What To Look For...

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What To Look For...

Post#1 » Mon Jan 16, 2017 4:24 pm

Bitcoin exchanges all share certain core functionality, but their effectiveness as trading networks can vary greatly as the result of small changes in their design. Here are some key elements to look at when choosing the right exchange.


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Fees
Every bitcoin exchange has a slightly different fee structure, designed to suit various usage patterns and cater to distinct audiences. Almost every exchange uses a volume-based fee schedule, where those offering to buy and sell large chunks of bitcoin pay lower fees. Fees express a percentage of the transaction amount and generally cap at around 0.30 percent.

Some exchanges use a maker-taker fee model, where those who place buy and sell orders designed to move the price up or down (makers) pay no fees, while those who accept whatever offers are currently available (takers) pay a fee for the convenience. This ensures that traders are always acting to stabilize the price, keeping it as close to the market average as possible.

Security
When trusting a bitcoin exchange with your money, you want to ensure that the security measures are top of the line. Almost every bitcoin exchange uses two-factor authentication at the least to protect your account from hijacking, but some exchanges go above and beyond to ensure client privacy and security. Everything from advanced encryption methods to offline, unhackable ledgers, to strict hiring procedures can help make a bitcoin exchange more secure.

Trading & Currencies
The trading volume of a bitcoin exchange can tell you a number of things about the exchange. It lets you know that many people trust the network with their money, which speaks well of business practices. A larger client base and higher trade volume ensure more equitable trades for all involved because everyone has more potential trade partners. As a rule, bitcoin exchanges with higher trading volume tend to stick closer to the average market value of bitcoin, while smaller networks tend to skew higher. Which currencies a network accepts can also affect its trade volume, as well as its usefulness.

API
Almost every bitcoin exchange offers an API, or application program interface, to allow custom software to interface with the system. This allows you to develop advanced tools for managing money automatically without having to do everything by hand. Where bitcoin exchanges vary is in the specific functionality their APIs provide. For example, some APIs have built-in functionality for trading on margin, making them ideal for day traders and other currency speculators.

There are bitcoin exchanges available that trade in different flat currencies and other types of cryptocurrency. Some use enhanced and multiple levels of security, and the trading volume for various exchanges differs, which can affect your ability to buy and sell bitcoins.

phunter
Posts: 55

Re: What To Look For...

Post#2 » Fri Jan 27, 2017 2:56 pm

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Since then, Caldwell has sold only aluminum promo coins via his website, Casascius.com. A bag of 500 costs 0.39 bitcoin -- about $150, as of yesterday. All told, Caldwell minted about 60,000 Casascius bitcoins. Bitcoin enthusiasts consider them collectibles -- especially the earliest ones, which have fetched as much as $2,500 each on EBay because of a typo in the hologram.

Not that much of this matters to Frey, whose photos continue to be downloaded via Getty. Frey says he’s made more than $10,000 off the images, which he shot at Caldwell’s home.

james
Posts: 55

Re: What To Look For...

Post#3 » Fri Jan 27, 2017 2:58 pm

A huge disappointment. Looking at those numbers on a screen didn't move me. That's it? What does it really look like? What can I show to my children?

It turns out that Bitcoins (more precisely, a "wallet") can be represented in less than a hundred bytes. Everything else is contained in a giant shared database, a chain of signed blocks of data, on computers all over the internet. But there's no reason why that representation can't be printed and exchanged just like physical money. All you need is a standard format. So I designed one.

sberry
Posts: 55

Re: What To Look For...

Post#4 » Fri Jan 27, 2017 2:58 pm

I'm not sure that the keypair can't be derived, and the balance stolen, given half of an elliptic curve private key. This whole idea might be laughably insecure, at least at higher denominations. The way to find out is to get people who are smarter than I to kick it around.

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