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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 ...


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 ...


23

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 (!!!) ...


12

Shamelessly summarized from this extensive guide on local transactions: You want to meet in a sufficiently public location, such as a pub or mall, preferably one that has an open wifi. If you have agreed on terms in beforehand, print out what you agreed upon and take it with you. If you have not agreed on terms yet, be sure to check the current price of ...


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

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

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 ...


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

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 ...


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

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

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

These are a few options available to Canadians: Local Bitcoins BitBuy CoinSquare QuickCoin There are also a few exchanges that accept CAD deposits larger than $100:


7

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

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 ...


6

Meet him at a public place and do the exchange using a phone bitcoin-app and cash. Make sure that his reputation is worth more than a possible robbery/scam.


6

There were only about 2 million Bitcoins mined when the system was fully announced and opened to the public. They are owned by Satoshi and other early adopters. While they have a huge present value, that's because their value increased. Long after the Bitcoin system was public, Bitcoins dropped down to $2. At that time, the value of the early adopters ...


6

If you want to buy bitcoins with ZAR try trading face to face with some SA locals who have bitcoins. Check out the facebook.com/bitcoinzar page to find other locals who are into bitcoins. You can also try localbitcoins.com where locals trade coins. You could also sell something for bitcoins to get bitcoins, use bitpay for that. Check out www.bitcoinzar.co.za ...


6

You give the money to someone who has bitcoins available to sell to you. This might happen via an exchange such as bitstamp.net which matches buyers and sellers.


6

Bitcoin Binary Options are financial instruments that allow you to predict if the price of Bitcoin will rise or fall in a specific amount of time. They are called binary options because there can only be 2 outcomes - either you get your payout, or lose your money. Each option has a predetermined expiration date and an agreed payout. For example, if you ...


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