US crypto exchanges hit by major Amazon outage – Capital.com

us-crypto-exchanges-hit-by-major-amazon-outage-–-capital.com

An outage on Amazon’s cloud computing unit on Tuesday took down several websites and services, including the US cryptocurrency exchange Coinbase and derivatives exchange dYdX.

The latter company tweeted: “Due to a major AWS outage, dYdX exchange is currently down. We are experiencing greater latency across services and impaired functionality with endpoints not working and the website not loading.”

Outage frustration

Message boards showed the general frustration being felt across the US.

One post said: “Any word on if it’s still down? Or how long it will be?”

Another said: “Here I am, first day off in a while … I go to check my schedule annnndddd… it’s gone. Look up this subreddit and get some explanations. Just another day with Amazon”.

Amazon first acknowledged a problem at 09:37 PST (UTC-8). It was almost seven hours before network device issues were resolved. “We are now working towards recovery of any impaired services. We will provide additional updates for impaired services within the appropriate entry in the Service Health Dashboard,” Amazon’s AWS team said.

Despite the outage, the Amazon stock price was unaffected by the incident – at close of trading yesterday, it was up 2.8% at $3,523.29

Read more: Amazon share price forecast: a retest of September’s all-time highs seems likely

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The difference between trading assets and CFDs

The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.

You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.

CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.

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