Bitcoinica

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Revision as of 04:55, 21 April 2012 by Sgornick (talk | contribs) (Add to history the refernce to Bitcoinica becoming a registered Financial Services Provider.)
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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[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[2]. 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).
  • MtGox 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

Liberty Reserve USD and other e-currencies can be converted to a Bitcoinica USD redeemable code at through AurumXChange.

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.

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

The service was launched on September 8, 2011[3]. 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[4].

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[5].

External Links

References

  1. ↑ Bitcoinica changes default leverage to 2.5:1 for everyone
  2. ↑ Bitcoinica - Leveraging Your Bitcoins To Buy ... More Bitcoins
  3. ↑ Bitcoinica - Advanced Bitcoin Trading Platform
  4. ↑ Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized
  5. ↑ Bitcoinica is now a registered Financial Services Provider!
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