So what is the Bitcoin CME gap? Let’s have a look at what Bitcoin and the CME are, to begin with.

Bitcoin is the most recognized digital and decentralized cryptocurrency. It is created through solving cryptographic tasks. Transactions are written into a decentral blockchain, which ensures that Bitcoin is always available and immune to manipulation. The revolutionary aspect of Bitcoin is that it does not need a central authority like a bank for the validation of transactions. The current price of Bitcoin in USD/EUR/YEN (Fiat) is created through supply and demand.

After the creation of Bitcoin, many other cryptocurrencies started to pop every now and then. Despite that, Bitcoin remains the biggest cryptocurrency by market capitalization. it currently has a market dominance of 41.5%.

The CME, or Chicago Mercantile Exchange, is the world’s largest derivatives trading exchange. The CME traditionally offers futures or options on futures on any asset imaginable, from agricultural products, to forex, energy, commodities, and stock indexes.

A future is a legal agreement to buy or sell a well-defined quantity of something at a determined price at a determined day in the future. For example, buying 20 BTC at $19,500 on 1/2/2021. At the height of the 2017 Bitcoin bull run, on October 31st, the CME added Bitcoin to its portfolio of tradeable asset classes:

Shortly after, Bitcoin crashed from its all-time high. Nevertheless, CME Bitcoin futures kept increasing in popularity. The exchange settled an all-time high of 268.18K Bitcoins during May 2019 when Bitcoin ended its winter, moving from $5,250 up to $9,125.

The Bitcoin CME gap, also called the “CME gap” for short, is the difference between the trading price of Bitcoin futures contracts when the market opens on Sunday, and when it closes on Friday. Unlike cryptocurrencies, traditional assets do not trade 24/7 around the clock. Most traditional exchanges follow normal working hours and close on holidays, and the CME is no exception to this!

While you can trade on Binance for example at any given time, the CME Bitcoin futures trading opens from Sunday evening until Friday evening (Central Time). From Friday to Sunday, the Bitcoin CME futures price is “fixed”, while Bitcoin’s price continues to move up (or down) on cryptocurrency spot exchanges. When the CME futures re-open, futures contracts catch up with spot prices, creating a gap!

Example: In this case, the Bitcoin futures closed at $16,925 on Friday, Nov 27th. During the weekend, Bitcoin’s price increased on spot exchanges. When the CME re-opened on Sunday, Nov 29th, the price opened at $18,430 creating a gap of $1,505 or +8.9%.

Bitcoin CME gaps have often been known to “fill”. Filling means that the spot price moves back to the previous close. In our example above Bitcoin would need to fall back to $16,925 to close the gap. Gaps can also close upwards. If for example Bitcoin closes on a Friday at $19,000 and re-opens on Sunday at $16,000, many traders would expect the price to go back up to $19,000 to “fill the gap”.

Keep in mind that trading is probabilistic, not deterministic in nature. This means that chart patterns and indicators can show you what is most likely to happen, but they cannot tell you what will precisely happen. The Bitcoin CME gap should be considered as one such indicator!

The CME gap doesn’t necessarily have to fill, it is just more likely to fill than not. Filling the gap can take hours, days, or even weeks. Other indicators must be taken into consideration as well when deciding on your next trade.

You can purchase bitcoin on the  Binance ,  Coinbase ,  Kraken ,  and  Bitfinex crypto exchanges.

Everyone heard about Bitcoin in the past 2 years. The mainstream media helped push this cryptocurrency to the mainstream, as its price soared by more than 1,400%. On the other hand, it is not enough to simply hear about something. It is also important to understand what it stands for, how it started, and its basic mechanics. That's why in this article, we're going back to the basics, and introduce Bitcoin crypto in a very simple and straightforward way.

Buckle up, sit down and enjoy this quick guide on what Bitcoin crypto is.

Bitcoin is the most recognized digital, decentralized currency, which is created through solving cryptographic tasks. Transactions are written into a decentralized blockchain, which ensures that Bitcoin is always available and immune to manipulation. The revolutionary aspect of Bitcoin is that it does not need a central authority like a bank for the validation of transactions. The current price of Bitcoin crypto in USD/Eur/Yen (Fiat) is purely created through supply and demand.

The founder of Bitcoin Core is only known under the pseudonym Satoshi Nakamoto.  In November 2008 he developed the currency. Until today it is not known which person or group of persons are behind this anonymous name. Since 2008 multiple persons were associated with the name, but until today no one could yet prove to be the real Satoshi Nakamoto.

Whenever Bitcoin is generated, a new block gets discovered. Each block contains a certain amount of bitcoin. This amount reduces after every four years. The discovery of a new block comes when a user solves hash encryption by the SHA256 algorithm. To make things easier, this is a complicated puzzle which is a string of characters that needs to be decoded using high-end computing power. In the end, a user gets rewarded with bitcoin every time they add a block to the blockchain.

In 2009, if a user would add a block to the blockchain, he/she would get 50 bitcoins. As it stands, the number was revised, and a user would only get 12.5 bitcoins. Since more bitcoins are getting discovered, the mystery of solving the puzzle increases. Thus, mining bitcoin becomes difficult.

Bitcoin difficulty was rated at 1.0 when it first came out. The same strain was measured at 1.18 at the end of 2009. In 2017, eight years down the line, the difficulty was at 4.24 billion. This is an indication that bitcoin mining is becoming difficult than it was before.

In the early days, you only needed a desktop to mine a coin. Not anymore after more miners entered the race. Nowadays, you need a device with complex configurations, and still, the procedure takes long and consumes more power.

It’s easier to send Bitcoin between two parties in different countries. It’s fast and simple as opposed to the bank option.

Money transfer is fast as there is no third party involved. Besides, the fee one pays in a Bitcoin transaction is less compared to bank charges.

You cannot reverse bitcoin payments. Still, the chances of them being counterfeit are zero.

The cash that Bitcoin generates is used to fund illicit activities. Hacking activities have also been on the rise in exchange for bitcoin.

Bitcoin has not been accepted in some countries and in some, they have been banned. The majority of investors have purchased bitcoin using black money. If the global government can decide to regulate the trade of bitcoin, it might become unstable and collapse.

You should invest the amount you are willing to lose. If you lose your stake, it won’t hurt. There are times when web exchanges go out of business. This time, forget all your investment as it is gone. Also, market fluctuations affect the crypto market too. With an investment of $6,000, today might be $3000 an hour later.

The cryptocurrency market is full of uncertainties as much as it’s full of gains. Bitcoin, Ripple, Ether, and others have shown steady growth, but you can’t equate the trend to new altcoins. It’s a matter of time before altcoins can have a sustained track record. Still, not all will shimmer. Be vigilant when investing in altcoins.

Ensure the coin you want to invest in has a purpose for existence. If not, chances are it is going to stagnate. It’s that simple. Invest in an altcoin that solves a particular problem.

The team behind each coin should have a solid background in the industry. Don’t fall prey to a currency established by a group of dreamy-eyed entrepreneurs. Avoid altcoins that are entirely new.

The altcoin you want to invest in should provide a solution to the problem it intends to solve. The answer should be reasonable in that, for example, if the problem is to replace the internet with new blockchain-based infrastructure, explain how you will implement it.

It is very easy to accept Bitcoins as a company. Our guide in three Steps will walk you through the process. Here you can find a small list of vendors that accept Bitcoin.

1. Create a Bitcoin Wallet

You can use an online Wallet or install one on your machine. You can find a list of wallets here.

2. Print a QR-Code

To pay and accept Bitcoins you have to convert your bitcoin address to a QR code. The QR code includes your Bitcoin address, to where the customers are supposed to send their bitcoins.

Paying mobile with QR code

Static QR code: A static QR code, that never changes. Commonly found near the checkout. The customer just has to open his Bitcoin Wallet on their smartphone and click on “Send Bitcoins” to scan the static QR code. The amount (in Dollar or Bitcoin) has to be typed in manually and be confirmed.

Dynamic QR Code: The procedure is very similar. The only difference is, that the QR code has to be created for every individual buy. Then the amount the customer has to pay is already included in the QR code and the customer does not have to type it manually, which is even more convenient for vendors. Also, this makes it easier for beginners to send the correct amount.

You can create a Code here.

3. Show that you accept Bitcoin

That is the easiest part. Just add a visible sticker to your store that reads “We accept Bitcoin”.