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⚡️ Cryptocurrencies Go Live!

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?Bitcoin Finally in the Green After 6-Month Losses


Bitcoin (BTC), the world’s largest cryptocurrency by market cap, ends its 6-month losing streak; finally out of the red. It closed at $3,900 at the end of February. Even in this crypto winter, BTC’s bullish momentum show signs of recovery.


? Ethereum Hard Forks Now Activated


Ethereum (ETH), the second largest cryptocurrency by market cap, successfully implements system upgrades Constantinople and St. Petersburg. Originally planned for January, the Constantinople fork was delayed due to concerns about potential security vulnerabilities. Both forks officially took place at block number 7,280,000. The upgrades are intended to increase the network’s efficiency and will reduce miner block rewards from 3 to 2 ETH.


?Facebook & Telegram To Rollout Their Own Digital Currency


Internet messaging giants like Facebook, Telegram and Signal, will be rolling out their own cryptocurrencies in next year. Their intent is to allow users to transfer money directly from their message platforms with the use of blockchain. The projects have been highly secretive and the question still remains whether the tech companies will fully control their cryptocurrency or if it there will be some form of decentralization.


? Kraken Offers $100K Reward For Info On Quadriga’s Missing Funds


Cryptocurrency exchange, Kraken, announced they are offering a $100,000 reward to anyone who can provide the best lead on the discovery of missing coins from recently collapsed Canadian crypto exchange, Quadrigacx. It is estimated that a total of $190 million USD of Quadriga’s client funds remain inaccessible.  Kraken’s official blog highlights what is known to-date and any new tips can be submitted: here.


? Blockchain Watch: Ripple & Stellar On The Move

  • Ripple: 50 separate transactions of 10M XRP each moved from Bittrex to Upbit. The total value of the transactions is equivalent to $159 million USD
  • Stellar22 separate transaction of  10M XLM each moved from Bittrex to an unknown wallet. The total value of the transactions is equivalent to $19 million USD. 


☑️ Ripple Now Listed on Coinbase Pro


Users on crypto exchange, Coinbase Pro, can now buy and sell ripple (XRP) – the third largest cryptocurrency by market cap. Despite regulatory concerns, Coinbase stands its ground and makes XRP available to its users in the US (except New York), Canada, UK, supported EU nations, Singapore and Australia, with more jurisdictions to be added in the near future. Further developments can be found on Coinbase’s official blog post.


? Bitcoin & Ethereum Indices Now Live on Nasdaq


Nasdaq’s integration of Brave New Coin‘s bitcoin liquid index (BLX) and ethereum liquid index (ELX) is now live. The real-time indices are available for clients using Nasdaq’s Global Index Data Service SM (GIDS). This move affirms Nasdaq’s optimism towards cryptocurrency with Adena Friedman, president and CEO, previously expressing it is a “tremendous demonstration of genius and creativity.”


⚖️ US Government Retrieves & Returns Bitcoin to Bitfinex


The United States government has retrieved and returned 27.66270285 BTC (worth $104,000) to cryptocurrency exchange, Bitfinex. A total of 119,756 BTC were stolen during the hack of August 2016; the return represents only 0.023 % of this total.


All Eyes on Crypto Past, Present & Future

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? Samsung Galaxy S10 Features Blockchain Wallet


Samsung officially unveiled the latest specs of its new Galaxy S10 phone on Wednesday, subtly hinting that it features the ability to store cryptocurrency private keys. In-store previews now confirm the built-in cryptocurrency wallet through its “Blockchain Keystore” app.


⏱ Korea Waits For Bitcoin ETF Decision By SEC


An anonymous official from Korean Exchange (KRX) is reportedly waiting on the United States SEC’s decision on bitcoin exchange-traded funds (ETFs). As South Korea’s blockchain industry continues to grow, the US’s decision will heavily influence decision to launch ETFs its own country.


? FBI Seeks BitConnect Victims For Its Investigation


The FBI continues its investigation into the now obsolete crypto exchange, BitConnect (BCC) which collapsed January 2018. They released a quick questionnaire seeking help from potential victims of the Ponzi scheme from January 2018.


? Blockchain Movements: 47,200,000 XRP Transferred & Multiple Large BTC Transactions Overnight


47,200,000 ripple (XRP), worth $15.7M, were transferred from a known OTC distribution wallet to an unknown wallet. This is the largest XRP movement seen to-date.

Multiple significant bitcoin transactions were processed last night, with the below totalling over 18,000 BTC, worth $70M.

? Bitcoin Futures Reach Highest Volumes of the Year


Bitcoin futures contracts see surge in trading volumes reaching its current high of the year. CBOE Bitcoin futures contract had its first day above $2,000 indicating new interest in the crypto market. Bitcoin continues to rally in this bear market, currently trading around $4,000 but has yet to break beyond this price.


? Ethereum Mining Pool Freezes Unusual 2,100 Block Reward 


On Tuesday, Sparkpool, an ethereum (ETH) mining pool, received a payout of 2,100 ETH (worth $300,000) for mining block number: 7238290. This is 600 times the standard block reward, normally around 3 ETH. Today, Sparkpool temporarily freezes the 2,100 ETH as they reach out to the sender to determine a solution.


New Beginnings for Cryptocurrency

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Countdown to Bitcoin ETF Approval Begins


An SEC commissioner stated earlier this week that bitcoin ETF would be approved “eventually“. In the wake of this announcement, NYSE Arca and Bitwise Asset Management filed a bitcoin ETF rule change proposal for review. Today, the SEC has published the filing in the Federal Register and the countdown begins.


? Ordering Delivery? Use Bitcoin


Pizza: the great people equalizer. Domino’s US customers can now easily order pizza using the Lightning Network. This week, over 150 people have already placed orders through the web-based portal set up by cryptocurrency payment startup, Fold.


? JP Morgan introduces “JPM Coin”: 1st US bank-backed cryptocurrency


JP Morgan created big buzz in both the financial and crypto markets by announcing the “JPM Coin”. Despite CEO, Jamie Dimon’s past public criticisms towards bitcoin, JP Morgan will be launching the first major US bank-backed cryptocurrency to settle payments for its clients in the wholesale payments sector.


? Nasdaq Adds Bitcoin & Ethereum to Indices


NASDAQ announced it will be adding bitcoin (BTC) and ethereum (ETH) indices effective Monday, February 25, 2019: details here. BTC index will be calculated back to 2010 while ETH back to 2014.


?? Quadriga Loses Another 103 BTC, By Mistake


Vancouver cryptocurrency exchange, Quadriga, inadvertently transferred 103 BTC, valued at $354,300 USD, to an inaccessible cold wallets. Ernst & Young, the appointed monitor, reported that this transfer took place February 6, 2019.


Market Trend: Bitcoin Definitively Crosses Below $3,000

By | Coinscious Lab, Data Analytics, Market Report | No Comments

Coinscious Market Report – December 10, 2018

Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports are planned to focus on metrics derived from a 30-day rolling window of data, this time from November 7, 2018 to December 7, 2018. In this report, we also provide analysis on bitcoin price movements from a technical perspective to see where the market as a whole may be headed in the near future.

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies and groups them into sectors that reflect similar utility and valuation models. Through analysis of the recent historical performance of individual cryptocurrencies as well as their sectors, we provide a framework for analysis where investors can identify outperforming cryptocurrencies or sectors by comparing their performance relative to peers.

Constituent Coins/Tokens
Privacycoins XMR, DASH, ZEC, XVG
Resources SC, GNT
Payments and Settlements XRP, XLM, OMG, NPXS, MKR, PPT
Decentralized Exchanges BTS, ZRX, WAVES
Digital Content TRX, ONT, BAT, STEEM
Data and Information IOTA, VET, LINK, REP
Stablecoin USDT, TUSD, DAI

Introducing Crypto Market Reports by Coinscious Lab

By | Coinscious Lab, Data Analytics, Market Report | No Comments

We’re excited to share our first Coinscious Market Report by Coinscious Lab. Released bi-weekly, this report aims to identify broad trends in the cryptocurrency market. In order to reflect the latest developments in this fast-paced and volatile market, the reports are planned to focus on metrics derived from a 30-day rolling window of data, this time from October 23, 2018 to November 22, 2018.

Our universe of analysis includes 50 of some of the most widely used and traded cryptocurrencies and groups them into sectors that reflect similar utility and valuation models. Through analysis of the recent historical performance of individual cryptocurrencies as well as their sectors, we provide a framework for analysis where investors can identify outperforming cryptocurrencies or sectors by comparing their performance relative to peers.

Constituent Coins/Tokens
Privacycoins XMR, DASH, ZEC, XVG
Resources SC, GNT
Payments and Settlements XRP, XLM, OMG, NPXS, MKR, PPT
Decentralized Exchanges BTS, ZRX, WAVES
Digital Content TRX, ONT, BAT, STEEM
Data and Information IOTA, VET, LINK, REP
Stablecoin USDT, TUSD, DAI

Read more: Coinscious Market Report: November 23, 2018

Coinscious Labs Arbitrage

Coinscious Lab: Arbitrage

By | Coinscious Lab | No Comments

The Challenge of Arbitrage in Crypto Markets

People get excited when they hear about arbitrage opportunities in the crypto market. That excitement is driven by frequently seeing big price differences between exchanges. If you have coding skills, you might think taking advantage of those price differences using arbitrage will be a piece of cake.

The real challenges come as you write, test, and run your code against exchange accounts. Here are just a few of the challenges that come from trying to execute an arbitrage strategy in the crypto market.

Simulation Accuracy

Most developers use simulations to verify their ideas and coding. However, depending on how you execute your simulation, your simulation results might be quite different from your real-world  results. For example, if your simulation is based on the order book (open buy and sell orders), your simulation result might be totally misleading.

Placing Orders

When you see price differences between exchanges, do you check price differences in the order book as well? Do you know if your orders will actually be fulfilled or the timing of those orders?

Capturing Future Opportunities

After you make some arbitrage transactions, you might find one exchange price is always higher than another. Opportunities to take advantage of arbitrage may decrease. How will you continue to profit with limited funds and fewer opportunities?

Technical Challenges

The crypto exchange is not like the stock exchange. Most crypto exchange APIs are not designed for high-frequency trading. Some APIs are poorly designed and unstable. The exchange may go down. The API server could stop responding. Perhaps internal logic or a limit is changed on the exchange side. There are many scenarios where API calls fail. It might be harder than you think to execute a robust arbitrage program without human interaction.

Weighing the Risks

Transaction fees are not cheap in crypto exchanges. If you have transaction success in one exchange, but failed transactions in another, you could lose money very quickly.

Profit Expectations

Of course, everyone would like to know if profit expectations through arbitrage are real and reliable. Many variables come into play when answering this question.

Choosing an Arbitrage Coding Strategy

In addition to two-point arbitrage, you also might hear about triangle or multiple-point arbitrage. Do you understand which strategy is best for you? Does fund size affect your arbitrage strategy? What is the proper fund size you should try? Answering these questions might be harder than you thought.

Bot Parameters

The parameters used by trading bots are also important. There is no “one size fits all” bot that can simply run for you all day every day. Bot parameters have to be set, tested, optimized, and then put into practice in the real world.

Experiment Goal

In this lab experiment, we conducted an arbitrage experiment to determine how to overcome the challenges mentioned above. This lab experiment will also verify what kind of data support is needed to maximize profit and minimize risk.

Profit Snapshots 

Coinscious Labs Arbitrage

This image shows the total amount of transactions completed per day.


Coinscious Labs Arbitrage

This image shows a breakdown of all 36 transactions from January 14. The highlighted price in the top right of the image shows that we bought 13.46 LSK at a price of 0.00194800 BTC, on Binance. Correspondingly, this transaction is shown in the Binance transaction history in the snapshot below.


Our results in the Binance transaction history


Experiment Results

We ended the month with a profit of +0.81616874 BTC (+55.34%), and +80.02477571 LSK (+8.07%).

We see our transactions in the real world, fully automated, with a dynamic configuration of different variables and parameters.

This lab experiment was conducted on several combinations of currencies (such as: BTC/LSK, BTC/USD, BTC/IOTA, BTC/ETH) and on different exchanges.

All experiments were successful. In this Coinscious Lab experiment, we looked at the results of our BTC/LSK arbitrage. For data and information on other experiments, please contact us.

Coinscious Labs Arbitrage Results

Here we see the accumulative results of arbitrage for each day during the month of January.


Future Development

Based on different experiments completed by Coinscious Lab, the Coinscious product team will create new product designs that cover the various needs in crypto arbitrage. These designs will not only help traders capture more opportunities, but also will optimize the process through simulation, AI optimization, profit estimation, and so on.


Cryptocurrency Arbitrage

What is Arbitrage?

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What Is Arbitrage and How Is It Used in the Coin Market?

The Merriam-Webster dictionary defines arbitrage this way:

The near simultaneous purchase and sale of securities or foreign exchange in different markets in order to profit from price discrepancies.

Let’s break that down further and also understand how arbitrage strategies are used in the cryptocurrency market.

A Simplified Explanation of Arbitrage

Arbitrage is considered a no-risk profit strategy when executed against traditional financial instruments. Why? Because you are buying an asset and selling it simultaneously for a higher price at a profit. It’s considered no risk because there is no hold time or delay between the transactions and the profit is guaranteed.

This type of transaction can be completed with any asset type, but typically the assets are bonds, stocks, currency or other financial instruments.

Here’s a simplified example. A stock is trading for $10 in the New York Stock Exchange (NYSE), but is trading on the Tokyo Stock Exchange (TYO) for $11. You would buy the NYSE stock at the lower price and simultaneously sell the stock in the TYO, making a $1 profit per share.

Because of automated trading systems and high-frequency trades it’s rare for this sort of price discrepancy to occur, making it rare for arbitrage trades like this to happen. Today, when these discrepancies are noticed, they usually only last for a short window of time, measured in seconds or even microseconds. High interest in the “cheap” stock raises its price and subsequently drives down the price of the “expensive” stock. Even before automated trades, arbitrage was viewed as a mechanism for maintaining equilibrium across markets.

What Does Arbitrage Have to Do with Cryptocurrency?

Unlike the stock market, the coin market is ripe for arbitrage. Cryptocurrency don’t support high-frequency trading, which means there are fewer automated trading robots controlling or responding to price fluctuation. There are fewer pressures or controls to ensure pricing equilibrium across exchanges. Also, when new exchanges open, they offer an opportunity to buy in a more established exchange to sell at a profit in the new exchange.

If you plan to pursue arbitrage as a trading strategy, there are three things you must consider:

  • Fees. This can include trading fees, withdrawal or deposit fees, and blockchain fees. You have to calculate if the fees you incur will eat the profit that you anticipate making.
  • Time. Rarely do trades happen simultaneously in the coin market as they can in the automated stock exchanges. You have to weigh the risk that you’ll miss the pricing window if a trade is slowed down for some reason.
  • Risk. Arbitrage in the stock market is considered no risk. Because of the time and fee considerations mentioned above, arbitrage in the coin market is hardly a no-risk venture.

What Do You Need to Profit from Coin Arbitrage?

Reliable information about cryptocurrency is one of the most valuable assets you can possess. In this relatively new market, it’s also one of the hardest assets to find.

If you plan to use arbitrage in the coin market, what information and tools should you look for?

  • Rates: To benefit from arbitrage, you’ll need to know current rates of exchange. Seek out information sites that provide up-to-date coin prices.
  • Opportunities: Try to access a service that can send alerts about potential opportunities. Alerts can help you act on opportunities before other traders do.
  • Simulations: Success in the coin market relies on creating and executing smart trade strategies. Simulation tools can help you validate and improve your trade strategies.
  • Bots: Automation helps traders stay on top of market changes. You can use bots set up to take specific actions based on limits that you set.

You may need nerves of steel to execute coin arbitrage, but having reliable, credible information should remove at least some of the guesswork.

Actionable Intelligence: What’s Missing from the Cryptocurrency Trading Market

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Actionable intelligence: Relevant information needed to make a decision or take an action, usually quickly.

You’ve probably heard the phrase actionable intelligence before. Sometimes it’s used in law enforcement. When an informant or a witness tells a law officer about a crime they’ve observed or about plans to commit a crime, that’s actionable intelligence. It gives law enforcement reasonable cause to take an action of some kind.

The phrase also applies to business and refers to any information that gives a business a competitive edge or improves its performance. For example, a business hears that a competitor plans a sale of a product tied to a holiday. The business may then match that sale and perhaps start it earlier to get a jump on their competition.

Market Immaturity Distorts Intelligence

Actionable intelligence is news you can use. Right now, reliable information that can be acted on is missing from the cryptocurrency trading market. Traders have access to some information, but its accuracy may be in doubt. Traders rarely have access to key information they can use to inform their market moves.

Cryptocurrency trading faces the same pressures that other new markets have faced. There is little infrastructure to support this market. Some coin exchanges must suspend account creation due to high demand and load. Traders worry about security issues, delayed transactions, price manipulation, and robot use by other traders. Risk, uncertainty, and security concerns loom large over coin trades. There’s also little if any regulation of these markets, causing some traders to lose faith in the exchanges. Price manipulation and hacking incidents erode investor trust. Every country is coming to terms with the arrival of cryptocurrency. Some are embracing the market as a sign of things to come. Others are fiercely opposing the markets, believing cryptocurrency to be a nuisance that will eventually disappear.

The volatility and unregulated nature of these markets means investors must stay aware of security issues. Hyperbolic ads, planted news reports, and social media hysteria create a “gold rush” mentality convincing people to sink their money into questionable coin offerings. For the serious investor, the challenge comes in separating reliable data from noise.

For all these reasons, Coinscious is determined to deliver actionable intelligence in their platform. While other sites and apps simply provide information, Coinscious actively uncovers patterns in the information. With these AI-generated and data-driven insights, traders are better equipped to build portfolios and create, execute, and refine their trade strategies.

Defining Actionable Intelligence

Despite continued signs of volatility, the cryptocurrency market is actually maturing. Governments and regulatory bodies are paying close attention because of the value flowing through the market. Investors are looking for dependable intelligence that they can use to create smart trading strategies. Traders are clamoring for tools like those used by stock market investors, which can regulate their trades and follow buy/sell rules. These are all signs that sanity is gaining ground in this emerging field.

As this market continues to mature, what attributes should traders want in the information they use to inform their decisions?

  • Reliable: Find sources that offer intelligence regularly and that have proven to be dependable.
  • Credible: Credible sources offer reasonable grounds for being believed. These sources are backed by primary data that can be checked against.
  • Hype-free: Much of the publicity surrounding the coin market is filled with hype and traders may allow emotion to drive trades. It’s important to track sentiment, but that measure needs to be correlated to price data.
  • Timely: Intelligence only matters if it comes early enough to be acted on. Serious traders need a consistent flow of information that comes on time every time.
  • Accurate: Information does no good if it’s riddled with errors. You need exacting, error-free data as you maneuver through the coin market.

Using the Power of AI and Deep Learning to Deliver Actionable Intelligence

The Coinscious Collective™ platform tracks price, trade, and social media data, using AI to separate data from hype. The goal is to deliver actionable intelligence that investors can use to evaluate market performance and create smarter strategies. The platform uses deep learning to reveal hidden patterns. Our models generalize future trends while also factoring in uncertainty. In this way, the Coinscious Collective™ platform limits non-essential data and delivers statistically credible information that both amateur and professional investors can rely on.

Want to understand how the Coinscious Collective™ platform delivers actionable intelligence? Visit Coinscious.io to learn how Coinscious works.