Bitcoin crypto exchangers idea

[Polo7]

As I do trading on poloniex i tought that the bridge or Some Kind of centrality like between all the exchangers Will Help to keep volumes Up and it Will keep aritrage factor instantly between all the exchangers...


Can someone build Up this im Waiting thanks

[1715653668]

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[1715653668]

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[1715653668]

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[boyptc]

Like a connection to each exchanges? how could that be possible? unless they all agree to have an agreement and allow traders to connect from one exchange to another.

Are you thinking about this just to arbitrage?

[mk4]

If you're looking for something you can use so that you can transfer funds between exchanges a lot faster than a typical bitcoin transaction for you to be able to get better arbitrage opportunities, you might want to check out Liquid[1] by Blockstream. As far as I know it's not ready yet though. It's at least something to look forward to.

[1] https://blockstream.com/liquid/

[davis196]

As I do trading on poloniex i tought that the bridge or Some Kind of centrality like between all the exchangers Will Help to keep volumes Up and it Will keep aritrage factor instantly between all the exchangers...


Can someone build Up this im Waiting thanks

Someone could build a trading bot that uses API keys of all crypto exchanges(or at least the bigger ones).
This is the closest thing a what you are describing,I guess.
The crypto exchanges are competing against each other.They can't just agree on creating  a multi-exchange platform,because there's no direct benefit for them.

[antisocial77]

So there will be only one center for decentralized platform
And there are some ways to do it, no need to create this connection.

[pooya87]

it Will keep aritrage factor instantly between all the exchangers...

one of the reasons why "arbitrage" is possible between exchanges is because there is no easy way of transferring funds between them. if that problem were to be solved then there would have not been any price difference to let anybody do arbitrage trading.

[AjithBtc]

As I do trading on poloniex i tought that the bridge or Some Kind of centrality like between all the exchangers Will Help to keep volumes Up and it Will keep aritrage factor instantly between all the exchangers...


Can someone build Up this im Waiting thanks

Arbitrage trading between exchanges can be done based on the difference in the market price between two exchanges. This is quite hard to practice regularly as it is really hard to transfer funds between exchanges instantly. Arbitrage were done mostly by two persons in partnering, which is the only possible way.

[audaciousbeing]

As I do trading on poloniex i tought that the bridge or Some Kind of centrality like between all the exchangers Will Help to keep volumes Up and it Will keep aritrage factor instantly between all the exchangers...


Can someone build Up this im Waiting thanks

To have a connector between exchange sites would not really work out because the moment that is put in place there won't be opportunity for arbitrage because the real beauty of arbitrage is for what a particular site is doing in terms of value is unknown to the other. Another factor is the security of each site and how do one convince the sites to allow a partial allowance for connectivity without concern that it won't be exploited for other purposes.

What I can think of is having a kind of app with a platform that have access to spooling information on what selected coins are doing on their platform like a dashboard and it could make recommendations on which platform to visit and the potentials of arbitrage returns.

[bittraffic]

it Will keep aritrage factor instantly between all the exchangers...

one of the reasons why "arbitrage" is possible between exchanges is because there is no easy way of transferring funds between them. if that problem were to be solved then there would have not been any price difference to let anybody do arbitrage trading.

I think so too. Or if there would be price difference, it wouldn't be worth arbitraging due to the fees.

But if the easy way of transferring of funds will be created sort of a cross bridges between exchanges, it could be a security threat to exchanges linking to each other. Its a much dangerous path to go.

[mk4]

one of the reasons why "arbitrage" is possible between exchanges is because there is no easy way of transferring funds between them. if that problem were to be solved then there would have not been any price difference to let anybody do arbitrage trading.

There still would be a price difference, just not the hundred dollar margin difference between exchanges we sometimes see. I think it's inevitable for the price differences of exchanges to go lower as time goes as more traders enter the market, and more technologies help solve the problem of transferring funds between wallets and exchanges and between exchanges in general, and also as new technologies arise(like Liquid).

[Polo7]

The idea is like it Will be like Fractional reserve when Some exchangers Will run out of bitcoins they can get it though bridge,  to keep the volumes Up They Can borrow from Other exchangers and making profit,  in Order to borrow the exchangers should leave Some % to Crypto Central Station.
If They do not pay Back or Something its Security for Lender.

[mk4]

The idea is like it Will be like Fractional reserve when Some exchangers Will run out of bitcoins they can get it though bridge,  to keep the volumes Up They Can borrow from Other exchangers and making profit,  in Order to borrow the exchangers should leave Some % to Crypto Central Station.
If They do not pay Back or Something its Security for Lender.

How will exhcanges run out of bitcoins? Exchanges are mostly merely just brokers. If there are sellers, there will always be bitcoins waiting to be bought. Or is there something I missed?

[timerland]

Isn't this just an idea of one big exchange that completely centralizes everything, and basically will have no competition due to it being one centralised entity.

No offence, but it seems like one of the worst ideas that I've ever heard, and it goes against the concept of crypto and decentralisation, which is to make sure that no one has too much power and control.

There's really no point for this right now, having a lot of competing exchanges is great for the ecosystem, and means they will constantly be pushed to improve their services, and the price the consumers have to pay (transaction fees when moving coins from an exchange to another) is very little compared to the rewards.

DEX's would be good for the scene, but I'm not sure how'd they all fit in place with the number of regulations being forced onto us now.

[gentlemand]

Not quite the same but you can sign up for this - https://mcafeemagic.com if you feel inclined to trust the 9yr old Indian schoolgirl who this old nutter is paying to develop it. Rather you than me.

[pooya87]

one of the reasons why "arbitrage" is possible between exchanges is because there is no easy way of transferring funds between them. if that problem were to be solved then there would have not been any price difference to let anybody do arbitrage trading.

There still would be a price difference, just not the hundred dollar margin difference between exchanges we sometimes see. I think it's inevitable for the price differences of exchanges to go lower as time goes as more traders enter the market, and more technologies help solve the problem of transferring funds between wallets and exchanges and between exchanges in general, and also as new technologies arise(like Liquid).

what about exchanges themselves abusing such a system?
a malicious exchange could easily manipulate its own market to get a better price and then having better access they could use the "link" between their exchange and the other one to make a good amount of profit per day.

[erricducducan26]

Someone is still trading on Poloniex? hmm

[Polo7]

Someone is still trading on Poloniex? hmm

Yes i do  im old school, New things coming out daily Can't keep Up with them all.

[jostorres]

As I do trading on poloniex i tought that the bridge or Some Kind of centrality like between all the exchangers Will Help to keep volumes Up and it Will keep aritrage factor instantly between all the exchangers...


Can someone build Up this im Waiting thanks

Remember that they are all competing with themselves, and this will be very difficult to achieve because they all have their own different purpose into the market, there is absolutely no way that you can bridge the gap between them except maybe you want to create an exchange where all of them would decide to use and then whatever profit that is being made will be shared amongst them but I doubt if that would be of any good to them because this volume you are talking about is not a problem to those big exchanges, they have their volumes already and since it is not a problem to them, they will never pay attention to your solution.

The only exchanges that can see reason to your thought are those smaller exchanges that are lacking volume, and then it means they all have to sign an agreement to come under the same platform.