Bitcoin Forum

Hey guys :),
I am thinking about building this service: You can send your Bitcoins between different exchanges instantly (like money with Bitinstant). So you would come to my site, login to MtGox, fill address of Bitstamp (let's say) and your bitcoins will be instantly at Bitstamp for little fee. This could be used in arbitrage when you need to have your Bitcoins at another exchange quickly.

My question are:

1. Do you think it's usefull?
2. Do you know how to create a ticket at MtGox which will send Bitcoins between two MtGox accounts? Bitstamp has a Bitstamp coupon, right? I am trying to digg through MtGox API.

Thank for your suggestions

It'd be very, very useful. Arbitragers would line up in a circle around the entire web to use this if the fee is low enough.


...But is your bankroll big enough? What do you do when on a heavy afternoon you're already pushed to your limit and someone requests a $50,000 move?

Arbitragers don't usually move $10 at a time... I wouldn't expect to use it in chunks less than $500 in value.

Perhaps if you have 1/4 Million USD on standby for each day it takes to transfer to you. That should be good enough to start.

+1. Think it's a great idea and would love to see it implemented.

1) This would be really useful, mainly for the arbitrage opportunity mentioned.
2) Have a look at https://data.mtgox.com/api/0/withdraw.php, though it may be deprecated by now.
https://en.bitcoin.it/wiki/MtGox/API/HTTP/v0#0.2FredeemCode.php

I think mtgox and bitstamp have both stopped issuing coupons, you can only redeem existing ones anymore.

Thank you all for your posts. I thought it would be usefull. The thing is. Is it technically possible to make if MtGox and Bitstamp dropped that coupon support? Is there any other way how to send BTC between accounts at one exchange through API?

Is version 0 API still possible to use?

Bitstamp uses Ripple, MtGox has not yet (to my knowledge) offered a replacement for their IOU coupons.

I like the idea, but you would need a huge bank. And also, we can already send bitcoins from exchange to exchange as fast as it takes for confirmations, right?

If the exchange requires 6 confirmations then an hour on average is way too long for most arbitrage, one confirmation would probably be too long for a lot of quick trades. Confining everything to a few centralized servers (Exchange 1, Transfer Site, Exchange 2) could be faster than sending a transaction through the network; of course if you could get the exchanges to connect directly to each other or through very few hops that would help, but then they have to trust each other as well.