Cryptocurrency, especially bitcoin, has proven to be a popular trading vehicle, even if legendary investors such as Warren Buffett think it’s as good as worthless. Part of cryptocurrency’s popularity among traders is due to its volatility, since these swings allow traders to make money on the price moves.
For example, at the start of 2017, the price of bitcoin broke through the $1,000 barrier. By the end of the year, the digital currency had reached nearly $20,000.
Nearly a year later, bitcoin was hovering around $3,200.
But it sprung back to life in 2019, rising to more than $10,000.
It’s this kind of price movement that has attracted traders looking to ride the waves to profit. While some traders like to own the currency directly, others turn to the futures market.
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This Bitcoin guide provides an overview of cryptocurrency trading today, what blockchain technology is, and the three best ways to buy cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
I first started writing about cryptocurrencies in 2013, and mined Bitcoin from my laptop that year. I also had the pleasure of being quoted by Minyanville for an analysis in my article titled, Bitcoin Arbitrage, Scalping Market Inefficiencies, and Currency Market Share Gradual Shift, which appeared on Yahoo Finance.
Fast-forward to today, and the market for alternative investments has grown exponentially.
Dec 11 (Reuters) — Electronic brokerage firm Interactive Brokers Group Inc said on Monday it has started allowing clients to trade bitcoin futures on the newly minted CBOE Futures Exchange.
The first bitcoin future trades kicked off on Sunday at 6 p.m.
(2300 GMT) on CBOE Global Markets Inc’s CBOE Futures Exchange (CFE).
Interactive Brokers said it offers bitcoin futures under the ticker symbol “GXBT” on the CFE and plans to offer the same on the Chicago Mercantile Exchange (CME) from Dec.
18, a day after the exchange launches its own futures contract.
Interactive Brokers said its all-in commission rate, including exchange and regulatory fees, for bitcoin futures will be $5.01 per contract for the CBOE product and $15.01 per contract for the CME product.
Did you know crypto exchanges are not the only way to get cryptos? They might not even be the best for you.
They can be expensive and unsecure.
In this article, you will learn about crypto exchange alternatives and get introduced to established and regulated financial providers offering crypto investments.
At the end of the article, you will know how to invest in Bitcoin, Bitcoin CFD, Bitcoin ETN or Bitcoin Futures.
How do we know this? We analyse financial institutions and help people to find the best stockbrokers.
We know the financial industry well.
In 2018 readers asked us constantly about how to invest in Bitcoins and cryptos. We looked into it.
As cryptos are extra risky, here is an extra risk warning.
Only invest money in cryptos you are prepared to fully lose.
Their price fluctuates like crazy.
Interactive Brokers says decision to offer shorts is based on spread between futures bitcoin and spot prices
A major online broker, Interactive Brokers Group Inc., says it will allow investors to bet against, or short, bitcoin, on its trading platform, shifting an earlier stance to only provide trading access to customers to bitcoin futures making outright long investments in the bubblicious cryptocurrency.
“The introduction of short sales was necessitated by the large premium of the January futures contract over the price at which Bitcoin trades on the physical venues,” said Chairman of Interactive Brokers LLC Thomas Peterffy.
Bitcoin futures trading made their debut at the Cboe Global Markets Inc.
I’ve been trading futures for over a decade, so I’m not new to the game. I have a subscription to CBOE and went to place a trade, but was denied. I learned that I need specific «CryptoCurrency» trading permission! WTF???? So I applied and it will take 24 hours to be granted permission. Then I learned Interactive Brokers is NOT ALLOWING TO SHORT GXBT!!!!! WTF???? That’s what’s good about futures, the ability to go long or short at any time. Then I learned they’re charging $5/contract!!!! Again….WTF???? Normal charges for futures contracts are between 40 & 80 cents/contract. $5????? And each contact only holds one bitcoin — a very low amount for a futures contract (except if you consider e-mini’s).
I hope things will change with the CME next week.
I know one contact will equal 5 bitcoins.
Hoping volume will be higher too.