Blockchain Blog

Blockchain API Profile: BTC.sx

Bitcoin trading has increased in popularity as the cryptocurrency gains more widespread adoption. This increase has generated more interest in currency trading overall, from those who are seasoned experts to bitcoiners who are new to trading. Trading platforms that specialize in bitcoin or other cryptocurrencies face certain challenges in being able to provide a comprehensive yet simpler user interface than previously designed platforms that sacrificed simplicity for detail.

We had the privilege of speaking with Josh Blatchford, CMO of BTC.sx, about how the trading process works, advice and resources for those to learn more about how to trade, and what differs conventional financial markets from cryptocurrency markets. BTC.sx is a trading platform that provides a secure bitcoin trading experience for new and advanced traders.

btcsxorderbookAlyson: What gives BTC.sx an edge over other trading websites?

Josh:BTC.sx is the first and most secure leveraged bitcoin trading platform to date.

In the way we handle our client funds, we provide a secure trading experience with features such as bitcoin cold storage, multi-sig wallets and human audits of all withdrawal transactions.

Our experienced team consists of investment banking veterans who apply institutional best practices to our trading platform. As a trusted service, we operate a business model whereby we hold full reserves, do not trade against our clients, and guarantee refund of positions in the unlikely event of an exchange failure.

A: For those who are new to trading, can you share any helpful resources?

J: 1) Investopedia’s trading section – a great place to learn how financial markets work and definitions of trading jargon.

  1. /r/BitcoinMarkets SubReddit – an informative community of bitcoin traders that share market views and trading tips.

  2. Whale Club’s TeamSpeak server – a community of bitcoin traders who chat with VOIP. The chat rooms are described as a trading floor for bitcoin. In the servers, participants trade and talk in real-time.

  3. BTC.sx Blog – our own blog contains guides and tips for trading bitcoin. The content is focused on helping beginner traders be more profitable.

[![A closeup of the BTC.sx platform. Bitcoin platforms often offer simpler interfaces than conventional trading platforms. ](http://blog.blockchain.com/content/images/2015/05/bitcointrading.png)](http://blog.blockchain.com/content/images/2015/05/bitcointrading.png)
Bitcoin platforms often offer simpler interfaces than conventional trading platforms.
**A: Both exchanges and trading platforms are used to buy and sell bitcoin. What are the key differences between a trading platform and an exchange? Is one necessarily better, or does it depend upon the user’s needs?**

J: Trading platforms and exchanges are similar in some respects, but different in others. They are similar because they both allow users to profit from the price of bitcoin fluctuating.

They differ in the exact features. An exchange is used primarily to exchange one asset for another – like exchanging US dollars for bitcoin. This makes them useful for things like buying your first bitcoin or later selling for your local currency.

A trading platform, like BTC.sx, offers more functionality, however does not allow for exchange of assets. For example, we allow users to short bitcoin. This is where a trader stands to profit from a downward price movement without having to sell their bitcoins. Or, they can use their existing bitcoin balance to go long on bitcoin, and profit from an upward price movement, again without investing any more of their local currency.

An exchange or trading platform cannot be considered better than the other. As you mentioned, they serve different user needs.

A: What are some key terms a new trader needs to familiarize themselves with?

J: To add more clarification between exchanges and trading platforms, it is useful to know the difference between a trade and a position.

A trade is the act of buying, selling or exchanging one asset for another. Exchanging US dollars for bitcoin, for instance, is a trade.

A position is similar to a trade, but can either be entered long (buying bitcoin), or short (selling bitcoin). Like a trade, you profit from a long/buy position when the price rises, and you profit from a short/sell position when the price falls.

Unlike a trade, a position has a point of entry and a point of exit, which can be referred to as open or closed. At BTC.sx you begin by depositing bitcoin to fund your trading account. You may then decide to open a long or short position depending on how you think the market will move. When the position is closed you are left with more or less bitcoin than the value originally deposited. The amount of bitcoin you finish with relates to how profitable your position was, which is determined by the difference in open and close prices.

More key terms, such as order book and leverage are explained on our blog.

**A: How does our API integrate into your platform?
**

J: We use your receive payments API to generate a unique deposit bitcoin addresses for each of our users. This allows us to be notified when a bitcoin payment is received.

This helps our users with quick deposits, allowing them to begin trading within minutes of signing up.

[![A Bloomberg Terminal , widely used among industry traders. ](http://blog.blockchain.com/content/images/2015/05/bloombergterm.png)](http://blog.blockchain.com/content/images/2015/05/bloombergterm.png)
A Bloomberg Terminal , widely used among industry traders.
**A: Is financial trading, whether it be with fiat currency, precious metals or bitcoins still considered for the industry-experienced only?**

J: While institutions are the largest traders, normal individuals also trade financial markets. These individual traders are known as retail traders. The growth of trading platforms and brokers has made it easier and easier for people to begin financial trading. None the less, having industry experience will be an advantage for trading.

A: Has bitcoin trading ushered in more user-friendly methods to trade that make it easier for new people to get started?

J: Yes. Bitcoin trading has lead to many new innovations that make trading easier for newcomers. The biggest change has been simpler user interfaces. Bitcoin trading is mainly comprised of retail traders that prefer easy-to-use services. Previously, most trading products were designed for institutions. These products focused on providing as much information as possible to users – but at the expense of simplicity.

A: Do you have any advice for any curious potential future traders who want to get started?

J: Our advice would be to spend time learning about financial markets and how to read charts. The resources provided above are great starting points. Beyond this, new traders should practice trading with just small amounts of money or paper trading. Remember to never invest more than you can afford to lose.

Ready to make your first trade? Visit BTC.sx’s blog for more helpful trading tips.

If you have any more questions about bitcoin trading, ask in the comments below!