“One” What is a Bitcoin contract
Basic of a Bitcoin contract
A Bitcoin contract means that you can trade without actually owning Bitcoin ‘s contract. It is very different from currency-to-currency transactions, which must be physically held in digital currency.
Bitcoin contracts allow you to predict Bitcoin price movements and hedge risk. This way of trading means you are investing in price trends, not the asset itself.
When trading Bitcoin contracts, you can decide to go short or long. Choosing to go long indicates that you expect the price of Bitcoin to rise. On the other hand, choosing to go short indicates that you expect the price to fall.
You can choose to trade with high leverage, which is a feature of Bitcoin contracts. Using leverage means that you do not have to invest 100% of the transaction amount when trading contracts. Instead, you only need to deposit an initial margin, which is only a fraction of the total contract value.
Leveraged trading allows you to have a large exposure with a small amount of money while managing risk.
Although there are many different types of contracts, this article focuses on perpetual contracts. As the name suggests, these contracts have no expiration date. Traders who use perpetual contracts to go long or short can hold their positions indefinitely, unless the contract is liquidated, which means they will not lose more than their initial margin.
In perpetual contracts, Bitcoin is priced based on a specific index price. Index prices are based on the average price of Bitcoin across multiple cryptocurrency exchanges.
Bitcoin contracts have become a very popular trading tool. Contract trading opens the door for many traditional investors who are not ready to allocate funds to digital assets but still want to benefit from attractive price volatility.
To open Bitcoin contract trading, you need to find an exchange that offers contract trading. The AAX platform, in a compliant and secure environment, provides you with bitcoin contract trading services.
『Ⅱ』The history of bitcoin development
November 1, 2008, a man calling himself Satoshi Nakamoto in a secret password A research report was posted on the academic discussion group, and the report elaborated on his new vision for electronic money – Bitcoin was born!
On January 3, 2009, Satoshi Nakamoto mined the first batch of 50 bitcoins on a small server in Helsinki, Finland.
On May 21, 2010, the first Bitcoin transaction: Florida programmer Laszlo Hanyecz used 10,000 BTC to buy a $25 pizza coupon.
On July 16, 2010, the price of BTC appreciated from $0.008 to $0.08, the first violent fluctuation in price, showing the rise of new things.
On July 17, 2010, the first Bitcoin platform was established.
On November 6, 2010, the price on MTGOX hit $0.5, at which point the Bitcoin economy hit $1 million.
On December 7, 2010, the first portable device-to-portable device transaction was implemented on NOKIA900, with a transaction volume of 0.42BTC.
On February 9, 2011, the price reached $1 for the first time, equivalent to the US dollar. After the news that BTC is equivalent to the US dollar was widely reported by the media, it aroused great attention, and the number of new users increased greatly. In the following two months, exchange trading platforms for Bitcoin, British pound, Brazilian currency and Polish currency have been opened successively.
On March 18, 2011, the BTC/USD exchange rate hit a 7-week low, falling to $0.7.
On August 20, 2011, the first Bitcoin Conference and Expo was held in New York, and the attention of Bitcoin hit a record high in Google Trends, when the price was $11.
On November 14, 2011, the price of Bitcoin hit a new half-year low at $1.99.
On September 15, 2012, the London Bitcoin Conference was held, at which time the price of Bitcoin was $11.8.
On September 27, 2012, the Bitcoin Fund was established, at which time the price of Bitcoin was $12.46.
On November 25, 2012, the first Bitcoin conference in Europe was held in Prague, Czech Republic. At this time, the price of Bitcoin was $12.6.
On February 19, 2013, the Bitcoin client V8.0 was released, at which time the price of Bitcoin was $28.66.
On April 10, 2013, BTC hit an all-time high of $110.
On May 9, 2013, the largest Bitcoin reporting website – BTC Chinese website www.sosobtc.com received a $5 million Series A investment from the investment fund Union Square, at which time the price of Bitcoin was $112.09.
On May 17, 2013, the 2013 Bitcoin Conference in San Jose was held, 1,300 people participated, and the price of bitcoin was $119.1 at this time
On May 28, 2013, the US Department of Homeland Security accused xiqian and Operating a money transfer business without a license has banned the virtual currency service of Liberty Reserve, a Costa Rica-based exchange company, in what U.S. prosecutors say will be the largest international lawsuit in history, attracting $6 billion, including China. A large number of users lost their money, and at this time BitcoinThe price is $128.
In June 2013, it was reported that the United States would withdraw from QE3, deflationary Bitcoin, and quantitative easing monetary policy.
On June 27, 2013, the German meeting made a decision: holding bitcoin for more than one year will be tax-free, which is considered by the industry as a disguised recognition of the legal status of bitcoin. At this time, the price of bitcoin was $102.24.
On June 28, 2013, MTGOX received a money services transaction license from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. The normalization of transactions may mean that Bitcoin is starting to go on the right track, the government risk is reduced, and the pace of its integration into the economy will be It will speed up, and at the same time, it will play an exemplary role in other virtual currencies. At this time, the price of Bitcoin is $97.99.
On November 28, 2013, the price of bitcoin on the popular bitcoin exchange Mt. Gox broke through $1,000, hitting an all-time high of $1,073.
On November 29, 2013, the trading price of Bitcoin on the popular exchange Mt.Gox hit a record high of $1,242, while the price of gold was $1,241.98 an ounce, and the price of Bitcoin surpassed gold for the first time.
“Three” When did Bitcoin start
It was officially born on January 3, 2009.
Since 2015, the prospect of Bitcoin has become more and more confusing. On the one hand, the decline of bitcoin against the renminbi was as high as 55.55% last year; in 2015, in the first half of January alone, the decline of bitcoin against the renminbi exceeded 30%.
Bitcoin’s value “falls and falls endlessly”, which to a certain extent reflects the “self-repair” of its value after its “mania”. According to statistics, in 2013, Bitcoin rose from 1:13.59 to 1:731 against the US dollar, an annual increase of 5,300%. This speculative-driven surge has already affected the virtual currency attributes that Bitcoin relies on to “succeed in life”.
On the one hand, no country has clearly identified it as a legal currency. On the other hand, the US dollar rose significantly in 2014, and the prices of oil and commodities entered a corresponding period of decline, while the price of Bitcoin followed the same trend. It has become part of the asset allocation of some speculators, which highlights the characteristics that their asset attributes are far greater than their currency attributes.
(3) Extended reading of Bitcoin contract establishment time
Security and credit risk have also become the reasons for the decline in investor confidence. Mt. Gox, once the world’s largest bitcoin exchange, claimed to have lost all its assets due to a hacking attack in March last year, and it was recently revealed that the lost bitcoin was likely due to internal system manipulation.
The regulatory environment for Bitcoin is also not optimistic. Countries such as Russia and Thailand have begun to impose strict controls on it. In addition, the global stock market performed well last year, and Bitcoin investment funds have been diverted, and the crazy “mining” “The activity also rapidly increased the supply of Bitcoin, making it possible for a short-term oversupply trend, causing the price of Bitcoin to fall sharply.
What is “4” Bitcoin contract
Bitcoin contract, the contract mentioned in it is a non-standard transaction, you can rewrite the code of Bitoind, BitCoin wallet or use bitcoinj To generate non-standard transactions, although normal wallets will not accept these non-standard transactions, there are mining pools such as Eligius.st that accept non-standard transactions and can enter the block chain, so that some wallet software can handle them normally. Another meaning refers to trading bitcoin contracts, just like futures trading in the stock market, which can be long and short.
『Wu』 When did OKEX launch the Bitcoin contract?
This is an old product of OKEx, which has been around for several years.
What does “Lu” BTC contract exchange mean
The virtual contract is the trading object of the contract transaction, which is uniformly formulated by the contract exchange and stipulates a certain A standardized contract for the delivery of a certain quantity of a commodity at a specific time.
In the process of contract transactions, both parties to the transaction will obtain their respective rights and obligations. For example, the buyer and the seller of the contract traded 100 contracts with the underlying price (100 US dollars) at the price of 1,000 US dollars, then the buyer of the contract has obtained the price of 1,000 US dollars/btc on a certain day of the month to buy 10,000 US dollars of bitcoin In the same way, the seller also has the right and obligation to sell $10,000 of bitcoin at a price of $1,000/btc on a certain day of the month. A contract that represents the rights and obligations of a buyer and a seller is a virtual contract.
In most cases, investors do not actually perform the rights and obligations of the contract, but obtain income by trading the contract before the contract takes effect, that is, before the delivery date.
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『柒』What is a Bitcoin futures contract
Bitcoin futures contracts are usually standardized contracts based on the Bitcoin price index.
Bitcoin futures offered by bitcoin exchanges are usually traded in bitcoin. Futures are relative to the spot, and the spot is a commodity that can be delivered with one hand and one hand, while futures are not actually “goods”, but an agreement (contract) that promises to deliver “goods” (subject) at a future time – futures contract .
Subject: Also known as the underlying asset, which explains what to buy or sell. At present, the underlying bitcoin futures are the bitcoin price index, and the methods of generating settlement and delivery prices are based on this index.
Fees: Unlike stock transactions, which are subject to stamp duties, commissions, transfer fees, and other fees, futures transactions are only charged a handling fee. There are two types of transaction fees for Bitcoin futures: opening and closing positions, which are charged when opening a position (such as OKCoin) and when closing a position (such as 796). Bitcoin futures fees are generally 0.03% of the total contract value.
Margin: Margin is closely related to another concept – leverage, which generally reflects the level of income and risk by leverage ratio. For example, the new 50 times leverage (ie 2% margin) introduced by 796 means that investors can buy 50 bitcoin futures contracts (ie 50 times leverage) by investing 1 bitcoin;
or From another perspective, 1 bitcoin invested by an investor is equivalent to 2% of the 50 bitcoins purchased (ie, 2% margin ratio).
Through 50 times leverage, the return of futures relative to spot is magnified by 50 times, such as buying 1 coin spot and buying 50 more coin futures with 1 coin at the same time, assuming spot and futures prices If both rise by 100%, then the spot earns 1 coin, and the futures earns 50 coins.
(7) Extended reading of Bitcoin contract establishment time
A futures contract is an agreement in which a buyer agrees to receive an asset at a specified price after a specified period of time, and a seller agrees to deliver an asset at a specified price after a specified period of time. The price that both parties agree to use in future transactions is called the futures price.
The specified date on which future transactions must be entered into between the parties is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”. If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is said to be a long position or a long position in futures.
On the contrary, if the investor’s position is to sell a futures contract (that is, to assume responsibility for the contract to be sold in the future), it is called a short position or a short position on futures.
『渌』What year was Bitcoin issued?
The concept of Bitcoin (Bitcoin) was originally proposed by Satoshi Nakamoto on November 1, 2008. And it was officially born on January 3, 2009  . The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a virtual encrypted digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.
Unlike all currencies, Bitcoin is not issued by a specific currency institution. It is generated through a large number of calculations according to a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm.�Record all transaction behaviors and use cryptographic design to ensure the security of all aspects of currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the value of the currency cannot be artificially manipulated by mass-producing Bitcoin. The cryptography-based design allows Bitcoin to be transferred or paid only by the true owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total amount is very limited and it has a strong scarcity.
『玖』What is a bitcoin contract transaction
1. Definition of a contract
A futures contract is a contract that the buyer agrees to trade at a specified price after a specified period of time An agreement in which a seller agrees to deliver an asset at a specified price after a specified period of time to receive an asset.
The price that both parties agree to use in future transactions is called the futures price. The specified date on which the two parties must transact in the future is called the settlement date or delivery date. The assets that both parties agree to exchange are called “underlyings”.
If an investor takes a position in the market by buying a futures contract (that is, agreeing to buy at a future date), it is called a long position or a long position in futures. Conversely, if an investor takes a position by selling a futures contract (that is, taking responsibility for the contract to be sold in the future), it is called a short position or short on futures.
2. Origin of the contract
A futures contract refers to a standardized contract formulated by a futures exchange that stipulates the delivery of a certain quantity and quality of commodities at a specific time and place in the future. It is the object of futures trading, and the participants of futures trading transfer price risk and obtain risk-return by buying and selling futures contracts on the futures exchange.
Futures contracts are developed on the basis of spot contracts and spot forward contracts, but the most essential difference between them is the standardization of the terms of futures contracts. For futures contracts traded in the futures market, the quantity, quality grade and delivery grade of the subject matter, as well as the premiums and discounts of substitutes, delivery locations, delivery months and other terms are standardized, making futures contracts universal.
In the futures contract, only the futures price is the only variable, which is generated by open auction on the exchange.
3. Classification of contracts
Digital currency contracts can be divided into: delivery contracts and perpetual contracts.
(1) Delivery contract: Futures delivery refers to the process in which both parties to the transaction settle the expired open contracts through the transfer of the ownership of the commodities contained in the futures contract when the futures contract expires.
(2) Perpetual contract: It is a derivative product similar to leveraged spot trading, and is a digital currency contract product settled in BTC, USDT and other currencies. Investors can obtain the benefits of rising digital currency prices by buying long, or obtain benefits from falling digital currency prices by selling short.
Perpetual contracts differ from traditional futures in a certain way: they have no expiration time, so there is no limit to how long a position can be held. In order to ensure that the underlying price index is tracked, the perpetual contract ensures that its price closely follows the price of the underlying asset through the mechanism of funding fees.
When did “pick up” Bitcoin begin
The concept of Bitcoin was originally proposed by Satoshi Nakamoto on November 1, 2008. And was officially born on January 3, 2009. The open source software designed and released according to the ideas of Satoshi Nakamoto and the P2P network built on it. Bitcoin is a virtual encrypted digital currency in the form of P2P. Peer-to-peer transmission means a decentralized payment system.