Mtgox - Why Don't People Buy At One Exchange And Sell At Another? - Bitcoin Stack Exchange
Why don't people buy at one exchange and sell at another? Bitcoinity.org shows that for the past 30 days, bitstamp's price is high at 101.00, low at 77.00, and current price is 98.04 . On contrast, mtgox's price for the past 30 days is high at 115.00, low at 86.20, and current price is 110.50 . In other words, someone or anyone can just buy from bitstamp and sell to mtgox to make profit. What's stopping people from doing so? What's the catch? It can't be that people aren't aware that they could do it right? Because of Mt Gox's current withdrawal problems, a dollar at Mt Gox is worth less than a dollar at Bitstamp. David Schwartz Aug 15 '13 at 19:47 @DavidSchwartz, what problems do you mean? Pacerier Aug 15 '13 at 19:49 Google "Mt Gox withdrawal" to see various reports of difficulty withdrawing USD and EUR from Gox. David Schwartz Aug 15 '13 at 19:57 bitcoin-analytics.com/#arbitrage provides realtime arbitrage panel which supports history of arbitrage opportunites for last 24h between all major markets. Yevgen Martynov Aug 16 '13 at 14:31 Many people already do this with bitcoin. In finance, this is called arbitrage trading, or simply arbitrage, sometimes even abbreviated arb. The reason for the price differences are fees for transferring between the bitcoin exchanges (you have to transfer both, bitcoins and fiat currency for a complete cycle) and fees for trading bitcoins against fiat currencies. Because of the arbitrage traders, who make profits as long as the price difference is big enough, the prices on different exchanges quickly adjust to be right at the border between where the fees eat up the earning and where you make profits. There is an excellent page, , which can tell you where there currently are arbitrage oppurtunities. Simply go to the website and click o Continue reading >>
How To Build Your Own Bitcoin Exchange
Bitcoin exchanges play a vital role in promoting the cryptocurrency by facilitating its use. Most bitcoin users perform their transactions through anexchange. However, bitcoin is not yet mainstream. So far, only a narrow segment of the population, mainly innovators, technology enthusiasts, and visionaries, have adopted bitcoin. Expanding the number of exchanges would help overcome resistance to the cryptocurrencys adoption by increasing its visibility. Also read: Insurance Coverage For Bitcoin Exchanges Against Cyber Attacks Overcome Resistance to Change with More Bitcoin Exchanges Several factors slow the spreading of a new idea or product. One of them is resistance to change. By nature, most people are resistant to change. Bitcoin and its blockchain technology bring change dramatic change. Indeed, these novel technologies are bringing our civilization to the outset of a far-reaching technological revolution. Consequently, the resulting changes will be pervasive, all encompassing, and irreversible. In addition to other strategies, communicating more effectively about the virtues of bitcoin and creating more user-friendly exchanges, would help overcome resistance to change and increase the rate of adoption. As an example, take one of the problems impeding electric vehicle adoption: Lack of infrastructure. If you want people to run electric cars in the city and suburbs, there will have to be many more charging stations, says Eric Schaal. Likewise, if you want more bitcoin users, there will have to be many more exchanges. A bitcoin exchange is a site that facilitates trading bitcoins for fiat currencies or other digital currencies, and vice versa. Bitcoin exchanges also provide you with the service of storing your bitcoins. When selecting an exchange, consider security a Continue reading >>
When Crypto Exchanges Hold More Than Your Money
When Crypto Exchanges Hold More Than Your Money Feb 1, 2018 at 13:05 UTC|UpdatedFeb 2, 2018 at 11:46 UTC Marc Hochstein is the managing editor of CoinDesk and a former editor in chief of American Banker. The following article originally appeared in CoinDesk Weekly , acustom-curated newsletter delivered every Sunday exclusively to our subscribers. Each of these three storiesout of Asia is significant on its own, but when youread them side by side theytell a much bigger, global story. First, on Jan. 23South Korea's financial regulator set a date for the introduction of a new rule barring anonymous cryptocurrency trading accounts.(Or, as some sensitivesnowflakesout there preferwe'd put it, "requiring customer identification for crypto trading accounts" - we never imagined anyone in this space would want to sugarcoat unwelcome news with euphemisms, yet here we are . But I digress...) The very next day, a different South Korean agency fined several cryptocurrency exchanges for failing to secure customer data . "While the security threats such as virtual currency speculation and hacking of handling sites are increasing, the actual situation of personal information protection of major virtual currency exchanges is very weak," warned the chairman of the Korea Communications Commission in announcing the fines. Topping it all off, on Jan. 26, Coincheck, a crypto exchange in Japan, admitted it had been hacked in what appears to be the largest single theft in cryptocurrency history. Some $533 million-worth of a mid-tier crypto known as XEM were pilfered. So let's step back here. Taken together, these events remind us that: Concerned about money laundering and financial crime, international regulators want to make sure crypto exchanges, like most financial intermediaries, know who Continue reading >>
Best Cryptocurrency Exchanges (updated For 2018)
Best Cryptocurrency Exchanges (Updated For 2018) 2017 was a huge year for cryptocurrencies. The explosion of growth in the market also meant an explosion of questions like where can I buy Bitcoin? and where can I trade cryptocurrencies ? Were going to answer those questions here so you know the best places to buy and sell cryptocurrency in 2018. If youre familiar with the idea of stock exchanges, youll have no trouble grasping cryptocurrency exchanges. They simply provide a marketplace for buying/selling/trading cryptocurrencies. The goal of any exchange should be to provide and fair and orderly opportunity for anyone to invest in the market. Exchanges make their money by charging small fees on the transactions that take place on their platforms. There are tons of cryptocurrency exchanges out there, and theres a chance we see others emerge as the crypto craze continues to grow. So how do we find the one that we want out of all these options? There are many factors that go into a good exchange, the obvious being reputation and security. You may be restricted from certain exchanges due to your region. As with any software platform, a good UI can make all the difference. Other factors to consider are the available order types, altcoins, maker/taker transaction fees , and payment options. Margin trading is also a very desired feature among traders. Each of us have different priorities and will value each of these things differently. For example investors would probably be more likely choose one exchange with a high reputation and ease of access, while most traders will use a combination of exchanges to gives themselves access to all the features they need. Lets run through a handful of the top exchanges, identifying the pros and cons of each so that you can choose the best Continue reading >>
How Do Cryptocurrency Exchanges Work?
If you want to invest in cryptocurrencies, then one of the easiest ways to do so is through an exchange. A crypto exchange is an online market where people can buy and sell digital currencies with ease. To help you better understand exchanges, we at TruDex have compiled for you a list of the pros and cons of cryptocurrency exchanges, as well as the things to look out for when shopping for the right one for you. Lets start with the advantages of exchanges for someone looking to transact in cryptocurrencies. One of the great aspects of a cryptocurrency exchange is variety. Most exchanges out there trade in multiple digital coins, meaning you can take advantage of price variations in different currencies and make money. There are hundreds of cryptocurrencies out there and exchanges offer you an opportunity to either buy or sell multiple cryptocurrencies for profit. Without exchanges, this would be impossible. 2. Security in the Crypto Purchase Process This is one of the best things about crypto exchanges. Most of them have an escrow system where the sellers coins are held until the buyer sends the payment. This guarantees the sellers and the buyers security throughout the purchase process. Without this system that exchanges provide, it would be impossible for cryptocurrency trade to take place. Thats because there would be no way for buyers and sellers to guarantee each others transaction security. For instance, imagine having some bitcoins that you want to liquidate for cash. Without an exchange, you would have to advertise those coins on the internet with no guarantees that the buyers will send money once you give them your bitcoins. This is one of the fundamental cryptocurrency problems that exchanges have solved. 3. They Provide the Liquidity Needed to Make Crypto Tra Continue reading >>
Do Crypto Exchanges Make Good Money?
Sure they do! Some of them more, some less, but most of them are very profitable. In addition, not only exchanges make a good money, but trading sites, gambling and many other related to bitcoins also. Yes of course. They take a percentage of each trade. In addition they may in some cases trade themselves. This is the centralized ones. Decentralized ones will take over as you do not have to deposit/withdraw funds with them .. you trade direct. For ethereum tokens the Radar Relay beta exchange just started today running on the 0x protocol. You exchange tokens directly between makers and takers at a specified price. (You do not risk your coins in the exchange wallets) They also make a percentage using ZRX tokens for fees. Continue reading >>
Making A Living Day Trading Cryptocurrency
Making a Living Day Trading Cryptocurrency In 2011 I owned about 3500 Bitcoin which I purchased for $600. Today 3500 BTC is worth over $20 million dollars. The day I first heard about Bitcoin on Reddit, a friend had also called me to tell me about it. We spent most of our friendship talking about Ayn Rand and programming, so when we heard about a currency that was software and couldnt be controlled by governments we were very interested. I purchased $600 worth of BTC and my friend and I planned on buying a mining rig. Being 22 years old in New York City is a financial struggle. I didnt have enough money to pay rent, and the value of my Bitcoin had dipped to $550. I sold it all and ditched my plans for a mining rig. My financial situation needed to be stabilized before I could invest in assets based on my philosophical beliefs. Bitcoin stayed in the news over the years. The price went up and down, silk road happened, the legality of it was called into question, exchanges were hacked, and people gained and lost millions of dollars. Through it all, Bitcoins price kept rebounding, kept going up. Ethereum hit the scene with the promise of using the blockchain for more than just currencies. You could build decentralized apps on top of Ethereum and even new currencies. In the summer of 2016 I decided to buy ETH at around $9. The day after I purchased Ethereum something called the DAO hack happened and the price dropped 50%. Unlike in 2011, I didnt need the money I invested to cover any bills. I watched my Ethereum swing between $4 and $20 for about 8 months. I wondered if I could take advantage of those swings by buying when the price was low, selling when it was high, and buying back in when the price dipped again. Though I didnt take any action on the thought, the idea ling Continue reading >>
How Do Bitcoin Exchanges Make Money?
Im aware they make money off fees, but if everyone starts withdrawing 100% gains etc, where is that money coming from? If people are putting in 20k and cashing out 40k etc, where is all the money coming from to pay them? Bitcoin exchanges make money off the spread the create between the buy orders and the sell orders. If you want to buy bitcoin with them the price will be slightly higher than if you want to sell bitcoin at the same time. That difference is called the spread and it's the "fee" that exchanges create and keep to serve as compensation for putting a buyer and seller together. Exchanges make the market, it's been working like this for (literally) hundreds of years, thousands probably. Not for bitcoin of course but for anything being traded in a market. A secondary source of income could be from actual fees charged to convert to buy Bitcoin from fiat, if they run a wallet that offers such an option. Quote from: Bitcoinn_Kingg on July 16, 2017, 03:02:44 AM Im aware they make money off fees, but if everyone starts withdrawing 100% gains etc, where is that money coming from? If people are putting in 20k and cashing out 40k etc, where is all the money coming from to pay them? in trading two people are going against each other. if you put in 20K and take out 40K someone else is putting in 40K and taking out 20K. and none of this matters the exchange don't care if you make 20K or lose it. they take a percentage of it nonetheless. for example if the fees are 0.2% they will take 160 (80 from you and 80 from the other person). and that is how they make money. - sometimes they do other stuff with the money they have too. like investing it in something... they charge fees for each transaction and that how they make money. for buy and sell they charge some % , its their Continue reading >>
Indian Cryptocurrency Exchanges Make Moves To Self Regulate
Indian Cryptocurrency Exchanges Make Moves to Self Regulate In response to the minister of finance naming cryptocurrency as illegal tender Indian exchanges have banded together to create a central repository to maintain a real-timedatabase of traders in a bid at self-regulation. When Finance Minister Arun Jaintlynamed cryptocurrencyillegal tender in his earlyFebruarybudget speechhe set off a rash of panic selling across Indian exchanges. Since then the panic has subsided and exchanges have made moves to self-regulate in order to put off any harsher government intervention. Cryptocurrency traders are required by exchanges to submit both their PAN and Aadhaar number along with banking details in order to open atrading account. Though the proceeds from all transactions are credited to the same accountthe data is not shared as each exchange operates exclusively. Seven cryptocurrency exchanges have come together toform the Blockchain and Cryptocurrency Committee (BACC) of the Internet and Mobile Association of India. This mouthful has tasked itself with collecting and pooling users trading data through PAN cards and making this information available to government agencies. This is one of the proposals we are planning to submit to the government committee which is looking into the issue of cryptocurrency, Indian tax authorities have notified an estimated 100,000 investors asking them to reveal profits earned on cryptocurrency trading for 2017. Industry experts estimate that in 2017 about 10,000 crore (100 billion rupees) trade in cryptocurrency was done by around five million active Indiantraders. The BACC plans to submit its proposal to the government committee headed by economic Affairs secretary SC Garg this week. The government panel will submit its recommendationsby Mar Continue reading >>
Bitcoin Arbitrage Opportunities: A Short Guide
Last updated on May 23rd, 2017 at 03:08 am Bitcoin arbitrage is the buying of bitcoins on an exchange where the price is very low and selling it at an exchange where the price is relatively higher. The prices of Bitcoin vary on various exchanges, due to the fact that the markets are not directly linked, and the trading volume,on many exchanges, is low enough that the price does not adjust to the average right away. Here a great video by Andreas Antonopoulos about why these arbitrage opportunities even exist: A Simplified Example of a Bitcoin Arbitrage Opportunity The price of Bitcoin on Coinbase is $650 and the price of Bitcoin on BTC-E is $636, the difference between the prices is $14, and this is quite a decent opportunity forarbitraging. Lets say, you buy 100 bitcoins on BTC-E at the rate of $636 each and subsequently, you sell them at Coinbase at the rate of $650 each, you make $14 per Bitcoin. Lets get down to the math Price of each Bitcoin = $636 Total price = $636 * 100 = $63,600 Number of Bitcoins sold in Coinbase = 100 Price of each Bitcoin = $650 Total = $650 * 100 = $65,000 Total profit = $65,000 $63,600= $1,400 Thus, you can see that Bitcoin arbitrage seems like a wonderful opportunity to make some passive income, but there are afew barriers to it. The time it takes to verify each of the transactions (buying and selling) can add up and the exchange rate might change within that timeframe. Many exchanges require a lot of verifications in order to trade a large number of Bitcoins. Depositing fiat currency can be a time taking process (can take up to 10 days depending on your payment method). Many exchanges have fees, which I have overlooked in the given example, that you should take into account. Pay attention to the transaction volume on each exchange as you Continue reading >>
Do Crypto Exchanges Make You Scream?
Well, Heres Something DifferentCAPDAX Makes You Scream with Joy. If using standard cryptocurrency exchange platforms makes you want to scream bloody murder, youre not aloneand you have good reason to. Cryptocurrency exchanges like Coinbase have been marred with controversy over the last year. In short, it all comes down to cripplingly awful customer service. Its the kind of customer service that you expect when you purchase something on Amazon from a third-party seller who is offering a knockoff of a denim jacket that typically costs $5000 from the original designerexcept some random guy living in his mothers basement with a needle and thread says he can make it for $50. Then it arrives in the mail, two months later, tattered, torn, too small, and with a snowballs chance in hell of ever getting returned with a refund. That was an extreme example, but its not too far from the truth when it comes to most cryptocurrency exchange platforms. Thats why all eyes are turning to CAPDAXa brand new platform which completely washes away the excruciating pains of most modern exchange platforms. Cryptocurrency exchanges face a number of problems. Interfaces are difficult to use, and the only way to figure out how to use exchanges is to look up forms onlinewhich, as we all know, are very, very trusted sources [read: sarcasm]. But, thats just the tip of the iceberg. Customer service, security, exchange platform speeds, dangerous downtimes causing massive fluctuations, and on clear user policies have left cryptocurrency exchanges awfully unfriendly. Honestly, CAPDAX is so packed to the brim with customer support functionality and features that we are left wondering how they have any capital remaining to facilitate all the other features of the platform that make it so flawless and easy Continue reading >>
How To Build A Cryptocurrency Exchange And How Much It Would Cost
How to Build a Cryptocurrency Exchange and How Much It Would Cost Cryptocurrency is attainable even for those who arent tech-savvy. At some point, people discover Ethereum, Bitcoin, and Litecoin, all of which can be used just like the Euro and Dollar. Transactions are made with a cryptocurrency wallet. This form of cryptocurrency is alluring: the cost of transactions is minimal in comparison to national currencies. The fiat money is still on the top and many trust that we wont see them disappear in the foreseen future. But there are many signs that cryptocurrencies will slowly change banking system to take the place of the government money and maybe even replace them completely one day. An abundance of people conducting currency and stock trading for a living are now focusing on cryptocurrencies in hopes of making money with it. People everywhere are talking about this. Some naysayers say it wont be around forever and that Bitcoin is built to fail, resulting in a crash affecting all miners and traders. In spite of that, cryptocurrencies are thriving, and there is plenty of room for trading operations and startups to take a piece of it. In this article, we will explain how to build a cryptocurrency exchange, how long will it take and how much it would cost. Cryptocurrency is a kind of digital currency. Registration and emission are determined using asymmetric cryptography using various cryptographic protection approaches, like Proof-of-stake and Proof-of-work. Cryptocurrency system operates on a peer-to-peer network and is decentralized. That said, emissions are not possible. It cant be counterfeited or destroyed. The biggest benefit, though, is the difficulty that comes with mining. In short, mining with a farm of GPUs will hardly be worthwhile. Lets try to calculate f Continue reading >>
Bitcoin Arbitrage Trading - How To Make Money Trading Bitcoin
francois bitcoin exchange , South Africa , Uncategorized Bitcoin arbitrage trading is a way to make money trading bitcoin with less risk than speculative bitcoin trading or day trading. Trading bitcoin is risky business, this is a fact. The price can swing wildly, and nobody knows for certain what the price will be from day to day. If you know the bitcoin market, it is possible to read the market signals and make trades based on what you think might happen. This could make you money, and it can lose you money, but in essence, its a gamble. Bitcoin arbitrage trading is one of the best ways to make money trading bitcoin without having to worry as much about sudden price movements that could lose you money. It is a quick and safer way to trade than basing trades on what the chart is telling you. If you are serious about trading bitcoin and making money, you will have bitcoin on as many different exchanges as possible, and have yourself setup to buy or sell bitcoin on as many different platforms as possible. Why? So that you are able to take advantage of the best prices on any given platform at any time. Bitcoin arbitrage trading is when you simultaneously buy and sell bitcoin to make a profit from the difference in price on bitcoin exchanges. Bitcoin arbitrage trading is when you simultaneously buy and sell bitcoin to make a profit from the difference in price on bitcoin exchanges. You exploit the difference in price on different exchanges, and keep the change as free money. If Exchange A has a bitcoin price of R9000 and exchange B has a bitcoin price of R9150, you can take advantage and exploit the price difference, by taking the R150 difference for yourself, easy and free money / bitcoin. You simultaneously buy bitcoin on the cheaper exchange, and sell bitcoin on the mo Continue reading >>
How I Turned $300 Into $50,000 In One Year Trading Crypto Currency
First, Id like to say that anyone can have these kind of gains in Crypto land. And no, i didn't mine any coins, and no, i wasn't an early adopter of bitcoin, buying up coins when the price was under a dollar. Im just a trader, who fairly recently opened up a few accounts and transferred $300 into bitcoin then traded it up to over $50,000. There are so many great opportunities for anyone willing to pay attention to coin news, new coins, charts, and price action. You can find out what's the hottest new Coin and jump in early. (steemit) You can track crypto news and see how the market reacts to bad or good news. (in crypto land news really affects the price, much more than regular stock trading) Or you can learn to read charts and price action, which is my specialty. You see I have a bit of an unfair advantage. I have been trading penny stocks for over 10 years. Have you ever heard anyone say that trading is risky and you will likely lose all your money? And Penny stocks are even more dangerous, and mainly all scams? Well, its true that penny stock are often very scammy and there are alot of pump and dumps, and reverse splits and shady company activities. But I have been trading penny stocks successfully for over ten years, and I actually love trading them. I look forward to hitting the markets every day. I often dread the weekends because the market is closed and I no longer have my own personal money making video game :( Well guess what? Trading cryptos is almost identical to trading penny stocks.. Only they trade 7 days a week and the commissions are almost non existent. I easily pay over $15,000 a year in commissions with my regular broker, $5 in and $5 out per trade. But not with cryptos, the commissions are so small that you probably wont even notice them. Ok, what Continue reading >>
This Upstart Cryptocurrency Exchange Is Making Inroads In Canada
This Upstart Cryptocurrency Exchange Is Making Inroads in Canada Cryptocurrency and precious metals exchange Coinsquare is taking steps toward its goal of leading the cryptocurrency exchange market in Canada. On February 20, 2018, it announced a new partnership with Processing.com , after wrapping up a recent investment of $30 million, for a total $47 million raised in the last four months. The partnership with Processing.com will allow Coinsquare to facilitate instant fiat currency payments of digital currencies for the general public through debit and credit card transactions. In a release, Processing.coms James Bergman said: We are very excited to partner with such a respected and fast-growing trading platform as Coinsquare. As digital currencies increasingly make their way into the mainstream conscious, service providers have a responsibility to ensure the broader public can access the rapidly growing blockchain ecosystem. Besides increasing its Canadian market share, Coinsquare also has plans to move on to establishing new exchanges internationally, initially in the U.S. and the U.K. Coinsquare CEO Cole Diamond acknowledges that he is continuing original owner Virgile Rostands marketing strategy of emphasizing Coinsquares Canadian foundations, with its economic and political stability and relatively light regulatory environment. Diamond said : Virgile Rostand, Coinsquare's founder, was an early industry pioneer and blue-chip banking industry veteran. He built a custom platform that is unrivaled in Canada, boasting extremely high security standards." Coinsquare is also continuing Rostands unprecedented service to the French-speaking community. In an interview with Bitcoin Magazine, Diamond noted: We are the only trading platform that we know of that has a French we Continue reading >>