WeBitcoin: Beginner and How to Guide: Bitcoin Trading

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Bitcoin Application Development for Trading

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The trend for Bitcoin trading leads toward trading robots. While we might consider this a threat, it can be the saving force for Bitcoin. Bitcoin suffers from high volatility or Beta as explained earlier. Trading robots can reduce this volatility.  
 
Trading robots, or software, that tie into trading exchanges via Application Development (Programming) Interfaces, will make frequent small trades when there is movement in the market either up or down.</div>
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These frequent trades for small gains (and losses), are called scalping trades. They steady the market considerably because price movements immediately result in buys or sells against the move. 
 
Mtgox.com has automated trade platform API's with two forms: 
 
<ol style="text-align: left;">
<li>HTTP API</li>
<li>Streaming websocket API</li>
</ol>
 
All relevant trade information can be accessed through these protocols for trading. 
There have been a few free trading bots written in PHP, but they were pulled off sites quickly. A robot that is consistently profitable is worth a fortune. The essence of what makes the robot work is being able to spot the price trends instantly, execute instantly, and avoid significant losses. 
 
There are downsides for trading software robots. They can crash a market when they gain too large a market share. This is partly what happened in the famous Oct 1987 Black Monday crash. Mutual funds triggered excessive selling with computerized trading platforms. 
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<a href="http://webitcoin.blogspot.com/p/bitcoin-rush.html">Bitcoin Rush: Discover Advantage of Bitcoin</a></div>
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Bitcoin Application Development for Trading

The trend for Bitcoin trading leads toward trading robots. While we might consider this a threat, it can be the saving force for Bitcoin. ...

14:32

General Trading Principles For Bitcoin Traders

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Trading technicians focus on three general trends:</div>
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First, and most importantly, is the macro or long-term trend. This is also referred to as a secular trend. Second, is the medium or primary term trend. Third, is the micro, secondary, or short-term trend.</div>
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These terms refer to different time periods for different markets, but roughly speaking they break down as follows: 
 
Macro/Secular is for greater than 5 years and usually less than 25 years. Gold and silver were in a secular or macro bull market from 1970's into 1980. 
 
Primary/Medium term trends run for a year or more, but not generally longer than 4 years. The U.S. general stock market as shown by the S&P500 has been in a secondary bull market for several years. 
 
Micro/Secondary trends run less than a year and often refer to moves lasting a few weeks or months. The recent dip in the U.S. stock market is probably a micro bear or down trending market. When it reverses and goes higher, it will confirm that this was a secondary down trend and not a switch to a secular bear market. 
 
All of this seems simple until we have to make the up or down decision. We need only get one decision correct for making a great trade. So, what is the secular or macro trend for Bitcoins relative to our national currency? 
The other trends - primary and secondary - are both harder to call and often provide a more limited profit. We will cover how to determine those trends briefly, but first we should look to understand the millionaire maker, a.k.a. the macro or secular trend. 
 
The short answer is: Up. Bitcoin is designed to rise in value on average, every year. 
 
Bitcoin has several forces going for it and increasing the exchange value over the long term: 
 
1. Almost all national currencies are vastly out “printing” Bitcoins. There are about 12 million BTC's as of this writing, while the Federal Reserve creates over $85 billion in USD's for buying government securities every month. 
Simply taking an approximate value for the total U.S. currency in near circulation divided by BTC gives a staggering number of the potential value for $/BTC. 
 
M2 is a mid range predictor of the currency available for transactions in the U.S. M3 is the broadest but discontinued form, while M1 is more descriptive of cash on hand. M2 sits at about $10.5 Trillion per Federal Reserve reports. 
 
If only 10% of M2 funds went into BTC, that would be about $1 Trillion. 
This looks like: 
$1,000,000,000,000/ 12,000,000 = $83,333/BTC 
 
Yes, it is extremely unlikely that 10% of M2 will find it's way into BTC. More likely, and currently happening, is that the number of BTC world-wide participants entering the market grows monthly. So, all we really need is 1% of the world-wide M2 value including the active traders in Japan, China, Russia, Europe, and Africa. Bitcoin will soar in value over time, unless either an exchange default, or a government decisively takes it down. 
 
2. Bitcoin is worldwide. Almost 70% of searches for the word Bitcoin come from outside the U.S. Asia drives a lot of the Bitcoin trade; Asia is growing much faster than the U.S. Anything tied to Asian growth, will outperform national centric growth patterns. 
 
3. Increasing taxation and confiscation across the world will drive citizens toward anonymous currencies that have no centralized controlling institution. Many investors in Europe, the U.S, and Asia watched in horror as Cyprus banks and the government stole up to 60% of some bank accounts. 
 
Bitcoin wallets avoid this confiscation threat altogether. There is no bank that can close our Bitcoin accounts or wallets. We can choose to keep our Bitcoins on our computers or USB drives or even memorize them. Bitcoins were designed for just this situation: the need for a private, decentralized, potentially anonymous (hence nontaxable) unit of account, safe from confiscation. 
 
4. More and more stores are accepting Bitcoins. Numbers are hard to come by on the acceptance rate (over 1000 stores), but already there is a core of stores that translate the virtual value of BTC's into hard goods. With that translation, BTC's gain credibility and utility. When BTC's stabilize more over the $100 point, it will be easier for stores to transition into accepting them. 
 
Read More: <a href="http://webitcoin.blogspot.com/2015/08/the-bitcoin-secret-trading-full-giude.html">The Bitcoin Secret Trading Full Giude</a> 
 
Wild swings in BTC exchange rates made pricing goods difficult for merchants. Also, with a limited stock of BTC's circulating, there is not enough demand as the user base is limited. When bitcents are traded and even microbits and lower denominations are more common, then the distribution of BTC's can spread. Wider distribution will mean more customers with BTC's to spend, leading to stores meeting the demand. 
 
Already nightclubs such as EVR in New York City accept Bitcoins with a phone app. Trend setting merchants such as this will bring Bitcoin all the popularity needed to close the gap with traditional, centralized currencies. 
 
5. No significant competitor can challenge Bitcoins entrenched user base, which has been developed over 4 years. Already the Bitcoin competitors are gathering funding and moving in to take over. They will have trouble succeeding because their benefits are marginal, and they will have to build a new user base. We will discuss the future of Bitcoin and possible competitors in a later section. 
 
All the above factors will send the general trend for Bitcoins relative to national currencies steeply upwards. This trend will continue for many years, possibly as far as 20 years, until there are conflicts within the currency system. 
 
We can then buy the long-term trend and sit tight while our wealth increases, when comparing BTC to our national currencies. 
 
For primary and secondary trends, the simplest trading methodology is also one of the most effective. 
 
The chart below (found on <a href="http://www.bitcoincharts.com/">http://www.Bitcoincharts.com</a>) shows a 4-month price window of closing prices, with exponential moving averages from 10 and 25 days and the purple or shaded portion represents Bollinger bands: 
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguPtE_rpUP7t4PfrELvQ3WxgxW-82WizRrz360yaQAkh4yzhIX3sbU57D5JFUlEY6Rkg7I8qTlmZh9iWpMEJkTskcIbQk5cyAj_sGTnrl67t-XqjFGlB4fmDRZpCPyFsssz9OhnDDfevE/s1600/chart.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Trading Principles For Bitcoin Traders" border="0" height="197" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguPtE_rpUP7t4PfrELvQ3WxgxW-82WizRrz360yaQAkh4yzhIX3sbU57D5JFUlEY6Rkg7I8qTlmZh9iWpMEJkTskcIbQk5cyAj_sGTnrl67t-XqjFGlB4fmDRZpCPyFsssz9OhnDDfevE/s400/chart.jpg" title="Trading Principles For Bitcoin Traders" width="400" /></a>\</div>
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<a href="http://webitcoin.blogspot.com/p/live-bitcoin-trading-view.html"> </a></div>
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<a href="http://webitcoin.blogspot.com/p/live-bitcoin-trading-view.html">Checkout Bitcoin Trading Views In Realtime</a></div>
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What we are looking for are extreme moves where the short-term trend moves significantly beyond the longer-term trend. This tells us that a bubble or reversal may be at hand. A perfect example occurred during the April 1-11 time frame. The chart shows with the Bollinger bands, and the two exponential moving averages shown by the brown and purple lines (the 10 day is almost always above the 25 day EMA line for those with black and white readers), where the danger zone happened. All experienced traders knew there was a steep collapse dead ahead. 
 
Conversely, when the BTC value dives deep into the Bollinger bands, and the short term EMA crosses below the long term EMA line, there is a good opportunity to buy shortly. Then we can ride the short term EMA back up as it re-crosses above the long term EMA. 
 
The main reason we can make these trades confidently is that there is a fixed amount of BTC's in the system. That gives it a strong upward trend bias. We also know that when there is too high of a price spike, the down move will be swift and relatively short-lived. All of this knowledge stems from our most important call – in which Bitcoin is in a secular bull market against all national currencies. 
 
This is all manual trading. More automated trading uses key techniques such as: 
 
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<li>Stop Loss orders (for selling based on a triggered loss level)</li>
<li>Stop Age (time based selling)</li>
<li>Target Price (buying or selling based on reaching a price)</li>
<li>Buy Order Protection (forces over priced orders to below current market rate)</li>
</ol>
 
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The stop loss and target price tools are the most critical. With a high beta market, the stop loss should be set as high as 20% or even 25%. Lower beta markets can use a 10% stop loss, or what is known as a tight stop loss. This translates to buying in at $100 and setting a stop loss at about $80. 
 
While there could be much more written for covering other trading techniques, this basic knowledge will suffice. We can spot the too highs and too lows for selling and for buying. That is all we need to do for making a handy profit with Bitcoins. 
 
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<a href="http://webitcoin.blogspot.com/p/bitcoin-rush.html">Bitcoin Rush: Discover Advantage of Bitcoin</a></div>
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General Trading Principles For Bitcoin Traders

Trading technicians focus on three general trends: First, and most importantly, is the macro or long-term trend. This is also referred ...

14:25

Best Way to Make Profit With Bitcoins

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Successfully trading in any market requires serious study, a keen ability for pattern recognition, and deep knowledge of historical trends and evaluation systems. This section covers the basics of trading only.</div>
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Surprisingly, applying basic trading principles often produces the largest profits. More sophisticated trading techniques, sometimes called scalping systems, require more effort and yield small profits, if any at all. 
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We will proceed from the simple mechanics of buying and selling Bitcoins, to decision criteria for when to buy or sell (the essence of trading), all the way through Bitcoin trading robots or trading services.</div>
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<a href="http://webitcoin.blogspot.com/p/live-bitcoin-trading-view.html" target="_blank">Trading Bitcoins</a></h3>
We can buy or sell Bitcoins with anyone who is willing to transact with us. For instance, we could buy Bitcoins locally with localBitcoin.com 
 
Here is a sample screen: 
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Notice a few interesting and critical developments in this market: 
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<li>Online prices are more consistent, as we would expect.</li>
<li>Local prices are both over and under the online price.</li>
<li>There is as much as a 24% difference between the lowest and highest prices approximately. Ignore the wild $256.20/BTC. Everyone else will.</li>
</ol>
This is key information for day trading scenarios. We could conceivably buy Bitcoins for $122.96 in lots up to $1000. Then we could sell them all day long for $140.81. 
 
Our profit works out to about 8 x $17 = $136 (We will neglect gas costs, and buying fractional amounts of Bitcoins) 
 
We could also simply buy Bitcoins online and then sell them locally for a small mark-up. This seems to be the simple trading system of choice for the $153 and $147 sellers. 
 
All we need to do is follow the early steps described in the section How to Use Bitcoins. Briefly, we buy Bitcoins using our Dwolla, Coinbase, Blockchain, or other wallet with a custom produced address from a Bitcoin exchange. We can choose MtGox, Bitcoin-24, Bitcoin7, or others. 
 
Then we sign-up for LocalBitcoin. Post our price on their “Sell Bitcoins” section, and we are in the Bitcoin trading business. While this “arbitrage” method of trading can deliver a reasonable profit, there are bigger profits available for more aggressive profit seekers. 
Our best opportunity for trading with Bitcoins involves online only trading. We will buy BTC with our national currency through a trading exchange, and then sell BTC for either our own national currency, or another national currency. 
 
Switching currencies may not be allowed on certain exchanges or in certain countries. Switching currencies between the buy side and sell side of our trade can also add significant complication to our trade. A better move is to stick with one national currency unless we are experienced with FOREX trading already. 
 
Here is what a BTC Buy Order with MtGox looks like for a new account that has not been funded yet: 
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We can enter any amount under “Amount of BTC to BUY” that we have funded. For this new account, that is $0.00. It could be initially as high as $4000 for most new accounts. Some exchanges have no limits, and some have staged limits over time. 
The “Price per coin in USD” is set automatically here at 127 and change. It will move up or down as we wait to execute the order. This is extremely important to consider. Speed, timing, and execution all affect the price we pay. 
 
Read More: <a href="http://webitcoin.blogspot.com/2015/08/the-bitcoin-secret-trading-full-giude.html">The Bitcoin Secret Trading Full Giude</a> 
 
After we enter the Amount of BTC to Buy, hit the BUY button, there will be a lag sometimes, but often the order gets executed immediately. 
 
Presto! We are a Bitcoin trader! 
 
Now, for the nuts and bolts of selling Bitcoins, much is the same in terms of fields, with a key difference. When we sell Bitcoins, the exchange takes a slice of the transaction in the form of a reduced selling price. Other exchanges operate differently. 
 
 
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The difference between the BTC Buy price and the BTC Sell price is called the “spread.” It is also sometimes known as the Bid/Ask spread. Bid for what buyers are willing to pay, and Ask for what sellers are willing to sell at. 
 
For this case the BUY/SELL is about $0.40 USD. Not a large spread, amounting to less than 0.5% of the trade. 
 
The good news here is that trading Bitcoins is not administratively expensive. The In/Out costs or round trip are less than 1% of the trade, and often free. Some stock, options, and commodities traders can see In/Out costs between bid/ask, commissions, and exchange fees of closer to 3% or higher. 
 
Trading on other Bitcoin exchanges operates in a similar fashion to MtGox. 
 
 
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This is all manual entry trading, not automated or computerized trading. Manual trading can deliver fantastic returns so long as we time our trades and our directions correctly. That is the focus of the next section - answering the question of up or down and when. 
 
<a href="http://webitcoin.blogspot.com/p/bitcoin-rush.html">Bitcoin Rush: Discover Advantage of Bitcoin</a></div>
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Best Way to Make Profit With Bitcoins

Successfully trading in any market requires serious study, a keen ability for pattern recognition, and deep knowledge of historical trends...

13:58

Secret Facts about Bitcoin Trading

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Satoshi worked on the project alone for two years before releasing the code to the public. He disappeared shortly after creating the crypto-currency. 
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What's facts about Bitcoin?</div>
 
BitCoin is a crypto-currency; a new and unique financial vehicle, unlike anything the world has ever seen. 
It's called a 
1. crypto-currency 
because it uses cryptography to control the creation and transfer of money. Despite the name, there is no physical coin to speak of; BitCoin is a completely electronic form of money. 
 
2. Bitcoin solves the so called 
double spending problem goods. present with digital 
For example, if I have an mp3 file or an ebook on my computer, I can freely copy that file a thousand times and send it to a thousand different people. 
 
BitCoin solves this by maintaining a peer to peer network and recording each transaction in a public ledger called 
3.The block chain. 
 
Say I send one BitCoin from my BitCoin address to my friend John. The BitCoin network records that transaction in the block chain and I no longer have possession of that BitCoin. 
 
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The coin `'moved'' from my BitCoin wallet to John's wallet.</div>
 
4. There are many arguments on whether the new virtual currency will succeed or fail. We will not get into this nor discuss the politics behind the project. 
 
Our concern is strictly with the profit opportunities provided by this new payment phenomenon. 
 
5. peer-to-peer virtual currency. 
This means that in order for a transaction to occur, no middle man or central authority is needed. 
 
BitCoin is a 
peer-to-peer BitCoins to anyonecurrency. virtual living anywhere in the You can send any amount of world, completely eliminating the need for traditional third parties like banks or money transmitters. The crypto-currency also allows the bypassing of capital and AML restrictions. 
 
BitCoin is a 
6. In order to send or receive BitCoins, 
 
All you need to have is a BitCoin address and internet access. You only need to be online long enough for the transaction to process. Similarly to traditional bank accounts, you can receive BitCoins to your BitCoin address even if you're offline. 
 
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How to get a bitcoin address?</div>
 
You can get a BitCoin address either by downloading the BitCoin client or by getting an online wallet. 
Installing BitCoin-qt. Multibit is a lightweight version of the BitCoin client. You can read more about it here. 
After you install one of the two clients, you can find your BitCoins in a file called wallet.dat. If you use Windows, this file will be located in the application data section. 
 
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Where are my bitcoins stored?</div>
 
If your computer gets Stolen or Lost 
and you haven't made a copy of the wallet.dat file, you will lose your BitCoin. It is always recommend to backup this file. 
 
The BitCoins can also be stored in online wallets. 
 
There are specialized websites that offer BitCoin wallet services. However, due to these sites being a frequent target for hackers, keeping BitCoins in online wallets is not recommended when you can easily store them offline on your computer. 
Wallets can be useful for storing small sums of BitCoins so that you can make quick online purchases. Some of the more popular wallet services are Blockchain and CoinKite. 
 
Btc exchanges are a somewhat safer place for your BitCoins, compared to online wallets, because they keep most coins in what is known as "cold storage". 
Usually over 90% of the BitCoins deposited on an exchange are kept offline. A small 5 to 10% reserve is kept online for immediate redemption purposes. 
 
There are plenty of online guides on how to store/secure BitCoins. It's always safer to take care of this process yourself than to trust a third party with a substantial amount of BitCoins. 
 
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Bitcoin Advantages</div>
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Another major plus of the new crypto-currency is the very low cost for sending and receiving BitCoins. 
While it is possible to send transactions completely free of charge, it is recommended to pay the small fee in order to speed up the sending process. 
 
The fee amount depends on the data size of the transaction. A typical transaction is 500 bytes and carries a fee of 0.0001 BTC. 
Because the fee is completely dependent on a transaction's data size and not on the number of BitCoins being sent, 
The fee will take a 0.913% piece of a $10 transfer but that same fee will only take 0.000000913% of a 10 Million transfer. 
A $10 transfer will carry the same fee as a $10 Million transfer. 
. 
 
BitCoin offers benefits to merchants as well; 
transactions that involve the digital currency are secure and irreversible, without the risk of fraud or fraudulent chargebacks 
 
Merchants can offer their products at a discount 
thereby generating more sales or pocket the difference themselves. In addition, with card processors out of the picture, merchants can save on the percentage cut taken by Visa / MasterCard. 
 
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Bitcoin and transparency</div>
 
The picture above shows some of the recent large transactions recorded in the block chain. 
 
 
The first transaction is for 205 BTC, the equivalent of $187,165 at today's prices. The long lines of letters and numbers you see in the pic are BitCoin addresses. 
 
Notice that there is no name that goes along with the BitCoin address. This is what outside observers mean when they say "BitCoin is anonymous''. 
 
BitCoin is in fact 
 
"pseudo anonymous'' 
 
While all BitCoin addresses and transactions are public, the holders of those addresses remain hidden. 
Keep in mind that as soon as you connect your BitCoin address to your real identity, the pseudo anonymity provided by BitCoin is lost. 
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Buying Your First Bitcoin</div>
 
The easiest way to acquire BitCoins is to buy them at an online exchange. There are three major BitCoins exchanges, each of them with their own unique properties and a different fee structure. 
 
Luckily spread between the bid and the asking price is very low, most trade the $150,000 in one month. of the time ranging between $1 and $2. At a current BitCoin rate of $819, this amounts to an added cost of 0.1 to 0.25%. You only pay the spread if you want to enter a trade right away with a market order.  You can deposit funds in USD, EUR, GBP and CHF. US clients are accepted. 
 
Coinbase is probably the easiest and safest way to purchase bitcoins in the U.S. Unlike BitStamp, Coinbase is not an exchange. 
They act as a counter-party to all customer trades. You buy or sell your BitCoins directly to Coinbase. 
 
Basically, Coinbase has a set amount of bitcoins that it is willing to buy or sell every day. 
During times of high volatility, users may not be able to buy/sell bitcoins until Coinbase decides to "refill'' their stock. 
 
Coinbase claims that over 97% of all customer funds are stored offline in bank vaults to prevent theft or loss. 
If you live in the United States, you can easily link your bank account to Coinbase to facilitate quick and easy bank transfers. 
 
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BTC-E.com</div>
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If you're a Forex trader, BTC-E is probably the easiest exchange to get into. The company offers its own MetaTrader platform. 
 
The fees on MetaTrader are slightly higher, 0.3% per side compared to 0.2% if you used BTC-E's web interface. 
If you're a Forex trader, BTC-E might strike you as the best option of the three. But alas, nothing is as straightforward in BitCoin world. 
 
BTC-E does accept US clients. However, starting from the middle of December 2013, the company stopped processing US dollar wires or any wires connected to a US bank. 
Here is an email reply to a customer's question on this: "We don't accept international wire transfers from US Citizens or from US Banks. All transfers from US Citizens or US Bank will be refused by bank.'' 
 
Aside from the exchanges, you can also buy BitCoins on eBay and similar auction sites. Keep in mind that due to the possibility for chargebacks and fraud, BitCoin and other crypto-currencies trade at a premium on eBay. 
 
Other ways to purchase bitcoins 
 
Face to face meet-ups is another option to acquire BitCoins. 
Check localbitcoins.com for BitCoins sellers and buyers in your area. Always exercise caution when doing an offline exchange. 
 
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Leveraged Bitcoin Trading</div>
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Before we go any further, a caution is in order. BitCoin prices are highly volatile. Prices rose from a low of 195.50 on November 1, 2013 to a high of 1,090 by November 30, 2013. From here, the btc price crashed to a low of 420 on December 18, 2013, only to go back up and retest the 1,000 level in January of this year. 
 
Unlike major Forex currency pairs, which barely move 1% per day, BitCoin prices can rise or fall over 30% in a single day. If you know how to trade, you don't really need any leverage to make money with BitCoin. With that caution out of the way, let's get down to business and go over some of the options for leveraged btc trading. 
 
Ava Trade is a Forex broker that offers BitCoin trading through a CFD. Two BitCoin CFDs are available; BitCoin Mini and BitCoin Weekly. The BitCoin Weekly CFD has a 20 to 1 leverage and expires every Friday at 21:00 GMT. 
 
BitCoin Mini only has a 2 to 1 leverage but doesn't expire. Both contracts are using data from BTC-E and Ava Trade adds around $10 premium on top of the exchange spread. Here's a snapshot of Ava Trade's MT4. 
 
A major flaw of both contracts is the inability to trade them during the weekend. Unlike Forex, which trades 24/5, BitCoin trades 24/7 (except on Ava Trade). As can be seen on the chart, large gaps are frequent on Ava Trade's BitCoin CFD due to this policy. Ava Trade does not accept US clients at this time. 
 
Etoro.com is one of the latest Forex brokers to offer BitCoin trading. 
 Unfortunately, the product is not very suitable for day trading as you can only enter and exit the market four times per day. It uses the BitStamp's data feed as a price reference. 
 
Unfortunately, despite having a dedicated US section of the site, eToro doesn't seem to accept US clients at this time. 
 
Btc.sx offers a 10 to 1 leveraged product based on BitStamp's data feed. Similarly to Ava Trade, Btc.sx adds around $10 to the spread at BitStamp. You will need a deposit of at least 0.01033 of a bitcoin in order to trade at Btc.sx. 
 
The picture above shows a BitCoin long position.  
Btc.sx has several restrictions that make trading with leverage problematic. The exchange doesn't support moving the stop-loss after entry. As you can see on the picture, you can only set the stop-loss as a distance from the current price (in the picture this is set as 50 points). 
 
The default is 88 points below entry. This is exactly where my stop was, 88 points below 935 at 847. There is a trailing stop-loss option but despite my best efforts, I couldn't make it work. 
So essentially, once you set your stop-loss on Btc.sx, you're stuck with it. 
 
The high rollover cost also makes leveraged trading at Btc.sx problematic. 
The currency rollover cost for my position was 0.0094 of a BitCoin; that's $8.8, far too high for a 1,000 USD position, in my opinion. Btc.sx does allow US clients. 
 
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Bitcoin Options</div>
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Besides CFDs, the new crypto-currency has also helped spawn a new options market. Currently, several companies are in the business of offering BitCoin options. 
 
Anyoption.com is one of the more established option houses that offers trading in the virtual currency. 
You can bet on rising or falling BitCoin prices. Anyoption.com is not an option for US clients, the company doesn't accept US traders at the moment. Here are some of the current btc options offered. 
 
Predictious.com is a betting website that matches buyers and sellers and doesn't price the options themselves. 
 
Besides betting on BitCoins demise or rally, you can also try to predict the next winner of the Oscars or bet on which party win control the US Senate after the 2014 elections. Currently, the site takes BitCoin deposits only. Predictious does accept US clients. 
 
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What Drives Bitcoin Prices?</div>
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Regulation and other actions by government entities has one of the biggest impacts on the price of BitCoin. The US and Chinese governments are the ones to watch. Somewhat favorable comments by US lawmakers in November and December of last year underpinned the BitCoin rally. 
 
"BitCoins can be a legal means of exchange.'' 
 
At a recent Senate committee hearing, a Justice Department official said that "BitCoins can be a legal means of exchange". The new crypto-currency can be exploited by "malicious actors" and should be subject to "rules to protect people", the agency added. 
 
"BitCoins can be a legal means of exchange.'' 
 
Increased BitCoin purchases from China and the adoption of the currency by Chinese online businesses were another driver that helped push the BTC/USD price from 195.5 at the start of November to a high of $1,090 30 days later. Baidu, the biggest Chinese search engine, started to offer payments in BitCoin. 
 
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Increased Adoption and an Expanding Marketplace</div>
 
At the start of 2012, one BitCoin was worth exactly $4.72. One year later, a piece of the new currency could buy you a book on Amazon ($13.51). On January 1, 2014, buying a single bitcoin would set you back $806. 
 
According to BitPay, 
as of November 2013, there are over 14,000 merchants currently accepting BitCoin. Two years ago this number stood at a few hundred. The number of transactions facilitated by BitPay increased tenfold in 2014 and crossed the 50,000 mark in November 2013. 
 
The payment processor said that 6,296 BitCoin transactions occurred on Black Friday 2013, up from only 99 transactions the year prior. 
 
Some of the notable adopters include Richard Branson's Virgin Galactic. You can now buy a private flight into space with your BitCoins. Zynga, the Facebook games platform, offered the BitCoin payment option to players in "FarmVille 2", "CastleVille", and other games. Major adult websites are also starting to accept the new currency as a means for payment. 
 
All of these developments point to one thing. 
The BitCoin marketplace is expanding at an astounding rate of growth. The businesses and individuals that embrace this new phenomenon will have a leg up over their competition going forward. 
 
The third biggest fundamental driver of BitCoin prices is the increased (or decreased) usage in activities outlawed by governments. 
 
BitCoin's pseudo anonymity has facilitated dealings in anything from the purchase of contraband like illegal drugs or weapons to bypassing capital and investment restrictions and tax avoidance. Government crackdown on these activities tends to suppress the price of BitCoin. 
 
A notable example of this was FBI's shutdown of the "Silk Road'' marketplace. The website had over 10,000 products for sale, 70% of which were drugs that are illegal in most countries. Around 340 different varieties of drugs were offered on the site. 
 
The agency confiscated over 26,000 BitCoins from different accounts on Silk Road, worth approximately 3.6 million USD back then. Twenty days later, the FBI reported that they had seized 144,000 BTC thought to belong to Ulbricht. 
 
The chart above shows the BitCoin market's reaction to the website's shutdown and the subsequent btc confiscation. BitCoin prices plummeted from 123.95 to a low of 75.20 on the news. The market didn't take long to recover. However, as most took the plunge as an opportunity to buy some cheap BitCoins. Prices were back to 118 two days later. 
 
The second yellow rectangle on the charts marks the FBI's announcement of the large btc confiscation. The prospect of a US law enforcement agency holding a large chunk of BitCoins spooked markets. The BTC/USD took a dive from 195.20 to a low of 152.49 on the news. But as you can see on the chart, the lower spike was again used by investors to gobble up coins at a bargain. 
 
Traders with experience in other commodity markets are probably asking themselves why the supply topic is placed last in an article that goes over the drivers of BitCoin prices. The reason is because when it comes to BitCoin, the supply doesn't have much of an impact on the price. This is because the supply is constant and known beforehand and SHOULD therefore be already priced in. 
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But what about the supply side?</div>
 
The supply of BitCoins grows by the process called "mining" bitcoins. 
The supply is expected to increase by 10% in 2014 after going up 11.11% last year. The rate of block creation is six per hour with each block worth 25 BitCoins (around $25k USD). 
 
If more mining power goes online and the block generation increases to seven blocks per hour. For example, the so called "mining difficulty" will go up until the six blocks per hour average is reaffirmed. On the other hand, if miners generate less coins then the difficulty will go down making it easier to generate new coins. You can read more about the supply of BitCoin here. 
 
Wall Street Bitcoin Forecasts 
With the mark of drug trafficking on the record, the new crypto-currency was also starting to attract the attention of Wall Street. Wedbush Securities, a little known analyst firm, put a forecast of around $98,500 on the price of one BitCoin. 
 
The Winklevoss twins told CNBC that a $400 Billion market cap for BTC would be a "small bull case scenario''. With around 12 Million BitCoins currently in circulation, to reach that market cap one BitCoin has to be worth a fantastic $40,000. The brothers are major investors in BitCoin after getting rich from an early investment in Facebook. 
 
The largest potential for "disruption'' to the current status quo lies in taking a chunk out of the payment processors market. Visa and MasterCard are estimated to take a 2 to 3 percent cut of every card transaction. 
 
By using BitCoin instead, merchants stand to improve their bottom line by at least 2 percent. In addition, because BitCoin transactions are irreversible, there is no possibility for chargebacks and fraud. This reduces the costs of operation by another several percentage points. 
 
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Additional Bitcoin Resources</div>
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There are plenty of resources online where you can learn more about BitCoin and its unique properties. Check some of the major websites that can help you speed up the learning process here. 
 
The following three sites provide an interactive map of BitCoin merchants in your area. 
 
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http://bitcoin.travel/ - http://www.bitcoinmaps.org/ - http://coinmap.org/</div>
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Secret Facts about Bitcoin Trading

Satoshi worked on the project alone for two years before releasing the code to the public. He disappeared shortly after creating the crypto...

09:24

The Bitcoin Secret Trading Full Giude

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Bitcoin is a revolutionary new concept -- a digital currency of the</div>
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new era, not relying on any bank or government, which started few years ago as an open source project on www.bitcoin.org. It was considered by many as just another creation of Internet geeks before it took the financial world by storm this year and was suddenly raised to the ranks of major world currencies.</div>
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And if you jump in fast, you can be one of those who'll reap all the benefits. 
Remember, the early bird catches the worm! 
 
Embrace the new e-currency, free of any government and bank limitations. 
Bitcoin is an absolutely new revolutionary concept: digital currency of a new era, product of an open source project created by Japanese geek Satoshi Nakamoto, called "Bitcoin: A Peer-to-Peer Electronic Cash System". 
 
A purely peer-to-peer version of electronic cash allows online payments to be sent directly from one party to another without going through financial institutions like banks and government control. 
 
Bitcoin puts an end to Banking system parasites: Forget the ridiculous bank wire fees and commissions. 
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Bitcoin is taking over the world!</div>
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It was created in 2009 as an online currency that isn't controlled by the U.S. Federal Reserve or any other central authority and just in August of last year, the exchange rate for 
 
Since Bitcoin is a currency, you can use it in exactly the same way you use any other electronic money: you open a digital wallet that can be installed on your computer or on your mobile phone and you use this wallet to pay or receive money. This is as safe (or maybe even safer) than any other digital wallet, it uses cryptography with public and private keys and all the yada-yada that guarantees security of all your electronic transactions; for example, for credit card payment or home banking. If you are a safety geek, I can assure you, I have not ever heard about any fraud that resulted from interception and cracking a transaction secured in this way. Most of the computer crimes are related to breaching credit card storage systems (which simply does not exist in this case) or simply intercepting a user typing or other manipulations on the user's own computer via various malware (this type of interception can only be excluded on the user level by properly securing one's computer). The advantages of Bitcoin stem from the fact that your transactions do not pass through any central office, bank, etc. The transactions take place between two persons and involve the entire network to approve its validity. No banks mean that the cost of transaction is kept very low. On top of that, your account cannot be frozen, it will not depend on failing banks, bad credit history etc. Opening an account does not require any prerequisites. Just your email address is enough. 
 
Nowadays, you can use Bitcoin for almost everything: purchase music, software, hosting, video games, betting, auctions like eBay... You can even rent apartments and buy houses using Bitcoin! 
 
Nobody expected Bitcoin to gain this much traction, but it is taking over the world faster than you might think. 
 
from Amazon vouchers and T-shirts to apartment rentals in Berlin. If you have your own internet business, you can accept Bitcoin too. That is easy. Moreover, you can trade your bitcoins exactly the same way you can trade euros or dollars and gain money on its rate fluctuations. Just recently, a worldwide electronic money and online payment system WebMoney, which has more than 11 million users, started processing bitcoins. Besides purses nominated in US dollars, Euros or Russian roubles, you can also open a WMX-purse nominated in bitcoins and use it to exchange bitcoins against other currencies or to buy goods or services. 
 
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How it all began: From old mining days to taking over the world.</div>
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Bitcoin as a concept was invented by a person nicknamed Satoshi Nakamoto in his/her paper "Bitcoin: A Peer-to-Peer Electronic Cash System", which was, of course, published electronically and is available on the bitcoin.org site for anyone who's interested. The essence of the entire idea is, as Nakamoto says, "A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution." He points out that since this system runs transaction irreversibly and not through 
Multicore GPU mining system (from Bitcoin Wiki) 
 
any financial institution, the transaction cost is drastically reduced and trust in the system is improved. Any two willing parties can perform transaction without any trusted third-party (the distributed network plays a role of the third party). The actual Bitcoin is a file containing the chain of digital signatures of all previous owners. This approach prevents double-spending of any particular coin and eliminates the need of the central system. Any new transaction is broadcasted to all the nodes (peers) and the nodes can check validity of the coin by verifying the previous transactions. This makes counterfeiting essentially impossible. By the way, you can also earn your Bitcoins the "hard way" by helping the system to verify secure transactions. This process is called "mining" and requires a lot of computational power, typically multicore GPU system, like shown in the figure below taken from Wiki, or even specialized bitcoin miners (http://www.bitcoinx.com/ 
bitcoin-mining-hardware/). The algorithm is designed in such a way 
 
Ok, so what would you need to start with Bitcoin? 
There is a plethora of different ways to do it. You can just go to 
http://www.weusecoins.com/en/getting-started and download your free, 
 
open-source Bitcoin wallet for whatever computer you use, Windows, Mac or Linux. Alternatively, you can create you wallet on a web site, for example https://coinbase.com/ or https://blockchain.info/ 
wallet. Both sites also offer mobile applications (iOS and Android), so 
 
your Bitcoin wallet can be always at hand. To open an account, you just need an email address and a password. A recently added possibility is to open a Bitcoin WMX purse at Webmoney (http://www. 
wmtransfer.com/). 
 
Now, after you have opened a web account or installed an original Bitcoin program, you are ready to roll. You can buy your bitcoins using cash, bank wire transfer, Moneygram, or credit cards. 
 
Bitcoin price: from the creation till today. In the insert: highly volatile bitcoin pricing during the Mar-Jun 2013 
 
Everything (or almost everything) is possible. Nowadays, Bitcoin has become a valid currency, just like anything else. Contrary to other currencies, it is not backed by any government or organization, it does not have any gold value behind it. However, as we all know, being backed by a government does not protect currencies from huge fluctuations in price. In the end, the price of any currency is defined by offer and demand. If the currency is useful, if you can buy something for it, it will retain its value. Bitcoin started very low. The first documented purchase was 10,000 BTC (that is the official currency symbol for Bitcoin) for $25-worth of pizza. Since that, the value of Bitcoin has increased dramatically: BTC is currently trading at around $100 for a single bitcoin. More than 250,000 users use Bitcoin on a daily basis. 
 
What can I use my bitcoins for? 
As I already mentioned above you can buy things and services for it. Many merchants are using it. Funnily enough, it is getting very popular with sex shops and internet sites selling illegal drugs. They both use another very important feature of bitcoins: their anonymity. Since the system is decentralized and cracking the complete transaction history is close to impossible, Bitcoin becomes quite popular in this kind of trade as well. However, if you would browse through the blogs to find out what is the most popular use of bitcoins, you will notice that by far the most popular is investment. On one hand, many believe that Bitcoin is destined to grow in value (more than 70% of 
Amount of bitcoins in circulation 
 
all existing bitcoins are not in circulation and currently stored in "digital vaults" as a long term investment!). The number of bitcoins in circulation will not grow dramatically anymore (see figure) and will reach the maximum possible amount by the year 2140, while the popularity of bitcoins and hence demand will increase. On the other hand, since the amount of bitcoins in circulation is rather stable, they are already traded in a way pretty similar to other currencies or shares. It means that smart short term investers can profit on volatility of the bitcoin market and earn a lot with a very small initial investment. In the next chapters you will learn how to analyze bitcoin market behavior and how to make buying and selling decision at the right moments. To buy your initial lot of bitcoins, you can go to 
http://howdoyoubuybitcoins.com/, top-up your Bitcoin wallet at 
 
Webmoney using other currencies, or purchase it directly on the trading site. MtGox (https://www.mtgox.com/) is the oldest and the largest one. It is very easy to start trading there: you open an account (just email address is required) and then transfer your bitcoins to your account or wire transfer your local currency from your bank. 
 
BTC-e is another very useful trading marketplace for individuals 
 
buying and selling bitcoins. Only a small fee of 0.2% is charged per transaction. The site has a clear interface showing the current median pricing and a recent trend. Registering on this web-site is absolutely free and the only information required is your email. To start trading, you need first to deposit some amount in one of the major currencies or transfer bitcoins if you have some. Currently supported payment methods are: US Bank Wire, EU Bank Wire (SEPA), Visa, Mastercard, Liqpay.com, unikarta.com, PerfectMoney.com, 
WebCreds.com, Ukash.com, OKPay. 
 
Live Bitcoin chart and sign-up window on BTC-e 
 
You can find a complete list of major Bitcoin exchanges on Bitcoin Wiki: 
https://en.bitcoin.it/wiki/Buying_bitcoins#Major_Exchanges 
 
How to trade Bitcoin smartly: Technical analysis primer 
You now know that bitcoins behave like usual shares or currencies. It means you can apply all the powerful methods of technical analysis -- that's the collection of tools that was developed for professional traders and have made many of them astonishingly rich. Of course, you need to be smart (and, if you are reading this book, you definitely are!) to outsmart the market and the brave. And, we have to add the usual disclaimer: only invest money that you can afford to miss. Never invest borrowed money as you might end in deep trouble otherwise. What is the idea of technical analysis in a nutshell? --It is very simple. You can gain much more for your investment if you do not just sit and wait, but rather use the cyclic character of price evolution and sell your stock (here bitcoins) when the price is high and buy them again when the price is low. To do it properly, you need to determine the trend and find the right moments when the trend is reversed. 
 
Trend is your friend 
Let us start with determining the trend. The easiest thing to do is to use a moving average. That is a very simple approach that you can try in your Excel spread sheet in a matter of minutes. I will show you how. The point is that the price always fluctuates. Your averaging algorithm has to smooth the fluctuation sufficiently, on one hand, while still showing you the changes in the trend as soon as they occur (this property is called responsiveness). Obviously, these two requirements are orthogonal, and you need to balance them. Simple moving average (SMA) involves just taking the price for a given day, add to it the prices at a given number of previous days and divide the sum by the total number of days. So, the value of every point of your SMA graph is (I take here an average over 10 days): 
piSMA10  1 ( p  pi1  ...  pi9 ) 10 i 
 
The problem with this sort of averaging is that you take into account equally the today price and the prices that happened many days ago. As a result, your SMA10 curve predicts tomorrow's price mainly based on the prices from several days ago. For such a volatile currency as Bitcoin, this is not a very good idea. To correct for that, you can take more recent price values with a higher weight in your averaging. The simplest realization of the weighted moving average (WMA) would be just to account for the most recent price twice. Or, for Bitcoin Robot SMA10, we can multiply the current day price by 10, the previous day by 9 and so on 
piWMA10  1 (10 pi  9 pi1  ...  1pi9 ) 55 Bitcoin pricing Feb-June 2013 together with simple (SMA) and exponential moving averages (EMA). Note that EMA reacts faster to the pricing changes. 
 
Another very commonly used approach is called exponential moving average (EMA). It works like an integrator or low pass digital filter. It is calculated recursively, so to calculate today's EMA, we need to know the EMA from yesterday and today's closing price: 
piEMA10  2    2  EMA10 pi  1   pi1 10  1  10  1  
 
When we calculate the first point long-long time ago we can simply approximate EMA with SMA. If you compare EMA and SMA, you can notice that EMA reacts faster to the changes in trend, while SMA better reflects the average prices. The choice between them is your preference. You can also think about some other smart ways to make an average. All these functions are easy to implement in Excel or any other software of your choice. I took some historic data from MtGox and applied these averaging methods to obtain trend lines. 
 
Trend signals: patterns and crossovers 
Well, what can you learn from the moving averages? First, we can find the trend: if our EMA or SMA goes down, the long-term trend is falling, if it goes up, we have a long-term uptrend. How can we determine when the uptrend changes into a downtrend? Our averages can help us here as well using a technique called "double crossover". If we plot, for instance 
 
EMA10 and EMA50, the point where EMA10 crosses above EMA50 indicates a crossover to rising trend and is called "golden cross". If EMA10 crosses below EMA50, this is a "dead cross" signalling the beginning of a bearish market. Another type of signal can be created when the actual price crosses the average, "price crossover". The crossover techniques are very useful when a long term trend exists. If the price is volatile, it might create many false alarms. Useful indicators can be obtained by drawing support and 
 
resistance lines. These lines are defined by traders' psychology 
(greed, first of all) and represent the issue of supply and demand. Support is the level at which buyers take control over the market and prevent prices from falling further down. On contrary, at the resistance level, sellers take control over the prices and prevent them from rising higher. Breaking through support or resistance lines often signals the beginning of a different trend. The drawing below ill¬ustrates commonly occurring patterns and shows predicting power of support and resistance lines. 
 
Bollinger Bands: trend and volatility 
Another very useful technical analysis tool was suggested by John Bollinger and is called Bollinger bands. Bollinger bands define a channel with the width proportional to the current market volatility around the moving average trend line. Typically we take 20days simple moving average and step up and down two standard deviations from it. So, we calculate 
piSMA20  1 ( p  pi1  ...  pi19) 20 i 
 
and 
 
  2 2  1   SMA20  2  SMA20   pi    pi  pi1   ...   piSMA20  pi19   STDi    pi   20  
and draw three lines on the chart (see figure). Here is a short list of predictions you can draw from the Bollinger bands: · If band tightens as the volatility shrinks, you can expect a sharp price move to follow; · A price move that starts at one band usually carries to the other one; · When price moves outside of the band (provided the band itself is not falling or rising steeply), the current trend will usually continue. 
 
Momentum indicators: a timely warning 
So far, we've only talked about techniques based on trends. They are extremely useful, but most of the time, they identify a change in trend after it has already happen. An early warning about exhaustion of the current trend can be obtained with rate-of-change or momentum indicators. The most commonly used one is the Relative Strength Indicator (RSI). To calculate it, you need to find an Average 
 
Gain and Average Loss during a certain period, typically 9 or 14 
days, take a ratio of them 
 
RS  Average Gain Average Loss 
and then calculate 
 
RSI  100 100 (1  RS) 
So, if losses and gains are equal, the RSI is equal to 50, if no gains have occurred during the period, RSI is 0, or if the gains are overwhelming it tends to 100. The rule of thumb is that if RSI reaches 70, the RSI is overbought and the trend will shortly change downwards. This is a high probability sell signal. On contrary, RSI level of 30 indicates an oversold condition and the trend is expected to change upwards shortly. This could be a good opportunity to buy. However, I advise you not to take decisions based solely based on a single indicator, in particular, RSI. Always combine it with Trend analysis. 
 
 
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Elliott Wave Principle</div>
Now we will learn about some simple methods to predict future trend development (of course, with a certain degree of probability). How can it be done? Of course, we cannot see into the future, we cannot predict hurricanes, server crashes, law suits or hacker attacks. However, the point is that the evolution of prices depends largely on traders' psychology; and the behaviour of a large number of people is statistically predictable. A very common method is the Elliott Wave Principle. Back in 1939, observing natural patterns, R.N. Elliott noticed that all cyclical movements occur in some sort of waves, related to Fibonacci numbers. The most common pattern is the so-called "Fivewave pattern". Three out of five waves (marked 1, 3, 5) follow the trend, while two others (2 and 4) are countertrend interruptions. These interruptions are apparently a requisite for the trend to occur. Typically, this five-wave rise is followed by a three-wave downward correction forming an eight-wave cycle. Interestingly this pattern has a so-called "fractal" structure, in other words, it repeats itself on different scales. If we, for instance, zoom in on waves 1 and 2, we can expect to see a complete eight-wave cycle again. So, the cycles occur on a very different time scale and, by analysing American stock exchange Elliott could discern nine degrees of waves, 
Elliott Five-Wave pattern 
 
from a long-term Grand Cycle down to very short-term Subminuette. The figure shows schematically Elliott Wave for a bullish market, but a similar pattern (now, with a main trend downwards) will occur for a bearish market as well. By following Elliott Wave, you can predict the next move of the market and, for instance, foresee the trend change. Two typical patterns indicating weakness of a bullish market are shown below: truncated fifth wave and diagonal triangles. 
 
Elliott Waves Principle and Golden Ratio 
Another dimension of the Elliott Waves Principle is the Fibonacci sequence. This sequence, in which the sum of two adjacent numbers produces the next element of the sequence, has been known to mathematicians for hundreds of years: 1, 1, 2, 3, 5, 8, 13, 21,... and so on to infinity. This sequence is ubiquitous in Nature and present on all scales from BitcoinRobot DNA to the galaxies. One of its features is that the ratio of two subsequent terms approaches 1.618, the famous Golden Ratio. Coming back to the Elliott Waves, so-called Fibonacci 
 
retracements help to identify areas of support and resistance. For 
example, a sharp correction commonly tends to retrace around 0.618 of the preceding wave, while sideways correction often retraces 0.382 of the previous impulse wave. The Golden Ratio is also present as a ratio of the impulse waves, which are often related as equality, 1.618, or 2.618 ratios. Elliott Waves Principle offers you a formidable arsenal for forecasting market movement, but you should always remember that we always talk about probabilities. If the market moves beyond the predicted pattern, meaning that your conclusion is wrong, then the funds at risk should be reclaimed immediately. The science and practice of Elliott Waves is very rich and many observations have been made since the time they were first 
 
discovered. If you are interested, you can find a wealth of resources on internet. The web site of Elliott Wave International is a good starting point. 
 
Your own trading system? 
Based on technical analysis knowledge, you can develop your 
trading system. The first thing you need to set is the timeframe 
of your investment. If you can invest a large chunk of money, your preference will be a long-term investment. Long-term technical analysis produces more clear results since you can filter out all these day-to-day price fluctuation and look at long-term trends. If you cannot afford this, it is better to try medium and short range investments. This is a complicated task and I would advise you to start with a long-term technical analysis first, prove your ideas and predictions using historical data, and only then focus on a shorter timeframes. The next task of your trading system is to define the 
 
entry point. The first thing here is to determine the long-term trend. 
It is not advisable to open any position if the trend is downwards. The last and the most important task of you trading system is to define the exit point. You need to decide for yourself when you want to secure your profit (Take Profit level) and also place Stop 
 
Loss level in the case when market starts to move in the opposite 
direction. 
 
Let us try analysing a real Bitcoin chart! 
Now we know enough to apply some basic technical analysis and try to make a forecast. You already know enough to make a qualified decision. I use the data downloaded from http://bitcoincharts.com/ 
charts/mtgoxUSD. You can not only plot the Bitcoin price and volume 
 
charts on this web site but also get the entire set of data by clicking "Load raw data". Following the recipes in the previous sections, we did some calculations in MS Excel and plotted the last few months of data together with EMA10, EMA50 and Bollinger Bands. 
 
According to the Bollinger band behaviour, we observe tightening of the band which could indicate a forthcoming change in trend. Indeed, the support line was broken on May 26th followed by a downwards price crossover on May 31st and a "dead cross" on Jun 6th. We could therefore conclude that the current Bitcoin trend is downwards. The market can possibly find support at around $100, but the data is inconclusive so far. The advice to a short-term investor would be to wait and not to enter the market at this moment in time. 
 
Technical analysis tools and resources 
Your primary resource in this respect is Mt. Gox. On the page 
http://bitcoincharts. com/charts/mtgoxUSD, 
 
you can select the required set of Bitcoin data and plot major technical indicators, as shown in the figure below. By pressing load raw data, you can obtain a complete set of Bitcoin data, day-by-day, including open, close, high, and low prices, as well as volume in BTC and USD. There is also a large number of Bitcoin blogs of which I would particularly mention Bitcoin charts and analysis on http://afbitcoins. 
wordpress.com/ and forum at http://bitcointalk.org Bitcoin charts at Mt. Gox 
 
I can't help but mention Metatrader4 here. It is currently the most popular trading tool on the Forex market. The program is actually a terminal that connects you to the up-to-date information on the prices. A wealth of technical tools is included into this incredibly powerful program as well as a built-in macro language and the ability of automated trading. You can also see the historic data, plot different trend lines and indicators, place orders and set automatic stop-loss and take-profit limits and many other things, all within a small program. Although it is not yet possible to trade Bitcoin on 
 
Forex (we hope this possibility will be provided shortly), established currency pairs can be traded with bitcoins on Bit4X. This site also offers a demo-account using Metatrader 4 together with a British trading firm, VenetFX. To start trading, you need to register by sending an email to the web-site support team and deposit 10 BTC on your account. Here is a screen shot of Metatrader 4 window: 
 
The panels showing real-time data on currency pairs can be conveniently resized, type of graph, timing and other parameters can be adjusted individually for each graph (in the example, I re-scaled GBP/USD graph to show daily information starting from Dec. 2011 and added two trendlines EMA 10 (red) and EMA50 (blue)). To help you with predicting the trends, Fibonacci levels as well as a large number of other technical indicators can be added to the graphs. 
 
Spoiler Alert: Too complicated? If you are not into manual trading, why not let an automated Robot trade for you? How about trading on Autopilot with Bitcoin robot? In the next chapter, you will learn how you can profit with Bitcoin on Autopilot without the need for any complex stuff! 
 
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Automated Bitcoin trading? How Can You Profit with Bitcoin?</div>
Just a few years ago, the only way to profit was through so-called "Mining". This is the "Hard Way", for which you receive coins by helping the system to verify secure transactions. This process requires a lot of computational power, typically multi-core CPU system or specialized Bitcoin miners. The algorithm is designed in such a way that mining becomes more and more complex and less and less profitable with time. Mining days are over! 
 
The time has changed and we are the ONLY solution available to increase your Bitcoins! 
 
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THE Inflation FREE currency!</div>
Bitcoins are limited in amount... you can NOT produce them out of thin air nor reprint them, thereby making them safe from inflation! 
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100% Secure! NON-CLOSABLE!</div>
Bitcoins are unhackable lines of code that you can even stash on your cellphone in an E-wallet or download to a USB stick and keep them SAFE! Pay using them, store them, collect `em... the option is yours! To make it even better, Bitcoin is decentralized. No one owns it... it's like the Internet... you can shut down a machine but you can`t kill it. It's a living and expanding entity on its own. So, no matter how hard a government might try to put it down... they cannot succeed! The bottom line to EARN them, however, is that... 
 
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Forex is DEAD! Automated Bitcoin Trading is the ANSWER!</div>
Imagine if you had a fully automated Bitcoin trading robot, working for you on autopilot around the clock? Trading Around The Clock??? Even on weekends?? Forget Forex limitations such as not trading on weekends, Bank Holidays and other big bank B.S. 
 
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Bitcoin is traded around the clock, 24/7, 365 days a year.</div>
There are no banks controlling it, meaning we don't have any bank limitations on the trading time, thereby giving you a unique opportunity to profit around the clock, two extra days a week! The Robot does not sleep, does not take holidays or stop on weekends. It is an everlasting profit machine at your fingertips! 
 
TRADING ACCOUNT: $2,714 and Counting! 
 
It can be yours right now and it's a piece of cake to install! 
 
Why Does the BitCoin Robot Work? 
Bitcoin is a young growing market. Relatively small amount of Bitcoin exchange marketplaces ensure huge price fluctuations during the trading day, which Bitcoin Robot takes advantage of. The higher the market volatility, the higher the profit. During volatile months, the profit can reach up to 100% per month! During regular months, it gives a stable "conservative" growth of 10-20% per month. No leverage trading: You are trading only on your own money without taking Huge leverage from the brokers like in Forex, meaning the risk to lose all your money is small to non-existent. The Robot is analyzing the prices in all Bitcoin exchange marketplaces in real time, exploiting the gaps and using hedging techniques to take advantage of almost bulletproof profit opportunities. 
 
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How Does It Work?</div>
 
Simply open an account with one of the trusted Bitcoin trading exchange marketplaces Deposit an initial amount in Bitcoin or USD. You can start as low as $100 ! 
 
Activate Bitcoin Robot and let it trade for you! Choose between a simple Windows version or a fully pre-installed VPS version: No installation, no hassles. The Robot comes fully preinstalled in your web browser-based members area! Nothing to setup or configure. Human error-free & 100% autopilot. 
 
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Withdraw profits.</div>
 
No backtests, NO what ifs! This is not a forex Robot or MT4 based indicator B.S. It`s a custom programmed bot that trades real money... no monopoly cash playtime but real results! 
 
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What's Behind the Bitcoin Robot Trading Engine?</div>
When it comes down to technology and IT developments, hats off, nothing comes close to Russian brains! We united our efforts with a team of the brightest Bitcoin traders and programmers from Russia. Don't get me wrong though. It's hard to be a pioneer in the field. It's even harder to develop the first fully automated system in the new market. Yes, it was not easy. Over 2 years in development, plenty of trial and error. We really wanted to perfect it. Over 127,199 lines of code. Sleepless nights and betatests in private groups. 
 
FAQ: 
1. If the Robot wins money, who loses it? Does the Bitcoin exchange lose money if I win and eventually ban my trading? 
Good question. No, the Bitcoin exchange market does not lose any money due to your profitable trading. In fact, it is gaining a lot of money because they charge 0.4% commission on every trade. For example, yesterday their exchange volume was $512,213 , which means +4000 BTC commission made. The losers are other human traders that do not use automated trading approaches and trade manually or just pay too much when buying Bitcoin! It's harsh but money is not produced from thin air. It comes from losers that don't have advanced tools like our Bitcoin Robot and keep trying their luck with old outdated manual systems. 
 
2. How much money do I need to start? Thousands of dollars?? 
No, you can start as low as $100. This is the main advantage of Bitcoin trading, the entry limit is very low. 
 
3. Is it risky? Can I lose the deposit? 
You are trading only on your own money without taking huge leverage from the brokers like in Forex, meaning the risk of losing all your money is small to non-existent. 
 
4. Will it provide 100% winning trades? 
100% winning systems are impossible, so don't be fooled by so called "Get Rich scams" promising that. 
 
5. Do I have to keep my computer ON all the time or buy a VPS server like with forex? 
You can choose between two options. The most affordable Silver plan comes with Windows based software which trades from your own computer. Similar to you trading Forex on Metatrader4 on your computer. So it must be on at all times during trading. If you choose the Gold Plan, the Robot comes fully preinstalled in your web browser based members area! Nothing to setup or configure. It's completely human error-free & 100% autopilot. 
 
6. What if my internet connection gets interrupted during trading? 
No problem. The Robot will resume trading from the point it left and catch up on the trades. However, if you experience constant internet connection issues in your area, it's safer and more profitable to use the Gold plan where the Robot is pre-installed on our trading VPS for you! 
 
7. What if many people trade it, will it become less effective? 
No. The beauty of Bitcoin trading Robot algorithm is that it uses a special trade stealth technology which allows to separate different traders and avoid all of them taking the same trade at the same time overloading the market liquidity. This way Robot stays effective even if many people trade it independently. 
 
8. Is it better than Forex? 
Yes. Less risky. More profit. No broker spreads or ridiculous commissions. No bank regulations and fees. You get all the profit. You trade 24/7 not 24/5. No bank holidays. You get profit around the clock. No need to install Metatraders and other complicated software. No need to sit and watch charts. No need to buy expensive VPS servers or keep your computer online. 
 
9. Do you trade it yourself? If it is so good, why would you sell it? 
Yes, we do trade it and you saw the live trading proof. Why do we sell it? We could probably write something hypocritical here, that we want to make everyone rich and happy, but I will be honest with you. We are just greedy. If you have an opportunity to make more money, will you pass it by? The amount of traders using the Robot does not affect its effectiveness, so we thought, why not release it to a limited amount of pioneers who, like us, can take advantage of a growing opportunity. It's like when people invented the plane; nobody drives such long distances in a car anymore! Same here. Why bother with manual trading, spending the whole of your life glued to the PC when you can use this new technology of automated Bitcoin trading! The world has changed. And so have the tools! 
 
 
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Silver Plan</div>
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 </div>
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Downloadable Version for Windows Vista/7/8</div>
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Easy $149 One-Time License Fee. No Monthly Fees. Choose this option if you prefer to trade the robot from your own computer.</div>
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 </div>
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Fully Pre-Installed Version 1 Year Service</div>
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Gold Plan</div>
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One-Time payment of $248 for a one year membership (no subscription) no additional monthly fees + expedited tickets with support 1 year of premium trading hosting, VPS included! Choose this option if you don't want to install anything and keep your computer ON. The robot will come preinstalled on our premium trading VPS for you and you will access it simply via your browser through your private members area! Nothing to download or setup</div>
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Platinum Plan</div>
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 </div>
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Fully Pre-installed version, Unlimited service</div>
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Lifetime membership for $498 (unlimited) + 3 years of free trading VPS cloud hosting included + expedited ticket support + personal oneon-one support. Just like in the Gold Plan, the robot will be fully preinstalled on our premium VPS and you will access it simply via Browser in your private members area! Nothing to download or setup</div>
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It's time for you to take action and secure your spot. 
Remember, the early bird catches the worm. You already missed the early founding Bitcoin days with mining opportunities. It's still not too late to jump in on the train that is about to leave. Get the Trading System Poised To Create a New Generation of future, successful traders. Pioneer this kind of currency trading with an unlimited potential of future growth. 
 
To be a successful money maker, you need to stray off the beaten paths... and THIS is your chance now! Who knows what will happen in a year from now? What if everyone owns Bitcoins by then and the market volatility sinks? Thousands of people are buying Bitcoin everyday... you can get ahead of them and profit from the misinformation and from people that pay too much to purchase Bitcoins... but you need to act right here, right now! By the time the gold rush is over, you could have earned tens of thousands of dollars with a small one-time investment ! The Bitcoin Robot is backed by our 60 day money back guarantee... either set it up and profit OR get your money back. You can try it out for a full 60 days, all the risk is on us. 
 
Make sure you secure your financial freedom and don't miss it. You are in the right spot at the right time. It's up to you now to take action and secure your own passive money-earning Bitcoin robot... and start withdrawing money as early as TOMORROW!</div>

The Bitcoin Secret Trading Full Giude

Bitcoin is a revolutionary new concept -- a digital currency of the new era, not relying on any bank or government, which started few ye...

07:24

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The Bitcoin Secret Trading Full Giude

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