Topic: CEX.IO please give some hints. - page 2. (Read 3722 times)

How do you calculate the 0.6 profitability decline? It depends on the difficulty, right? And the difficulty is rising at the rate of ... don't ask me, I just post here...

At the moment GHs is trading at roughly .04 btc each on CEX.io. If you use the bitcoin that is on http://www.bitcoinx.com/profit/ and claculate at current rate for buying and selling for 12 months with .6 decline per year, it works out that you will get 66 usd or .085 bitcoin for every GHs you buy.

I really like the way you write, FalconFly. So concise.

prolom.

That seems to be the prevailing  attitude towards mining over there... It's still cheaper than most mining contracts you can find though!

I guess there's such an unreasonably high demand for GH that anything goes...

prolom.

I'm about some "Trading Academy" or similar self education for cryptocurrencies.

This is just a sales pitch for some Russian company and Copperlark coins that includes an introduction to cryptocurrencies. BS.

link

Give pls your loss history with them, newbies see not, how it in reality.

shto shto?

listen some trading guide at least

The best advice I can give you with CEX.IO is to get out while you can. Lol
I've lost a lot of money in CEX.IO, its only for trading. No mining profitability whatsoever.

Actually I barely get the idea - I just started reading up on trading after reading your posts. For one person to create a red candle one would need to sell a significant amount compared to the general volume, correct?

Also, those walls (I posted another newbie question about them in another thread) - do several traders/bots put their orders at the same threshold or one trader with a lot of resources creates it? Or both?

Thank you.

prolom.

You can exchange profit in Bitcoin or Euro or in vodka.
I'm about profitability of investment.

Ah, I get it.... Seems they're pretty much a joint venture with partners setting up their respective hardware at their location and possibly agreeing to rent their power under the business conditions of cex.io.
So in short, you can't "sell" them your physical hardware via the cex.io trade platform or i.e. buy 100GHs and have them unmount some hardware off their operating server racks.

For physical buying, they have the "redeem hardware" options, offering three different hardware products they can deliver to you.

Excellent, thanks so much FalconFly. Very clear.

As far as them claiming not to trade their own GHs - https://www.cex.io/guide?start - second paragraph from the top.

prolom.

No problem. Everything you rent with cex.io you cannot redirect to a pool of your choice. Everything is fixed to go only into the ghash.io pool, the exchange interface of cex.io is directly connected with gash.io ...


1. Well, they keep their purchased hardware in their posession and operate it at their location. To my understanding the part not rented out into cloud mining is mining for their profit. I could not find a part in their FAQs that stated otherwise. Everything you rent is a fraction of their hardware cluster they have setup. What you can do, however, is use the pool ghash.io with your own Hardware pointed to the pool (I'm not sure if you can without being registered customer at cex.io, I would think not as all relevant trade/balance/payout settings for the pool are located in the cex.io exchange website)

2. If you mean the buy/sell orders tickering on the bottom of their page, most of these IMHO are bots trading on the exchange at high frequency. These are often "penny-pickers" who do lots of fully programmed-logic trades at very high speed and are happy with micro-profits they can accumulate.

3. As their prices are not manually set but automatic results of the buy/sell price structure (all manipulation suspicions set aside), they are fully dynamic and fluid across the whole range. Add to that the intensive bot-algos trading via the Website API, you get nothing but fractional numbers that only occasionally cling to psychologial marks=round numbers (the computer programs trading obviously have no issues with that). Since the trading fees are 0, even micro amounts of BTC/GHs etc. can be and are traded there.

4. Buying or selling there works two ways :
- Instant buy/sell : entering what amount you want will give you the exact (current, can change every second) amount you will receive after confirming your order @ current cex.io market prices
(obviously, if you want to sell back rented GHs, you have to own them first, every GHs traded there is only rented GHs from cex.io)
- Trade Order (default) : entering what amount you want to buy/sell at what exact price will create a trade order that will be filled (= completed) as soon as your target price is reached.

Example (perfect world) :
GHs price : 0.0418442BTC/GHs, price trend seems a bit downwards during the last hours
You rather want to buy @ 0.040BTC/GHs if possible (judging the downward price trend), not willing to pay the current price because you hope for a better deal possibly within a very short time
You enter your amount of GHs you want to buy and your target price and place the order
After confirmation, your order appears among the price sorted-buy orders as well as under "Active Orders"
With a bit of luck, after maybe 30 Minutes or an hour (with you being away doing other things) price on cex.io trading went below 0.04BTC/Ghs and your order got "filled" (= executed at your desired price).
Coming back to the screen after some time, you notice that your GHs increased by your desired amount and that you bought it for 0.04BTC/GHs

Should price have unexpectedly risen further, your buy order would just be sitting there. You could either wait longer, hoping it eventually reaches your target price or reconsider and cancel it at anytime.

Sorry, a couple of idiot newbie questions:

1. They claim in the FAQ that they don't buy or sell their own GHs, which is opposite of what I originally understood. So whose GHs are being traded? FalconFly has mentioned using his own GHs in their pool - is it just adding them to the pool or trading them as well?

2. Why the majority of transactions are so miniscule?

3. Why the prices in the orders are always in some weird fraction of a BTC, like 0.04002197 or something, not 0.04. How are those numbers generated?

4. How do I actually place an order - I thought I could click on a Sell order and buy it but it seems to bring up some random numbers into the Buy window. Should I manually type the long string of numbers into it? I've read https://www.cex.io/guide?start but I'm still confused - it's hard to even copy the numbers because the orders are constantly shifting in the window.

Thanks in advance,

prolom.

Thank you for that excellent analysis FalconFly. I'll be re-reading it again for more understanding.

I'm sorry for being the one with the short and probably stupid question, but I get so confused seeing all this new terminology. It is possible to rent GH and direct it to another server or only on Cex.io BTC miners?

Basically you're right on.
As they run their own PetaHashes not rented out at real (far lower) costs, it's completely legit for them to invest their surplus into next-gen machines and of course they mine BTC/Alcoins for themself (which should be their main income - every company does it AFAIK and that's perfectly okay).

I've heard there are Scrypt ASICs in preparation but word is they won't hit the market until a few months (if at all). But when they do, LTC and derivates will likely share the same fate of BTC within a short time.

Anyway, for experimenting on small budgets without risking hardware pump&dump and the offered convinience, cex.io is actually quite okay. One just has to realize that this enourmous convinience comes at a high price - that's why I'm confident they're legit on all accounts, it's just their business model and I can't fault them for being successful if customers are willing to pay the price.