Bittrex Questions

[viking02]

I had been using bittrex for a couple of months , and by that period of time, I never encounter any issue problem with especially in every transactions which I had been made many times. In fact, if I am going to choose between Poloniex and bittrex, I would rather choose bittrex  than Poloniex.

I like to ask another question.  When you guys have bitcoin and want to trade for another currency like waves... how would you do this?  You would be trading btc for waves right?  So for example, you would trade 0.5 btc for x amount of waves?  But now let say you have waves and want to have USD transferred to your bank account.  How would you do this since there is no usd to btc?  So that means if you have waves and want money transferred to your bank account, you would need to first convert your waves to btc... then convert the btc to usd... then bank wire?  Is that how it works?  The confusing this is this.  Let say wave is 5 dollars or so.  You want to sell it for around that price.  So when you do, how would you sell it?  The thing is isn't the waves price always in usd?  So you need to make sure you convert 5 usd to x.xxxxxx btc every single time?  Wouldnt that be confusing and take lot of time etc?  Because if you have waves and say its 5 dollars.  If you want to sell say 100 of them... well if you do that would be 500 dollars total waves minus any fees.  But how would this be done since there is no waves to usd?  So everything has to go through bitcoin first before converting to cash?


So say you have 100 waves you want to sell.  Let say price is 5 dollars now.  How would you do it if you want to sell it at 5 dollars?


How would you do this if you want to sell 100 waves when price hits 5.25?  The thing is i know there are limit buy order and sell order.  But here... you cannot put 5.25 for waves right?  Thus wouldn't you need to the put the usd equivalent in btc like 0.xxxxxxx btc etc?  However, if you do this, wouldnt there be issues since btc value changes all the time?  So i assume if you put the 0.xxxxxxxx btc at the time waves would be 5.25, then no matter what happens to price of btc, it does not matter at all etc?

After buying waves if you want to sell it , then you should sell it for btc first and then buy whichever currency you want. At the time of selling the waves whatever price is going on will give you the amount of bitcoins and from those bitcoins you could buy the currency of your choice. For example, If you sell $5 worht of waves then you ll get $5 worth of bitcoins. The only disadvantage is that you will have to pay the selling fee and buying fee each time , for every trade you do.

So you cannot sell waves for usd?  So how do you get money into your bank account then? 


So can someone explain this?  You have btc and want to turn it into usd.  Then use that usd to buy another altcoin.  Can you do this or not?


You have btc and want to turn it to usd.  Then you want to cash it out to your bank account.  Can you do this or not?  What confuses me is shouldn't there be a usd balance on bittrex as well?

[xypos]

Can any bittrex users answer my last few questions?


So there is in usd balance?  So you cant sell btc or any other coin for usd balance... then ach or wire transfer it to your us bank account?


Also you cannot buy or sell altcoins for usd?  So you have to go through btc everytime?  Thus say you have steem.  You first have btc... then trade it for steem.  But with steem... if you want usd... you have to go through 2 steps?  Thus go from steem to btc and then to usd?  When could you withdraw the money to your bank account?  Or you cannot do this?  Is there a cash balance?

You are getting it wrong.

The market for USD on bittrex is actually USDT, which is a cryptocurrency itself on the Omni layer that is supposed to be tied with USD 1:1. So you can either buy the USDT with bitcoin, or you can verify yourself on tether.to and deposit bank trnsfer in USD to get USDt.

When you withdraw, you don't get any bank transfers. All you get is USDT, which again you can either cashout at tether.to once you get verified or just hold and sell when the time comes.

I would recommend staying away from USDT though, it can go under $1 at times and over $1 at times. It is not perfectly par.

[erk]

I would recommend staying away from USDT though, it can go under $1 at times and over $1 at times. It is not perfectly par.

USDT works by exactly matching the amount of coins in circulation, to the amount of USD in the Tether bank account. If there are a million USD in their bank account, they issue a million USDT into circulation, when people cash out they withdraw the same amount from circulation that's all. The price "parity" is set by the market on the exchange eg. Poloniex, and varies all the time, just like the value of BTC/USD varies significantly between exchange that accept fiat, and has nothing to do with Tether.

There is a certain amount of trust required that the amount of USDT in circulation does match the bank reserves at Tether, I don't know if this is open to public scrutiny. I think it should be.

[xypos]

I would recommend staying away from USDT though, it can go under $1 at times and over $1 at times. It is not perfectly par.

USDT works by exactly matching the amount of coins in circulation, to the amount of USD in the Tether bank account. If there are a million USD in their bank account, they issue a million USDT into circulation, when people cash out they withdraw the same amount from circulation that's all. The price "parity" is set by the market on the exchange eg. Poloniex, and varies all the time, just like the value of BTC/USD varies significantly between exchange that accept fiat, and has nothing to do with Tether.

There is a certain amount of trust required that the amount of USDT in circulation does match the bank reserves at Tether, I don't know if this is open to public scrutiny. I think it should be.

USDT is owned by a company. Even if they are able to maintain their full reserve status, that does not mean that they will stay honest forever and keep on paying out withdrawals. There could be regulatory pressures from certain countries, and when withdrawals are disabled for them it would mean a drop off in bitcoin price.

Bittrex obviously does not want to get into fiat because of the fact that US is now cracking down on crypto exchanges, and bittrex probably doesn't want anything to do with that. So they are going with USDT as a gateway.

I would only recommend holding USDT for short term hedging, <2 months.

[Samarkand]

One other thing i want to ask.  So if u dont get a verified account, you could actually do these transactions anonymously... is that correct or not?  For example i believe someone mentioned they require your email address but what else do they need?  So if you have bitcoin and wave ETH, you create an account and verify account via email.  Then you send bitcoin to bittrex account, then trade it for btc... then send the btc to your wallet... is that true or false?


If so, didn't someone mention that they allowed 3 btc max withdraw a day but now its like 0.025 or something ridiculous like that?

Can anybody confirm that Bittrex really has a 0.025 BTC withdrawal limit per day for unverified accounts?
If that is indeed true, would it be possible to withdraw more if you withdraw using one of the many altcoins
instead of making a Bitcoin withdrawal?

[viking02]

Okay im still confused with this usdt thing.  So i want to ask certain examples.



1.  I have nothing in my bittrex account.  I want to get $10,000 from my bank account to bittrex.  How do i do this?


2.  When i buy bitcoin with that money, i can do this.  But what if i wanted to buy something like lisk?  I will always have to first buy btc first... then immediately buy lisk with that btc since there is no way to go from cash to certain altcoins?  An


3.  Let say i have $5000 worth of Lisk which is an altcoin.  Say i want to exchange lisk for steem.  So you have to trade lisk for btc.  Then btc for steem?  Thus theres always 2 transfers needed to go from one altcoin to another assume that altcoin cannot be sold to usdt?   


4. So if i wanted to turn $5000 of lisk into my bank account.  It would be first sell lisk for btc.  Then sell btc for usdt.  Then with that usdt, sell it for bank transfer or wire?  Is it bank transfer or wire?  I heard of tether but why can they not just turn it into usd.


5.  Wouldn't you need to convert lisk to btc with the 0.xxxxxx btc amount?  How does even one do this then?


6.  Im confused with this usdt.  You say if you convert btc to say usdt.  You can either cash it out at tether.io or just hold and sell when you want.  So basically any time you want to cash out, you will cashout through tether and you will get a bank transfer from them?  Is that correct or not?  Also you say or you could hold sell when you want.  What do you mean by this?  Tether always is around 1 dollar.  So you are not going to make or lose any money at all etc.


7.  Are all exchanges like this?  This makes no sense with no usd balance.  I would figure an exchange... you have a usd balance.  Where you use this to buy coins.  Then you will have coins in that account.  Then when you want to sell... you sell it for usd... then that usd gets added to your usd balance.  Then anytime you want to withdraw, you submit a bank transfer or wire cashout to your bank.  Shouldn't that be the way it should be?  Because this is way too complicated.  Most importantly... why can you not buy certain altcoins with usd?  Like if a coin is 8 dollars, shouldn't you be able to buy it with your usd balance?  Why you need to first get bitcoin or eth first before you get the other coin?  That really makes no sense at all.  You have to go through a second step.  So basically unless you have btc or eth... then you have to go through 2 steps everytime?  And when you have an altcoin that cannot be sold for usdt... you have to go through 3 steps to cashout to your bank account?

[viking02]

any bittrex users can answer this?

[viking02]

Also can someone answer this


Does bittrex send you tax forms at the end of the year? I believe bittrex reports to the IRS right? Well if thats the case, if you cash out from there but say you got bitcoin from somewhere else, wouldn't there be a discrepancy? For example say you cash out 25000 total bank transfer to your bank account that was bitcoin being sold. Well if you got that amount of bitcoin for say only 15000, then you only have 10000 profit. However, wouldn't there be issues if you got your bitcoin a while back or from sites like shapeshift etc? Thus wouldnt there be issues where it shows you cashout 25000 but say you got that amount of bitcoin for 15000? I heard someone who used coinbase had an issue like this where they send him a tax form where it was over 100k but the way coinbase did it... they basically reported every transfer. Such as even if going from blockchain to coinbase etc which is ridiculous. That guy mentioned he had to contact coinbase because of something like this. But is bittrex similar with this or not? The thing is i know you are suppose to report the profit... however, wouldnt it seem they would at your cashouts from bittrex as bittrex would send how much was cashed out to the irs? Or not?

[viking02]

Anyone?

[qubalaya]

On the topic of potential shadiness of USDT trading:
- https://www.reddit.com/r/btc/comments/7ih0hd/guess_who_controls_over_half_a_billion_tethers/
- https://www.reddit.com/r/btc/comments/7e2drk/do_tethers_legal_terms_seriously_outline_the/

[jerry0]

Anyone can answer these questions?