Coin exchange markets create the coin "out of thin air "

[temelispanyolca]

Coin exchange markets create the coin "out of thin air "

You first buy the 0.0001 BTC from Binance or any local coin exchange markets.
You give 3.5 dolar to Binance and Binance add 0.0001 btc to your account.
In this transaction, really, Binance gives you BTC ?
 

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[jackg]

Are you doing a trade or are you just looking at the value binance lists as the total of all your wallet funds?

If you're trading then they match you with someone else. Who wants to trade. If not then they just work out what a good assumption for the price is and go with that...

[20kevin20]

If they wouldn't and the BTC they gave you were false, then at some point they would not have enough liquidity to fulfill the withdrawal requests. It'd probably also be illegal. what I'd doubt more than that is the "Bitcoin" they have on the Binance blockchain instead. Never looked into it, so I have no idea whether it's backed by real BTC for sure or not.

What you should be worried about is how PayPal does it tho. Since they never let you withdraw to personal BTC wallet, their "BTC" might actually be non-existent coins created to inflate the market artificially. Especially since their terms and conditions clearly mention that, as a customer, you are not holding any specific recognizable cryptocurrency on their platform.. so what are you holding exactly? Just a number

[odolvlobo]

Binance (and other exchanges) have buyers and sellers. If you buy 0.0001 BTC, you are buying from a seller. If you are buying from the exchange, then the exchange is acting as the middle man.

[temelispanyolca]

Binance (and other exchanges) have buyers and sellers. If you buy 0.0001 BTC, you are buying from a seller. If you are buying from the exchange, then the exchange is acting as the middle man.

When you first time bought the Btc from Binance, Binance took commision from transaction.
or How do you know the seller is Binance  robot or real seller ?

questions?

[Dutchyyy]

Exchanges are not creating those tokens |out of thin air". They are integrating the tokens in the whole eco-systems, giving discounts, dividends, etc.

In most cases, like Binance, it's much better than 99% of the ICOs.

[kiki8899]

No, if you really use Bianace, you will know that other people who want to sell bitcoin give you the bitcoin, Bianace is just a plate for people trading like supermarket

[Darker45]

In this transaction, really, Binance gives you BTC ?
 

You are provided with a BTC address to your wallet. Go to blockchain.com or blockchair.com and check your balance.

Binance (and other exchanges) have buyers and sellers. If you buy 0.0001 BTC, you are buying from a seller. If you are buying from the exchange, then the exchange is acting as the middle man.

When you first time bought the Btc from Binance, Binance took commision from transaction.
or How do you know the seller is Binance  robot or real seller ?

If you buy from Binance, then it is Binance that is selling. How do you know? Because you bought from Binance.

If you are buying BTC through a classic or spot trade on their platform, then you do not know who is selling. What you have is a buy/bid order and if it happens that there is a sell/ask order which has the same price as yours, then the trade is filled. But you do not know the seller.

If you are buying through P2P, you will deal with a username only so you won't still know the real individual behind your transaction.

[odolvlobo]

Binance (and other exchanges) have buyers and sellers. If you buy 0.0001 BTC, you are buying from a seller. If you are buying from the exchange, then the exchange is acting as the middle man.

When you first time bought the Btc from Binance, Binance took commision from transaction.
or How do you know the seller is Binance  robot or real seller ?

Oh, I see. You believe that Binance is selling coins that it does not own or that do not exist. Well, that is possible -- it happened at Mt. Gox.

However, if you doubt them, then simply withdraw the coins to your wallet, and you are safe.

[adaseb]

Well when you buy a stock on the stock market, all they do is put a "1" in your portfolio for whatever stock you bought, they can also easily create it out of thin air. Same with going to a bank, getting a mortgage for $500,000. All they do is put a few numbers on a few pieces of paper for you to sign, you never actually see this money. This is because everything is done digitally these days. Just because you can't psychically feel it, doesn't mean it doesn't exist.

So when Binance gives you the 0.0001BTC, its because someone else sold it to you for your $3.50. That person send his BTC to binance, and you sent your fiat to binance and now you did a trade with the other counterparty. Both people get what they want and Binance just gets some commission. There is nothing created out of thin air.

[Lorence.xD]

Well when you buy a stock on the stock market, all they do is put a "1" in your portfolio for whatever stock you bought, they can also easily create it out of thin air.

Stocks on the basic level can't create a stock out of thin air, they have some sort of valuation or something that puts the amount of stock that they are valued.

Same with going to a bank, getting a mortgage for $500,000. All they do is put a few numbers on a few pieces of paper for you to sign, you never actually see this money. This is because everything is done digitally these days. Just because you can't psychically feel it, doesn't mean it doesn't exist.

Digitalization made people think that we are creating money out of thin air, in fact, it has been a thing since the inception of humanity and trade, who says what that gold is worth, we see it as shiny so we value it as precious. Banks don't have a lot of money in their buildings, most of it are circulated so that it could grow and get the economy pumping. I do agree, physical feeling about the worth of a paper is all about trust.

[Ucy]

The $3.5 is close to what 0.0001btc is actually worth. 
If a legitimate exchange gives you that amount of bitcoin, it's probably because you paid for it, unless maybe the exchange is giving people some sort of bitcoin bonus, or it's sent by mistake? If that's what they do, then the bitcoin is  most likely coming from their Bitcoin reserve.
Make sure you are dealing with actual exchange rather than scams. And also make sure what you are talking about is true and you understand it.

[disconnectme]

To be sincere your question is not that clear to me, if you are buying BTC on exchange that means there is another person on the exchange selling his/her own BTC at the price you are bidding, and again remember that exchange will take their own trading fees for using their own platform for the transaction. It was rumoured sometimes that some of these exchanges do not have the Bitcoin they claim they have and some people are calling for Proof of Reserve but this voices seem to have gone down for now.

[temelispanyolca]

https://mobile.twitter.com/VeriDelisi/status/1355109043342372865/photo/1
Binance will be suspending withdrawals temporarily in order to address a large increase in requests from new unique users.

Rest assured funds are #SAFU and we apologize for any inconvenience caused.

Updates to follow.

[jrrsparkles]

Coin exchange markets create the coin "out of thin air "

You first buy the 0.0001 BTC from Binance or any local coin exchange markets.
You give 3.5 dolar to Binance and Binance add 0.0001 btc to your account.
In this transaction, really, Binance gives you BTC ?
 

Binance isn't buying or selling anything they just act as medium of exchange where buyer and seller can meet.

Seller list their trade order and buyer also will create a trade order when both price meet the same then it will execute the trade(s).

Binance make money from the commissions and withdrawal fees.

[joniboini]

If they want to cheat then it is definitely possible, hence why you need to trust them. But at some point, it won't be sustainable and if there's a huge withdrawal request they'll get a huge problem. It is possible that they do something and get away with it though, so it is safe to say that you if you don't want to get into trouble, might as well use a DEX or withdraw asap.

[temelispanyolca]

https://mobile.twitter.com/VeriDelisi/status/1355109043342372865/photo/1
Binance will be suspending withdrawals temporarily in order to address a large increase in requests from new unique users.

Rest assured funds are #SAFU and we apologize for any inconvenience caused.

Updates to follow.

If they want to cheat then it is definitely possible, hence why you need to trust them. But at some point, it won't be sustainable and if there's a huge withdrawal request they'll get a huge problem. It is possible that they do something and get away with it though, so it is safe to say that you if you don't want to get into trouble, might as well use a DEX or withdraw asap.

[Mauser]

Coin exchange markets create the coin "out of thin air "

You first buy the 0.0001 BTC from Binance or any local coin exchange markets.
You give 3.5 dolar to Binance and Binance add 0.0001 btc to your account.
In this transaction, really, Binance gives you BTC ?
 

I don't think this going to work on a large scale because the bitcoin price is fluctuating heavily these days. I would be very careful if someone promises you a fixed Bitcoin amount over a longer period of time. Creating coins out of thin air is not really possible, somewhere there must be a profit being made by binance to give you such good offers.

[TedMosby]

Coin exchange markets create the coin "out of thin air "

You first buy the 0.0001 BTC from Binance or any local coin exchange markets.
You give 3.5 dolar to Binance and Binance add 0.0001 btc to your account.
In this transaction, really, Binance gives you BTC ?
 

do you mean you are doing P2P transactions with Binance itself? like when you buy crypto instantly with a credit card?
yeah, Binance will give you only numbers unless you withdraw your Bitcoin or send it outside Binance, they will give you the real Bitcoin.
Most of the exchanges use their latest price on the spot market to fulfill your instant order. They give you the Bitcoin that they buy automatically from the spot market orders. CMIIW. I am not sure about it too.

[pixie85]

Binance (and other exchanges) have buyers and sellers. If you buy 0.0001 BTC, you are buying from a seller. If you are buying from the exchange, then the exchange is acting as the middle man.

When you first time bought the Btc from Binance, Binance took commision from transaction.
or How do you know the seller is Binance  robot or real seller ?

questions?

In fact many exchanges had their own bots doing the trading. The market is mostly unregulated so there's nobody watching. If they want to manipulate the price or have their own "willy bot" trading using fake fiat balance they can pull it off. It's a bit risky because when Chinese exchanges were faking volume in 2014 the government shut them down.

Even if they're trading for themselves, what can you do? You can stop using them and use the nearest ATM that will later sell your coins at one of those big exchanges.