Speculation around Bitcoin’s recent price drop exists everywhere. There are many theories and probably no one right one, however, there are some interesting plays in action. One of the reasons behind the Bitcoin price drop was said to be because MtGox was selling its Bitcoins after bankruptcy. As we can see, starting from January 2018 there were ~37,000 BTC withdrawn (that is for about 0.22% from total bitcoin circulation supply, based on coinmarketcap). It is evident that this amount is […]
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Author:
Kirill Shilov, co-founder howtotoken.com #howtotoken @howtotoken
original article can be found here
Not too long ago, we started the 10KQA Challenge (details about it here) and the core idea was simple: build a moderated list of 10,000 questions for anyone who wants to learn more about the blockchain and cryptocurrency in general. This challenge is already in our second week (the first week’s report can be found here, the second week’s here).
So the question about Bitcoin prices is still a pretty hot topic this week. And our top questions in 10KQA challenge are still about trading and making profits from cryptocurrency. Besides that, there is a lot of good news in regards to Bitcoin’s scaling problem adoption such as the fast-rising number of nodes on the Lightning Network. It looks like we’ll even see crypto in Starbucks (there is a good discussion on Reddit about it).
So here are the list of the most interesting questions and answers this week.
One of the reasons behind the Bitcoin price drop was said to be because MtGox was selling its Bitcoins after bankruptcy (by the way, here is an interesting Ask Me Anything from MtGox’s founder).
Is there a place where I can watch the movement of MtGox’s bitcoins (full answer here)?
So, there is a chance that this is the MtGox’x cold storage address, which can be found here: https://blockchain.info/address/16rCmCmbuWDhPjWTrpQGaU3EPdZF7MTdUk?filter=1
As we can see, starting from January 2018 there were ~37,000 BTC withdrawn (that is for about 0.22% from total bitcoin circulation supply, based on coinmarketcap). It is evident that this amount is not enough to affect the price.
There are still ~140,000 BTC in a wallet, which is 0.8% from total circulation supply).
- Here is a good explanation of this case on Btcmanager.
- And on Reddit.
All this turbulence with the crypto market leads us to the next interesting question:
Is arbitrage still a working concept on the crypto market?? (Full answer here)
Although there is an opinion that the extraction of arbitrage crypto profits will become impossible pretty soon, William Belk, a founder of tokenspread.com, lists seven reasons for the continuation of arbitrage opportunities.
- Staggering regional competition between exchanges.
- Inability of exchanges to keep pace with demand.
- Massive proliferation of individual cryptocurrencies.
- Security breaches and hacking will continue to destabilize the environment.
- Regulators will not be able to keep up with the proliferation of exchanges.
- Transferring US dollars will remain a nightmare.
- The future of trading will be peer-to-peer.
Okay, in this case it seems evident that one should use trading bots.
Can you give me a list of best ready-to-work cryptocurrency trading bots (full answer here)?
Here is a list of the most popular bots available to the public that were prepared by a team at bitcoinexchangeguide.com. Most of them work on a subscription basis, but some offer free access.
There were questions regarding building bots yourself.
What steps do I need to go through to create my own cryptocurrency trading bot? (Full answer here)
joel degan wrote a fundamental article about the creation of trading bots for crypto platforms.
- Get a boilerplate/framework installed.
- Walk through the core parts of the system, see what is where.
- Install and configure the software needed.
- Account creation at the brokerages, setting up the API keys for the scripts.
- Run tests and examples, get it ready.
- Set up websocket streams to get data.
- Finding strategies for our automated agents.
- Deep dive into Indicators and Candles available to us.
- Coding up our first agent.
- Testing the agent.
- Walk through the risks you are taking.
At the end of the day, we don’t need to forget about theory. That’s why before you start building a bot, just find the answer to the next question.
What are the main types of algorithmic trading strategies? (Full answer here)
Andrew Norry, an author at blockonomi.com, explains two of the main types of bot trading.
- Arbitrage
- It’s just about buying an asset for less and selling for more, and vice versa.
- Market making
- Where you try to capture the spread between the buy and sell price
There is some good reading about how David Gilbertson tried to earn for life for himself by trading. Start here.
To join our challenge and get new updates, follow us on:
Telegram: t.me/TENKQA
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I will be appreciative of all participants, ideas, and discussions. It is my hope that we will all be able to get something positive from the process and that unforgettable feeling of having a flow.
We are also looking for moderators to join our challenge who will learn with us and search for new questions and answers regarding the blockchain and cryptocurrency in these categories:
- Core Blockchain Development
- Profits (trading, ICO, mining)
- Real Disruptive Models
- Laws and Regulations
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