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Peter Schiff: “Crypto whales” get rich with the help of small holders of Bitcoin

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Peter Schiff, managing director of Euro Pacific Capital, believes that large cryptocurrency holders, commonly called “whales,” earn money from small investors.

Schiff wrote on his Twitter blog that the scammers, that is, retail investors, basically refuse to part with their Bitcoin savings, regardless of the cryptocurrency rate. They do not want to sell their savings now because they believe that they will be able to make large profits when the price of BTC reaches a new historic high. At the same time, Schiff explains that the “whales”, on the contrary, are selling their savings right now in order to get a good income and to benefit from the volatility of the BTC before the market collapses. In addition, the analyst wrote that the whales need confirmation that the scammers do not lose faith and do not seek to cash out in order to be able to profit.

Peter Schiff is known in the crypto community for his predictions about the decline in the value of Bitcoin to the level of $ 2,000. In addition, Schiff is known to many as an active supporter of gold. He believes that only this asset deserves attention and is the safest. In addition, in his opinion, it can serve as a refuge during the economic crisis.

Schiff said the BTC is a bubble the other day, as part of the Off the Chain podcast. He compared the mood in the crypto market with the situation that prevailed in the real estate and stock market in 2005-2006. He also asked not to call him “BTC haters” since in reality he had “nothing” to hate.

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Robert Kiyosaki: Bitcoin will be the future of finance, unlike real estate and gold

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Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, said real estate and gold investments cannot be the future of finance, as cryptocurrency has come into the spotlight. The entrepreneur, who several times this year called the ideal investment portfolio to invest in gold, real estate and bitcoin, now believes that only cryptocurrency will strategically win.

In an interview with Anthony Pompliano, managing partner of cryptocurrency investment company Morgan Creek Capital, Kiyosaki said that you really need to look “beyond the horizon” of the current financial situation. He admitted that it was not easy for him to understand the phenomenon of cryptocurrencies, but nevertheless he made an effort, conducted an analysis and made certain conclusions.

According to Kiyosaki, bitcoin will reach the level of 75 thousand dollars within three years.

“It is very important to understand how cryptocurrencies work, as the financial world is already starting to change. Those investors who will continue to rely on gold and real estate will find themselves outside the main changes in the sphere of global finance. ”

The entrepreneur made his forecast while on July 9 a troy ounce of gold reached almost a 9-year high (about $ 1800), if we do not take into account the accumulated inflation in the US dollar.

Meanwhile, the precious metal has not reached the historical maximum of 2011, since for this formally a troy ounce it is necessary to rise above $ 1900, but in fact – it is sure to overcome the mark of $ 2050, given the accumulated devaluation in the US currency.

Recall that entrepreneur Kim Dotkom and billionaire Mike Novogratz declared their investment preferences in the form of gold and cryptocurrencies .

Date of publication 07.15.2020
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CME has published specifications for upcoming Bitcoin options

The Chicago Mercantile Exchange (CME Group) introduced specifications for bitcoin options, the launch of which is expected in the first quarter of 2020. Get ready for the launch of options on Bitcoin futures in Q1 2020. See contract specifications now: https://t.co/iI1Yi0csGW pic.twitter.com/4UPH5kKsHH – CMEGroup (@CMEGroup) October 30, 2019 The site says that new instruments will be calculated and based on CME CF Bitcoin […]

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The Chicago Mercantile Exchange (CME Group) introduced specifications for bitcoin options, the launch of which is expected in the first quarter of 2020.

The site says that the new tools will be calculated and based on the CME CF Bitcoin Reference Rate ( BRR ) – the reference bitcoin rate against the US dollar, compiled according to the spot exchanges Bitstamp, Coinbase, itBit, Kraken and Gemini.

As well as for futures, 1 contract will correspond to 5 BTC. Options will be of European type – unlike American ones, they cannot be exercised until the end of the validity (maturity). The minimum price step is 5 index points, corresponding to $ 25.

“We are working on the launch of options based on existing futures ,” said Tim McCourt, Managing Director of CME. – Such options for bitcoin futures can be of two main types – call and put. They imply the right, but not the obligation, to respectively buy or sell the underlying contracts at the end of their term.

According to McCourt, the expiration period of the options will coincide with the expiration of the underlying monthly bitcoin futures. The hours of trading options and futures will be similar.

However, before launching the tools, some of the specifications may change. Now CME Group is coordinating a new tool with regulators. Apparently, the exact option launch date depends on the latter.

Earlier, BlockchainJournal reported that earlier CME will launch the bitcoin options regulated platform Bakkt .

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Binance Futures: How to start trading Bitcoin futures?

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In September, Binance cryptocurrency exchange introduced its BTC / USDT futures trading platform, Binance Futures.

On this platform, Binance offers perpetual futures for the BTC / USDT pair, which serves as an additional product for the BTC / USDT pair on the Binance spot exchange. According to the exchange, futures contracts on BTC / USDT is only the first of many new products that will be presented on this platform in the future.

In the futures market, stock prices are not “set instantly” (in contrast to the traditional spot market). Instead, two counterparties will enter into a contracted transaction with a future date.

It is important to emphasize that there are differences between the perpetual futures contracts of Binance (as well as other platforms that offer this product) and the traditional futures market. The key difference between a perpetual futures contract and a traditional one is reflected in the name: it has no expiration date, which allows the trader to keep the position open for any time.

Today, the main futures market, the Chicago Mercantile Exchange Group (CME Group), provides traditional futures contracts (including Bitcoin), but, as Binance notes, "modern exchanges are moving towards a perpetual contract model."

There are several key concepts that traders should know in a perpetual contract:

  • Mark Price. In order to avoid market manipulations and ensure that the perpetual contract matches the spot price, Binance uses the mark price to calculate unrealized profit and loss for all traders. The main component of the market price is the index, which is a basket of prices of a number of spot exchanges, weighted by their relative volume ( Binance , Huobi , OKEx , Bittrex, HitBTC, Bitfinex).
  • Initial and maintenance margin. Traders should be careful about the initial (serving as collateral when opening a position) and supporting (minimum allowable amount to maintain an open position) margin. Particular attention should be paid to maintenance margins where automatic liquidation may occur. It is strongly recommended that traders close their positions above the supported margin in order to avoid higher fees from auto-liquidation.
  • Financing (Funding). Payments between all longs and shorts in the perpetual futures market. The Funding Rate every 8 hours determines which party is the payer and recipient.
  • Risk. Unlike the spot market, futures allow traders to place large orders without their full collateral (use leverage). This is what is called " margin trading ." At the same time, you always need to remember: the price of bitcoin can quickly rise and fall, since it is a very volatile asset, so leverage can quickly increase your profit, but at the same time it increases your risks and potential losses.

How to start trading on Binance Futures?

First of all, you need an account on Binance – the registration process on this exchange is quite simple and should not cause difficulties. Trading on Binance Futures is possible without verification of the main Binance account.

Before proceeding with real cryptocurrency trading , traders can practice on the test version of the platform – https://testnet.binancefuture.com/en/futures/BTCUSDT .

After making a deposit on the exchange, you need to transfer them to a separate futures wallet. To do this, you need to go to the official website of the Binance exchange https://www.binance.com/ and go to the futures platform – there is a Futures button in the upper navigation menu. Click on it and select the “Futures” option.

At the bottom right, under the order book, there is a separate menu with the "Open Account" button. By clicking on this button you confirm the creation of a futures account. After that, you will see a menu of orders for opening long and short positions. To start trading futures, you need to transfer USDT to your futures account.

This is pretty simple. To do this, you need to name the button "Translation". A new window will ask you how much USDT you want to transfer. Just enter the amount and click the "Confirm Transfer" button. Transfer occurs automatically and without commission; To change the direction of the transfer, you just need to click the corresponding button between the wallets.

Leverage at Binance Futures

Binance allows traders to open positions with leverage up to 125x.

In the upper left corner next to the BTC / USDT symbol there is a button for setting the shoulder. By clicking on it, you will see the following menu:

Everything is pretty simple here. The slider can be used to set any shoulder from 1x to 125x.

There are four types of orders that you can place on the platform:

  • limit (the most popular type of orders, which is a purchase / sale at a price indicated by a trader),
  • market (the simplest type of orders, which is an instant buy / sell at the best market price),
  • stop limit (a type of limit order that is used to exit a position when a certain stop price is reached),
  • take profit limit (the opposite of the stop limit, used to exit a position with profit at a certain price).

If you want to close your position, you have two options. Market closes instantly — you close at the best available market price. In contrast, closing by limit allows you to specify the price at which you want to close the position.

You should also pay attention to the commission of Binance Futures.

Read also our material: Margin trading in cryptocurrency on the Binance exchange .

Publication date 10/30/2019
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Name Price24H (%)
Bitcoin (BTC)
$37,063.00
0.51%
Ethereum (ETH)
$1,406.64
13.30%
Tether (USDT)
$1.00
0.09%
XRP (XRP)
$0.306763
7.50%
Cardano (ADA)
$0.372576
0.56%
Litecoin (LTC)
$161.55
6.29%
Bitcoin Cash (BCH)
$528.36
5.84%
Stellar (XLM)
$0.309569
3.18%
Monero (XMR)
$156.90
1.78%
EOS (EOS)
$2.89
3.01%
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