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An exchange that allows speculation on the Bitcoin to USD (BTC/USD) exchange rate using leverage.
Was an online service that enabled leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.
 
The default margin requirement level is 2.5:1<ref>[http://bitcointalk.org/index.php?topic=52092.0 Bitcoinica changes default leverage to 2.5:1 for everyone]</ref>.  The level may raised to 5:1 (or higher) using the self-service settings function.
 
The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.
 
Caution is recommended for those not familiar with leverage and/or forex trading.
 
Funds may be added in the form of either MTGUSD or Bitcoins.  Leverage from funds added using bitcoins can purchase an even larger Bitcoin (long) position<ref>[http://www.bitcoinmoney.com/post/11583434953 Bitcoinica - Leveraging Your Bitcoins To Buy ... More Bitcoins]</ref>.  Similarly, funds added using USDs can be used to sell (short) bitcoins without already having bitcoins.
 
The site does not yet provide a terms of service and it is not known from which jurisdiction the service operates.
 
==Depositing Funds==
 
===Bitcoins===
 
Bitcoins are accepted for deposit.  A Bitcoinica BTC code may also be used for bitcoin deposits that are instantly available for use.
 
===USD===
 
====Redeemable Codes====
 
Bitcoinica USD redeemable codes and Mt. Gox USD redeemable codes are accepted for deposit.
 
 
====Internationial Wire====
 
USD funds may be wired to Bitcoinica's bank account in Singapore or to [[Aurum X Change]] which can fund a Bitcoinica USD redeemable code.
 
====Cash deposit====
 
Deposits at thousands of banks can fund a Bitcoinica USD redeemable code (fee applies).
 
====Liberty Reserve====
 
[[Liberty Reserve]] USD and other e-currencies can be converted to a Bitcoinica USD redeemable code at through AurumXChange.
 
===E-Currencies===
 
E-Currencies including Liberty Reserve, HD-Money, [[Pecunix]], PerfectMoney, and others are accepted at AurumXChange and can be converted to a Bitcoinica USD redeemable code.
 
===EUR===
 
SEPA Euro transfers can be used to fund a Bitcoinica USD redeemable code through AurumXChange.
 
===GBP===
 
GBP wire transfers to a U.K. bank can fund a Bitcoinica USD redeemable code through AurumXChange.
 
==Withdrawing Funds==
 
===USD===
 
Bitcoinica USD redeemable codes can be redeemed at AurumXChange.  USD funds may be used for a bank wire transfer or to load or reload funds for the AurumXChange MasterCard.
 
===EUR===
 
Bitcoinica USD redeemable codes can be redeemed at AurumXChange and then withdrawn as a bank wire transfer in the SEPA Eurozone.
 
===GBP===
 
Bitcoinica USD redeemable codes can be redeemed at AurumXChange and then withdrawn as a bank wire transfer to a UK bank.


==History==
==History==
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The service was launched on September 8, 2011<ref>[https://bitcointalk.org/index.php?topic=42267.0 Bitcoinica - Advanced Bitcoin Trading Platform]</ref>.  On March 1st, 2012 the site suffered a significant financial loss when a web hosting had an internal security breach that gave the attacker access to a wallet in which Bitcoinica stored funds.  More than 43K bitcoins were stolen by the attacker.  The operator provided a statement that reserves were sufficient to cover the loss<ref>[http://bitcointalk.org/index.php?topic=66979.0 Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized]</ref>.  
The service was launched on September 8, 2011<ref>[https://bitcointalk.org/index.php?topic=42267.0 Bitcoinica - Advanced Bitcoin Trading Platform]</ref>.  On March 1st, 2012 the site suffered a significant financial loss when a web hosting had an internal security breach that gave the attacker access to a wallet in which Bitcoinica stored funds.  More than 43K bitcoins were stolen by the attacker.  The operator provided a statement that reserves were sufficient to cover the loss<ref>[http://bitcointalk.org/index.php?topic=66979.0 Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized]</ref>.  


==External Links==
Announced on April 20, 2012 was that Bitcoinica had "reorganized" and was now operated as Bitcoinica LP and had become a registered Financial Services Provider<ref>[http://bitcointalk.org/index.php?topic=77523.msg861805#msg861805 Bitcoinica is now a registered Financial Services Provider!]</ref>.
 
On May 11, 2012 Bitcoinica suffered for the second time a security incident in which a large amount of coins were stolen from its hot wallet<ref>[http://bitcointalk.org/index.php?topic=81045.0 Bitcoinica site is taken offline for security investigation]</ref>.


* [http://www.bitcoinica.com Bitcoinica] web site
On August 1, 2012 the Wendon Group investment fund as creditor to Bitcoinica LP announced that it will appoint a receiver under New Zealand law<ref>[http://bitcointalk.org/index.php?topic=97272.0 Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation]</ref>.


==References==
==References==
<references />
<references />
 
[[Category:Defunct products or services]]
[[Category:Exchanges]]
[[Category:Investing]]

Latest revision as of 22:59, 6 May 2014

Was an online service that enabled leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.

History

The service was launched on September 8, 2011[1]. On March 1st, 2012 the site suffered a significant financial loss when a web hosting had an internal security breach that gave the attacker access to a wallet in which Bitcoinica stored funds. More than 43K bitcoins were stolen by the attacker. The operator provided a statement that reserves were sufficient to cover the loss[2].

Announced on April 20, 2012 was that Bitcoinica had "reorganized" and was now operated as Bitcoinica LP and had become a registered Financial Services Provider[3].

On May 11, 2012 Bitcoinica suffered for the second time a security incident in which a large amount of coins were stolen from its hot wallet[4].

On August 1, 2012 the Wendon Group investment fund as creditor to Bitcoinica LP announced that it will appoint a receiver under New Zealand law[5].

References