Bitcoinica

An exchange that enables leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.

The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.

Leverage

Caution is recommended for those not familiar with leverage and/or forex trading.

The default margin requirement level is 2.5:1. The level may raised to 5:1 (or higher) using the self-service settings function.

Leverage from funds added using bitcoins can purchase an even larger Bitcoin (long) position. Similarly, funds added using USDs can be used to sell (short) bitcoins without already having bitcoins.

Depositing Funds

Bitcoins

• Bitcoin transaction. Deposit transactions are credited after six confirmations.

Redeemable Codes

Credited and available for use instantly.

• Bitcoinica Redeemable Code (BTC).
• Mt. Gox Redeemable Code (BTC).

USD

Redeemable Codes

• Bitcoinica USD redeemable codes
• Mt. Gox USD redeemable codes are accepted for deposit.

Internationial Wire

• Funds (USD) may be wired to Bitcoinica's bank account in Singapore.
• Funds through AurumXChange Company are then deposited as a Bitcoinica USD redeemable code.

Cash deposit

Deposits at thousands of banks can fund a Bitcoinica USD redeemable code (fee applies).

Liberty Reserve

• AurumXChange accepts Liberty Reserve USD and other e-currencies for conversion to a Bitcoinica USD redeemable code
• BitInstant accepts Liberty Reserve deposits for transfer to a Bitcoinica account.

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.

Other 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.

Withdrawing Funds

Bitcoins

• Bitcoin transaction.

Redeemable Codes

• Bitcoina Redeemable Code (BTC)
• Mt. Gox Redeemable Code (BTC)

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.
• Mt. Gox Reemable Code (USD).
• BitInstant. For transferring funds to other exchanges.
• International Wire Transfer (fee applies).

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Bitcoinica USD redeemable codes can be redeemed at AurumXChange and then withdrawn as a bank wire transfer in the SEPA Eurozone.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.

API

An API is available for automated trading.

HOWTO

Going long and short can be as simple and placing a buy or sell order at market prices and doing nothing more. Additional techniques for obtaining desired pricing or limiting risk include the use of limit orders, stop orders, and more. A Bitconica for newbies post on the BitcoinTalk forum describes the more advanced uses.

History

The service was launched on September 8, 2011. 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.

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.

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.

External Links

• Bitcoinica web site