Bitcoin Forum

How do exchanges work?

excahnges works very easily ! if i give u example!

U are the seller and i m the buyer if u put the selling price of btc 150$ and i put the buying price 150$ then there will be an automatic process which buy the btc for me and give you the dollars in ur account easy :P )

They provide a way for buyers to interact with sellers and trade bitcoin in this situation.

https://bit-x.com/pages/about

Buyer want Buy
Seller want Sell

exchanger will be a mediator to both :)

You got it!

So, basically I have the bitcoins(seller) someone(buyer) makes offer for the amount of bitcoins I have, we agree, they exchange cash for the bitcoins I have?

Yep pretty much like that , It's pretty safe even if I  don't use exchangers all the time
you still can use Currency Exchange section here on bitcointalk if you feel like tho. just make sure to trade with trusted members or use Escrow to keep things safe for both of you

Possible stupid question. What would I use for escrow for bitcoins?

To avoid being scammed. If you want to buy 10 bitcoins from bob and need to pay him $1000, who will go first if you don't trust him? If you send first he can just run away with the $1000. If you send $1000 to an escrow then bob sends you the 10 bitcoins and the escrow sends the $1000 to bob since the transaction was completed successfully. If bob refuses to send you the 10 bitcoins then the escrow can return your $1000 (instead of bob running away with it).

Escrow list here: https://bitcointalk.org/index.php?topic=855778.0

Okay, I just want to make sure that when I go to sell bitcoins I get from the the casino I play at I don't get screwed.

they work just like the stock market exchanges

Exchanges work in a very simple way. Here's an example:

I want to buy a lollipop in this price. (say $1) then a dude wants to sell his lollipop for $1. The exchange will act as a medium between us to process the transaction and in return, the exchange will charge fees as the "facilitator" of the deal that occurred between us. :D

Hope that that isn't hard to understand. :)

this good explain
exchange if you sell 1btc on 100$ and im as buyer want buy it 100$ the exchange will do automatic and will charged fees us thats an exsample :)

In that example the fee of the exchange must be some part of lollipop, but in that way the deal is not correct, because the object of the deal is lollipop, not the part of it. So i thing that i not a good example.

I think above every one explained it well. Exchanges exchange your from from any type to any type. Like if you have btc you can convert them into pz or pp etc.

I think hi op if you got your answer you can lock it

Enjoy

I got it. I just wanted to make sure I had it right. What is the best top ten exchanges?

Depend, what coins do you want to change?

complicated.

exactly the way he said it.

You forgot:

People will send money and Bitcoin.

And the exchange will take part of deposit and trades as fee

Lol are you kiding you dobt know about exchanges. As its name indicate exchange s , you can exchang you money into any other money form

Sorry to disappoint you but being a newbie I'm still learning about everything.

English doesn't have to be his main language.

That's okay. Sometimes you have to take what people say on forums with a grain of salt. :)

Could someone give me a list of ten of the best exchanges?

btc-e
Bitstamp

I wouldn't say coinbase is an exchange.


Localbitcoins.

Localbitcoins also isn't exchange it's list of vendors selling btc and vendors set prices themselves.
Next big exchanges are bitfinex, huobi, btcchina

Could you give me the links to those sites?

You can refer to either of the below given links:
http://www.cryptocoincharts.info/markets/info (http://www.cryptocoincharts.info/markets/info) = This site gives you results based on 24 HR Volume

http://bestcoinexchange.com/top-10-best-bitcoin-exchanges/ (http://bestcoinexchange.com/top-10-best-bitcoin-exchanges/) = This site's results are based on the admin's own preferences...

Thanks!

https://btc-e.com
www.bitstamp.net
Localbitcoins.com
coinsbase.com

It's a market. They use a software to pair a buyer and a seller.
If you want to know in details, it's an other story.

I want to learn as much about the subject as I can from those who have experience with it.

Work on Supply and demand .E.g : I'm a trader on btc-e I will sell if i see a huge sell coming and buy when i made profit  ;D

You can also try kraken.com (http://kraken.com)

and if you just want to buy or sell (no exchanges, no online wallets, just SEPA transfers) you can use belgancoin.com (http://belgacoin.com)

I see there are lots of suggestions for you, but be careful that different exchanges offer different services.
Some only work for US customers, while some work for everybody.
Some require customers to do ID verification, while some don't.
Some have more deposit and withdrawal options, while some offers just 1 or 2 options.

Could you tell which ones do not require ID to verification?

The above mentioned site like coinbase btc-e . blockchain info localbitcoin all these sites dont require ID  verification. ID verification is only requires when you buy bitcoin using these site espacially coinbase through bank or card.

You have BTC you want cash -> you place order sell your BTC someone buy it, you receive cash
Exchange work like that.

For Coinbase, you will need to at least verify your phone number and bank account, or link your credit card.
https://support.coinbase.com/customer/portal/articles/1635397-what-are-user-verifications-used-for-

For btc-e, you won't need to do verification unless you need to make bank wire transfers.

Blockchain.info is just a wallet and a blockchain explorer, and there is no way you can buy or sell your bitcoin there.

You don't have to go to an exchange like Bitstamp, Kraken, Bitfinex, BTC-E, if you're not planning on actively trading Bitcoin.

If you just want to buy and sell infrequently, then Coinbase, Circle, and LocalBitcoins are your best bet.

Thanks for explanation!

It's the same thing as your regular old stock exchange

but with lower fees and regulations

Link up your bank account, send in money when you want to buy  Bitcoin at a particular price. Or, if you have Bitoin, sell at a proce you feel meets your requirement and the money will be sent into your bank account.
Very little fees.
I used Coinbase and have been please all around. If different countries, different exchanges work better/worse. Do a little research in regards to which exchange most use in your country.

Simple as:

Deposit fiat/crypto -> Operate -> Withdraw fiat/crypto gains (or save losses).

Remember to never leave cryptocurrencies for long in the exchanges addresses, too risky.

Why?

As their hot wallet could get hacked like it happend with stamp.

If their hot wallet is hacked they should be ok if they have enough reserves but they could even lose their cold wallets, burn so much capital that they lose their clients deposits or leave with the cash.

What's a hot and cold wallet?

Speaking of exchanges, Coinbase is launching the first regulated North American one is about 30 minutes or so:

http://cdn1.tnwcdn.com/wp-content/blogs.dir/1/files/2015/01/Lunar-798x310.jpg

https://www.coinbase.com/lunar

Time for liftoff, gents.   8)

nice pic  ;D

Aaaaaand it's up! https://exchange.coinbase.com/

Hot wallet allows for instant automatical withdrawals by online command. A cold wallet is not accessible online without bringing the priv key online so a well secured cold wallet should never be hacked.

I gotta say, for people located in the US this exchange looks really nice. It's clean and easy to use and has really nice features. I like the fee-structure, it's insured, the API is very well designed. Man this could be the game-changer as some people in the speculation forum are saying!

then try this link https://www.coinbase.com/lunar

Tothemoon my friends!

And tothebottom after this?

I don't know if the announcement from Coinbase had that influence on the market. It is also possible that the elections in Greece caused the rising of the bitcoinprice.

I don't think that elections in Greece could affect on bitcoinprice.

Fiat currencies going down in value will be positive for the price of bitcoin and Bitcoin in general.

How downway of fiat currencies in Greece can affect on btc if most "affecting" countries are US and China? Sorry, I'm not very well in this issue

mediator and collector of money :D

may be because greek currency still not drachma but euro more than ten years? I hope you do not think that euro don't affect on all world economy?

What is fiat currency?

Fiat currency is physical money, rubles, dollars, euros, Ext. 

Pssst, is there any thread showing how to use Escrow ? I really want to sell/buy on this forum. x0

I don't think there is, but it is quite simple process though. I'm sure the escrow would explain the steps before starting the transaction.

But in general, the step looks like this: (Assume you're the buyer)
1. You and seller agreed to use escrow.
2. Contact the escrow via PM(for safety reason, avoid using Skype)
3. The escrow will verify the deal to you and the seller
4. The escrow will give you their address.
5. You send the BTC to escrower address
6. The escrow will confirm your payment, and contact seller to send the items to you.
7. After you received and check the items, you must contact the escrow to release the fund to the seller.
8. The seller received the BTC.
Transaction done.

Just in case you're looking for trusted Bitcointalk escrow, here's the list https://bitcointalk.org/index.php?topic=108716.0

Thanks buddy ! :3

Top 10 exchanges according to http://bitcoinx.io

Cryptonit
Hit BTC
Celery
Payza
Anycoin Direct
Kraken
Loyalbit
Circle
HolyTransaction
Coinmotion

no! physical money may be fiat (provided by state authority without real value) or may be provided by goods or real value.

In terms of volume, https://bitcoinaverage.com/ gives :

exchange   volume %   volume ฿   last price

Bitfinex   51.04%   54,085.95   260.50 USD
OKCoin.com   18.00%   19,071.33   261.11 USD
Bitstamp   11.99%   12,709.56   259.64 USD
BTC-e   11.68%   12,372.53   252.06 USD
itBit   4.34%   4,604.24   263.35 USD
LocalBitcoins   1.77%   1,872.35   294.78 USD
Coinsetter   0.61%   651.53   259.82 USD
Loyalbit   0.16%   167.16   257.61 USD
Hitbtc   0.15%   156.02   270.66 USD
Cointrader.net   0.11%   111.87   262.96 USD
Bitex.la   0.05%   58.18   257.55 USD
Coinmate   0.03%   35.06   262.72 USD
CampBX   0.03%   32.37   285.00 USD
Kraken   0.02%   24.28   248.40 USD
BitKonan   0.01%   7.56   262.01 USD
Rock Trading   0.01%   11.70   258.45 USD
Vircurex   < 0.01%   0.00   289.00 USD
Cryptonit   < 0.01%   1.07   262.79 USD

hum?
is coinbase exchange so low in volume that can not be put in the list ???

Yeah, those numbers are off. Pretty sure Coinbase has the most volume out of any exchange, given their partnerships with all the large companies that accept BTC as form of payment.

I think that in this ranking not all exchanges are presented

I don't think coinbase doesn't have a volume high enough to be included because it's a big company which sells a lot of bitcoins but I think they are not really working as an exchange and the transactions are not public.

I vote for Bitstamp.

After the recent theft, I wouldn't vote them anywhere near the top.

Probably Kraken, Bitfinex, or Coinbase at the moment.

Could someone tell me an exchange where I don't need a checking account and can use credit card to buy bitcoins? Please give link. Thanks!

There is a lot of websites out there mate , you can check the Bitcoin wiki about Buying Bitcoins using credit cards here : https://en.bitcoin.it/wiki/How_To_Buy_Bitcoins_With_Your_Credit_Card
Probably most of them will need ID/passport verifications sometimes to avoid fraudulent transactions , if you don't like any of the websites listed there then you may simply post here on Bitcointalk : https://bitcointalk.org/index.php?board=53.0 just make sure to use Escrow and don't trust anyone who have no Trust .
~ Madness

Where is the best [lace to buy bitcoins? Here on this site with a escrow? I only need $50 worth of bitcoins. I don't have a checking account but I'll be using my brothers credit card to buy them and want them to go to my wallet. Is that possible?

Well , what kind of Credit card you have ?
Anyway you simply post on Currency exchange section saying the following : [Have] xx $ [Need] 50$ BTC , give more informations about your credit card Payoneer , Neteller or whatever it is .

It's a MasterCard. What I'm wanting to do is exchange $50 for $50 worth of bitcoin and put it directly in my wallet.

Use this link https://bitcointalk.org/index.php?board=53.0, find very trusted escrow, find very trusted buyer that accepts payments through PayPal, use your brother's Mastercard through Paypal to buy $50 worth of Bitcoin.

Boom, solved.

Could you give me the link to the currency exchange? And how do I contact an escrow?

Currency Exchange Section : https://bitcointalk.org/index.php?board=53.0 (Put your announce here)
List of Escrows : https://bitcointalk.org/index.php?topic=108716.0 (I only know devthedev  & escrow.ms on that list , trusted members)
Contact one of the escrows (list may be outdated) once you find someone that accepted your offer and willing to do a trade with you.

I've read on the forums using paypal is a bad idea. Besides, how would I get the bitcoins from paypal to my wallet?

Only if there's an untrustworthy seller.  Then you risk chargebacks.  So no, in this case with highly trusted seller and a highly trusted escrow, there is no worry with Paypal.

You can use any major credit card to apply towards a Paypal payment.

The seller in this forum would transfer the Bitcoin to the wallet address you provide, once he receives the Paypal payment of $50.

Since this is my first time doing this could you give me the steps to take?

Talk to this dude shdvb in the following thread:

https://bitcointalk.org/index.php?topic=583572.0

He has alot of BTC for Paypal transactions.

As for your Mastercard, you have to sign up for a Paypal account, and add it as one of the payment options before you contact any sellers here.

How do I PM him?

Click on the chat bubble next to his name.

https://i.imgur.com/VVSu0Ys.png

He's offline at the moment, but he should respond to you once he's online.

Thanks!

I have done everything everyone has said but I keep running into stumbling blocks. Is there away to buy bitcoins with a mastercard and no checking account and that will send the bitcoins to my wallet? This is really all I need to know.

No, it would be too easy for people to use stolen cards and the transactions would be reversed.
Have to link a bank account or use localbitcoins.

A week ago, I have read a thread that were announcing a company that was selling bitcoins with credit or debit card, you can probably find it if you look for it.

its is same as a local dealer acts
you want to buy some coin you put your order size, price and seller also do the same that are called pending order or orderbook
if you want to buy or sell at current price then you sell them to the user who put a pending order for their trade
this all stuff is automated,

If you have cash you can buy from https://www.bitquick.co. Just hit "Launch Quick Buy".

Do you think you could find a link to this site?

I looked for it but didn't find it, I posted on the thread.

Google : https://www.google.hu/search?q=buying%20bitcoins%20with%20credit%20card%20bitcointalk&rct=j