Topic: Need Advice Please | Like to Learn more about Bitcoin Exchange Service & Buisness (Read 800 times)

I think Second Market will be your best bet...

Thank you.

Anyone in mind ? No one wants to give up a contact. But I can do minimum purchase quantity which is requested.

Yes, other brokers purchase bitcoins from services like Coinbase. You can try contacting them directly and ask them how to get started with this. Other companies that do this that you can try to engage with are BitPay and and Second Market. Additionally, you can attempt to contact some mining operations and see if they will contract with you to sell you blocks of bitcoins. Good luck!

Welcome to the Bitcoin world.

Are you from Europe? If this is the case, then you can use SEPA deposit option at https://cryptonit.net exchange, it is set at 0 fee. So you will be only paying the trading fee of 0.15% (one of the lowest in the industry) when you will be purchasing your bitcoins. We also offer instant methods like Sofort, but it will involve a small deposit processing fee.

Should you have any further questions, would be glad to answer.

Regards
Edward

I do not, but I don't know why miners would sell at prices lower then what others would be willing to sell for. Right now you can sell ~311BTC at once at the best price available and you would only cause the price to drop by ~1%, on bitfinex you would need to sell over 1,000BTC at the best available price all at once to cause the price to drop by 1%. These amounts work out to ~8.6%, and ~27.7% of the target daily amount of bitcoin mined. If a miner wanted to sell all the bitcoin they mine the same day their blocks mature, then they would most likely sell throughout the day at a pretty even pace causing them to get roughly the market price.

If a large miner were to sell P2P then they would have to incur additional risks and would likely want to charge higher prices to account for those risks.

Thank you again… one last question, Any miners that you may think of that would contract with me to sell me bitcoins? I have been told that is the way to buy bitcoins in bulk so I can get them FAST and ON the spot close or even under to the current market.

1 - I am not an attorney and more importantly, I am not your attorney so I cannot give you legal advice. However I think you might need a MSB license (I assume you are US based) if you are buying my bitcoin and then selling a similar amount on an exchange then you may be a money transmitter. I would suggest consulting an attorney that is familiar with AML laws/regulations.

I personally usually use coinbase to buy bitcoin (and sell bitcoin when applicable) when I am in need of bitcoin. Some people have had bad experiences with them canceling orders, however if you can deposit money into your USD wallet and then buy bitcoin with funds in your USD wallet then most of your problems should be solved. However I believe they frown upon using bitcoin that is purchased from them for gambling.

I think the people on LBC and on here likely use an exchange to hedge their exchange rate risk and will generally buy from an exchange anytime they sell bitcoin. (and vice versa when they buy bitcoin)

3 - WU apparently is known to sue people receiving funds from them when the sender later disputes it, although I am not sure on how much credibility this statement has. If you are going to accept a BOA cash deposit then I would suggest opening accounts at other major banks as well and accepting deposits at those banks as BOA does not have branches throughout the entire country. When accepting a cash deposit, you should verify with your online banking that it was in fact a cash deposit (by the fact that the entire amount of the deposit is immediately available), and check the receipt to ensure that it shows a cash deposit (if part of the receipt is written on, obscuring parts that would indicate it is or is not a cash deposit then you should assume that it is not).
4 - I understand that a cash deposit is generally no longer reversible after the bank closes for the day, so you can mitigate that risk by not releasing escrow/the coins until the bank has closed for the day
5 - Feel free to send me a PM and I can walk you through how to use cold storage depending on what setup you want to use and what wallet software you want to use.

What e-wallet are you using currently? blockchain.info? Using tor is good for privacy, but bad for accessing your bitcoin because it is possible that exit nodes can intercept your communication with your online wallet service and potentially steal your bitcoin.

First off thank you for the time to write this. Let me try to clear some things and make my questions better or more clear.

1-I know I can't BUY YOUR coins (because if i buy your coins AND I sell coins I would be an exchange business and that opens up a lot can of worms legally) so my question is how are these brokers buying coins? From who will I be able to buy coins (even if I was exchanging and taking legal risk) at 10% discount Please tell me? People on the forums and localbitcoin is what I do now but never 10% off usually more then going rate so I have been buying from coinbase. Also by exchange you mean? Should I just buy buy buy from coinsbase non-stop???

2-OK
3-THANK you so much for helping and encouraging people are not so eager to say kind words, but either way thank you and maybe I can help you somehow….I have lots experience in other things. These will be lessons learned BUT I'm only willing to do BOA DEPOSITS AND WU ONLY on the SELLS. on the BUYS I only MUST get coins first or escrow I would imagine.
4-YES I know … even CASH CASH transaction I have seen banks reverse it. Its a risk! its always a risk!
5-Right now I use TOR and lots of E-Wallet but now my new project is the cold storage these and I still don't get it. I just need to pay someone to actually walk me through a few transactions.
6-OK

1 - I am not sure what you mean. People that broker bitcoin deals on the forum most likely engage in arbitrage when they sell bitcoin at a 10% premium and then buy it back on an exchange and pocket the difference. (they also buy it at a 10% discount and sell it on an exchange and pocket the difference).

2 - The most fair rate would be the "spot" rate. I would say that either bitstamp or bitfinex "last" rate would be the most fair rate, however if you need to buy or sell quickly and do not wish to use an exchange then you will need to be willing to accept several percentage points outs of your favor. I would say that 5% would be a "fair" rate if you want a deal done quickly. If you are in no rush to execute your trade then I would say 5% in your favor would be fair.

3 - You should start your own business. Just be sure that you know how to sufficiently protect yourself when dealing with various payment methods and selling bitcoin, otherwise you are inviting yourself to get scammed. 

4 - Be sure that you know how to protect yourself from getting scammed. This goes beyond using escrow as many people will be willing to send payment first to you but will likely plan on attempting to reverse it later on.

5 - I would hope that you understand cold storage if you are running a bitcoin casino. In very simplistic terms - you should generate the private keys to an address on a computer that has never touched the internet, and then send funds to that address. When you need to spend funds from your cold storage address, you should create an unsigned transaction on a computer with access to an up to date version of the blockchain and then sign such transaction with your cold storage address then send the signed tx back to your internet connected computer and broadcast it to the network. The specific instructions depend on what hardware you are using and what client you are using
6 - This is not a question. Yes some people are able to make 10% on a trade because there are people who need a trade done quickly and/or are ignorant as to what their options are. I am not sure how flexible they are in negotiating their rate

Hello

I have noticed ALOT of people who are buying and selling Bitcoins and TONS of sites are not popping up and I need to make some money and I would like to get some advice on how I can run a bitcoin service SITE and SERVICE? Here are my questions IF ANYONE can please answer them. Each answer I'm willing to give you 5mbc on my poker site FYI IF you wish!


1-Where do all the Bitcoin BROKERS buy coins from ? COINBASE? PRIVATE PARTY? I have paid as much as 11% !!!!
2- What is a fair exchange rate where I would always have business
3-I'm thinking of advertising on all the local sites where there is ESCROW involved such as the few sites here and localbitcoin.com AND I would also have my own site for the clients that have dealt with me before. What do you think?
4-Any other advice or business plan from people who have gone through this route will be much appreciate.
5-Need info on cold storage bc I don't know how to cold store as I have seen them but seems SOO complicated. Can My E wallet Really get hacked? Do others get hacked??? Any advice on this.
6-I know people make money on the fluctuation of the Bitcoin BUT I want to make money on the trading it. People are doing this like 100 times a day and making 10% a TRADE!


THANK YOU