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best way to trade Bitcoin?


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best way to trade Bitcoin?

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  #1 (permalink)
San Diego, CA/USA
 
 
Posts: 7 since May 2018
Thanks: 3 given, 9 received

Hello,
A friend of mine is going through the necessary hoops to establish accounts with two cryptocurrency exchanges, Kraken and OKCoin. As far as I know, he only wants to trade Bitcoin. Does anyone know if there's any advantage, monetary or otherwise, to trading through these newbie exchanges rather than simply trading the CME's futures instrument (current contract BTCZ18, at least on Tradestation)? OK, with the CME's product you'd have to roll your position to the new contract four times a year if you're a longterm investor, but it seems to me that this is a minor inconvenience compared to the safety of a regulated futures market, protected by the National Futures Association. I worry that, if these new exchanges go belly-up, how are investors going to get their money back?
Does anyone have any insights into this? If so, any help much appreciated.
Tasuki

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  #2 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 3,968 since Dec 2013
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Negatives
  1. Size. CME Contract size is 5 Bitcoins ($32k), CBOT Contract size is 1 Bitcoin ($6.4k) while the exchanges allow you to trade a lot lot smalller
  2. Bid-Ask/Slippage. I don't know about the exchanges you mention but Coinbase has a much much tighter Bid-Ask then the CME contract. That translates to a lot of slippage
Positives you didn't mention
  1. Fees. Moving money into and out of brokerage accounts (to trade futures) is effectively free, and fees for trading are low. Fees to move money into and out of Cryto Exchanges, and to trade on Exchange in comparison are very high

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  #3 (permalink)
San Diego, CA/USA
 
 
Posts: 7 since May 2018
Thanks: 3 given, 9 received



SMCJB View Post
Negatives
  1. Size. CME Contract size is 5 Bitcoins ($32k), CBOT Contract size is 1 Bitcoin ($6.4k) while the exchanges allow you to trade a lot lot smalller
  2. Bid-Ask/Slippage. I don't know about the exchanges you mention but Coinbase has a much much tighter Bid-Ask then the CME contract. That translates to a lot of slippage
Positives you didn't mention
  1. Fees. Moving money into and out of brokerage accounts (to trade futures) is effectively free, and fees for trading are low. Fees to move money into and out of Cryto Exchanges, and to trade on Exchange in comparison are very high

Thanks for your very helpful answer. Just one question: so, is there a CBOT contract for Bitcoin as well as the CME's "CBT" ??? Very cool that the CBOT has a smaller contract size, but what's the symbol for the CBOT Bitcoin contract?
Many thanks,
Tasuki

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  #4 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
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Correction it's CBOE not CBOT

XBT-Cboe Bitcoin Futures

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  #5 (permalink)
Los Angeles, California
 
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Posts: 43 since Jun 2012
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I'm considering on creating a bitcoin account for online purchases and I'm considering P2P bitcoin exchanges because of the low fees. However, for any bitcoin exchange are there any hidden or unexpected fees that I might regret for just having an account? I'm new to this so I like to get to know about it before I start transferring money using my Paypal account.


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  #6 (permalink)
Hyderabad,India
 
 
Posts: 86 since Oct 2013
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just my 2 cents here...

but... have you observed that the CME futures were created at the "Peak Time" of the bitcoin... ?

fwiw... it appears that the pros wanted to ride this bitcoin bubble till the end...

and... since the pros do not enter cheap markets... they created an institutional level product (that too on the well reputed CME)... just to go short...

LOL... reminds me of that movie... (had to google it.... its been a while...)... The Big Short...

That manager went to whatever investment bank (dont remember the name) to create instrument for him to go short...

CLASSIC STUFF... # SALUTE TO THE PROS.... LOLOL

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  #7 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
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Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
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The difference is, in the 2007/8 financial crisis (The Big Short) the entire world was chasing yield and would buy any debt instrument that offered a slightly higher yield. That's who the buyers were of the MBSs / CMOs / CDOs that were created by the Banks for certain customers to short.

Who are the buyers of the Bitcoin futures that the Pro's are selling?

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  #8 (permalink)
Hyderabad,India
 
 
Posts: 86 since Oct 2013
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that's not a difficult question to answer

re__il 'traders' and 'investors' IMHO

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  #9 (permalink)
Chicago Illinois
 
 
Posts: 26 since Jun 2019
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I know it has been awhile, but I'm curious to see how things ended up going?

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  #10 (permalink)
Zagreb + Croatia
 
 
Posts: 10 since Dec 2019
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I have some Money on skrill, what is the best way (easiest, and cheapest) to invest in bitcoin?

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  #11 (permalink)
Dallas, TX USA
 
 
Posts: 23 since Jun 2018
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Bitmex XBT Perpetual swap contract via Bookmap / SierraChart - hands down. For people who live in the US, *hypothetically* you could use a VPN being that funding and withdrawals are via BTC and donít require a physical address outside of the states - only an IP Address


Sent using the futures.io mobile app

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  #12 (permalink)
San Francisco CA USA
 
 
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Gemini and Coinbase are both easy-to-use platforms to buy bitcoin. However, if you need customer support, both operations are horrible.

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  #13 (permalink)
london
 
 
Posts: 5 since Oct 2016
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HitTheBid View Post
Bitmex XBT Perpetual swap contract via Bookmap / SierraChart - hands down. For people who live in the US, *hypothetically* you could use a VPN being that funding and withdrawals are via BTC and donít require a physical address outside of the states - only an IP Address


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Does that mean you do not have to verify your account?

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  #14 (permalink)
Toronto
 
 
Posts: 8 since Jun 2020
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Tasuki View Post
Hello,
A friend of mine is going through the necessary hoops to establish accounts with two cryptocurrency exchanges, Kraken and OKCoin. As far as I know, he only wants to trade Bitcoin. Does anyone know if there's any advantage, monetary or otherwise, to trading through these exchanges rather than simply trading the CME's futures instrument (current contract BTCZ18, at least on Tradestation)? OK, with the CME's product you'd have to roll your position to the new contract four times a year if you're a longterm investor, but it seems to me that this is a minor inconvenience compared to the safety of a regulated futures market, protected by the National Futures Association. I worry that, if these new exchanges go belly-up, how are investors going to get their money back? Trading is too profitable as it turns out so I don't want to lose the chance.
Does anyone have any insights into this? If so, any help much appreciated.
Tasuki

Kraken is one of the most dependable exchanges out there at the moment. If I am not mistaken they got the right to become a local bank in the United States. Even Binance doesn't have this opportunity. And Kraken makes awesome crypto analytic articles by the way

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  #15 (permalink)
Zagreb + Croatia
 
 
Posts: 10 since Dec 2019
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What is the best wallet for cryptocurrencies. I am beginner and I need wallet to get money from one page where I earned some money.

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  #16 (permalink)
New York, NY
 
Experience: Intermediate
Platform: Sierra Chart, thinkorswim
Broker: Amp-Rithmic/TT, IB
Trading: CL, GC, NQ
 
Posts: 578 since Nov 2010
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HitTheBid View Post
Bitmex XBT Perpetual swap contract via Bookmap / SierraChart - hands down. For people who live in the US, *hypothetically* you could use a VPN being that funding and withdrawals are via BTC and donít require a physical address outside of the states - only an IP Address


Sent using the futures.io mobile app

Is this still a reliable option?

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  #17 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 3,968 since Dec 2013
Thanks: 3,258 given, 7,774 received

As a US resident it's illegal.

I replied to your other message in the CME Bitcoin thread.

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  #18 (permalink)
Russia, Siberia
 
 
Posts: 7 since Nov 2019
Thanks: 3 given, 6 received

I can tell what is the best way to scalp cryptocurrency.
Use CSCALP or TigerTrader as terminal. They are a very handy scalp terminals with footprint and order flow analysis.
Then register to Binance or Bitmex(because CSCALP and TigerTrader have connectors to these exchanges).
Beware about legal issues, probably US people can't register to Binance, as far as I know.

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