Hi, I'm new to cryptocurrencies, just learning about them. I have some questions about how transfering them actually works. Suppose someone buys BTC on CoinBase or Mt.Gox or elsewhere... that can be directly transfered to BTC-e to buy LTC without using any wallet, right? And you can keep your cryptocurrencies at these exchanges without ever using your wallet, correct? And you can buy-sell on BTC-e and, suppose you sell all cryptos for dollars and then you can take your dollars out, right? I read somewhere that your cryptocurrencies "aren't safe" leaving at the exchanges, because someone could hack into your account and steal them. So I guess "overnight" you can simply transfer them into your "wallet"... Correct? Suppose you erase your wallet (I think actually there's a single file that can be placed on a USB stick)... it gets lost? No other way to get the BTC back? Will that BTC disappear from the World, like no-one will ever get it back? Suppose you have BTC in your wallet then... and you want to transform it into USD. You turn to an exchange, sell them for USD and take the USD out via money transfer etc./other means? Thanks in advance - if anyone can answer. Just my curiosity
Basically yes. Each site provides you an address you can send/recieve from. Correct, you don't need to run wallet software, although that's definitely not the security conscious way. Those sites ultimately control the address you use with them, and if they want to take your money, it's gone. Kind of. I haven't used btc-e for a long time but sign in and go to Finances and click to withdraw USD. It will show you the options. Otherwise sell the btc to someone like coinjar, it's a lot safer than dealing with btc-e. Yes, and I have actually been locked out of my original btc-e account by btc-e themselves. All I can say is that things usually go ok (I have started using them again when I have to) but if something does go astray, I hope you are fluent in Russian. They now technically own the ltc that was in my account at the time, since they locked me out. Sure. Send them to an address you actually control - the wallet software on your computer. You mean like if it was on a boat, and the boat was involved in an unfortunate accident? Sure, it would be gone for good. This is another factor in btc's scarcity. Just sell it to coinjar. No probs, I was bored.
Thank you very much for the info, beeteecee! Mate, they literally took your LTC's? What can they not like and just "take it"? I suppose we can make multiple "wallet" backups... From what I understand that long code like Kl32p020sdxqwl3843934... or something is the wallet's address itself, right? (I know you can send cryptos in there...) So if you get your wallet stolen or the USB breaks or etc. etc., could you still save your cryptos by knowing that long code? Like retrieve them with a new wallet or something? Another question (if you don't mind): it's not like forex, I guess... in forex you can't hold the position endlessly, but I suppose with LTC and BTC you buy and sell when you want, there is no "force sale/close" not "stop loss" or anything... right? You control it 100 %?
In the case of a place like btc-e, they control the address you are using. You can use it too of course, but they have the ultimate power over it, so backups are not applicable here, and if they act shady, there's no real recourse. Yeah addresses look like random numbers and letters. Bitcoin addresses will always start with a 1. Sort of, yes. Your bitcoin address is actually called a "public key". For every public key there is also a private key. It's a longer string of jumbled letters etc. If you know the private key for an address, you can spend/access the btc on the corresponding public address. If you lost your only copy of your wallet/usb, you could start afresh and choose to import a private key. Type yours in and your funds will be there. To illustrate my point, you cannot find out what your private key is on btc-e. BTC-e does know it, because they operate the site. Therefore they control your btc while it is on their site. I don't quite understand your question. I'm also unfamiliar with any kind of conventional forex trading. Every exchange is different, though most follow the same general model. More specialized ones will let you do stop losses and all that junk....calls/puts etc. Most exchanges are just simple trading though. Place bids/asks or do market sells/buys.
beeteecee: On forex you can only trade within certain limits, especially if you set the stop-loss and take-profit limits. I wonder if there are limits when it comes to cryptocurrencies. Or you can just buy and sell when you want? My question about BTC-e: can't you withdraw your Bitcoins from there and transfer to MtGox or your private wallet? So then they only control the account, but not your funds. I suppose you buy and sell instantaneously when you feel like it, right? You can basically buy cheap, sell when it's high and buy up down again and do the roller coaster ride over and over... Or am I too naive on this? (I know it's hard to determine when it goes up or down...). How much Bitcoins get lost when transfering from let's say Mt.Gox or BitStamp to BTC-e and vice-versa?
No. The simplest way to say this is that if your BTC is on a website, the website owner has ultimate control of those btc. You are trusting in a human, not cryptography. Don't worry too much; much of the bitcoin scene runs on people trusting sites with their btc and utilising those sites. Just use your instincts and choose which sites you deem trustworthy. You generally try not to lose bitcoins when making transfers. but you will pay whatever fee those sites list, and a small miners fee. And yup, can buy/sell instantly on an exchange as you please. Yes, you are perhaps being a little naive to think you can just step into the fiercest market in the world and make a consistent profit, or any profit. But if you feel like you can pick the moves, go for it. Good luck.
What do you mean you can't withdraw BTC from BTC-e? There is this option under "Withdraw": BTC-e allows several withdrawal possibilities. I suppse the image above allows withdrawal of BTC to your BTC wallet? Wicked: they have a daily limit of 100 BTC (!). I still don't know what a "BTC-e code" is... Anyway, they seem to allow lots of USD/EUR and other currency withdrawals. I suppose you can sell your cryptos and withdraw like that (?) Indeed, the BTC and LTC markets seem very simple (not having tried), but it might indeed be riskier from inside.
Be very careful TH, you are very close to unraveling the secrets...! One wrong move and you could end up with a wallet packed full of btc. Who said you can't? I didn't. Yes, you have successfully located the withdrawal section. Think of a btc-e code as a gift voucher. If btc price is high and you wanted to cash out, you can trade your btc for usd (let's say I made $50), than convert those USD to a btce code. Then you'd advertise that code for sale and find someone who wants to buy btc on btc-e. Sell them the code for $50, and they take it to buy $50 worth of btc or ltc at btc-e. Everyone is happy. Think of all these people moaning about how hard it is to get funds in OR out of btc-e....if you just think a bit, and work together, it's not hard to get around this problem.
