How do big exchanges get their bitcoin ?

[Smack That Ace]

Guys thank you for your response advice and criticim.
I appreciate the time you guys have taken to answer.

 
Frank I never mentioned anything about the software security operations of the business so to be honest your just assuming everything. And as they say when you assume something you make an ass out of you and me.

I'm not going to get up and open coinbase in a country where they have never heard about bitcoin and I'm not inviting whales to come play around at the exchange. Actually there is no trading but geared more towards consumer buying and selling.

Elwar thank you and after reading your post I have asked the Dev team to add a panel showing the reserves of the exchange and this way make it simpler for customers to buy and sell and stay within the reserves.

Not worried about security that much as it will be linked with blockchain and no btc would be kept on the site.

I still need some more clarficiations about the running of the exchange and this topic is helping a lot.

Thanks guys

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[Elwar]

Not worried about security that much as it will be linked with blockchain and no btc would be kept on the site.

I assume you mean you are using the blockchain.info API, which means you will be keeping "btc" on the site. You will have the keys which is the same to having access to your bitcoins.

Not controlling the keys for an exchange requires a unique architecture which would likely involve multi-sig transactions or some sort of intermediary/escrow service (which would still have some control over keys).

Learn as much as you can about cold storage. Use that for a majority of your keys. Only keep on site enough to pay out in a timely fashion unless you can have a trusted staff member who is in control of moving keys from cold storage throughout the day.

Cold storage. Cold storage. Cold storage. I cannot stress that enough.