Bitcoin is a open source P2P digital network created in 2009 by pseudonymous author Satoshi Nakamoto. The protocol allows the user to send, store and receive value at a significant low cost and in a short matter of time. Bitcoin avoids the need for central authorities and issuers.
The exchange operator hire the service of blinktrade.
Blinktrade only provides IT services for the exchange operator.
The exchange operator is de facto the company operating the exchange. By operating we means: Accepting deposits, Processing withdrawals, verifiying customers identities and allowing customers to trade safely.
Opening a trading account at the exchange is easy, fast and free. Click “sign up” , fill out the form and log in. After your login, the exchange operator will require your personal name, address and documentation. After your documentation is verified by the exchange operator your account will be credited with a bonus in your local currency. From that point you are all set to buy your first bitcoin!
On the main menu, click on “Deposit local currency” and a new window will appear. You will have to specify the amount of FIAT you want to deposit in order to buy bitcoins. Have in mind that the exchange might charge you a fee every time you wish to make a deposit.
On the main menu, click on “Deposit BTC” and a new window will appear. The platform generates a unique address that will only be valid for that specific transaction and with a time limit to perform the deposit. Scan the QR code and send the BTC. After blockchain confirmation you will see the amount of BTC you sent credited into your trader account. No fees are charged for depositing BTC except from the one required by the blockchain to confirm the transaction. IMPORTANT: Never save the deposit address, never reuse the same address or your deposits won’t be confirmed.
As simple as the deposit process. Request a withdrawal in the main menu and a new window will appear showing the steps you have to follow. After specifying the amount and filling in the required information (account #, swift#…) the money will be sent to your account. Please be aware we apply applies a fee on every withdrawal.
When you want to receive bitcoins all you have to do is request a withdrawal on the main menu. You will have to specify the amount and provide the public key in which you want those btc to be sent. Please take your time to introduce the btc address correctly as bitcoin transactions are irreversible.
Our main concern is to allow traders to interact within a safe environment. Bitcoins are stored in a multisignature cold storage wallet and away from the servers of the exchange. So even though if the server of the exchange has been hacked the bitcoins are out of the reach of the bad boys.
The multisignature wallet requires 2 out of 3 signatures in order to be able to move the bitcoins.
the exchange operator holds one of the 3 keys. The other 2 are held by BlinkTrade and a mediator who will take part of the process in case there is a dispute between the exchange operator and BlinkTrade.
This means that even though a hacker compromises the servers of the exchange, he will also have to compromise the servers of BlinkTrade to be able to take the bitcoins. The odds are extremely low for that to happen.
Each time the bitcoins have to be moved from the multisignature wallet to the hot wallet (which is connected to the internet for processing fast withdrawals) BlinkTrade will previously verify the system and perform a proof of solvency of the bitcoins.
In other words, every time the bitcoins are moved from multisignature cold storage to hot storage, we perform a complete check of the system.
The hot wallet is kept in the servers of blockchain.info and we only keep a small amount of bitcoins to be able to cover the operations of the day.
Further more, all the safety measures of the hot wallet are run by blockchain.info
No exchange in the world is 100% secure. So even though we perform all the security measures, we don’t want to create a bitcoin pot of gold that will challenge hackers to try to compromise the exchange.
We encourage the users to only deposit their bitcoins when they are going to sell them, and not using the exchange to bank on their bitcoins. The safest procedure is to always hold your bitcoins in your wallet until you want to trade them.
Our principle is that the bitcoins deposited in the exchange are there to be exchanged for your local currency. In consequence, to guarantee safety and speed in the trade, the exchange operator keeps possession of deposits either in FIAT and in BTC.
You need to choose the quantity of bitcoins you want to buy and specify the rate you are willing to pay for those bitcoins. The rate is always determined by the price of 1 bitcoin. Compare it to the price of a gallon of gas in USD.
To cancel an open order go to “Buy or Sell” on the main menu. Select the order to be canceled from the “My orders” list and click “Cancel” next to the chosen order. Another option is to click on the “Order Book” and search for the order marked with your username and a red “x” next to it. Click on the order to cancel it.
If you perform the deposit from an account of the same bank used by the exchange the confirmation will be made within few hours. If you do the deposit from a different bank in the country/region, the confirmation can take as long as 48 hours.
As long as the blockchain network takes to confirm the transaction. Usually no longer than 10 minutes. For deposits higher than 2 BTC, we require 3 confirmations that can take up to 30 minutes. And for amounts higher than 10 BTC, we require of 6 confirmations that can take up to 60 minutes.
It’s a feature of the exchange that enables trusted and verified users to start trading even though the FIAT deposit hasn’t still been verified by the broker. The account of the user gets credited without the need of waiting for deposit confirmations.
We assign a random name for every single account. The name looks like something like this: Rhino_899009
So, instead of publishing the actual name of the user, we are publishing a random name.
This protects the user’s privacy as long as he doesn’t reveal the link between his real name and the randomly generated name. It is the user’s responsibility to protect his own privacy.
Why are we not hiding all the information, including the random name?
There are a lot of reasons behind this. I will name the most important:
1 - This avoids market manipulations, like FrontRunning, PumpAndDump, and other manipulations. You can try, but people would catch you instantly and would not follow the manipulators. Essentially, the market manipulators would lose their money because people would be able to catch the manipulation very easily.
2 - Help to build reputation, remember, in case of a government BAN on bitcoins, we will turn the exchange into a P2P market, therefore, reputation will be extremely important.
3 - It allows users to audit the “exchange operator”. This will help the exchange to prove its solvency to the public without a need of an auditor who can be easily bought.
I understand that most of the exchanges today don’t publish this, that is why we see a lot of market manipulations out there, and also a lot of scammers who just want to rob bitcoins from their customers (I am not talking about the big exchanges, I am talking about a lot of small bitcoin exchanges that already closed their doors because they claimed they were hacked)