I've watched this video a few times. Dr. Salerno mentions that he buys/sells bitcoins on an exchange that stores Fiat currency (in my case, USD) as digital tokens. Does anyone know of a credible exchange that currently offers this?
I know that coinbase is working on offering a wallet that stores USD as tokens, so that you can buy and sell instantly, but this is not offered in my region (North East US - Connecticut).
The trouble I currently have with arbitrage, particularly through coinbase, is that it is not viable for me. Theoretically: If I pay attention to the news and I read that an exchange got hacked (i.e. cryptsy) I know that this will cause panic, and as fear grips the market people will sell and the price of bitcoin will drop. I may want to sell my Bitcoin, temporarily, to minimize any loses, and then buy back bitcoin at a cheaper price the next day. The problem with Coinbase is that with my current limitations, if I sell my Bitcoins, I have to wait 5 days for the money to be deposited into my bank. During this time the money is in "Limbo," so to speak, and I cannot use the funds to buy back coins at a cheaper price the following day. Furthermore, there are buy limits placed on my bank account, so it may take me a week or more to buy back the coins that I sold even if I keep additional funds available in the bank. During this time the market shifts drastically, and in order to be successful in arbitrage, you need access to instant buy & sale.
Storing FIAT as digital tokens seems like the only way to do this. I know that there is an inherent risk in doing so, but it would only be temporary until the market adjusts. Can anyone recommend a reputable exchange that can accommodate this in my region (Connecticut, USA)?
I know that coinbase is working on offering a wallet that stores USD as tokens, so that you can buy and sell instantly, but this is not offered in my region (North East US - Connecticut).
The trouble I currently have with arbitrage, particularly through coinbase, is that it is not viable for me. Theoretically: If I pay attention to the news and I read that an exchange got hacked (i.e. cryptsy) I know that this will cause panic, and as fear grips the market people will sell and the price of bitcoin will drop. I may want to sell my Bitcoin, temporarily, to minimize any loses, and then buy back bitcoin at a cheaper price the next day. The problem with Coinbase is that with my current limitations, if I sell my Bitcoins, I have to wait 5 days for the money to be deposited into my bank. During this time the money is in "Limbo," so to speak, and I cannot use the funds to buy back coins at a cheaper price the following day. Furthermore, there are buy limits placed on my bank account, so it may take me a week or more to buy back the coins that I sold even if I keep additional funds available in the bank. During this time the market shifts drastically, and in order to be successful in arbitrage, you need access to instant buy & sale.
Storing FIAT as digital tokens seems like the only way to do this. I know that there is an inherent risk in doing so, but it would only be temporary until the market adjusts. Can anyone recommend a reputable exchange that can accommodate this in my region (Connecticut, USA)?
Look at bitfinex and bitstamp although i still advice to be careful as with all other btc exchanges.
Btw. This is the german sub forum you might wanna ask in service discussion or general discussion.
