Bitcoin Forum

How much prenews buying or selling do you think goes on in bitcoin trading?

Has there ever been any obvious dumps or pumps prior to major announcements?

A lot, if you dont have inside info better not trade bitcoin.

exchanges insiders are the worst thing .. because they're not ethical .. by making an analogy how information latency is important let me give an example ... I was watching the world cup 2014 in different websites ... some of then have 2 minutes latency ... I could know the score about 1 minute before my neighbour ... Now imagine me and my neighbour are betting in "real time" who going to score first ... network latency makes all technical analysis / astrology almost useless ...  

High frequency traders lease spots as close to the exchange servers as possible for vast amounts of money in order to have the fastest latency possible.

Do you think something like this goes on yet with bitcoin?

Unlikely due to the fact that the exchanges are so far apart geographically.

The funny thing is that insder trading in stocks are based on inside information of the organization, with bitcoin there is no business centralized to bitcoin.

What inside info would you have on the bitcoin network?

Yeah yeah, and then there is inside information on things such as the FBI are going to announce auction of 30K BTC on Thursday, or more nefarious yet, inside information that some whale entity are going to start pumping on such and such a date, or dump on another date. etc...etc.

All am going to say is do as you wish in the up coming 2 to 3 weeks is all am going to say. Be their for the ride and enjoy the wave and make some extra BTC on top of it. Then again jsut hold and do nothing or panic and sell. You don't need insider info to know what's going on with the markets and what's causing the crashes and rize of BTC value. Then again you prbos saying STFU GTFO you got insider info lmfao Just be their when it happens and that is already happening with the ups and down just ride it buy low sell high repeat. Buy low sell high make more sell more make more buy more grow ya capital job done.

The inside information is regarding news related to Bitcoin in some way.

For example if you knew that GOX was about to suspend withdrawals then you would sell BTC on BTC-e knowing the price is going to go down in the near future.

Hardly inside information, its common scene and making sure you know the signs of something that is soon to fail. I knew almost a year early that Gox was going to go or suffer a big hit from the tell tell signs of a business having problems and falling apart.

Rule 1

If you see a website is suffering from so called attacks or making announcements of problems with site, Delays in payments, Asking for more personal information for validation then this is early signs.

Rule 2

If a site has had delays in payments to bank accounts for more than 2 weeks and has not  got up to date with back log of pending payments to its members, then its more than likely they have much bigger problems on their hands that they will not admit to in public.

Rule 3

If a site is offline for longer than normal and has not posted updates but then posts updates saying more delays due to unforeseen circumstances then this is another sign of the site braking down. However sometimes sites need extra time. If they are a big company like GOX then its hard to tell if will continue or not. My advise is to take what you can and remove BTC into your own wallet.

Never ever have all your coins in one place is a golden rule to follow if trading a lot only have a small amount or your funds split across sites so that if theirs problems within that site you can easily recover in another site and trade and earn it back providing theirs enough markets to trade on along with volumes.

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I would hardly say its insider information. Its taking caution, doing research and do-diligence across exchanges/markets and making sure you are up to date with news by reading what is currently going on. Once you learn how to read the news about Bitcoin related subjects or even exchanges and you know what to spot then its mainly common scene and can come in very handy at times when markets are all over the place.

This is why trading with TA is so useful in Bitcoin - it allows you to see the influences and abnormalities that are happening with the price trend due to insider trading before the actual information behind the movement is revealed. By the time the news comes out, it is mostly already priced in. Being good with TA is the only way to trade around here and have an edge over people who are trying to trade based on fundamentals.

I think that much of the time, someone claiming that they trade on 'fundamentals', usually followed by 'TA doesn't work on Bitcoin', is just putting a positive spin on them being too lazy to learn TA. What most here who trade on fundamentals actually mean, is that they trade on news reports and sentiment, i.e. with the herd. I am often surprised by some of the market commentary that comes from many of the early adopters around here who have been in since single figures....

...."What, we have just had a $1150 double top on steadily decreasing volume after an insane exponential rise and you think I should hold!? Really?"

But then again, it is probably the unshakeable belief in Bitcoin, that in any other area of investment or life in general would be nothing short of outright stupidity, that has enabled some of these Bitcoin Nutters to hold $6 Bitcoins through all manner of crazy gains and corrections. Sometimes, stupidity pays.....until one day it doesn't, of course.

No, having a general idea that something might happen is not insider information.

Mark Karpeles messaging you on irc saying:

'hey, just a heads up, we're going to be suspending withdrawals later today.'

That is inside information.

However that is just information regarding one exchange. The ones who could make a a problem are the people behind the bigger exchanges who see when lots of fiat or bitcoin is on the way to get sold/bought.

Hopefully those people have good intentions, already have lots of BTC and don't need to manipulate the market.

But still they can only see from their exchange and not from the other.

Another example on a larger scale that affects all exchanges would be something like working at PayPal and knowing that they are going to be implementing bitcoin in to their web wallet with in the next month. That would be a large edge.

It is foolish to think that the information markets are perfect with regards to BTC just because its ''decentralised''. People do not have access to the same information just like in any other market, and because of the trading volumes and price volatility it would be considerably easier to pervert.

Lol so if i got on IRC telling people of what is happening and going on then I  get classed for having inside info lmfao

What does classed for having inside info mean?

You being for real or trolling. If being real then being classed for having meaning you are in that category or classed as being part of having inside info of a group or under a category.
http://www.thefreedictionary.com/classed
http://www.thefreedictionary.com/classified

I would only classify someone as having inside info if they had specific non public information. If someone is announcing something in a public irc channel that's not inside information. On the other hand, if someone sent you a private message that's completely different.

There's nothing good or bad about inside information. I am just curious how obviously such information is being acted on in bitcoin. If the market reflects it at all. Or if anyone has any anecdotes about large moves before big announcements.

Like in major forex markets there have been cases of large buys or sells before a major announcements which can sometimes mean people got the result of the announcement earlier than the public. Sometimes it's just an attempt to deceive people in to panicking though.

That's outside information (not inside).

You can know inside info of when big holders are going to sell off a large portion of holdings obviously

The weekend before the US Congress was to converse (in a positive way it turned out) on Bitcoin there was a big rally. 

LOL

Inside information is usually defined by information that is not public that would cause the price of the underlying security to move up or down in the near future.

Kinda like how when someone is going to purchase another company, if you know ahead of time this is "inside" information, even though an "outside" company is purchasing the company

Yeah, that's what I'm meaning here. Just the general idea of having access to information that hasn't been made public and has a good chance of affecting the price of bitcoin.