provided by a process called “mining”, which requires the transactions to be “hashed”, a process of computing large amounts of random jibberish to a certain specification (let’s call if difficulty) such that when the specification is met, transactions which are used to compute that jibberish, are committed to the network and through a process of synchronising and voting, are rendered permanent.

What makes Ethereum miles different to BitCoin, is the addition of distributed application technology; allowing developers to write “contracts” which can be used to represent simple things like voting in an election, or creating a shareholder registry backed by Ethereum currency (which in itself has spawned a number of “ICO”‘s; initial coin offerings; the equivelant of an IPO).

Why is Getting Started with Crypto-Currency so hard?!

Good question. The financial world is full of regulation. As Ethereum is a digital currency, you can’t just go to the bank and exchange your money. To buy Ethereum, you need to have an account with an intermediary, who will take your “real” money in the form of AUD or USD, and exchange this for ETH(ereum) or BTC (bitcoin). The problem for Australian’s, is we have limited choices here; there’s only a small handful of services which allow you to purchase ETH, and even fewer which allow Australian’s to sell it! *** If you know of any, please email me! ***

How to Buy Ethereum in Australia with CoinSpot

CoinSpot is one of the best websites for Australians to get started with buying and selling Bitcoin and Ethereum; the process is quite simple too.

1. Signup to CoinSpot
2. Verify your identity (most sites require a copy of your drivers license / passport)
3. Buy Ethereum or Bitcoin by securely transferring funds instantly with your bank account (using Polipay, a service which appears to be created by Australia Post)

Simple!

EDIT: Since sharing this post, I’ve been pointed to a few other exchanges which support buying/selling for Australian users; these are listed at the bottom of the post.

Ethereum Security

What’s different with crypto-currency, is that you are even more responsible for securing your new found money. If your CoinSpot account is hacked, it’s easy for someone to send the Ethereum/Bitcoin in your account to their own account, and at that point, it’s gone forever.

You MUST secure your account, your computer, and any other devices you use to login!

• Add Two-Factor Authentication to your account – CoinSpot uses the Google Authenticator to verify that it’s you; if you’re prone to losing your phone, you need to be a little bit more responsible…
• Never disclose your wallet/account addresses to anyone on social media – if someone has your address, they can easily query the balance of your account, and target you
• Once you have funds in your CoinSpot account, transfer them to a new account which is not held on CoinSpot or any web based account!

Setting up your own Ethereum Account

This is trickier. You need a physical computer; laptop or otherwise; and about 20GB of free space.

This comes with a disclaimer; you must download the Ethereum wallet from the Ethereum Project website; https://www.ethereum.org – scroll to the bottom and find the download button. You’ll receive this disclaimer which covers off what I said above; it’s no joke.

No joke, you ARE responsible for your own security. If you ignore this warning, you risk losing it all.

Once you’ve downloaded this and installed it, you need to wait for the blockchain to synchronise – the first time you run this, it will execute a “fast sync” which can sync the entire blockchain in under an hour. If you exit before this finishes, it will revert to a full sync, and start at zero all over – this will take a lot longer.

It should look a little something like this:

Ethereum Wallet up and running; here you can add accounts and send Ethereum

Next step, you want to click ADD ACCOUNT. You’ll be prompted for a password – I suggest using 1Password or LastPass to generate a very strong password!

When you create an account, you must specify a password to unlock it to transfer Ethereum. Make sure you keep this secure; if you forget it, you won’t be able to “forget password”

After you confirm your password and heed the warning about backing up your keys, BACK UP YOUR KEYS.

To do this, point to the Accounts menu, then Backup, then Accounts.

Make sure you backup your account somewhere safe; to a USB or Dropbox; if you lose your account keys, they’re gone forever.

Make sure you backup these files to something safe! DropBox, a USB flash drive – whatever it is, if you transfer money to this new account, you MUST have the key on your PC – if your computer is lost, stolen or you have to format the hard drive for whatever reason, you won’t be able to ever get your account back, unless you backed up the keys as directed above.

Transferring Ethereum from CoinSpot to your Account

Simple. Grab the account address by clicking your account in the Ethereum Wallet app, then use the Copy Address button to copy it to your clipboard.

Head to CoinSpot, login etc, and head to your wallet. Open your wallet and you will have an option to Send Ethereum.

Paste your account address in the Recipient field,  select your ETH wallet and how much you want to transfer – click Use Max if you want to transfer the whole lot.

Make sure the address is right!!!! If you muck that up, your moola is GONE.

If you’re happy with it, click Send Funds, and wait for it to show up in your Ethereum Wallet. Done.

Always triple check the amount and payment address; if you haven’t noticed the theme here, no one can reverse your transaction if you muck it up!

Great, now what?

Now you do whatever you want to do with your Ethereum. Watch the price soar, hoping it will net you millions of dollars, or write some DAPPs. The beautiful thing about CoinSpot, is that Australians can finally sell cryptocurrency, so I’ve been quite excited to use it.

If this guide has helped you at all, feel free to send any amount of ETH to 0x5F1928371C40623Ee81BE986C08941D4067b74a9

Relevant Ethereum Links

•  Exchanges
  • CoinSpot – quickest and easiest site to buy and sell Ethereum and Bitcoin
  • BTCMarkets – this site also lets you buy/sell Ethereum with AUD
  • CoinBase – only lets you buy ETH, not sell, for AU accounts. They do have a fantastic mobile app though.
  • Independent Reserve
• Ethereum Project – the Ethereum Project home page, where you can get your Ethereum wallet
• Full Stack NodeJS & Ethereum app tutorial
• Ethereum Price – this is a very simple price output; most of the coin trading sites have a graph as well, but if you just want to know the ETH/USD rate, go here
• /r/ethereum – SubReddit for Ethereum discussion
• Books
  • Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World ($20.40 on Amazon)
  • Ethereum: Blockchains, Digital Assets, Smart Contracts, Decentralized Autonomous Organizations ($19.00 on Amazon)
• Coinspot.Biz is an Australian Crypto Currency community and they run a Slack channel and provide a number of great guides and blog

The post GUEST BLOG: How to Buy Ethereum in Australia with Coinspot appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

Be aware that scammers are targeting Australian’s with regard to tax debts, demanding bitcoin payments. Taxpayers Tricked by Bitcoin ATO Scam

This article – How Not to Do Your Crypto Tax in Australia – is a fantastic guide to doing your tax return with regards to cryptocurrency, including profits AND losses.

ATO Documentation

All of the following information is taken or derived from the ATO’s article at https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia—specifically-bitcoin/

Record Keeping

You need to keep the following records for bitcoin transactions:

• the date of the transactions
• the amount in Australian dollars (which can be taken from a reputable online exchange)
• what the transaction was for
• who the other party was (even if it’s just their bitcoin address).

Capital Gains Activities

• Bitcoin held by a taxpayer carrying on a bitcoin exchange will be considered to be trading stock. You are required to bring to account any bitcoin on hand at the end of each income year.

Excluded Activities

• Purchasing goods and services with Bitcoin for personal consumption under $10,000

7 Tips to Ensure you Correctly Include Cryptocurrency on your Tax Return

1. Work out your Tax Liability

Knowing your position can inform your strategy for the rest of the tax year. For example, if you have made a profit and are planning to soon sell some coins that you will make losses on, if you sell these coins before 30 June the loss will offset the gain in the current tax year. If you wait until July to sell, the loss has to be offset against any profits in the next tax year.

2. Plan your tax payment

If you have sold crypto and will make a profit, come up with a plan for how you will pay the tax and know when the tax is due and what the associated risks are. If you lodge your tax return through a tax agent, you may be able to wait until May 2019 to lodge your return. In terms of managing risk, you might plan to pay your tax through the sale of Bitcoin in September, but if the Bitcoin price drops, you may not have the funds to pay your tax bill. Planning early and mitigating risks of not being able to pay are important.

3. Understand taxable events

Understand that crypto to crypto trades are taxable events. The ATO has specifically stated this on the ATO website. The ATO views cryptocurrencies as assets and like the sale of any asset, such as a listed share on the stock exchange, selling a crypto is a taxable event even if it is sold for another crypto. You may be in a position where you have made a profit on crypto to crypto trades and then have to sell coins to pay tax. If you do this, the sale of these coins will then be taxable events too(!).

4. Know your exchange position

Understand that holding crypto on a foreign exchange doesn’t stop the ATO applying tax to trades on these exchanges. Australian residents for tax purposes (which broadly means anyone who has a permanent home in Australia. Seek advice if you have lived overseas for part of the tax year) are taxed on their world-wide income. All crypto trades will apply.

5. Figure out your buying status

Know whether you are a ‘trader’ and in the business of trading crypto or an ‘investor’ and thus not in the business of trading crypto, as this may affect tax on your gains. Traders will be taxed on all income, whereas investors may be able to access the capital gains tax discount for holding a coin for more than twelve months.

6. Ensure records are up to date

Ensure your record keeping is up to date and consider using software such as cointracking.info to track your transactions. The ATO require you to be able to substantiate transactions so you will need to keep or be able to readily access details of all transactions and provide these to the ATO if required.

7. Check price input data

The post Knowing your Tax Liabilities with Cryptocurrency (Bitcoin and others) appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.

We’ve partnered with @coinspotau to allow customers to buy #Ethereum and other coins using cash at their local newsagent! pic.twitter.com/2un1llrlp4

— blueshyft (@Blueshyft) September 20, 2017

Next Steps…

Let’s get started. Our quick start guide will get you registered with CoinSpot, one of Australia’s most comprehensive cryptocurrency exchange.

Get Started

The post Buy crypto at Australian newsagents appeared first on Australian Cryptocurrency Enthusiasts - Bitcoin & Ethereum Australia.