More liquidity than Mtgox and less fees? Here it is.

[unclescrooge]

Hi everyone,

Did you ever dream of buying or selling bitcoins with more liquidity than mtgox and less fees than their 0.6%? Don't search further, here it comes!

Bitfinex is not your typical exchange place. Here you can place exchange orders not only with other bitfinex users, but also with mtgox exchange place. That means more liquidity than mtgox and less fees! Only 0.4% for orders executed on mtgox and 0.1% (yes 0.1%) for orders executed against bitfinex orders!

Bitfinex offers you 3 feature: remunerated deposits, margin trading and regular bitcoins exchange. Since we're on the currency exchange forum I'll focus on the exchange feature.

To use this, you can register on bitfinex with an account of "exchange" level. You'll then be able to fund your account using wire transfer, mtgox code or bitcoins. As soon as your account is credited, you'll be able to start exchanging using the advanced interface below:


You can place market or limit orders, route your order (choose to only execute it against with mtgox orders or only with bitfinex orders), and you'll instantly see the market depth to choose the best moment to place your order.

Q: Is my money safe with you?

A: We use a unique feature for security: a watchonly wallet. Yes, no hot wallet at all. Bitcoins deposits are instaly credited, but withdrawals are manually processed once a day for security. Similarly mtgox api key doesn't grant the right to withdraw. And that's only the most prominent security feature! When it comes to security we're quite paranoid.

Q: Do you use my deposit to leverage the trades of margin traders?
A: Absolutely not. Account balances are separated in 3 wallets: deposit, exchange and trading. Only deposits funds is used to be lend to trader for margin trader. Your money on exchange wallets is with us and stay with us until you decide to use it.

Q: Can I use others features on your site?
A: Yes. Exchange account have access to deposit wallets, and of course you can register as a trader account to use the 3 features of Bitfinex

Any questions? Hit us on contact@bitfinex.com

[Dalkore]

How are you accomplishing margin trading?  IE: do you have a reserve of BTC you are extending credit against?

[myself]

How are you accomplishing margin trading?  IE: do you have a reserve of BTC you are extending credit against?

the BFX exchange and exchange accounts (or money deposited on exchange wallets) are the used like any other exchange, they dont use leverage, you buy with your funds and sell your funds.

[dust]

I suspect this is essentially grouping up a bunch of mtgox customers on one account to take advantage of mtgox's volume discount, while taking a cut.

On an unrelated note, I would have a hard time trusting the OP with my coins given his loud support and defense of Pirate.

[MPOE-PR]

Just some points for the record, in the unlikely event someone would be stupid enough to fall for something like that:

1. The op is using stolen code (the Bitcoinica codebase) which is neither his to use nor actually very trustworthy (having already sunk a team in the past, and one that for all its laughable shortcomings was indisputably better than what the OP has going). See here.

2. The "more liquidity than MtGox" claim is beyond ridiculous in this case.

3. Fly by night/fake forex-ish BTC offerings are usually scams, inasmuch as a bucketshop meets your definition of a scam.

[Dalkore]

How are you accomplishing margin trading?  IE: do you have a reserve of BTC you are extending credit against?

the BFX exchange and exchange accounts (or money deposited on exchange wallets) are the used like any other exchange, they dont use leverage, you buy with your funds and sell your funds.

Preface:  I read the FAQ and you you use the word "margin", please remove this term, being that I explain below what "margin trading" in and how from your statement above, your not providing this service.


That is called a "cash account", margin involves a brokerage house extending you credit and allowing you to put a "margin" of that amount up to "maintain" a position that they charge "interest" for the loan.  
If your position goes too quickly against you, they do a "margin call", shut down your position and you would lose that deposit you placed to create that leveraged position.

In the Bitcoin world, being that Bitcoin is a fixed asset without the ability to create artificial credit, the only way I can see an actual margin account would be having a reserve you are allowing people to get credit extended to them from.

Any other way would just be calling it "margin" but not really giving them this margin, ie:  not everyone could close their margin positions and take their profits at one time.  



Please advise,
Dalkore

[myself]

2. The "more liquidity than MtGox" claim is beyond ridiculous in this case.

if your add BFX orderbook and mtgox orderbook you get exactly that, more orders that on mtgox

How are you accomplishing margin trading?  IE: do you have a reserve of BTC you are extending credit against?

the BFX exchange and exchange accounts (or money deposited on exchange wallets) are the used like any other exchange, they dont use leverage, you buy with your funds and sell your funds.

Preface:  I read the FAQ and you you use the word "margin", please remove this term, being that I explain below what "margin trading" in and how from your statement above, your not providing this service.


That is called a "cash account", margin involves a brokerage house extending you credit and allowing you to put a "margin" of that amount up to "maintain" a position that they charge "interest" for the loan.  
If your position goes too quickly against you, they do a "margin call", shut down your position and you would lose that deposit you placed to create that leveraged position.

In the Bitcoin world, being that Bitcoin is a fixed asset without the ability to create artificial credit, the only way I can see an actual margin account would be having a reserve you are allowing people to get credit extended to them from.

Any other way would just be calling it "margin" but not really giving them this margin, ie:  not everyone could close their margin positions and take their profits at one time.  



Please advise,
Dalkore

there are the trading accounts (or trading wallets) for the users that want to use leverage but this thread is not about that since is on the Bitcoin Forum > Economy > Marketplace > Currency exchange > (i don't want to derail the thread) for info about how the leverage trading works and how is funded read this post http://bit.ly/Ur8MCL