Use mtgox or tradehill to trade your bitcoins
Then, the problems started. With increased interest and positive sentiment in Bitcoin came increased trading volume, and many trading platforms just could not handle the demand. Coinbase , a US-based startup, suddenly announced that it was hitting its normal buy limits and warned users that, while they could place orders, these orders would not be priced for up to 5 days.
At Coinbase, investors cannot buy Bitcoin reliably. Note that Coinbase is not technically an exchange, but because of its ease-of-use and trustworthiness, many investors go to Coinbase to buy Bitcoin. Gox , a Japan-based exchange, continues to have USD withdrawal liquidity issues. Gox, investors cannot sell Bitcoin reliably. Bitstamp , a Slovenia-based exchange, was hit with a DDOS denial of service attack this morning and went down just when the price dropped and investors wanted to buy.
Coinsetter , a relatively new trading platform, does not yet allow wire transfers from US customers and has trade minimums of 1 BTC. These liquidity issues are a symptom of the reality that it is still early days for Bitcoin and demand is growing incredibly fast. But the problems these exchanges have experienced also highlight the risk in being a currency speculator in Bitcoin. You may be able to buy low or sell high, but perhaps not both on the same day.
Today marks a new all-time high for the digital currency Bitcoin. Gox chart from Bitcoin Charts. Coinbase chart from Coinbase. The last time Bitcoin reached prices this high was in April Did the Bitcoin Bubble Burst Already? This time, there seems to be more stability around this climb. Increased adoption and trading volume in China has contributed to the price climb. Which site is best for keeping a cloud bitcoin account? Specifically I want to: But there are some exciting new companies on the horizon.
You can hold your Bitcoins in a wallet cloud or desktop , at an exchange, or in cold storage. Each has its own profile for security and liquidity. There is a trade-off.
Wallets and exchanges that are easier to use are often less secure. This is not a rule, just the current state of affairs.
The biggest risk to Bitcoin is theft. If someone gets your private key, you will be robbed. There is also regulatory risk and perceived regulatory risk. For example, Tradehill recently suspended its exchange due to regulatory concerns, Mt. Bitcoin Block Explorer — Blockchain.
Tradehill is a US-based Bitcoin exchange that has grown in popularity as the chief competitor to Japan-based Mt. Data comes from ubiquitous Bitcoin exchange service Mt. Gox as well as Tradehill. For now, only Bloomberg employees can access the ticker.
But the feature should make its way to regular Bloomberg terminal customers under the label XBT. The ticker probably shows what a bitcoin is worth in U. So far, trading Bitcoins have remained a hobby activity as volatility is very important. One of the most efficient tickers is Bitcoinity , but Bloomberg terminals could become the de facto standard for traders.
The feature proves that investment banks are interested by the cryptocurrency. With the Bloomberg terminal, traders could easily compare Bitcoins with other currencies in order to short them.
When it comes to shorting currencies, traders do it by investing their portfolio in another currency.