Cryptocurrency Exchanges - An Introduction
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The document discusses cryptocurrency exchanges and wallet services, highlighting that there are approximately 15 million wallets globally. It emphasizes the importance of security, indicating that 92% of exchanges use cold storage and 86% support multi-signature features. Key points include various exchange models, IRS reporting requirements, and a checklist for evaluating exchanges.
Cryptocurrency Exchanges - An Introduction
- 1. kameir.com Version 1.3 (Dec 2017) Cryptocurrency Exchanges
- 2. Blockchain wallet users worldwide: ~ 15 million Cryptocurrency Wallets Worldwide
- 3. Christian Kameir Version 1.0 Taxonomy of Exchange Services ● Order Book Exchanges ● Brokerage Services ● Trading Platforms
- 4. Coinbase hits top spot on Apple’s US App Store December 7, 2017
- 5. Project objective Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ipsum dolor sit amet.
- 7. Cryptocurrency Wallets (with exchange feature) • - Centralised exchange or brokerage model • - Integrated third-party exchange model - P2P exchange/marketplace model
- 8. Check List ❏ Geo Restrictions ❏ Banking Relationships ❏ Trading Volume ❏ Verification Requirements ❏ Payment Methods ❏ Fees ❏ Exchange Rates ❏ Reputation
- 9. 92% of exchanges use cold storage 86% Multi-Signature Support DO NOT TURN OVER CUSTODY OF YOUR FUNDS! YOU are in charge of security!
- 10. TOP 20 Exchanges by BTC Volume
- 11. Does not collect personal data “Shifty Button API” for 3rd party sites Miner Fees: BTC $44.47 / ETH $6.86
- 13. Bitcoin Futures Trading December 18th 2017 Chicago Mercantile Exchange
- 14. US has conflicting stands on cryptocurrencies
- 15. Buying a NEW token?
- 16. “Blockchain Will Do to the Financial System What the Internet Did to Media”
Editor's Notes
- #2: - Price discovery function
- #3: Internet Users: 3.58 billion - 15 million = 0.4% A rising tide lifts all boats (not Kennedy but Regional Chamber of Commerce, New England)
- #4: Order Book Exchange Systems that uses a trading engine to match buy and sell orders from user. Brokerage Service Lets users conveniently acquire and/or sell cryptocurrencies at a given price. Trading Platform – System that provides a single interface for connecting to several other exchanges and/or offers leveraged trading and cryptocurrency derivatives.
- #5: Between 6 million and 12 million wallets are estimated to be currently ‘actIve’ In contrast with exchanges, the majority of wallets do not control access to user keys.
- #6: Coinbase is NOT an exchange - when you buy or sell on Coinbase you initiate an automated clearing house (ACH) transfer
- #7: March 25th, 2014- IRS: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes (https://www.irs.gov/newsroom/irs-virtual-currency-guidance) 2015: 802 people reported BTC transactions to IRS IRS demanded that Coinbase provide personal information more than one million customer accounts The IRS subsequently limited demand - transactions worth $20,000 or more
- #8: Centralised exchange/brokerage model: wallet provider is central counterparty Integrated third-party exchange model: wallet provider partners with a third-party exchange to provide exchange services P2P exchange/marketplace model: wallet provider offers a built-in P2P exchange that lets users exchange currencies between themselves 50% of wallets provide a currency exchange feature 80% offer a fiat to cryptocurrency exchange In contrast with exchanges, the majority of wallets do not control access to user keys.
- #9: https://blockgeeks.com/guides/best-cryptocurrency-exchanges/
- #10: Average exchange has a dozen employees and 1/5 exchanges have been hacked
- #11: There are 147 exchanges - TOP 20 make up 95% of trading volume
- #12: company founded in 2013 in Switzerland seed-stage investment by Roger Ver and Barry Silbert
- #13: “Bitcoin Mercantile Exchange”
- #14: The world's largest futures exchange: Chicago Mercantile Exchange CME, announces it has completed self-certification with the Commodity Futures Trading Commission to launch its bitcoin futures contract on Dec. 18. Several smaller exchanges are already trading bitcoin futures.