58

I noticed this question was posted a long time ago and perhaps things have changed so I took the liberty to dig in again and also aggregate most of the answers given here and here’s what I found: It’s indeed impossible to buy Bitcoins with Paypal DIRECTLY even today and it's mainly because of Paypal’s TOS (Section 3.7 here) and the issues of chargeback. ...


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 ...


20

Setting up and operating an exchange can be quite involved. A few tiers to start thinking about: legal, banking, tech+security, and volume. Legal The first question is whether you want to operate globally (e.g. Bitfinex or BitStamp) or focus on a national market (e.g. FlowBTC, meXBT). The next step is to seek legal counsel to help decide where you want ...


18

You need three components: A user account system that allows users to register, maintain a balance, deposit and withdraw BTC and other currencies, and place buy and sell orders. You'll need to integrate this with a payment processor to support currency deposits and withdrawals. A matching engine that looks at the current buy and sell orders and matches ...


16

First of all, Coinbase is a little different from the main concept of an "exchange". Real exchanges, like MtGox or Bitstamp, are really just a medium between traders. People can set limit orders to buy / sell bitcoins for a certain price. The exchange will match buyers and sellers when conditions of both the buyer and the seller are met. More concrete, ...


16

In 24 hour markets High and Low usually mean "highest/lowest price in last 24 hours". Open generally refers to the price at 12:01 AM UTC of any given day and close generally refers to the price at 11:59 PM UTC of any given day.


15

The most current list of Litecoin exchanges, originally from the Litecoin wiki, updated in December 2017 to remove nonfunctional exchanges: Market exchanges Kraken The Rock Trading UpBit - Korean exchange Bithumb - Korean exchange BTCTrade - Chinese exchange OkCoin - Chinese exchange Fixed rate exchanges Okpay Litecoinlocal BitBargain ...


14

Yes, if someone buys at a particular price, someone else must sell at that price. But they didn't place their orders at the same time. The buy/sell indicates the direction of the filled order. This is needed to make sense of the price. Imagine an apple exchange where no trades are occurring. Then someone walks in and buys or sells an apple for $1. Do you ...


13

New offers and orders are matched respectively with the best order and offer available until they are fulfilled. If there is more than one entry at the same price, the oldest entry will be matched first. If a new entry cannot be matched completely, it will remain in the order book until the remainder is matched or it expires. See an example below: The ...


11

Because all transactions in both Litecoin and Bitcoin are stored in the block chain, you run into the same issue you do here if you were just to try and withdraw USD for bitcoins, i.e., does your intermediary store logs of the off chain transactions? When you buy LTC using BTC on Kraken, if Kraken decides to log this transaction then there is now a link ...


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

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 ...


10

XBT is used because the ISO 4217 (the standard for currency codes) alphabetic code XBC is already in use. It stands for the European Unit of Account. Here's the Official table of ISO 4217 codes The X indicates it's not a national currency, but rather a supranational currency (like the East Caribbean Dollar, XCD) or something else that isn't quite a ...


9

Coinbase is built on top of Bitstamp. They may work with other exchanges now, but they are (and used to be) very tightly coupled with Bitstamp. There was an exploit where someone discovered that Coinbase's price was set to the last sale price on Bitstamp. Basically, this person would sell a small amount of Bitcoin for much lower than market value on ...


9

Traditional Bitcoin exchanges hold their customers' funds, both Bitcoins and counter-currencies. So when a trade is actually made, the exchange just adjusts their own balance numbers. Prior to being able to buy Bitcoins, you must deposit some other currency into your account at the exchange. Prior to being able to sell Bitcoins, you must deposit Bitcoins ...


9

An exchange doesn't set a price at all. It provides a framework for customers to buy and sell coins to each other, at whatever prices the buyers and sellers find mutually agreeable. The exchange itself does not buy or sell, and the prices it quotes are just a report of what its customers are doing right now.


9

When exchange 'A' sells bitcoins for 200 dollars and exchange 'B' buys bitcoins for 300 dollars, there will be people who buy at 'A' and sell at 'B' as long as they can make money on it. This is called 'arbitrage'. Because of the open markets, people are free to do as they please, so there are people who buy and sell solely to make mere cents on the dollar. ...


8

One of the major reasons standing in the way of profiting from arbitrage opportunities has to do with "volume". The volume for either exchanges is not high enough yet to support big trades. Large profits require large trades (in arbitrage). Making $1,000 may be feasible between exchanges, but that's an extreme best case scenario and using 10k in capital! ...


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

This is really asking about basic trading economics: if I have some new product X, what price does it have? I can set a price and see if anyone buys it. If not, I might lower the price or auction it to see what someone might pay for it. That is the starting value, but it doesn't really mean much as it hasn't been field-tested (so to speak). If others think ...


8

It probably doesn't give you more security, and in fact if the mixer service's coin volumes are low, which they likely are, and dependent on whatever their turn around time may be, and dependent on how many coins you are asking them to mix, it is very possible for you to get back some of the same coins you sent to them. Unless they were verifiably in a ...


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

You are right that you will need significant volume to make substantial profits. Which country are you located in? Some countries will also have very high regulatory startup costs, which is why you will see some exchanges deciding to block all users from some jurisdictions. What would make your exchange different from the rest? Without a substantial ...


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 ...


8

It is important to keep in mind that addresses are not the same as wallets. A wallet contains multiple addresses, not each address is a wallet. Exchanges maintain their own wallet with thousands of addresses and thousands of coins. When you deposit Bitcoin at an exchange, they will give you an address from their wallet, and you are sending to their wallet. ...


7

It is possible, there various sites that provide option (or option like) trading. Each have their pros and cons. Of the ones I know of theses seemed the best. However YMMV and caveat emptor. At time of writing here are some simple ones: btc oracle <-- Looks like a very elegant (bitcoin) solution. Just send some bitcoins to the addresses and if (in 15min,...


7

There are many Bitcoin buyers on LocalBitcoin who are willing to pay via Western Union. Look for someone with a very high feedback rating and do not release the Bitcoins from escrow until you are sure the payment you have received is final. https://localbitcoins.com/sell-bitcoins-online/western-union/


6

Something I am currently looking into, and a huge issue that nobody has really mentioned earlier is blockchain time. 1) Bitcoin is traded on a number of exchanges, however the entire process of buying on one exchange, transferring to another exchange and selling on that second exchange can take on the order of magnitude of 30 minutes(~10 minutes per block ...


6

No U.S. exchange. Btc-e does not but they will not do business with U.S. banks. Coinbase does not have an extensive verification process, but they are technically not an exchange, and to buy or sell bitcoins through their service you have to link a U.S. bank account which for all intents and purposes is the same thing as verification. Due to the patriot ...


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