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I believe some, like Bitstamp, trade by connecting actual buyers to actual sellers in the transaction, to limit their own amount of BTC and USD holdings. That's
by damian2000 13y ago
I believe some, like Bitstamp, trade by connecting actual buyers to actual sellers in the transaction, to limit their own amount of BTC and USD holdings. That's what it says on the FAQ anyway.
- ye 13y agoNot really true. You have to deposit your cash and/or your BTC into Bitstamp's accounts. Only then you can trade them. And you only get cash and/or BTC back when you withdraw. In between it's just a bunch of data being pushed around, no actual transactions (though they seem like transactions, they only exist inside Bitstamp's database).
- wmf 13y agoI think damian2000 was making a distinction between an exchange holding funds on behalf of customers and an exchange that trades with its own money.