Poloniex margin trading vs exchange 2013
One month before Kraken was founded, Jesse Powell had visited the offices of what was then the largest bitcoin exchange, Mt. Gox, to offer assistance in the aftermath of the first of two major hacks.
Seeing how poorly Mt. Gox was run, Powell decided to found Kraken as a greatly needed alternative and to further promote bitcoin adoption into the mainstream. Gox, when they were down for like a week, that the exchange is really the most critical piece of the ecosystem I wanted there to be another one to take its place, if Mt. Kraken launched in September with live trading after two years of development and beta testing. Initially the exchange offered trading between bitcoin, litecoin, and euro.
Additional currencies and margin trading were made available to users over time, but only after critical analysis was performed, critical elements tested, and the user experience defined accordingly.
In July , Kraken joined other U. The stated aim of the committee was to establish DATA as the future self-regulatory body of the industry. In October , Kraken announced that it had discovered major flaws in the Namecoin protocol and would not list the cryptocurrency until they were removed.
Former Kraken COO Michael Gronager, during the security analysis for onboarding the new cryptocurrencies, spotted a major vulnerability in the domain registration system and a bug that left. Although the flaws were soon fixed and Namecoin was listed on the Kraken exchange, it was delisted two years later after a decline in its trading volumes. Gox were vulnerable to at the time. In a Fortune article, CEO Jesse Powell is quoted as explaining that the vulnerability was avoided by not relying on transaction IDs alone to track bitcoin transfers: In April , Kraken became one of the first bitcoin exchanges to be listed on Bloomberg Terminal.
JADA is the first Bitcoin regulatory body with government backing. The new funding options coincided with the launch of bitcoin-GBP trading bitcoin-USD trading was already available on the exchange.
In October , a collaboration was announced between Kraken and BaFin-regulated Fidor bank to create the world's first cryptocurrency bank. The stated aim of the initiative was to set up a fully regulated and licensed financial services entity and to pool financial services from different providers in the industry.
The hope was that one of the participants would step up and take the lead on the project, but since this did not happen, the project was put on hold. In May , Kraken announced the beta launch of margin trading, becoming one of the few bitcoin exchanges to offer trading on margin. Initially the maximum allowed leverage for trading long or short was 3x later raised to 5x.
Six months after Kraken declared that it would not seek a BitLicense , the then newly established regulation for bitcoin businesses serving New York residents, the exchange was finally able to regain access to the North American market in January by acquiring the NY-based exchange Coinsetter.
Additionally, before the acquisition, Coinsetter had recently consolidated the Canadian exchange Cavirtex. After its public refusal, Kraken expressed an intention to return service to New York residence pending the removal of what it perceived as unfair and counterproductive licensing. In absorbing Coinsetter, and by extension Cavirtex, the following month, Kraken opened up its platform to residence of 37 other states, and to all Canadian residence to boot. Alongside this deal, Kraken announced partnerships with payment providers SynapsePay in the U.
Just one month later, Kraken announced the completion of its Series B round of investment lead by SBI Investment, a prominent Japanese venture capitalist firm under SBI Holdings,  Following this investment round, Kraken announced two major acquisitions that year: Dutch exchange CleverCoin, which was acquired in June,   and Glidera, a wallet service allowing users to directly fund Glidera bank accounts with fiat for the purchase of cryptocurrencies on the Kraken exchange.
On January 5 after seeing the Monero Market cap grow over 40x in Kraken made the decision to add trading support for it. Monero was the second anonymous cryptocurrency to be added following the previously listed currency Zcash.
During the acquisition they also hired the founder of Cryptowatch Artur Sapek to help integrate Cryptowatch into Krakens systems and further the development of the platform. In December it has been reported that Kraken was registering up to 50, new users a day. In November , Nobuaki Kobayashi, the court-appointed bankruptcy trustee overseeing the Mt.
Gox liquidation, announced that Kraken was chosen to assist with the investigation of lost bitcoin and the process of returning remaining funds to creditors. The price of Ethereum has dropped and I want to take my profits now. How do we close it now? This box appears as soon as you opened any position long or short.
And all you have to do, is close it to take your profits. You are going to need a cryptocurrency that is expected grow. More price goes up — bigger the profits. Let's continue working with the same Ethereum example. But instead of selling we are gonna buy Ethereum.
That way we open our long position in margin trading. You also take a loan only this time it's not Ethereum that you are loaning but Bitcoin. And when you close your position, you sell Ethereum that you bought and return the Bitcoin loan to the lender. But keep in mind whether you are placing short or long position, don't use maximum avaliable funds in your Margin Trading account. Because your predictions won't always be spot on and instead of expected price drop it can suddenly start rising.
Or the price of currency that you used as colleteral is significantly droping. You can follow the numbers in this box. Also I have to mention the loan rate of Bitcoin is much higher than any other cryptocurrency.
This can be hundreds and even thousands of percent difference. For this reason short positions are used much more and brings more profits. You can check the rates for individual currencies in the Lending section.
If you are enjoying my content! Don't forget to upvote, resteem, comment and follow me eviljedi. Question, say I take a short position on a coin, and I want to close my position once I get x amount of profit.
I haven't tried these things on Polo. But I would think that placing buy order would just open long position and wouldn't close your short. And if there wouldn't be enough collateral left, you couldn't even open another position. Anyway better to test out with small amount of coins. Just wanted to share that for anyone wanting to try this, don't deposit your SBD into polo just yet. They're still having issues with their wallet. My deposit from earlier today is still missing.
You can just buy Ethereum if you think that it is going to go up. And use it as a collateral to sell Ripple short position in margin trading. If your both predictions are right, you will make more profit than just making single Ethereum trade.
More tools, more profit! I did some lending on Polo in the past, but to be honest, margin trading on thinly-traded cryptos scares me way too much. One whale dump and you're out of there! That is why suggested short positions for margin trading.
It is much more safe if you plan your moves intelligently. Thank you for all the info. But I won't touch polonex , I do not trust them. Poloniex is not the only. Find the one that suits you. You can apply the same technique explained here on any of them.