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Arbitrage - What it is and how it works Arbitrage refers to the process of instantly trading one or more pairs of currencies or odds for a nigh risk-free profit. Usually, this involves two exchanges (this is then called a two-legged arbitrage); although more are, of course, possible. There are several steps when executing an arbitrage: Find a suitable ...


62

Exchanges You can use an online exchange such as BitStamp for US dollars, as well as many others for dollars, and other currencies. See the wiki for a full list of ways to buy bitcoins. Brokerage Services Brokerage services allow you to buy or sell directly from them instead of relying on a third party to offer the trade with the exchange just taking a ...


27

Basically there are five main ways of getting bitcoins: Mining Buying Offering goods and services for Bitcoin Obtaining for free through micro payment Asking a friend who already has them to give a tiny fraction for free Let's start with mining: first of all I have to warn that currently there is almost impossible to mine by your own. You need to have a ...


26

Bitcoin strongly enforces two concepts - high anonymity and no chargebacks. Because of high anonymity, it is nearly impossible to be 100% certain who you are sending Bitcoins to. In the end, the Bitcoin address is just an arbitrary string of characters. Because of no chargebacks, once you send someone Bitcoins, they are irreversibly theirs (assuming no ...


25

Is there space for me on your team? I have spent most of this year trying to answer the same question, starting with the recognition that I could solve all the technical aspects (web programming, Bitcoin handling, trading engine, server security, etc.). Technically, you need a website and a trading engine that matches buyers and sellers. Whilst there are ...


22

A large investor might be trying to move the market. Sell walls create an impression of a strong supply. This makes some people, unwilling to wait for the wall to break down, pitch their sales offers below the wall. By moving the wall closer to the current bid again, a large investor might be able to move the market to a small extent and then buy at a lower ...


19

When you buy a bottle of soda at the convenience store, where does the money go? The money goes to the party that sold it to you -- that party owned the bottle before you owned it. You might be able to trace ownership of that bottle all the way back through the supply chain, to the point at which it was manufactured. It probably had several prior owners ...


18

It's because bitcoin transactions are final, and exchange margins are low. Businesses selling something for download can afford to be hit by fraud without incurring any real loss (other than potentially an opportunity cost, but even that is likely to be minimal as fraudsters would be unlikely to pay even if they couldn't defraud). ie margins are high. ...


15

I am developing the ccxt cryptocurrency trading library, check it out on GitHub: https://github.com/kroitor/ccxt It is a library for cryptocurrency trading and e-commerce with support for many bitcoin/ether/altcoin exchange markets and merchant APIs. With it you can access market data and trade bitcoin, ether and altcoins with more than 70 (!!!) ...


11

Of course you may trade bitcoins with just anyone without having to pay fees to a centralized exchange. I think Bisq (formerly BitSquare) may be the best answer to the question; decentralized, free for some definitions of "free", and very low risk due to the escrow system - but not completely without fees, indeed as of 2017 one may end up paying quite much ...


10

LocalBitcoins.com is my favorite. I don't like dealing with banks and providing all of my information. Also it promotes the local economy and rewards people in your area for dealing with bitcoins. I have bought and sold off of bitcoin users using this site, and it is great to meet them in person and get to hear about their involvement.


10

https://www.luno.com (previously known as BitX) trades BTC for ZAR via EFT to South African banks. They have accounts at FNB and Standard Bank. If you have an account at one of those, it will clear faster.


10

Let's assume you're the outside observer. You see 1 BTC go from aaa to bbb, then from bbb to ccc, then from ccc to ddd, and them from ddd to zzz (zzz being associated with service Z). Can you see how easy it is to figure out that addresses aaa, bbb, ccc, and ddd belong to the same person? It doesn't even get much better if you split the money to different ...


9

Dwolla imposed a 30-day probationary period for new accounts. After your first funds have been added to Dwolla from your bank account, you then cannot trade those funds with a Bitcoin exchange for 30 days. Dwolla did that to prevent hackers or other scammers from getting cash out of an innocent person's bank account before there is time for the individual ...


9

No, you can transfer fractions of bitcoins easily. From the Myths section of the Wiki: One Bitcoin is divisible down to eight decimal places. There are really 2,099,999,997,690,000 (just over 2 quadrillion) maximum possible atomic units in the bitcoin system. The value of "1 BTC" represents 100,000,000 of these. In other words, each bitcoin is ...


8

Bitcoins are liquid. Everybody wants bitcoins, and as many as they can get - if not for some immediate use, then to sell them for other currencies which are of immediate use. Even someone who doesn't need or believe in Bitcoin can still steal them. Thus a Bitcoin CC trader will attract all the fraudsters in the world. A site like RPGNow will attract only ...


8

This is from my answer on Money.SE: You can set up your computer to mine for Bitcoins, you can exchange goods and services for Bitcoins, or you can purchase Bitcoins on an exchange. Some people will trade their programming or web design services for Bitcoins; others sell goods like alpaca socks in exchange for Bitcoins. The exchanges operate similarly to ...


8

For small BTC purchases in the UK, https://localbitcoins.com/ (LocalBitcoins) is the only viable option right now that I know of. There are other methods, mostly involving bank transfer arrangements, but be very careful to figure out how much you end up paying in total fees for it. It doesn't make much of a difference with large BTC orders, but for small ...


8

I use this type of trading to accumulate buys at a cheaper price. Ex: if I spend 2 hours buying small amounts of coins so nobody notices the large buys, then I put up a large sell wall ($30k-$45k) to encourage sells. After that pushes down the market from panic sellers trying to under sell my wall, I instantly buy those sells up and remove my wall and then ...


8

Coming from a financial programming side (C++/Network/Trading experience), I would politely suggest that having a web team is not quite enough to make an exchange. Granted, your average Bitcoin exchange may not need the HFT credentials of your average dark pool or big name exchange. But you're still dealing with a system that needs high uptime, high ...


8

Some Chinese exchanges don't charge a fee. Any site that has possession of your bitcoins or dollars means there is at least some risk of getting ripped off. So unfortunately, what you ask for doesn't exist.


8

Essentially, you have to factor in 3 fees in a purchase: 1. Deposit fee (if applicable) This is usually a fee for wire transfers, and from my experience is only relevant if you deposit cash across economic zones, albeit this is slowly reducing to 'anywhere to asia', or outside of the SEPA zone. Kraken charges 5€ per wire transfer, SEPA transfers are free ...


7

Deposit cash at a bank is a deposit method for CAVirtex. TD or CIBC banks. You don't need to have an account to deposit. https://en.bitcoin.it/wiki/VirtEx Update: CaVirtEx no longer allows cash deposits at any bank. You now make a Bill Payment to an established Payee, and CaVirtEx credits your account about 2-3 days later. https://www.cavirtex.com/...


7

If you would pause the video a couple seconds from the end, you could see that the voice is done by Chris Rice, motion graphics by Fabian Rühle, music and sound design by Christian Barth, and production by Stefan Thomas. Also, if you check the Active Bounties page on Bitcoin Wiki, you will see that they made 13622.05 BTC doing it (although it was back when ...


7

It's like when you buy anything else. When you trade your dollars for somebody else's eggs, you get the other person's eggs, and they get your dollars. You can then sell the eggs to somebody else if you like - then you get their dollars, and they get your eggs. If you are able to sell your eggs for more than you paid for them, you make a profit. Instead ...


7

As always, there is Local Bitcoins. There are also a few exchanges that accept CAD deposits more than $100: CaVirtEx (Closed) Vault of Satoshi (Closed) QuadrigaCX Harborly (Closed) InstaBT BitStreet CoinSquare


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Found the data on crypto compare const endpoint = 'https://min-api.cryptocompare.com/data/histoday?aggregate=1&e=CCCAGG&extraParams=CryptoCompare&fsym='+ ticker.toUpperCase() +'&limit=365&tryConversion=false&tsym=' + currency.toUpperCase();


6

This question answers the more general question "How do you obtain Bitcoins?" Most commonly, people use a Bitcoin exchange to exchange local currency for Bitcoins. Here is a list of exchanges split by currency and whether they're currently active or not.


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A guide almost needs to be one that provides results dynamically based on responses to questions. The factors that matter are: Where are you (country)? How much are you looking to buy? What payment methods can you use? How soon do you need the bitcoins? Is privacy / near-anonymity important? Only once those are known can recommendations be made. A fairly ...


6

BitInstant has teamed up with an already-existing payment processor. This payment processor is designed to allow those without credit cards make purchases online. The way it works is that you make your purchases, check out, and a special receipt is generated with a transaction ID. At this point the transaction is in a "pending" state, awaiting payment. You ...


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