We actually aggregate Bitstamp's order book into our own internal order book. Essentially meaning we combine our own liquidity with Stamps. Not to mention our API offerings outnumber everyone in the industry (we have FIX 4.4 API, Web Sockets API, and RESTful/JSON API) [they're pretty fast as well, if I don't say so myself].

We agree 100%. Which is why we don't charge for deposits or withdrawals, and offer this insurance package to our users for free.

Coinsetter is usually my exchange of choice.

We actually cover all costs for our clients. In regards to the 50%, there are numerous reasons behind this. To name one, any funds held in Xapo's insured enterprise vault aren't instantly retrievable, and we want to ensure our ability to process large withdrawals in a timely and predictable manner.

We're also not saying that we only guarantee the safety of 50% of client bitcoins, we're saying that we only insure 50% of client bitcoins. Safety and security are the backbone of our firm, and any bitcoin company in general.



Understandable, but quite a few Mt. Gox creditors may disagree with you on that one.

Hey all, we recently announced that we now offer insurance on approximately 50% of all bitcoin deposits (free of charge) to Coinsetter and are looking for some feedback on the program.

Please feel free to let us know your thoughts; the opinion of the community is huge when it comes to decision making in the Coinsetter office.

You can read more about the insurance program on our blog here: http://www.coinsetter.com/blog/2014/07/01/coinsetter-bitcoins-now-protected-insured-xapo-vault/

Thanks in advance!

Josiah Hernandez
Business Development | Coinsetter

Have you guys looked at Coinsetter at all?

We're actually the first bitcoin exchange to offer insurance on customer deposits (via Xapo). It's on our blog here: http://www.coinsetter.com/blog/2014/07/01/coinsetter-bitcoins-now-protected-insured-xapo-vault/

In terms of fees, we've been heavily discussing this around the office recently. It's part of the reason we're doing this research--we want to know what the community is comfortable with. 

1) How exactly do you define "trust"?
2) What qualifies as low fees for the community? 

We actually already have a compliance-approved US bank account. Our issue has never been getting the bank account, it has been the regulations surrounding accepting US customer funds.

So just for clarification, are you referring to developing connections with more local/regional banks? Or do you mean any bank, period?

This is something we haven't heard much of before. Could you possibly expand a bit on what you mean by "privacy controls".

Also, by seamless are you referring to time of transfer or more so in overall convenience?

Thanks again to you specifically Maurya78 for your feedback and everyone else giving us this valuable info!

Coinsetter is doing some research in regards to what bitcoiners are truly looking for what it comes to a BTC/fiat exchange. After all, we can sit around in a room and theorize all we want to--and can even look internally at what we want as bitcoiners ourselves--but at the end of the day it's you guys (and girls) that we want on our platform... Why not get the information we need straight, from the source?

Your responses are going to help guide the development of our platform moving forward, so please, feel free to speak your mind!

'y' = the roughly equivalent amount of LTC to x amount of BTC (in value)

Start with 'x' amount of BTC on a typically lower-rate BTC/LTC exchange

Start with 'y' amount of LTC on a typically higher-rate BTC/LTC exchange

When a spread in price is detected between the exchanges, simultaneously buy 'z' amount of LTC at the lower-rate exchange and sell 'z' amount of LTC at higher-rate exchange, effectively refreshing your LTC balance at a cheaper rate, every time.

Taking it a step further would be to scan the order book to see how much you could buy/sell exactly, to lower the risk of mistakenly overextending what the market inefficiency can handle. This is recommended to be done by a bot or some sort of automated system however, seeing as it requires a lot of calculations in a very short amount of time.

When you've exhausted your funds, reallocate profits and repeat.

This effectively mitigates exposure to the risk of not being fast enough to catch the inefficiency while it exists, that most arbitragers experience in the crypto space (and it's worked pretty well for me  )

@odolvlobo

That was intended haha. The extra 1% is because the seller is also inputting funds.

Also, this surpasses the capabilities of purely multi-sig based escrow.

If you're interested in including Coinsetter price data, I'd be more than happy to help you get set up to do so.

Even two would be a step up from one (federal reserve). But not to mention, they only have to power to make what has been already designated to be made by the network. They have an inherently limited ability to create capital, a measure that our current systems of economies don't have built in.

I posted this on reddit the other day, but I realized you guys would probably be a better crowd to share this with.

99% of payment for product or service is sent in Bitcoin by buyer to a smart address (escrow address that is supported by the network). 0.05% is sent to the smart address as well by the merchant or provider of service. When the product is delivered or the service is serviced, the buyer sends the last 1% and the merchant/service provider sends another 0.05%.

Since both the buyer and seller sent coins before the physical transaction occurred (and signed by each party's private keys), the smart address "knows" where to send the coins after all four deposits have been received (to the seller).

The address would also include a functionality which would would release the coins back to the buyer after a certain amount of time lapses before the post-transaction 1% is sent by the buyer.

I understand there is a lot of work before such addresses can actually be implemented, but I thought I might as well throw the idea out there.

For those not aware of our public innovation initiative, we discuss it in detail at http://blog.coinsetter.com/2014/02/28/coinsetters-initiative-create-public-transparency-protocol/. We are asking you, the community, to contribute ideas and outright implementations for a proof-of-solvency protocol that will be used at Coinsetter. We look forward to hearing your ideas, suggestions and implementations!

We ask all posts go to our Reddit discussion at http://www.reddit.com/r/Bitcoin/comments/1z6z9t/join_coinsetters_initiative_to_create_a_public/ for the sake of organization, but feel more than free to discuss here as well. I'll be constantly checking back in!