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Author Topic: Best Exchange for Speculators and large traders  (Read 582 times)
pqzilvaq (OP)
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May 24, 2014, 10:32:33 PM
 #1

I think the Speculation subforum is appropriate for a thread like this because the only people who are up to date and well versed in this matter are those who trade across multiple platforms and also care a great deal about fees. There are also a category of bitcointalk users who probably do not wanted into too many other sub forums. Comparing exchanges across different threads and comments from users who have usually only experience with a handful of transactions at a single site is not really adequate.

I plan to sell a large amount of bitcoins over time if the price keeps increasing and am looking for how to best sell them. Here are the fees for the leading exchanges. Please help me correct my mistakes.


BTC-e

0.2% trading fee, at least 1% or 1.5% withdraw fee (depending on currency), the lower withdraw fees withdraw to payment processors who have their own usually steep withdraw fees

I am not interested in BTC-e because bitcoins sell for generally 1% to 3% lower at this exchange but it seems like the idea place to buy bitcoins from.

Bitfinex

0.1% to 0.2% trading fees, 0.1% withdraw fee

Huobi

No trading fees, 0.3% to 0.5% withdraw fees (I think, I can't read Chinese), Ego pay is an alternative cashout option but it seems that Ego pay's withdraw fee is 1.5% (https://www.egopay.com/fees/)


Bitstamp

0.2% trading fee and a flat withdraw fee. Tedious account verification methods. I can never know all the previous owners of my bitcoins and I am worried that they may be on a blacklist. The tedious questions have me worried.


To me it seems clear that for large sellers Bitfinex is the best place to sell bitcoins and that barring ridiculous deposit fees BTC-e would be the best place to buy a lot of bitcoins from. Still since I will be selling a large amount, I want to ask your opinions.

One concern I have is that I do not know who operates Bitfinex but they seem to not have too many bad reviews and people don't seem to question their volume. All input is appreciated.
damnek
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May 24, 2014, 10:41:16 PM
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Depending on what large is, you could also look into hitbtc. They seem to have a decent amount of liquidity, their fees are not that high, and they're currently trading above the bitstamp price.
gentlemand
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May 24, 2014, 10:52:30 PM
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If you have a large amount of coins then contact the exchanges and ask them whether they have some big buyers off the books. Gox used to do that. I'm not sure if the others do, but it's worth a try.

SecondMarket also appear to broker sales for blocks over 25 BTC https://www.secondmarket.com/bitcoin-trading

In a few months times it looks like there'll finally be some 'real' exchanges too.
pqzilvaq (OP)
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May 24, 2014, 10:53:48 PM
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hitbtc looks great! Trading fees are tiny and withdraw fees as well. I am only worried about liquidity for large orders. My guess is that if I put up a market order it will only execute if the market shifts to make it profitable for arb bots which means that the price difference I pay would be supplying the arb bot with enough to make up for trade fees at one of the larger exchanges.
pqzilvaq (OP)
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May 24, 2014, 11:04:33 PM
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If you have a large amount of coins then contact the exchanges and ask them whether they have some big buyers off the books. Gox used to do that. I'm not sure if the others do, but it's worth a try.

SecondMarket also appear to broker sales for blocks over 25 BTC https://www.secondmarket.com/bitcoin-trading

In a few months times it looks like there'll finally be some 'real' exchanges too.

These replies have been very helpful! Unless you have so many bitcoins that you would move the market and be happy getting 2% less than the current market price, how could SecondMarket compete with regular exchanges? Are there any examples of the current going rate for 25BTC, 50BTC, 100BTC, 200BTC etc.?
gentlemand
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May 24, 2014, 11:09:09 PM
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I've no idea how SecondMarket sales are priced. Get in touch with them and see what they say.

I guess their primary appeal is that they're a registered broker in the US. That may mean they achieve similar or higher prices as they offer that much more security and comeback. There might be a little institutional money floating around that's only permitted to buy through channels like that.
pqzilvaq (OP)
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May 24, 2014, 11:21:59 PM
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I've no idea how SecondMarket sales are priced. Get in touch with them and see what they say.

I guess their primary appeal is that they're a registered broker in the US. That may mean they achieve similar or higher prices as they offer that much more security and comeback. There might be a little institutional money floating around that's only permitted to buy through channels like that.

Very helpful and possibly correct. Even the idea of selling and buying in this way might appeal more to those without bitcoins causing the price to be higher. My concern is that I am supposed to send the bitcoin after the negotiations. That sounds terrible to the buyer because I could screw the buyer if in the next hour the price went up. Since the site does large transactions how are they not riddled with this type of fraud? If the purchaser also sends the cash only after the agreement is made, the seller can be equally taken advantage of.
MyPotPlantDied
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May 25, 2014, 02:40:41 AM
 #8

My vote would  be for BTC-e due to the huge volumes.
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May 25, 2014, 05:39:28 AM
 #9

If you sell to Second Market, get ready to pay the capital gains tax.  Seems likely they would report to the IRS.
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