On a bitcoin exchange one buys, sells, and stores bitcoins. Having sold them, one might want to withdraw dollars, euros, pounds sterling, etc. It is suggested that the fact that MtGox is running two months behind schedule on withdrawals in other currencies may be the result of the confiscation of $5 million from MtGox's bank accounts, so they have a cash-flow problem. If that makes the use of MtGox as opposed to other exchanges disadvantageous, what are the pros and cons of the various others?
asked Aug 24, 2013 at 3:42
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Related question: Why don't people buy at one exchange and sell at another?– Murch ♦Commented Sep 16, 2013 at 18:17
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This question is asking for reviews of exchanges in general, but product recommendations are off-topic. On one hand, this question is not sufficiently focused as any answer listing pros and cons for at least one exchange would be technically correct, on the other hand, asking for a review of all exchanges is not reasonable, especially since their ranks are changing too quickly.– Murch ♦Commented Apr 1, 2014 at 14:04
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3 Answers
You hit the nail on the head my friend...You get less money/fiat per btc because they are all competing together for price so market efficiency is lower - usually withtin the scope of 20 percent lower. However for this loss in premium, you can be guaranteed to receive a deposit in two weeks or less in most cases.
However the volume on Gox is higher I believe because of the history large players probably continue to use their services because AML verification limits already occurred and those cost money. Plus, if the money is simply there to be traded and appreciated upon then it makes sense to keep the credits available such that you buy in low and sell out high.
It depends where you live, what currency you want to trade in and where your bank account is domiciled. I live in the U.K., and have bank accounts in various currencies and countries around the world. For me, localbitcoins in GBP has been the best solution.
Your situation may be different because withdraw/deposit times will depend on your financial institutions, the desired currency, and the transfer method you choose.
About half a year past from your question. MtGox is closed and freezed all users's funds.
Most popular exchange right now is https://bitstamp.net but commissions are high enough.
After Mtgox story I wouldn't trust to btc-e since forums are full of btc-e scam reports.
There is a new exchange http://hitbtc.com/ they offer good service and commissions.
