soundasleep



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Full MemberActivity: 169Merit: 100 What do you want from a better crypto exchange? April 18, 2013, 06:20:48 AM

Last edit: April 18, 2013, 06:34:28 AM by soundasleep #1



So, do you actually want a different/better exchange? Would you support it? What would you like from it?



Background: We're a very creative and technically brilliant web/software startup on a mission to make the world a better place. We've been following the cryptocurrency space for about a year now, and we've launched a few small projects to test out wallet integration etc. Cryptocurrencies are definitely a revolutionary game changer, but existing exchanges don't seem to be taking things seriously enough.



We've been spending the last two weeks thoroughly investigating the technical and legal sides of operating a currency exchange, and nothing fatal has popped up. Our intent would be to create an exchange that is:



Extremely secure (OpenID, password hashes, separate systems, cold wallets, DDoS protection etc)

(OpenID, password hashes, separate systems, cold wallets, DDoS protection etc) Scalable (our initial goal is 100-1000 tx/sec per currency pair)

(our initial goal is 100-1000 tx/sec per currency pair) Reliable with automatic failovers (transactions, master/slaves, recovery logs, remote & off-site backups, etc)

with automatic failovers (transactions, master/slaves, recovery logs, remote & off-site backups, etc) Supports multiple fiat currencies (our initial goal is USD/NZD/AUD/EUR)

(our initial goal is USD/NZD/AUD/EUR) Supports multiple cryptocurrencies (our initial goal is BTC/LTC/NMC/TRC)

(our initial goal is BTC/LTC/NMC/TRC) Has automated trading APIs that won't suffer from lag (but will need limits)

that won't suffer from lag (but will need limits) Has knowledgeable support staff based in English-speaking countries (later, multiple languages)

based in English-speaking countries (later, multiple languages) Some radically innovative features that I don't want to share just yet

There are a few normal exchange restrictions that, as a legal company, I'm pretty sure we can't get around. For example:



Manual identity verification is necessary to execute deposits/withdrawls over some threshhold value (which will probably be $1k/month), due to international money laundering acts. Both natural people & business can register.

Unexpected large deposits/withdrawls will require additional verification (probably something like $50k+/month), but high-volume trusted day traders will be supported.

We can't accept Paypal or credit cards due to chargebacks. Transfer in/out would initially be through wire & other services, and in the future local cash deposits (ala BitInstant).

Exchange fees will be competitive but can't be too low, because of legal and support requirements.

But first, we need to know if the rest of the community would want this exchange, or if you're happy with staying with MtGox & BTC-E.



If you're interested in investing in shares to make this opportunity happen (any cryptocurrency), reply or send me a PM. Donations would be very welcome. I've seen some argue that the BTC crash was due to MtGox technical problems, and others are reporting lots of integrity/transfer/support problems with BTC-E. There are lots of "e-money exchanges" but they all look too dodgy, or they don't disclose their fees without signup.So, doactually want a different/better exchange? Would you support it? What would you like from it?Background: We're a very creative and technically brilliant web/software startup on a mission to make the world a better place. We've been following the cryptocurrency space for about a year now, and we've launched a few small projects to test out wallet integration etc. Cryptocurrencies are definitely a revolutionary game changer, but existing exchanges don't seem to be taking things seriously enough.We've been spending the last two weeks thoroughly investigating the technical and legal sides of operating a currency exchange, and nothing fatal has popped up. Our intent would be to create an exchange that is:There are a few normal exchange restrictions that, as a legal company, I'm pretty sure we can't get around. For example:But first, we need to know if the rest of the community would want this exchange, or if you're happy with staying with MtGox & BTC-E.If you're interested in investing in shares to make this opportunity happen (any cryptocurrency), reply or send me a PM. Donations would be very welcome.

hyh



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1XGKpTag3kNJeeFtsnTYs6TfvWvgG2DtR







Full MemberActivity: 182Merit: 1001XGKpTag3kNJeeFtsnTYs6TfvWvgG2DtR Re: What do you want from a better crypto exchange? April 18, 2013, 06:52:42 AM #2 Easy deposit/withdraw fiat.

Simple UI that allow quick submission. (for people who don't use the API)

well documented API.

Complete data, candle-chart, history, etc.

Client-side trade.

Lots of coins to buy (quantity and variety).

Lots of possible way to trade (short, stop-loss, etc.)

And... VOLUME!!!



There only reason people stay with MtGox is the sheer volume there, it dwarfs almost all other exchange.



There are some OK one with small volume out there. And... VOLUME!!!There only reason people stay with MtGox is the sheer volume there, it dwarfs almost all other exchange.There are some OK one with small volume out there. BTC: 1XGKpTag3kNJeeFtsnTYs6TfvWvgG2DtR



XRP: rno91tGDJeRcnM7EMXj8KG9UTyxRGMMz8s

soundasleep



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Full MemberActivity: 169Merit: 100 Re: What do you want from a better crypto exchange? April 18, 2013, 07:36:46 AM #3 Yup, all of those features would be standard! The intent would be to build an exchange that crypto-newbies can easily understand and navigate around, but also have advanced interfaces for trading (maybe a basic/advanced UI followed by API).



Volume is obviously the hardest one & depends on everyone else. Our goal would be to surpass BTC-E first, and then MtGox. Other than volume (and discounts for high volume trade), what would get you to switch to a better exchange?

Stephen Gornick



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LegendaryActivity: 2506Merit: 1001 Re: What do you want from a better crypto exchange? April 18, 2013, 09:04:15 AM #5 Quote from: soundasleep on April 18, 2013, 06:20:48 AM Supports multiple cryptocurrencies (our initial goal is BTC/LTC/NMC/TRC)

You'll want to make sure you understand the risk of 51% with proof-of-work based currencies like Bitcoin and Litecoin. The confirmation threshold for a merchant selling server hosting is one thing, the threshold for withdrawing bitcoins paid for using litecoins might be another.



I personally will not leave bitcoins with an exchange that has exposure to a Litecoin 51% attack. I do not know if the exchanges that do trading between bitcoin and alts are taking additional precautions but an exchange wanting to grow market share (and revenue from fees) is more inclined to throw caution to the wind since it is primarily the customer's funds at risk to a 51% attack. Preventative measures could be taken such as imposing a minimum delay before bitcoins purchased with Litecoin can be withdrawn, or daily limits such that if there is a Litecoin 51% attack, any losses are born from the exchange's reserves. You'll want to make sure you understand the risk of 51% with proof-of-work based currencies like Bitcoin and Litecoin. The confirmation threshold for a merchant selling server hosting is one thing, the threshold for withdrawing bitcoins paid for using litecoins might be another.I personally will not leave bitcoins with an exchange that has exposure to a Litecoin 51% attack. I do not know if the exchanges that do trading between bitcoin and alts are taking additional precautions but an exchange wanting to grow market share (and revenue from fees) is more inclined to throw caution to the wind since it is primarily the customer's funds at risk to a 51% attack. Preventative measures could be taken such as imposing a minimum delay before bitcoins purchased with Litecoin can be withdrawn, or daily limits such that if there is a Litecoin 51% attack, any losses are born from the exchange's reserves. Uni change .me



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Full MemberActivity: 134Merit: 100 Re: What do you want from a better crypto exchange? April 18, 2013, 10:27:46 AM #6 After the recent Bitcoin24 and Bitfloor debacle, I would like to see an exchange that has taken the necessary legal precautions to avoid ending up in the same situation as these, and be as open about these precautions as possible.

This might be somewhat expensive, but I'm getting tired of exchanges run by technical people who don't realize how important legality issues are.

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Ian Knowles - CIYAM Lead Developer







LegendaryActivity: 1890Merit: 1004Ian Knowles - CIYAM Lead Developer Re: What do you want from a better crypto exchange? April 18, 2013, 10:52:58 AM #7 I would take a long hard look at what happened with both Tradehill (version #1) and CryptoXChange before entering into this venture.



Both businesses were basically destroyed due to payment reversals (the former due to Dwolla in particular and the latter presumably because of criminal activity beyond their control). Also CryptoXChange was never able to get enough volume (and thus commission) to afford to provide a decent level of support (it was mostly just Ken himself) or to get the numerous problems with their trading software addressed.



If you are serious about the business then I don't know how you can say you have spent "two weeks" investigating this - I have spent well over a year (and become an active member of the forum) and am still only slowly putting together a Bitcoin business which has virtually no risk compared to that of an exchange (although I do admit that at times I work at a rather leisurely pace).



The feeling that I tend to get about "yet another exchange" is that it'll be another bunch of "cowboys" that are going to promise the earth, deliver very little and then go out of business before a year is up (hopefully without losing all their clients bitcoins and fiat).





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