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HitBTC is fraud: John Mcafee, What about Binance?

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John McAfee has termed HitBTC as one of the most arrogant cryptocurrency exchanges that he has ever seen in his life. Let's compare HitBTC with Binance

The articles cover aspects and give insights after comparing HitBTC vs Binance

 

Intro

The cryptocurrencies predominantly need a Marketplace as they have flourished from a handful of them to 1500 different varieties till date. An intermediary is required which would help in the buying and selling of various kinds of cryptocurrencies across the world. This facility is being provided by many of the cryptocurrency exchanges which has been flourished with the inception of Bitcoin in the year 2009. The cryptocurrency exchanges are highly centralized in nature but can handle huge amounts of transactions in every seamless manner, but they seem to be compromising on the security which is very crucial in this highly vulnerable cryptocurrency space. let us understand and try to compare two of the most prominent cryptocurrency exchanges.

 

HitBTC vs Binance: Introduction

Binance easy one of the most recent cryptocurrency exchanges which initiated its operations from China in the year 2017. It has been one of the most popular cryptocurrency exchanges which offer a huge variety of options in the form of trading pairs to its customers. The Centralized trading platform supports a myriad of languages as well as cryptocurrencies when compared to the lesser prominent HitBTC. Hitbtc is another centralized cryptocurrency exchange which initiated its operations way before binance in the year 2013 itself. Nevertheless, the Crypto exchange has not been able to gather as much as popularity as Binance has. The Hong Kong best cryptocurrency exchange supports fever languages when compared to the former one but a higher number of trading pairs to choose from.  

 

HitBTC vs Binance: Security

According to estimates, it has been found out that Binance supports approximately 123 cryptocurrency coins, whereas the hitBTC is deemed to support almost 228 different varieties of cryptocurrency tokens. Boudi cryptocurrency exchanges do not support any kind of Fiat deposits and only allows for the exchange between various kinds of cryptocurrencies. Security is one of the major concern and until now both the cryptocurrency exchanges have not been susceptible to any kind of hacks. They ensure security through a two-factor authentication process in order to safeguard the cryptocurrency funds.  However, Binance requests higher verification procedures to be followed for an increased amount of withdrawal or deposits.

 

HitBTC vs Binance: Transaction fee

When it comes to the transaction fees Binance as implied 0.1% on both the maker as well as the taker fees, but hitBTC seems to be compromising and has levied the transaction fee only on the withdrawal of 0.1%. The China-based cryptocurrency exchange, Binance is Highly popular and the daily trading volume is estimated to be almost $2 billion. On the other hand the daily trading volume of the hitBTC accounts to approximately $450 million. It seems that the Binance has been able to attract the customers from all over the world through its hard work and dedication. They also believe in customer service and also have an interactive mobile application which allows the user to undertake the trading operations very similar seamlessly.

 

John McAfee’s thoughts about HitBTC

Even John McAfee has termed HitBTC as one of the most arrogant cryptocurrency exchanges that he has ever seen in his life. He points out the Anonymity of the exchange which is providing minimal service and extracting maximum profits out of the cryptocurrency funds. He was very furious with the CEO of it BTC as he alleges that the CEO of hitBTC and threatened him.

 

 

HitBTC vs Binance: Popularity

The HitBTC cryptocurrency exchange was one of the most preferred ones, during its times but has become unreliable in the current domain, and it has been and has significantly failed to adapt itself to the changing market conditions. The inability to innovate and keep up with the pace rendered them to become very unpopular, although it was one of the early players in the market. Binance, on the other hand, has been deemed to be on the fastest growing cryptocurrency exchange in the cryptocurrency market. It doesn’t require much verification until the withdrawal of 2 Bitcoins worth, and the transaction fees also kept very negotiable.

 

Closing thoughts

Most of the popular cryptocurrency exchanges like Binance, Coinbase, KuCoin, Kraken, Bitfinex, HitBTC, etc are centralized in nature which means that the primary keys are stored in their servers. It is highly preferred that the users withdraw their cryptocurrency funds each time, after the trading and store it in an external hardware wallet as leaving them on the exchange is highly susceptible and dangerous.

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Gerald Cotten faked his death? QuadrigaCX story fully uncovered.

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$190 million in cryptocurrencies may be lost forever. The owner of the QuadrigaCX died while he was in India due to complications from Crohn's disease.

$190 million in cryptocurrencies may be lost forever. The owner of the QuadrigaCX died while he was in India due to complications from Crohn’s disease and he was the only person with access to the cold wallets. What’s highly suspicious and insane here is that they did not have a multi-signature wallet set up for $190 million worth of customer’s cryptocurrency. 115,000 users are left without their money and that is tragic. Some of these users had very large balances on the exchange with one user apparently having up to $70 million worth of cryptocurrency on the exchange. The exchange has now filed for bankruptcy.

The exchange has been granted an order for creditor protection in Nova Scotia. This is basically a 30-day stay of proceedings in a way to stop any lawsuits from proceedings against the company at this point. It’s a tragic situation when someone dies, a company goes under, thousands of people lose their cryptocurrencies and thousands of bitcoin disappear forever. But then it starts to get weird because the QuadrigaCX case has got a lot of strange things going on in the background. These may be just rumors or things that people are talking about right now when it comes down to what’s going on with this exchange. The reality at the end depending upon what the investigation turns up may prove to be different.

 

The Series of Coincidences around QuadrigaCX and the death of Gerald Cotten:

Gerald Cotten, who was the only person who knew the passwords for the cold wallets. Before his sudden death, there were also quite a few reports of long delays in getting withdrawals. That itself is a bit of a red flag. There are of course acquisitions that basically you could only withdraw your money when someone else deposited their’s which means that there were serious solvency issues at the exchange if of course, that was true. The accounting of the exchange has been really bad which may be just bad business practices but the company was also hit with cease trading order for failing to file financial statements. Cotten’s wife has also said that she has been unable to find any corporate records.

It is unclear whether or not QuadrigaCX had all of the cryptocurrencies that they say they do which was millions in cryptocurrency at the time of closure and at the time of the founder’s death. QuadrigaCX never disclosed their cold storage wallet addresses. Taylor Monahan, the CEO of MyCrypto has been investigating the Ethereum’s side of this situation. She said that the company didn’t possess a significant amount of its Ethereum to make it liquid and the cold storage Ethereum addresses may not have existed at all. Then it comes to litecoin. It is unconfirmed whether these are the addresses of QuadrigaCX, research has indicated that QuadrigaCX’s litecoin cold storage wallets are moving litecoin after the claim that the keys were lost. However, it is not confirmed whether that is company’s litecoin addresses or not because they are not disclosing that information even now.

The Co-founder Michael Patryn might be a famous conman going by the name of Omar Dhanani who is a convicted scammer. Dhanani was a member of the shadow crew and pleaded guilty to numerous counts of identity fraud back in 2005. He also used the name Omar Patryn in a forfeiture case. These company corporates are the guys who have the KYC information of more than 100,000 users. So this proven identity scammer now have access to all this KYC information which would make it so easy for him to open up new accounts in other exchanges, cashing out using fake id’s. Michael Patryn apparently left QuadrigaCX back in 2016 but considering how fishy the rest of the story is, it would not be surprising if he maintained an influence or a relationship with
Gerald Cotten.

Some have speculated that Gerald Cotten faked his own death and basically got a knock-off death certificate in India or perhaps he was killed by his business partners but even the death itself is incredibly suspicious. Dying from Crohn’s disease when only 1.6% of sufferers from this disease die of it and to happen to die from Crohn’s disease in such a young age is incredibly rare. Gerald Cotten was cremated and his ashes were dumped into a river in India and to make it even better he filed a will 12 days before his death. In that will Gerald Cotten accounted for things like his dogs to be taken care of, his house etc. but he casually forgot to include any information about how to release the $190 million in user funds on his exchange which he had the sole access to. Also, QuadrigaCX did not announce his death or the missing keys for a month. With so many coincidences it’s crazy.

QuadrigaCX worked with CryptoCapital who also work with companies like EXMO and CEX which have been having withdrawal issues recently as well, Coinapult which basically stopped business overall on 10th December last year and Bitfinex. All of these have reported withdrawal issues in the recent past. In fact, Cryptocapital on the day of the announcement about QuadrigaCX delisted Bitfinex from their website. This adds to the fishiness of this whole story.

A court-ordered lawyer will be getting a hold of the encrypted laptop from QuadrigaCX and that laptop might actually provide access to $190 million worth of customer funds. An independent third party will be the one taking over the custody of that laptop during the bankruptcy procedures.

Maybe the official story is exactly what happened. Maybe the founder really died and no one has the access to the user’s funds and it’s just a case of coincidences about Dhanani, cremation of the body etc. but if the worst rumors prove to be true and the scammers get caught maybe some people will get a bit of their money back assuming that the lawyers are not able to get it out of the laptop. There is still some hope out there for people.

 

What are your thoughts on Quadrigacx and the death of Gerald Cotten? Tell us in the comments section below.

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Warning: Disadvantages of Leverage trading on Bitmex and Bitfinex

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Leverage trading has been a market strategy since old times. Let's discuss leverage trading on Bitmex and Bitfinex and the disadvantages of leverage trading

Cryptocurrency trading has been a topic for discussion and argument for a very long time. It has both a huge section of analyst support this whereas a large set of traders are always opposing it. Apart from this argument by the two sets, one can’t deny that participating in a trade including cryptocurrencies is both risky as well as beneficial. One need to research and have a knowledge of related platform before investing his/her money in this space.

In this article, we will discuss particular trading known as leverage trading on Bitmex and Bitfinex. Nextly, we will discuss the disadvantages and dark side of leverage trading on Bitmex and Bitfinex.

 

Leverage Trading on Bitmex and Bitfinex:

Leverage trading has been a market strategy since very old times. In this type of trading, if you don’t have enough value to trade, you ask some value from someone else to complete your trade. The rules and regulations of this kind of trading are very simple and are used by many of the exchanges. This is also known as margin trading.

In crypto space also, the act of borrowing extra cryptocurrency to complete the trade is known as cryptocurrency leverage trading. Some of the cryptocurrencies like Bitmex and Bitfinex support this trading.

You can borrow at some leverage x:1 i.e. the lender will provide (1/x) of total investment. Suppose, the total desired investment is $100 then leverage of 4:1 means the lender will give you $25.

 

Let us understand with an example: Suppose, John wanted to buy bitcoin for $4000 but currently, has only $2000. Since alone he can’t do the desired trade, what he can do is to borrow $2000 from someone and trade it. Here, the leverage is 2: 1. This is an example of margin trading. Now, suppose, the trade gained a profit of 25%. The total worth is now $5000. He can give the borrowed $2000 to the lender and still can make a personal profit of $1000. Isn’t it amazing? But wait, it could be a trap for you!

 

The disadvantages of leverage trading on Bitmex and Bitfinex:

Often, it is said that the grass is greener on the other side of the fence. Same applies to this trading. As we all know that the cryptocurrency industry is often fluctuating and risky too. Let us understand with the above example how margin trading on Bitmex and Bitfinex can be a trap for you.

Suppose after borrowing $2000 from someone, you completed the trade and due to some market downhill, the trade goes to a loss of 75%. Now the total value is $1000. If you had only invested your money, you still would have $1000 but in the current condition, the first responsibility would be returning the money to the lender. He/She will claim his/her full amount. So, firstly you would have to arrange $2000 for him/her and for your money, forget about that. All of your money would be lost.

So, you can see how you can lose all of your money and even go in debt if you trade using margin trading and the market doesn’t favor you. Cryptocurrency is market of risk and if you are using leverage trading on Bitmex and Bitfinex and any crisis comes, you will be in great loss. So until you have a knowledge of margin trading, never try it. They can be rewarding too but are highly risky, so it is not advisable for the new joiner to invest in it. Also, even if you are using this trading, never invest the amount that you can’t afford to lose it.

Most of the people, in order to earn money at a very fast pace, try to use this margin trading and there have been instances where people have lost all their money in case of crisis and low price down of the cryptocurrency. In any condition of the market, the lender will ask for it complete money and you are bound to return the lender the complete amount plus some interest also. So, there is a very dark side of leverage trading on Bitmex and Bitfinex.

 

We discussed how leverage trading on Bitmex and Bitfinex could be the worst decision of your life. Like any other market, margin trading can be rewarding as well as it is very risky as you may lose all of your investment in case of crisis. In the worst condition, you may lose all of your money and may have to arrange the lender’s borrowed amount to be returned from your additional savings. This article focusses on disadvantages and dark side of leverage trading on Bitmex and Bitfinex.

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Coinbase: The Best Startup of 2018

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Headquartered in San Francisco, Coinbase emerged as the leading digital currency wallet service that allows traders to buy and sell cryptocurrencies.

Headquartered in San Francisco, California, Coinbase emerged as the leading digital currency wallet service that allows traders to buy and sell cryptocurrency like bitcoin.

The interest, as well as the amount of investment that was put into cryptocurrencies, hyped up in the past year and there emerged the need of a secure facility of exchange to allow the buying, selling and execute other transactions related to crypto- at such a time Coinbase emerged as one of the safest portals to deal in cryptocurrencies.

 

Things You Should Know

Coinbase was launched in Fransico, back in 2012 and is currently functional in as many as 32 countries and serves over 12 million customers with over 40 billion dollars in digital currencies. When 2013 was reached, Coinbase came out to be the most funded Bitcoin startup and was also the largest portal for the exchange of cryptocurrency in the world. It is different than other exchanges in the market that require users to trade in a market- Coinbase, on the other hand, allows them to exchange their cryptocurrency at a set price that is based off the market value, which makes the whole transaction much faster than any other exchange. It also just happens to be one of the few portals that accept credit cards (in addition to bank transfers).

Coinbase went on to gather some real high-browed backers as investors, including the Bank of Tokyo and BBVA, which is proof of its legitimacy.

Some people wonder whether the facility of Coinbase is safe or not- well, among its competitors, Coinbase is probably the safest that there is. It is important to note here that Coinbase is based In the USA and it complies with all of US’s State and federal laws- thus making it much more secure than other exchanges that have a loose law system.

 

Safety Measures

As far as storage of funds is concerned, the methodology of Coinbase is highly transparent- it categorizes and separates customer finds from company’s  operational funds and it has mentioned on its website that any funds that they hold on behalf of their customers are kept safe in custodial bank accounts and in case a financial crisis does occur, neither Coinbase nor its creditors would have any rights or claims to the funds of their customers. Coinbase also guarantees that 98% of customers’ cryptocurrency finds are stored offline by the means of hardware wallets and paper wallets that are further secured in vaults and safety deposit boxes around the world. The security is further boosted with Coinbase claiming that the left percentage of the cryptocurrency which is stored online is insured and in the event of any hacking that is near to impossible, customers will have a claim to receive any funds that they may have lost via their insurance policy.

 

Recognition Received

Coinbase found worldwide substantiation for their efforts and for some of our amazing colleagues. Ultimately, these awards highlight the efforts of every single employee, and  Coinbase was highly grateful to all its employees and staff members for making it such an amazing place to work. Top highlights include:

  • LinkedIn went on to rank Coinbase as the #3 most desirous and profitable startups in the US.
  • Fortune’s prestigious publication- The Ledger featured four members of Coinbase in its list- 40 under 40
  • Major personalities working with Coinbase such as Tariq Meyers and Emilie Choi have been recognized by many international magazines and newspapers, like The Root.

 

Customer Service

Coinbase is not going to leave you stranded alone in this cyber world, for it offers customer support via email and you can easily find a knowledge base on its website along with FAQs that are available for customers. Although the time that you will be spent in waiting for customer support may vary, Coinbase makes sure that all its users are left with their questions answered no matter how busy or caught up they are.

And so we can say that something so novel to have reached the heights of success so soon is truly a tremendous achievement for Coinbase; it is indeed the best startup that 2018 bore!

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