Developing an exchange - business advice required

monsterer

legendary

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Quote from: fordlincoln on November 21, 2013, 04:56:17 AM

As someone who works in startup, enterprise software, and saas - I would recommend:

1. Charge after you have validated that people want to use it and are willing to pay for it
2. open source is a good idea if it doesn't violate your IP rights
3. where is the value - charge $ on whoever/whatever will benefit from that value

Thats great advice, I appreciate it

fordlincoln

full member

Activity: 152

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As someone who works in startup, enterprise software, and saas - I would recommend:

1. Charge after you have validated that people want to use it and are willing to pay for it
2. open source is a good idea if it doesn't violate your IP rights
3. where is the value - charge $ on whoever/whatever will benefit from that value

wtman

legendary

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Update on this? How is it going? Do you accept individual crypto projects? Please pm me your contact info

daybyter

legendary

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@monsterer: got my pm?

monsterer

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Quote from: btceic on June 23, 2013, 05:29:12 PM

those are referred to as exotics correct?

IIRC they're called cross-pairs, but might be wrong

lixiaolai

vip

Activity: 169

Merit: 100

Quote from: davout on June 23, 2013, 04:00:05 PM

Quote from: monsterer on June 23, 2013, 03:55:26 PM

You can do that as long as you accept you'll only ever be able to deposit and withdraw BTC. In fact I think there is already a broker (note not an exchange) which will let you do this: http://bit4x.com/

AFAIK MT does not make assumptions about how you get money in and out.
If you have questions about it, you should ask kakobrekla on #bitcoin-assets, he's behind bit4x

Also, like I said, the tech is about 5% of the work required for an exchange, and you already seem to have lost quite some time by re-doing everything yourself, the business part is the tough part. If you have to learn it by yourself then so be it, but I strongly suggest you pay very close attention to this particular piece of advice.

you can always give critical analysis. amazing.

davout

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1davout

Quote from: monsterer on June 23, 2013, 05:26:47 PM

This is correct, although you can still trade, for example EUR/JPY even if your account is funded in USD but behind the scenes there is a conversion taking place which allows you to do this but has a greater margin requirement than a trade in EUR/USD.

Ok, my initial understanding was incorrect. Learned something today :-)
Thanks for enlightening me.

btceic

sr. member

Activity: 392

Merit: 250

♫ A wave came crashing like a fist to the jaw ♫

Quote from: monsterer on June 23, 2013, 05:26:47 PM

Quote from: davout on June 23, 2013, 04:48:19 PM

Ok, so I'll use the opportunity to clear it up for me, because I apparently misunderstand the way MT works...
So, with MT you only have one base currency, and all the rest is expressed in terms of positions on currency pairs relative to your base currency ?
Is this correct ?

This is correct, although you can still trade, for example EUR/JPY even if your account is funded in USD but behind the scenes there is a conversion taking place which allows you to do this but has a greater margin requirement than a trade in EUR/USD.

those are referred to as exotics correct?

monsterer

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Quote from: davout on June 23, 2013, 04:48:19 PM

Ok, so I'll use the opportunity to clear it up for me, because I apparently misunderstand the way MT works...
So, with MT you only have one base currency, and all the rest is expressed in terms of positions on currency pairs relative to your base currency ?
Is this correct ?

This is correct, although you can still trade, for example EUR/JPY even if your account is funded in USD but behind the scenes there is a conversion taking place which allows you to do this but has a greater margin requirement than a trade in EUR/USD.

davout

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Activity: 1372

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1davout

Quote from: monsterer on June 23, 2013, 04:32:09 PM

Quote from: davout on June 23, 2013, 04:00:05 PM

AFAIK MT does not make assumptions about how you get money in and out.
If you have questions about it, you should ask kakobrekla on #bitcoin-assets, he's behind bit4x

I really don't need to ask, I've developed quite a few MQL4/5 EAs which integrate directly with MT so I'm quite familiar with how it works.

Ok, so I'll use the opportunity to clear it up for me, because I apparently misunderstand the way MT works...
So, with MT you only have one base currency, and all the rest is expressed in terms of positions on currency pairs relative to your base currency ?
Is this correct ?

monsterer

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Merit: 1007

Quote from: davout on June 23, 2013, 04:00:05 PM

AFAIK MT does not make assumptions about how you get money in and out.
If you have questions about it, you should ask kakobrekla on #bitcoin-assets, he's behind bit4x

I really don't need to ask, I've developed quite a few MQL4/5 EAs which integrate directly with MT so I'm quite familiar with how it works.

btceic

sr. member

Activity: 392

Merit: 250

♫ A wave came crashing like a fist to the jaw ♫

Quote from: monsterer on June 23, 2013, 03:55:26 PM

Quote from: btceic on June 23, 2013, 03:49:11 PM

let me restate then, I would like to be able to trade btc/usd, btc/jpy, btc/eur via mt4

You can do that as long as you accept you'll only ever be able to deposit and withdraw BTC. In fact I think there is already a broker (note not an exchange) which will let you do this: http://bit4x.com/

Interesting, thanks for the link.

davout

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1davout

Quote from: monsterer on June 23, 2013, 03:55:26 PM

You can do that as long as you accept you'll only ever be able to deposit and withdraw BTC. In fact I think there is already a broker (note not an exchange) which will let you do this: http://bit4x.com/

AFAIK MT does not make assumptions about how you get money in and out.
If you have questions about it, you should ask kakobrekla on #bitcoin-assets, he's behind bit4x

Also, like I said, the tech is about 5% of the work required for an exchange, and you already seem to have lost quite some time by re-doing everything yourself, the business part is the tough part. If you have to learn it by yourself then so be it, but I strongly suggest you pay very close attention to this particular piece of advice.

monsterer

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Quote from: btceic on June 23, 2013, 03:49:11 PM

let me restate then, I would like to be able to trade btc/usd, btc/jpy, btc/eur via mt4

You can do that as long as you accept you'll only ever be able to deposit and withdraw BTC. In fact I think there is already a broker (note not an exchange) which will let you do this: http://bit4x.com/

monsterer

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Quote from: bytemaster on June 23, 2013, 02:03:34 PM

First of all, you face stiff competition from an open source exchange that is already being developed based upon the LMAX arch. which is already going to be the fastest thing out there. They are organized, have money, and support of the community and bitcoin media has already covered them. (Don't remember the name right now).

If you are a talented c++ developer then perhaps you will want to invest your time helping to develop the Invictus / BitShare P2P exchange.

https://docs.google.com/document/d/1RLcjSXWuU9vBJzzqLEXVACSCdn8zXKTTJRN_LfoCjNY/

I dislike the LMAX architecture - it's such overkill. They've taken on the burden of a lot of the functionality of a database which is something which will cause the development time to sky-rocket along with the complexity.

I think there are other ways to achieve performance without throwing the baby out with the bathwater.

I've been a c++ developer for 10 years and I like the idea of a P2P exchange but I need to pay the bills in the short term rather than contributing my time to other projects

davout

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Quote from: monsterer on June 23, 2013, 03:45:00 PM

Quote from: btceic on June 23, 2013, 01:51:48 PM

Here are my requirements for the best exchange that I can think of:

MT4/MT5 Integration

This is impossible. Metatrader is a platform for retail traders who's trades always end up in one currency, which would make it impossible to withdraw both bitcoins and fiat.

I think you're wrong here (but I'm definitely not a MT specialist), MT does not make assumptions as to which pairs you're trading.

btceic

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♫ A wave came crashing like a fist to the jaw ♫

Quote from: monsterer on June 23, 2013, 03:45:00 PM

Quote from: btceic on June 23, 2013, 01:51:48 PM

Here are my requirements for the best exchange that I can think of:

MT4/MT5 Integration

This is impossible. Metatrader is a platform for retail traders who's trades always end up in one currency, which would make it impossible to withdraw both bitcoins and fiat.

let me restate then, I would like to be able to trade btc/usd, btc/jpy, btc/eur via mt4

monsterer

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Quote from: btceic on June 23, 2013, 01:51:48 PM

Here are my requirements for the best exchange that I can think of:

MT4/MT5 Integration

This is impossible. Metatrader is a platform for retail traders who's trades always end up in one currency, which would make it impossible to withdraw both bitcoins and fiat.

davout

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Merit: 1008

1davout

Quote from: Nagle on June 23, 2013, 02:50:48 PM

One thing you need for an exchange is a solid contractual banking relationship with a major bank to handle money transfers in and out. One that binds them to handling your transactions and does not allow them to terminate at will without paying a substantial penalty.

Then you need insurance, in case something goes wrong. Commercial errors and omissions coverage, and employee bonding. Like every other business that handles lots of money.

You'll need a reasonable amount of capital behind the business, at least a few million.

Talk to Tradehill, which has done all that, and ask them why they don't handle small retail customers.

Now you're ready to run a "no excuses" exchange. One where, when someone demands their money, they get it.

No offense, but you have pretty much all your points wrong.

Nagle

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One thing you need for an exchange is a solid contractual banking relationship with a major bank to handle money transfers in and out. One that binds them to handling your transactions and does not allow them to terminate at will without paying a substantial penalty.

Then you need insurance, in case something goes wrong. Commercial errors and omissions coverage, and employee bonding. Like every other business that handles lots of money.

You'll need a reasonable amount of capital behind the business, at least a few million.

Talk to Tradehill, which has done all that, and ask them why they don't handle small retail customers.

Now you're ready to run a "no excuses" exchange. One where, when someone demands their money, they get it.

Topic: Developing an exchange - business advice required (Read 1672 times)