Difference between revisions of "Bitcoinica"

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(Clarify the type of speculation -- contract for difference (CFD).)
(Add to history the refernce to Bitcoinica becoming a registered Financial Services Provider.)
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An exchange that allows contract-for-difference (CFD) speculation on the Bitcoin to USD (BTC/USD) exchange rate using leverage.
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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.
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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.
 
The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.
 
    
 
    
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==Leverage==
 +
 
Caution is recommended for those not familiar with leverage and/or forex trading.
 
Caution is recommended for those not familiar with leverage and/or forex trading.
  
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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.
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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.
  
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The site does not yet provide a terms of service and it is not known from which jurisdiction the service operates.
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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.
  
 
==Depositing Funds==
 
==Depositing Funds==
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===Bitcoins===
 
===Bitcoins===
  
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Bitcoins are accepted for deposit.  A Bitcoinica BTC code may also be used for bitcoin deposits that are instantly available for use.
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* Bitcoin transaction.  Deposit transactions are credited after six confirmations.
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====Redeemable Codes====
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Credited and available for use instantly.
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* Bitcoinica Redeemable Code (BTC). 
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* [[MtGox Mt. Gox]] Redeemable Code (BTC).
  
 
===USD===
 
===USD===
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====Redeemable Codes====
 
====Redeemable Codes====
  
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Bitcoinica USD redeemable codes and Mt. Gox USD redeemable codes are accepted for deposit.
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* Bitcoinica USD redeemable codes
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* Mt. Gox USD redeemable codes are accepted for deposit.
  
 
====Internationial Wire====
 
====Internationial Wire====
  
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USD funds may be wired to Bitcoinica's bank account in Singapore or to [[AurumXChange Company]] which can fund a Bitcoinica USD redeemable code.
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* Funds (USD) may be wired to Bitcoinica's bank account in Singapore.
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* Funds through [[AurumXChange Company]] are then deposited as a Bitcoinica USD redeemable code.
  
 
====Cash deposit====
 
====Cash deposit====
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==Withdrawing Funds==
 
==Withdrawing Funds==
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 +
===Bitcoins===
 +
 +
* Bitcoin transaction.
 +
 +
====Redeemable Codes====
 +
 +
* Bitcoina Redeemable Code (BTC)
 +
* Mt. Gox Redeemable Code (BTC)
  
 
===USD===
 
===USD===
  
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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.
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* 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.
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* Mt. Gox Reemable Code (USD).
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* BitInstant. For transferring funds to other exchanges.
  
 
===EUR===
 
===EUR===
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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>.  
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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>.
  
 
==External Links==
 
==External Links==

Revision as of 04:55, 21 April 2012

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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