Topic: Looking for feedback on Services Exchange will offer (Read 678 times)

I disagree with this analysis on a couple of levels:

1. Exchange fees on, say, mtgox are half a percent. When you start doing significant volume, it goes down to a quarter percent. There's room for that in your margins. And I'm betting it's insignificant in comparison to whatever the credit card company is charging you.

2. Even if you had to go to 4% (which you do, due to credit card fees, right?), customers would still buy from your company. Just ask Bitinstant. Or better yet, convince some wealthy bitcoin investors that you really can do it, and watch the investment dollars pour in.

3. Having your own exchange would probably not even save you/your customers anything, especially if the credit card thing works out. Dollars would fly into your exchange, and drive the price up relative to mtgox and other exchanges. Arbitrageurs would step in but there's a limit to how tightly they can keep markets in line, and 4% is not out of the question (ever look at the price differential between btc-e and mtgox?). Because of the higher price on your exchange (and likely wider spreads, at least for the first year+ unless you magically steal a huge chunk of mtgox's liquidity out of the gate), customers would end up paying 4%+ over the mtgox price anyway to buy bitcoins. This is what happened with bitfloor, because they provided an easier/faster way for US folks to get cash onto the exchange but didn't have mega gox liquidity.

I think the real challenge here is to get started with the credit card thing, demonstrate that it can be done profitably, securely, and legally. At that point you could probably sell your company to Bitinstant for a handsome sum. Though you might prefer to keep making money hand over fist for yourself. And hey, maybe then you can look for a strategic partner with an exchange to shave off another .3 percent for the benefit of your customers (or profit margins).

I think this is currently the state of the art for buying bitcoins with a credit card:
http://howdoyoubuybitcoins.com/with/credit-card/

The problem with not having an exchange is that I would have to pay trading fees to an exchange in order to have Bitcoins to sell. This would be like Bitinstants method, and I do not want to charge 4 percent in order for people to get their coins. If I have my own exchange I will not be charged any trading fees, thus I will be able to sell coins at a much lower rate.

You could make an entire company around just this, if you truly have it figured out. Forget the exchange, you could make millions just selling customers bitcoins via credit card, if you could actually do it and not get fleeced by scammers.

Over the last three weeks I have put together a 35 page business plan outlining everything about my exchange!! Yesterday I finished the proformas, and now am double checking everything. Below is a excerpt from my plan outlining the services that we are going to offer. I would like feedback from the community on the services below and whether I should add or subtract anything. Good or bad, tell me what you think.

*Note 1- "Aqyra" is not the name of the exchange, it is just a name that I used to replace the actual name.
*Note 2- I have devised a method that I am sure will help mitigate the risk of accepting Debit and Credit cards.

Services

The following is a list of services that will be offered by Aqyra.

1.   The ability to fund and withdraw Aqyra accounts via Debit & Credit Cards
2.   The ability to fund and withdraw Aqyra accounts via Alipay
3.   The ability to fund and withdraw Aqyra accounts via Tenpay
4.   The ability to fund and withdraw Aqyra accounts via AurumXchange
5.   The ability to fund and withdraw Aqyra accounts via BitInstant
6.   The ability to fund and withdraw Aqyra accounts via Dwolla
7.   The ability to fund and withdraw Aqyra accounts via Bank (Via Alipay & Dwolla)
8.   The ability to fund and withdraw Aqyra accounts via Direct Bank Wire
9.   The ability to fund and withdraw Aqyra accounts via SEPA transfer
10.   The ability to fund and withdraw Aqyra accounts via Redeemable Code
11.   The ability to fund and withdraw Aqyra accounts via Coupon
12.   The ability to fund and withdraw Aqyra accounts via Private Key
13.   The ability to fund and withdraw Aqyra accounts via Bitcoin
14.   The ability to fund and withdraw Aqyra accounts via Litecoin
15.   The ability to fund and withdraw Aqyra accounts via Namecoin
16.   The ability to fund and withdraw Aqyra accounts via PPcoin
17.   The ability to fund and withdraw Aqyra accounts via Gold (American Eagle, Canadian Maple Leaf, Australian Kangaroo, Austrian Philharmonic, South African Krugerrand, .999 Bars)
18.   The ability to fund and withdraw Aqyra accounts via Silver (American Eagle, Canadian Maple Leaf, Austrian Philharmonic, .999 Rounds, .999 Bars)
19.   The ability to fund and withdraw Aqyra accounts via Platinum/Palladium (American Eagle, Canadian Maple leaf)
20.   The ability to use our site in the three most spoken languages (Mandarin, English, Spanish)
21.   Customer Service in three languages (Mandarin, English, Spanish)
22.   Cold storage of coins
23.   Top notch APIs
24.   Real time data
25.   A forum for trading discussion and customer support
26.   A quarterly update that will outline where we are as a company in terms of finance, market capture, transactions, staff, profit, as well as what we expect to see over the next quarter.