Withdrawing Bitcoin from Cryptsy - Bitcoin Stack Exchange
Withdrawing Bitcoin from Cryptsy - Bitcoin Stack Exchange
[PSA] Cryptsy is not allowing bitcoin withdrawal. : Bitcoin
Cryptsy not processing "larger" withdraws : Bitcoin
r/Bitcoin - Cryptsy Exchange - Warning, unable to ...
Cryptsy Suspends Withdrawals Indefinitely
Ongoing Cryptsy withdrawal issues
Is anyone else having issues withdrawing bitcoin from cryptsy for non-trivial amounts? I have a request that is stuck in the pending state since monday. And now they are talking delays due to malleability attack? It all seems very mtgox-esque.
Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses. Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes. First, some background. Here is a summary of how custodians make us more secure: Previously, we might give Alice our crypto assets to hold. There were risks:
Alice might take the assets and disappear.
Alice might spend the assets and pretend that she still has them (fractional model).
Alice might store the assets insecurely and they'll get stolen.
Alice might give the assets to someone else by mistake or by force.
Alice might lose access to the assets.
But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
Alice can't take the assets and disappear (unless she asks Bob or never gives them to Bob).
Alice can't spend the assets and pretend that she still has them. (Unless she didn't give them to Bob or asks him for them.)
Alice can't store the assets insecurely so they get stolen. (After all - she doesn't have any control over the withdrawal process from any of Bob's systems, right?)
Alice can't give the assets to someone else by mistake or by force. (Bob will stop her, right Bob?)
Alice can't lose access to the funds. (She'll always be present, sane, and remember all secrets, right?)
See - all problems are solved! All we have to worry about now is:
Bob might take the assets and disappear.
Bob might spend the assets and pretend that he still has them (fractional model).
Bob might store the assets insecurely and they'll get stolen.
Bob might give the assets to someone else by mistake or by force.
Bob might lose access to the assets.
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are! "On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid". "Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since." "As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!" "Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?" "Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party." "Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!" "What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven." "Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!" "We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies. And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often". How many holes have to exist for your funds to get stolen? Just one. Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so? If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security. The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle. And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet? Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds. So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
ANY CERTAINTY BALANCES WEREN'T EXCLUDED. Quadriga's largest account was $70m. 80% of funds are in 20% of accounts (Pareto principle). All it takes is excluding a few really large accounts - and nobody's the wiser. A fractional platform can easily pass any audit this way.
ANY VISIBILITY WHATSOEVER INTO THE CUSTODIANS. BitBuy put out their report before moving all the funds to their custodian and ShakePay apparently can't even tell us who the custodian is. That's pretty important considering that basically all of the funds are now stored there.
ANY IDEA ABOUT THE OTHER EXCHANGES. In order for this to be effective, it has to be the norm. It needs to be "unusual" not to know. If obscurity is the norm, then it's super easy for people like Gerald Cotten and Dave Smilie to blend right in.
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
First report within 1 month of launching, another within 3 months, and further reports at minimum every 6 months thereafter.
No auditor can be repeated within a 12 month period.
All reports must be public, identifying the auditor and the full methodology used.
All auditors must be independent of the firm being audited with no conflict of interest.
Reports must include the percentage of each asset backed, and how it's backed.
The auditor publishes a hash list, which lists a hash of each customer's information and balances that were included. Hash is one-way encryption so privacy is fully preserved. Every customer can use this to have 100% confidence they were included.
If we want more extensive requirements on audits, these should scale upward based on the total assets at risk on the platform, and whether the platform has loaned their assets out.
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever. Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see. It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation. A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7. History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance. Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.) Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive. Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today. Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well. Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do. Facts/background/sources (skip if you like):
The inspiration for the paragraph about splitting wallets was an actual quote from a Canadian company providing custodial services in response to the OSC consultation paper: "We believe that it will be in the in best interests of investors to prohibit pooled crypto assets or ‘floats’. Most Platforms pool assets, citing reasons of practicality and expense. The recent hack of the world’s largest Platform – Binance – demonstrates the vulnerability of participants’ assets when such concessions are made. In this instance, the Platform’s entire hot wallet of Bitcoins, worth over $40 million, was stolen, facilitated in part by the pooling of client crypto assets." "the maintenance of participants (and Platform) crypto assets across multiple wallets distributes the related risk and responsibility of security - reducing the amount of insurance coverage required and making insurance coverage more readily obtainable". For the record, their reply also said nothing whatsoever about multi-sig or offline storage.
In addition to the fact that the $40m hack represented only one "hot wallet" of Binance, and they actually had the vast majority of assets in other wallets (including mostly cold wallets), multiple real cases have clearly demonstrated that risk is still present with multiple wallets. Bitfinex, VinDAX, Bithumb, Altsbit, BitPoint, Cryptopia, and just recently KuCoin all had multiple wallets breached all at the same time, and may represent a significantly larger impact on customers than the Binance breach which was fully covered by Binance. To represent that simply having multiple separate wallets under the same security scheme is a comprehensive way to reduce risk is just not true.
Private insurance has historically never covered a single loss in the cryptocurrency space (at least, not one that I was able to find), and there are notable cases where massive losses were not covered by insurance. Bitpay in 2015 and Yapizon in 2017 both had insurance policies that didn't pay out during the breach, even after a lengthly court process. The same insurance that ShakePay is presently using (and announced to much fanfare) was describe by their CEO himself as covering “physical theft of the media where the private keys are held,” which is something that has never historically happened. As was said with regard to the same policy in 2018 - “I don’t find it surprising that Lloyd’s is in this space,” said Johnson, adding that to his mind the challenge for everybody is figuring out how to structure these policies so that they are actually protective. “You can create an insurance policy that protects no one – you know there are so many caveats to the policy that it’s not super protective.”
The most profitable policy for a private insurance company is one with the most expensive premiums that they never have to pay a claim on. They have no inherent incentive to take care of people who lost funds. It's "cheaper" to take the reputational hit and fight the claim in court. The more money at stake, the more the insurance provider is incentivized to avoid payout. They're not going to insure the assets unless they have reasonable certainty to make a profit by doing so, and they're not going to pay out a massive sum unless it's legally forced. Private insurance is always structured to be maximally profitable to the insurance provider.
The circumvention of multi-sig was a key factor in the massive Bitfinex hack of over $60m of bitcoin, which today still sits being slowly used and is worth over $3b. While Bitfinex used a qualified custodian Bitgo, which was and still is active and one of the industry leaders of custodians, and they set up 2 of 3 multi-sig wallets, the entire system was routed through Bitfinex, such that Bitfinex customers could initiate the withdrawals in a "hot" fashion. This feature was also a hit with the hacker. The multi-sig was fully circumvented.
Bitpay in 2015 was another example of a breach that stole 5,000 bitcoins. This happened not through the exploit of any system in Bitpay, but because the CEO of a company they worked with got their computer hacked and the hackers were able to request multiple bitcoin purchases, which Bitpay honoured because they came from the customer's computer legitimately. Impersonation is a very common tactic used by fraudsters, and methods get more extreme all the time.
A notable case in Canada was the Canadian Bitcoins exploit. Funds were stored on a server in a Rogers Data Center, and the attendee was successfully convinced to reboot the server "in safe mode" with a simple phone call, thus bypassing the extensive security and enabling the theft.
The very nature of custodians circumvents multi-sig. This is because custodians are not just having to secure the assets against some sort of physical breach but against any form of social engineering, modification of orders, fraudulent withdrawal attempts, etc... If the security practices of signatories in a multi-sig arrangement are such that the breach risk of one signatory is 1 in 100, the requirement of 3 independent signatures makes the risk of theft 1 in 1,000,000. Since hackers tend to exploit the weakest link, a comparable custodian has to make the entry and exit points of their platform 10,000 times more secure than one of those signatories to provide equivalent protection. And if the signatories beef up their security by only 10x, the risk is now 1 in 1,000,000,000. The custodian has to be 1,000,000 times more secure. The larger and more complex a system is, the more potential vulnerabilities exist in it, and the fewer people can understand how the system works when performing upgrades. Even if a system is completely secure today, one has to also consider how that system might evolve over time or work with different members.
By contrast, offline multi-signature solutions have an extremely solid record, and in the entire history of cryptocurrency exchange incidents which I've studied (listed here), there has only been one incident (796 exchange in 2015) involving an offline multi-signature wallet. It happened because the customer's bitcoin address was modified by hackers, and the amount that was stolen ($230k) was immediately covered by the exchange operators. Basically, the platform operators were tricked into sending a legitimate withdrawal request to the wrong address because hackers exploited their platform to change that address. Such an issue would not be prevented in any way by the use of a custodian, as that custodian has no oversight whatsoever to the exchange platform. It's practical for all exchange operators to test large withdrawal transactions as a general policy, regardless of what model is used, and general best practice is to diagnose and fix such an exploit as soon as it occurs.
False promises on the backing of funds played a huge role in the downfall of Quadriga, and it's been exposed over and over again (MyCoin, PlusToken, Bitsane, Bitmarket, EZBTC, IDAX). Even today, customers have extremely limited certainty on whether their funds in exchanges are actually being backed or how they're being backed. While this issue is not unique to cryptocurrency exchanges, the complexity of the technology and the lack of any regulation or standards makes problems more widespread, and there is no "central bank" to come to the rescue as in the 2008 financial crisis or during the great depression when "9,000 banks failed".
In addition to fraudulent operations, the industry is full of cases where operators have suffered breaches and not reported them. Most recently, Einstein was the largest case in Canada, where ongoing breaches and fraud were perpetrated against the platform for multiple years and nobody found out until the platform collapsed completely. While fraud and breaches suck to deal with, they suck even more when not dealt with. Lack of visibility played a role in the largest downfalls of Mt. Gox, Cryptsy, and Bitgrail. In some cases, platforms are alleged to have suffered a hack and keep operating without admitting it at all, such as CoinBene.
It surprises some to learn that a cryptographic solution has already existed since 2013, and gained widespread support in 2014 after Mt. Gox. Proof of Reserves is a full cryptographic proof that allows any customer using an exchange to have complete certainty that their crypto-assets are fully backed by the platform in real-time. This is accomplished by proving that assets exist on the blockchain, are spendable, and fully cover customer deposits. It does not prove safety of assets or backing of fiat assets.
If we didn't care about privacy at all, a platform could publish their wallet addresses, sign a partial transaction, and put the full list of customer information and balances out publicly. Customers can each check that they are on the list, that the balances are accurate, that the total adds up, and that it's backed and spendable on the blockchain. Platforms who exclude any customer take a risk because that customer can easily check and see they were excluded. So together with all customers checking, this forms a full proof of backing of all crypto assets.
However, obviously customers care about their private information being published. Therefore, a hash of the information can be provided instead. Hash is one-way encryption. The hash allows the customer to validate inclusion (by hashing their own known information), while anyone looking at the list of hashes cannot determine the private information of any other user. All other parts of the scheme remain fully intact. A model like this is in use on the exchange CoinFloor in the UK.
A Merkle tree can provide even greater privacy. Instead of a list of balances, the balances are arranged into a binary tree. A customer starts from their node, and works their way to the top of the tree. For example, they know they have 5 BTC, they plus 1 other customer hold 7 BTC, they plus 2-3 other customers hold 17 BTC, etc... until they reach the root where all the BTC are represented. Thus, there is no way to find the balances of other individual customers aside from one unidentified customer in this case.
Proposals such as this had the backing of leaders in the community including Nic Carter, Greg Maxwell, and Zak Wilcox. Substantial and significant effort started back in 2013, with massive popularity in 2014. But what became of that effort? Very little. Exchange operators continue to refuse to give visibility. Despite the fact this information can often be obtained through trivial blockchain analysis, no Canadian platform has ever provided any wallet addresses publicly. As described by the CEO of Newton "For us to implement some kind of realtime Proof of Reserves solution, which I'm not opposed to, it would have to ... Preserve our users' privacy, as well as our own. Some kind of zero-knowledge proof". Kraken describes here in more detail why they haven't implemented such a scheme. According to professor Eli Ben-Sasson, when he spoke with exchanges, none were interested in implementing Proof of Reserves.
And yet, Kraken's places their reasoning on a page called "Proof of Reserves". More recently, both BitBuy and ShakePay have released reports titled "Proof of Reserves and Security Audit". Both reports contain disclaimers against being audits. Both reports trust the customer list provided by the platform, leaving the open possibility that multiple large accounts could have been excluded from the process. Proof of Reserves is a blockchain validation where customers see the wallets on the blockchain. The report from Kraken is 5 years old, but they leave it described as though it was just done a few weeks ago. And look at what they expect customers to do for validation. When firms represent something being "Proof of Reserve" when it's not, this is like a farmer growing fruit with pesticides and selling it in a farmers market as organic produce - except that these are people's hard-earned life savings at risk here. Platforms are misrepresenting the level of visibility in place and deceiving the public by their misuse of this term. They haven't proven anything.
Fraud isn't a problem that is unique to cryptocurrency. Fraud happens all the time. Enron, WorldCom, Nortel, Bear Stearns, Wells Fargo, Moser Baer, Wirecard, Bre-X, and Nicola are just some of the cases where frauds became large enough to become a big deal (and there are so many countless others). These all happened on 100% reversible assets despite regulations being in place. In many of these cases, the problems happened due to the over-complexity of the financial instruments. For example, Enron had "complex financial statements [which] were confusing to shareholders and analysts", creating "off-balance-sheet vehicles, complex financing structures, and deals so bewildering that few people could understand them". In cryptocurrency, we are often combining complex financial products with complex technologies and verification processes. We are naïve if we think problems like this won't happen. It is awkward and uncomfortable for many people to admit that they don't know how something works. If we want "money of the people" to work, the solutions have to be simple enough that "the people" can understand them, not so confusing that financial professionals and technology experts struggle to use or understand them.
For those who question the extent to which an organization can fool their way into a security consultancy role, HB Gary should be a great example to look at. Prior to trying to out anonymous, HB Gary was being actively hired by multiple US government agencies and others in the private sector (with glowing testimonials). The published articles and hosted professional security conferences. One should also look at this list of data breaches from the past 2 years. Many of them are large corporations, government entities, and technology companies. These are the ones we know about. Undoubtedly, there are many more that we do not know about. If HB Gary hadn't been "outted" by anonymous, would we have known they were insecure? If the same breach had happened outside of the public spotlight, would it even have been reported? Or would HB Gary have just deleted the Twitter posts, brought their site back up, done a couple patches, and kept on operating as though nothing had happened?
In the case of Quadriga, the facts are clear. Despite past experience with platforms such as MapleChange in Canada and others around the world, no guidance or even the most basic of a framework was put in place by regulators. By not clarifying any sort of legal framework, regulators enabled a situation where a platform could be run by former criminal Mike Dhanini/Omar Patryn, and where funds could be held fully unchecked by one person. At the same time, the lack of regulation deterred legitimate entities from running competing platforms and Quadriga was granted a money services business license for multiple years of operation, which gave the firm the appearance of legitimacy. Regulators did little to protect Canadians despite Quadriga failing to file taxes from 2016 onward. The entire administrative team had resigned and this was public knowledge. Many people had suspicions of what was going on, including Ryan Mueller, who forwarded complaints to the authorities. These were ignored, giving Gerald Cotten the opportunity to escape without justice.
There are multiple issues with the SOC II model including the prohibitive cost (you have to find a third party accounting firm and the prices are not even listed publicly on any sites), the requirement of operating for a year (impossible for new platforms), and lack of any public visibility (SOC II are private reports that aren't shared outside the people in suits).
Securities frameworks are expensive. Sarbanes-Oxley is estimated to cost $5.1 million USD/yr for the average Fortune 500 company in the United States. Since "Fortune 500" represents the top 500 companies, that means well over $2.55 billion USD (~$3.4 billion CAD) is going to people in suits. Isn't the problem of trust and verification the exact problem that the blockchain is supposed to solve?
To use Quadriga as justification for why custodians or SOC II or other advanced schemes are needed for platforms is rather silly, when any framework or visibility at all, or even the most basic of storage policies, would have prevented the whole thing. It's just an embarrassment.
We are now seeing regulators take strong action. CoinSquare in Canada with multi-million dollar fines. BitMex from the US, criminal charges and arrests. OkEx, with full disregard of withdrawals and no communication. Who's next?
We have a unique window today where we can solve these problems, and not permanently destroy innovation with unreasonable expectations, but we need to act quickly. This is a unique historic time that will never come again.
Overview of Major Risks of Buying Nyancoins - Version 6
This is the sixth version of the NYAN risks document (based on v5 (v4 (v3 , v2 and original)). These are obsoleted periodically as the old ones get archived to allow for comments again via a new post, to re-examine the risks in light of changes, and for greater visibility. The purpose of these documents is to provide a best-effort discussion of major risk factors in gambling on NYAN, modeled on the risks disclosure in a 10k (annual report) which is mandated for publicly traded companies in the United States. This document is provided with no guarantee that major risk factors have not been missed, and it is important to recognize my (coinaday) personal bias from holding about one-third of the total supply of NYAN. Please comment on any risks which are not mentioned here or additional aspects of risks here you think should be further emphasized or any other possible disclosure you think would be helpful to a person considering gambling on NYAN. Executive summary Nyancoins have no exchange, no core developer at the moment, uncertain demand, have had inconsistent blocks, are very vulnerable to 51% attacks, have the potential for serious bugs, an uncertain legal situation, concentrated ownership, low liquidity, depend upon the Internet, may be addictive, and could make you wealthy, which has been alleged to lead to more problems. Introduction: This is my best attempt to collect every major risk factor from buying Nyancoins, although I can offer no warranty of fitness for this information for any purposes. I believe in honesty and forthrightness. Having this available and obvious is a simple matter of basic decency. Much, hopefully all, of this information has been discussed previously in /nyancoins, but this document in particular is about being up-to-date and central. This page will be updated clearly as appropriate if situations change on a best-effort basis (which may mean updates do not happen for months at times, unfortunately; please ping for faster updates). If you believe that I am missing something, please note any other major risks you see in the comments. Exchanges: Nyancoins are not currently traded on any exchange. It may be listed on one minor exchange but have no volume there. Obviously an unlisted cryptocurrency is in a bad situation. I hope to see us gain a listing on an exchange which supports low volume coins in 2020 but I have no current prospect of this and it should be considered a longshot at best. Previously we traded on Trade Satoshi and prior to that on Cryptopia and prior to that on Cryptsy. All three exchanges failed us (Trade Satoshi delisted without allowing withdrawal; Cryptopia delisted and failed to provide withdrawal and then went bankrupt; Cryptsy went bankrupt). This is a further reminder that exchanges are a major risk and one should be extremely careful to not keep more coins on there than one can comfortably afford to lose. In theory, there are decentralized exchange technologies, notably CATE; however, I think we currently lack some needed APIs for this. I'm not certain but we haven't demonstrated the capability yet. On-Reddit exchanges are also possible with tipbots, but require trust as they are not atomic. It should be possible to build an "exchangebot" similarly, although I'm not currently aware of one, but my concept would still have the bot as a trusted central party. Atomic cross-chain transactions seem to me like a very promising core technology ultimately for building exchanges which can be more proveably secure. They could also allow exchanges to share a common listing protocol as well without having to trust the other exchanges (at least, beyond the core protocol development and maintenance; tanstaafl). This is not yet accomplished though and in the meantime we remain vulnerable to periodic exchange failures. Core developer: Although we have good general tech support in this community and have put up supporting infrastructure, there is not anyone officially currently working on core client code. This is a significant problem for the long-term, although we are not in any immediate known need of changes. ImASharkRawwwr has returned to the community and may do future client updates, but I'm leaving the lack of core developer risk unchanged until there is an update released. This is not intended as a slight in any way but merely being cautious in the risks document and recognizing that we aren't certain when or if there will be a next release. Demand: NYAN was introduced in 2014 and during the second half of that year had so little demand that it almost died out. In January 2015 I got involved in the coin and for most of 2015 and 2016 I was the majority of the buying pressure. I base these statements on my recollection of the trading history so far and the fact that I have acquired more than 120 million coins, somewhere around 41% of the coins (latest hodling report, June 2017), as well as my observations that I had usually had the leading major bid, and usually the leading bid regardless of size. In 2017, I have generally not been a major factor in the demand, as I haven’t had money to spare to gamble on NYAN. In June 2017, we have had a spike in buying from an unknown source. It is unknown whether significant demand for NYAN will continue. Because its value is purely speculative, it is entirely possible that demand for NYAN could simply end. This is a fundamental risk in gambling on NYAN; it is entirely possible that its value will go to zero and not recover. By the end of 2019, we lost exchange listing. I know of no current demand for NYAN. I hope to see us listed and demand exist in the future but should not be relied upon. NYAN last traded around 9 satoshi according to coinmarketcap but it may well not even trade that high even if relisted someday - there could be a flood of selling and no buyers. Inconsistent blocks: Although NYAN is designed to produce a block every minute, there have been times where there has been more than 24 hours between blocks. This results because of an imperfect difficulty function and low base hashing, along with price fluctuations, which can combine to have a low difficulty making the coin attractive for a flood of hashing power which can lead the difficulty function to overcompensate, leaving it stuck with a high difficulty no longer profitable to mine. I haven’t observed this lately, that is, I don’t recall incidents of this in 2017, but I’ve been paying far less attention to it as well. It is entirely possible for this to recur, as the difficulty function is not fixed (it would require a hard fork to fix it). We seem to have more baseline hashing which helps to avoid this, but it is possible for us to lose that. A workaround is to use large transaction fees (I've set my client to 337 NYAN) which is enough to cause pools to generally solve a block even if the chain were otherwise stuck. It may be possible to include a better difficulty function in a hard fork client, but it is unknown when if ever this would be done and it's not yet clear what design improvement if any would fix this. 51% attack: Because of the generally quite low hashing power on NYAN, it is highly vulnerable to a 51% attack. Either a leading pool or a new one could choose to do a denial-of-service attack, whether for extortion, lulz, or some other reason (like coinaday being annoying). Such an attack is capable of preventing any transaction processing for as long as it is sustained. I consider this a relatively low risk since I expect we would simply wait it out (and potentially not even notice such an attack for quite a while given the low volume of transactions currently), but it is definitely a potential vulnerability. Bugs: It is possible that there are bugs in the underlying code. I have never read through all of the bitcoin or nyancoin code, of any version, nor even studied the original bitcoin whitepaper in depth (by the way, we oughta make up a nyancoin whitepaper or ten someday), meaning I have no professional or technical knowledge about whether or not the system is fundamentally sound. I've been going based on "it seems to be working, so it's probably fine", which is, shall we say, more of an engineering than scientific approach. I have heard reference to a "time warp" bug vulnerability in the KGW difficulty function which Nyancoins has. I do not know details and my understanding is a fix to this would require a fork to change the difficulty function, so I do not anticipate a fix before NYAN3, the term for an eventual hard fork, but it is unknown when if ever this would be done. I consider this vulnerability to be likely to be related to the fundamental weakness to difficulty spikes after large amounts of hashing jumps on the network. Hostile (or simply passing interest with large capacity) hashing does degrade the performance of the network. As a workaround, this class of attack can be mitigated with a transaction to 'unstick' the chain after, since the difficulty function will adjust in the next block after enough wall-time has passed since the last block (so only need one high difficulty solve which can be triggered by a transaction fee). Legal: Bitcoin faces uncertain legal situations in almost every country. Nyancoin is even more uncertain, as people tend to consider bitcoin and not address impacts on altcoins. Between the potential tax implications and banking regulations and currency laws, there are a wide variety of ways a person could make a felony-level mistake. This can be somewhat mitigated by merely buying and holding, as you won't be responsible for KYC/AML presumably (although an argument could be made in your purchase), and presumably unrealized capital gains wouldn't be taxable (but I am neither a lawyer nor accountant nor any sort of expert on the relevant accounting laws in any country). Somehow getting legal opinions for Nyancoins in every country would be very useful in my opinion. If Bitcoin and altcoins are well-studied in a given country it should be relatively easy to adapt those opinions and research to Nyancoins, but it would still require some pro bono work in any case. So...hopefully we'll get some lawyer Nekonauts someday who are willing to semi-officially give us an opinion. In the meantime...hope that common sense can save you. If you sell Nyancoins directly, you're going to need to comply with the KYC/AML types of laws of your country. If you're going to do banking operations...may the central bank have mercy on your soul. I think the best advantage we have is the same bitcoin had for its first years: we're too small for anyone to care. But since we plan to grow significantly, we need to be aware of our legal issues upon scale. Which is to say, whether or not you're allowed to sell 10,000 NYAN to your friend probably has a lot to do with whether your friend legally acquired whatever is being offered in exchange, and whether the value of what you get in return is above a certain level or not. I'm not going to try guessing that level precisely because I know I'll be wrong. $1 is probably fine. $10,000 is probably illegal without some significant licensing. I would suggest either not touching fiat or else deliberately capping it without verification after getting an independent local expert legal opinion. concentration: The fact that I hold about 41%(? not sure the exact percentage as of Dec 2017 ; need to do updated survey to check; 41% sounds slightly high to me but I'll see...I'll try to update by the end of the year or shortly after) of the currently outstanding NYAN could be a major risk factor, particularly if I do not act in the best long-term interests of the strength of Nyancoins. For instance, I could pull my bids, sell only a small part of my holdings, crash the market, and potentially buy a lot of volume for a lower price. While I cannot foresee any circumstance under which I would do this, it is certainly conceivable that I could be financially, legally, or morally obligated to do so if I were to become insolvent. Liquidity: There is very little trading activity in NYAN. Therefore, large purchases will drive the price up and large sales will drive the price down. This means that entering and exiting a position is likely to result in "slippage", so even if the price has increased slightly overall since the time before one entered a position to the time before one exits it, it is quite possible that the overall trade will be neutral or negative as a result of the pressure on the market. For an extreme example, my own position would be essentially impossible to exit from the market without crashing the price, and even so it would likely be difficult to find buyers even at a satoshi, based on that I currently am the majority of the bids on the market. This is closely tied to the concentration risk but if I were to exit NYAN for any reason or simply fail to continue to renew bids the liquidity would dry up even further. At the end of 2019, having no exchange, there is functionally zero liquidity. In theory peer to peer trading could still be done but I’m unaware of any. Internet outage: if the Internet goes down, we hit a very nasty scenario. We can't process transactions, and all the miners go into a race to make 'useless' blocks on their own. If the Internet were never to come back up, Nyancoins would be dead. If there is a daylong internet outage, the longest blockchain discovered after, presumably representing the most hashing power dedicated to empty blocks during that outage, will win. So I suppose the block rewards in that case are for having the faith in Nyancoins to keep hashing and storing the blockchain during the day without the Internet. addictive: This was a curiosity to me when I started. Now it's an obsession for me. I'm constantly thinking about how I can help to smooth the path for Nyancoins to grow stronger and better and more valuable. You may find that once you start to realize the impact you can have upon Nyancoins, and that Nyancoins can have upon you, that you start to become addicted as well. It is possible to substitute another addiction in its place, such as dogecoins or pcp, but it is not recommended. Nyancoin addictions are considered 'mostly harmless'. The exception is if you go 'full coinaday' and start to accumulate more than 10% of your assets in Nyancoins. In this, this is essentially a variety of gambling addiction. I would argue that it beats roulette because you can tilt the odds in your favor, but then, I would argue that, wouldn't I? mo' nyan mo' problems: Some people have claimed that more money leads to more problems. Since nyan is money, it follows as a consequence of the conjecture. Should this be the case, your increasing nyan could potentially lead to such problems in the future as: enhanced attention from revenue collection services of all kinds (governmental and private), swarms of fake friends and gold-diggers, excessive risk-taking as a result of feelings of invincibility, an increase in certain varieties of targeted marketing, possible disqualification for asset-based welfare for you (or even your children, for instance college financial assistance), an inability to remember how many houses you own, or other serious problems. Conclusion The lack of any exchange trading Nyancoins is a major risk factor in its future survival. If it is listed, the lack of development is likely the next most serious. The coin currently survives but whether it will continue to do so in the future is far from certain. If those of us who have found or come back to NYAN choose to keep it alive, I believe it still has a chance at surviving into a stronger future. This self-certified infallible message has been brought to you as a Public Service Announcement of the NYAN Public Relations Council, a transparent front organization of notoriously lovable philanthropist and major NYAN hodler coinaday.
I Lost Trust in Crypto after Cryptsy's Bankruptcy, Now I Support It in My Store
My Initial Experience with Cryptocurrencies Didn't Go Well
Back in 2016 I decided to test the waters in cryptocurrencies. I started learning about exchanges, wallets, etc. My luck made me choose Cryptsy because of a referral at Bitcointalk and started delving in depositing funds, a bit of day trading, etc. I was starting to trust cryptocurrencies because my orders were successful and my funds grew as a result, I stopped seeing crypto as a fun game and started to think seriously about depositing bigger sums of money after that. Paul Vernon fled to China with $3.3M in stolen funds from Cryptsy clients But luckily news about the CEO of Cryptsy stealing the company's funds and the cancellation of withdrawals blew up before I deposited money there to scale up the trading. The hit wasn't hard I lost only about $40, I initially deposited like $20, but I also lost trust and an opportunity to have bought BTC at $600 and I chose to ignore everything about crypto until Aug.-Sep. this year.
After Three Years Some Conferences Sparked My Hope
Who made me finally take the plunge was John Mcafee's educating explanations in several of his talks. These helped me see the potential of blockchain beyond transaction tracking. The potential of registering events, historical, political, medical & scientific facts and discoveries, patents, plans and blueprints, etc. etc. all bypassing lies, censorship and manipulation is especially thrilling. Although John Mcafee is a bit eccentric he knows how to educate and convey this huge potential, these possibilities made me want to support cryptocurrencies. Although peculiar Mcafee knows how to convey the potential of blockchain
How I Am Supporting Cryptocurrencies in My Store
For now I am supporting three cryptocurrencies in two ways:
Accepting payments in three cryptocurrencies: Bitcoin, Litecoin and Ethereum.
An affiliate program in which I pay my affiliates in Bitcoin if they so choose, instead of using Paypal.
Listing my store in cryptocurrency support communities like Cryptwerk
Commissions are 9% or 18% depending on your volume of sales (10 or more products per week).
Payments through PayPal or BTC.
Tracking of sales through custom promotional code.
Free to sign up. It is required to keep in contact with me.
My blog & store is Find Good Health I try to help people there learn to achieve and keep a good health and well-being by themselves through information about nutrition, fitness, complementary therapies and emotional balance. For this I write in my blog about therapies and health advice, always trying to verify any advice and claim with sources in research and medical studies. One objective I have with my blog is to fight the overload of false health information, easy & quick remedies and poorly backed claims made in social media and most health and wellness blogs. FindGoodHealth.org Homepage Supporting the blog I offer a small selection of eco-friendly fitness, yoga & meditation tools and accessories, 100% natural skincare products, beauty & acupuncture devices, etc. All of them follow the same rule as my blog: "any benefit or claim any product has is backed by research studies", you can check this by the long text any product page has in comparison with traditional stores like Amazon.
Petitions & Questions to The Community
Since I'm a beginner accepting cryptocurrency payments I'd like your opinion on a couple of things:
It seems our Google overlords have recently changed the way Google Search Engine promotes web pages to higher positions in the search result page. Higher positions means more visitors, Google is putting more value if the readers interact more with the site they're visiting.
In my website that means writing a comment in my blog posts, if you could comment on any post you like or found useful, even to just show your support, say thanks or hi I'd be very appreciated. I'm working on an incentive to motivate my readers to comment but I admit I rarely do it myself, it's a bit of a pita nowadays :P Hate to ask you this but...
For now, I'm using direct cryptocurrency payments, that means when you make a transaction, the funds are transferred to my account. In the event you'd like a refund because there's a problem with the shipping or the product is defective I'd have to personally transfer the funds back to your wallet.
Do you find this form of payment trustworthy in a store like mine or would you prefer using a payment platform(a middleman)that keeps funds on hold until you receive your product at home?
If you are seriously thinking about becoming an affiliate marketer and having read my affiliate program, its conditions, form of payment, sales attribution and lack of statistics like bigger stores like Amazon have.
What do you think about the program, its conditions and higher percentages are attractive enough to sign up? Or would you rather sign up for program like Amazon? If my program didn't seem good enough for you what conditions you disliked? Can you compare them to other programs?
how to shibecoin v rich in minutes much instruct so simple any doge can do
UPDATE 1/21/14: I'm not updating this guide anymore. Most of the steps should still work though. See the wiki or check the sidebar for updated instructions. Before you do anything else, you need to get a wallet. Until there's a secure online wallet, this means you need to download the dogecoin client. Now open the client you just downloaded. You'll be given a default address automatically, and it should connect to peers and start downloading the dogechain (aka blockchain in formal speak). You'll know because there will be a progress bar at the bottom and at the lower right there should be a signal strength icon (TODO: add screenshots). If you've waited 2 or 3 minutes and nothing is happening, copy this:
And paste it into a new text file called dogecoin.conf, which you then place into the dogecoin app directory.
On Windows this is C:\Users\[YOUR_USER]\AppData\Roaming\DogeCoin
On Macs it's ~/Library/Application Support/DogeCoin
Now restart your qt client and the blockchain should start downloading in about 1-2 minutes. Once it finished downloading, you're ready to send and receive Dogecoins!
Decide how you want to get Dogecoin. Your options are:
I'll go into detail about each of these. I'm currently writing this out. I'll make edits as I add sections. Suggestions are welcome.
Mining is how new dogecoins are created. If you're new to crypto currencies, read this. To mine (also called "digging"), a computer with a decent GPU (graphics card) is recommended. You can also mine with your CPU, but it's not as efficient.
These instructions cover only Windows for now. To mine, you'll need to figure out what GPU you have. It'll be either AMD/ATI or Nvidia. The setup for both is approximately the same.
Step One: Choose a pool
There's a list of pools on the wiki. For now it doesn't really matter which one you choose. You can easily switch later. NOTE: Youcanmineintwoways.Solominingiswhereyouminebyyourself.Whenyoufindablockyougetallthereward.Poolminingiswhenyouteamupwithotherminerstoworkonthesameblocktogether.Thismakesitmorelikelythatyou'llfindablock,butyouwon'tgetallofit,you'llhavetosplititupwithothersaccordingtoyourshareofthework.Poolminingisrecommendedbecauseitgivesyoufrequentpayouts,becauseyoufindmoreblocks.Thelargerthepoolyoujoin,themorefrequentthepayouts,butthesmallertherewardyouget. Overalongperiodoftimethedifferencebetweenpoolandsolomininggoesaway,butifyousolomineitmightbemonthsbeforeyougetanycoins.
Step two: Set up pool account
The pool you chose should have a getting started page. Read it and follow the instructions. Instructions vary but the general idea is:
Create an account
Create a worker under the account
Grab the mining URL (usually on the getting started page)
Setup your cash out options in your account settings by entering one of your wallet's receiving addresses
When you're done with this, you'll need to know:
Your account, worker name, and worker password
The mining (stratum) URL (usually the pool's URL followed by a port)
Step three: Download mining software
For best performance you'll need the right mining software.
Create a text file in the same folder as your miner application. Inside, put the command you'll be running (remove brackets). For AMD it's cgminer.exe --scrypt -o stratum+tcp://: -u -p For Nvidia it's cudaminer.exe -o stratum+tcp://: -O : Substitute the right stuff in for the placeholders. Then on the next line of the text file type pause. This will let you see any errors that you get. Then save the file with any name you want, as long as the file extension is .bat. For example mine_serverName.bat.
Step five: Launch your miner
Just open the .bat file and a command line window should pop up, letting you know that the miner is starting. Once it starts, it should print out your hash rate. If you now go to the pool website, the dashboard should start showing your hashrate. At first it'll be lower than what it says in the miner, but that's because the dashboard is taking a 5 minute average. It'll catch up soon enough. NOTE: Anormalhashrateisbetween50Kh/suptoeven1Mh/sdependingonyourGPU.
You're now mining Dogecoins
That's it, nothing more to it.
CPU mining isn't really recommended, because you'll be spending a lot on more on power than you'd make from mining Dogecoin. You could better spend that money on buying Dogecoin by trading. But if you have free electricity and want to try it out, check out this informative forum post.
Trading has been difficult so far, but Dogecoin just got added to a few new exchanges. If you don't have a giant mining rig, this is probably the best way to get 100k or more dogecoins at the moment. I'll write up a more complete guide, but for now check out these sites:
Faucets are sites that give out free coins. Usually a site will give out somewhere between 1 and 100 Dogecoin. Every site has its own time limits, but usually you can only receive coins once every few hours, or in some cases, days. It's a great way to get started. All you do is copy your address from the receive section of your wallet and enter it on some faucet sites. Check out /dogecoinfaucets for more. If you go to each site on there you might end up with a couple hundred Dogecoin!
This method is pretty straightforward. Post your receiving address, and ask for some coins. Such poor shibe. The only catch is, don't do it here! Please go to /dogecoinbeg.
Other redditors can give you Dogecoin by summoning the tip bot, something like this: +dogetipbot 5 doge This might happen if you make a good post, or someone just wants to give out some coins. Once you receive a tip you have to accept it in a few days or else it'll get returned. Do this by following the instructions on the message you receive in your inbox. You reply to the bot with "+accept". Commands go in the message body. Once you do that, the bot will create a tipping address for you, and you can use the links in the message you receive to see your info, withdraw coins to your dogecoin-qt wallet, see your history, and a bunch of other stuff. As a bonus, so_doge_tip has a feature where you can get some Dogecoins to start with in exchange for how much karma you have. To do this, send the message "+redeem DOGE" to so_doge_tip. You'll need to create a tipping account if you don't have one. If you want to create a tipping account without ever being tipped first, message either of the bots with "+register" and an address will be created for you.
1/21/14 - Added note about this thread no longer being updated
1/21/14 - Changed wallet links to official site
12/27/13 - Added 1.3 wallet-qt links
12/21/13 - Added new windows 1.2 wallet link
12/20/13 - Fixed +redeem text
12/18/13 - Added short blurb on trading.
12/18/13 - Updated cudaminer to new version (cudaminer-2013-12-18.zip).
Taken from https://forums.prohashing.com/viewtopic.php?f=11&t=5964: ----------------------------------- Currently, Tether, which is supposed to be a coin pegged to the dollar, is trading for just 97 cents. Bitfinex, whose CEOs are intertwined with Tether's operations, has decoupled from the other markets. Given that there are billions of Tethers outstanding, many believe that Tether's collapse would be catastrophic to the cryptocurrency industry. They're right, because that would be exactly the sort of panic that is needed to take bitcoins down to the further capitulation that I've been talking about. I think that it's important, however, to differentiate what is likely to happen to exchanges in a similar situation to Bitfinex and Tether, and what happened to exchanges like Mt. Gox and Cryptsy. In the latter two cases, money was actually stolen from the exchanges, and those exchanges illegally continued to operate while they were insolvent. In the current situation, the exchanges that will fail are likely to be able to fully account for all assets. However, as I've been repeatedly mentioning, there is a paradoxical effect taking place right now where banks are becoming much more strict in closing accounts of completely legal cryptocurrency businesses, despite a smaller percentage of cryptocurrency than ever before being used for illegal activities. It no longer matters whether a company actually has dollars. It only matters whether those dollars can be accessed by the company. Every time banks have decided to close our accounts, the procedure is always the same. They say that deposits to the accounts will be rejected beginning immediately, but the account can continue to be used to send money out for a month or so. If Bitfinex has had its banks close its accounts, then what is happening right now is exactly what we should expect to see. The banks, without warning, would have notified Bitfinex that they were closing their accounts and were prohibiting deposits immediately. That would force them to set the site to stop accepting wire transfers. Withdrawals, on the other hand, would not yet be suspended, so the exchange can continue sending money to customers who want to receive money. Slowdowns in withdrawals, though reported as suspicious, could simply be due to the high volume of wires requested by panicked customers. This bank account closure process we've experienced sets a deadline until access to the account is blocked and the money must be removed. Since humans like round numbers, in our case the deadlines given have usually been one month from now or at the end of the next month. Given this experience, if I had to guess what is most likely to happen in a hypothetical situation where an exchange has lost banking services, it is that the exchange will end up sitting on a cashier's check for billions of dollars. The deadline will pass, they will not be able to obtain a new bank account, and the bank will mail them a check. Coins associated with the exchange would crash when dollar withdrawals are halted, bringing the cryptocurrency markets down with it, starting the next downward phase of this bubble cycle. Eventually, the exchange will either obtain a bank account or will declare bankruptcy, because it can't spend any of its money to continue operations. If bankruptcy occurs, then customers might end up losing money solely because the lawyers involved in the process would take fees from the previously fully backed assets. The bankruptcy attorney will probably have an easier time of getting a bank to cash the check to pay former customers. I'm confident that the banking environment has now become so difficult that we will likely see at least one major exchange go out of business solely because it cannot obtain a bank account. The inability to obtain a bank account will not be indicative of any wrongdoing by the company, so it isn't possible to predict which exchange it will be by looking at how trustworthy it seems to be. And the truth is that I wouldn't be able to say that the panic and price crashes that will ensue from this exchange failure will be unwarranted - the inability to obtain bank accounts is significantly holding back the industry right now. This is a ticking time bomb - one that would cause me to hedge my bets in a more stable currency if I had a bank account. What's ironic about all of it is that if that happens, the industry will have regressed since the bottom of the last bubble. Last time, customers lost because the bad guys took their money. Customers will have lost this time because the good guys tied up honest people's money in the banking and legal system, despite the CEOs having done nothing wrong.
We have a constant stream of people coming back after abandoning Dogecoin and the sub in 2014 when the price fell. These people all have old versions of QT and are now basically trying to recover their coins, presumably to cash out and abandon us again. This is causing strain for the network, as far more people are trying to leech blocks than seed them. The thing is, none of this is necessary. Especially if you're just going to dump coins. With resources such as https://coinb.in/#settings all you need are your private keys, and you can create, sign and broadcast transactions yourself. No client required, let alone one as resource-hungry as QT.
"So, how do I get my keys?"
First of all, lets talk about data management. The overwhelming majority of coins are not lost through theft, especially direct theft of wallets (as distinct from wholesale thefts/scams/implosions like Moolah, GAW, MtGox, Cryptsy, and even our own beloved Dogetipbot). Most coins are lost because people forget about their wallets and do silly things like reformat hard drives, lose passwords and so on. So, everyone should have a wallet list. Here is a sample bit of HTML that gives you a page with two columns of wallets, one for local wallets you would withdraw coins to, the other the third-party wallets you would deposit coins to third parties through (do note that many services use temporary addresses generated for deposits which expire after 24h or so). A page like this is how I manage my 100+ wallets, and I have copies on my network and hidden online. Such a page makes it easy to at least keep track of all your wallets, for a trivial amount of work to set up.
"OK, great, so now I have a list of my wallets. Now what?"
Now you're going to need the private keys for each of those wallets. Obviously you're not going to store these in a public place though. So you will need a separate file, which can just be plain text. Copy each of those addresses into it. Now go ahead and fire up QT. If you haven't synced it in 3 years, its going to take forever, but that doesn't matter. You don't actually need the blockchain for this, so you don't have to wait for it to catch up. Open up the console which is in the Help menu. Then give the command dumpprivkey with the wallet address you want the key to. Then use the up-arrow key to bring that command back, replace the address with the next one, and keep going until you have them all. It will look something like this:
13:05:18 Welcome to the Dogecoin RPC console. Use up and down arrows to navigate history, and Ctrl-L to clear screen. Type help for an overview of available commands. 13:11:06 dumpprivkey D9xDcRthB6XP4vRGqiyKdDfVJ7CWhYuBBi 13:11:06 6KEcssuq1wWUrFVmMF8yDxHuAdQMiRezz53zDxADLmyoXnix7iM 13:12:00 dumpprivkey DUDARNrGHVTFcCgriwRWgDQJPKDuDQr9jg 13:12:00 6JNk6NNFZcr49fbsD2jcTfTxFLjJKq9DHQ5JU8CYeZ2Cz6JdKMY 13:12:25 dumpprivkey DG6xnwCT6BXePaySqU85XocobZmhbJczQH 13:12:25 6JNXFv95Mp9SzehHw9jojjdxHRNPeh77qCsRbaNwJZMp9MKCAu3
Yes, those are real wallets. But don't bother trying to steal my coins, I just generated them on https://walletgenerator.net/ and they're empty. That's basically it. All you need to do is add some descriptions of what the wallets are, pretty up the format to your liking, and save copies in multiple, secure places, including printed out.
Remember, if you lose your keys, OR someone else sees them, you lose your coins!
If those were my real wallets above, you could use the keys and spend my coins. So obviously, don't let anyone else, especially annoying little brothers, get their grubby hands on them. But also make sure they can be discovered if anything happens to you. That's why the printed copies... nobody is going to go trolling through your porn or warez collection on the offchance there's something valuable in there. But they will look in your safe or wherever you store other important documents. Just be sure to leave a note as to what they are and how to use them. Remember the woman who came here a couple years ago who had found a USB stick with 110 BTC in a locked wallet.dat on it from her dead husband? I sometimes wonder if she ever got the money. Don't be her. Or him.
"OK, great. Now I have my keys. What now?"
Well, you can spend coins using https://coinb.in/#settings from any wallet you have the keys to. First step is to choose the network. Dogecoin (mainnet) obviously. Then go to Transaction in the +New menu. Enter your address and hit the Load button. It will pull in the first 100 transactions. Now enter the address to pay, and the amount. Note the Transaction Fee box! You want this amount to be zero. Depending on whether you're moving coins to another of your wallets to consolidate them (a very good idea.. go read the UTXO ELI5, which you will find a couple pages into https://www.reddit.com/dogecoin/comments/4yts6h/start_here_for_much_wallet_wow/ - Yes, I'm going to make you work for it, cos there's tons of useful stuff there you need to know), or paying someone else, you may want to select which inputs to use. Once you're happy with the transaction, go ahead and submit it. You will now get a block of text, which is the raw, unsigned transaction. Copy this. Go to the Sign tab. Paste it. Add your private key and Submit to sign it. After a little bit, you will get a signed transaction. Copy it. Go to the Broadcast tab, paste it and hit Submit. That's it. It should go into the next block in a minute or two. Yes, even without paying a mining fee. Our network is so lightly loaded that there are no contention issues like the Bitcoin people have to put up with.
"That's it? So why do I need QT?"
You don't. The process above is all that's involved in spending coins. Everything else is window dressing. So there is no need to run QT, or any other client. Oh, and since you can download the site and run it locally (mostly offline), there is no security issue beyond the usual keyloggers/spyware that can compromise anything. And by knowing how to do this, you are much better protected from accidental loss than someone who blindly trusts black boxes they don't understand. Oh, one final thing... if you really want to help the network by seeding rather than leeching, go ahead and run a full node. Instructions are in that link above. AND you may want to help seed the bootstrap file torrent from a couple of days ago. Just because YOU don't need it, doesn't mean others don't, right?
A plea to the monero community to migrate away from poloniex.
Hi everyone, some of you may know me, I'm a monero supporter for a bit over a year now. I would like to ask every member of this great community to consider moving from poloniex to bittrex as their primary source of trading, buying, etc. Not just Monero but other crypto as well. Obviously, it goes without saying that one should not be keeping a lot of coins on exchanges. However, even beyond that I believe there are additional reasons to avoid poloniex now, and that we should move our trading volume elsewhere. One huge red flag to me is that poloniex's response to any hint of regulation. They recently froze the accounts of entire state of people (WA state), based on regulatory fears. This should be a huge worry for any traders in the USA. Your state could get shut down at any time based on regulation passed by your legislature. On the other hand, other exchanges are moving in the opposite direction, bittrex has been working for a year now on getting money transmitter licenses and is working to add fiat trading. I am becoming increasingly concerned about the scammy insider trading which takes place at polo. Listening to the coinigy Bitcoin and Altcoin Trading podcast a week or two ago (you can find it on youtube), a bunch of seasoned traders all spent like the first 10 minutes of the show ranting about poloniex and how many security knowledgable people consider it insecure. They just delisted a bunch of coins with no warning, many of which had 1000+ btc volume days in the past two weeks. This looks to me like pump and dumps by those who knew which coins were going to delist. Many people, myself included, just lots significant amounts of money on the whims of polo. If they were only delisting dead coins with no volume that would be fine, but they just took a shot at some projects that have very active devs and community, significant market caps, and big new releases coming in the near future. Additionally, I have had a number of problems withdrawing from poloniex recently in multiple coins. My withdrawals of XCP (counterparty) were delayed for over 5 days at one point. This scares me, as withdrawal issues are a major warning sign in exchange viability (look at cryptsy for example, the first warning sign was huge problems with withdrawals, starting months before they went down). Poloniex seems to only care about adding the latest pump coin (after their insiders have accumulated it cheap. See Pascal for example), and then pumping the hell out of it so they can subsequently dump on their users. You can dismiss this post, and just call me butthurt over losing money in their latest delist round, if you want, but please at the very least withdraw most of your coins from polo. Monero and whatever else you have. Please consider moving with me to bittrex and helping build the monero support and volume there. Or move your trading to kraken or some other exchange that has monero. Or at the very least, just withdraw all your coins from poloniex! Thank you very much for reading.
Cryptsy Exchange - Warning, unable to withdrawal funds, now one month plus.
On the 5th of October I requested a 76 BTC withdrawal from my fully verified account which had no limits, since then I've had only excuses but mostly just been ignored, here is some of the email history with their support: 5 Oct I have the equivalent of over 200 BTC that I'm trying to withdrawal in BTC, LTC & DASH, but the withdrawal window is not working, I traded out of many USD to do this at a large loss, when can I expect my money to be able to be withdrew-able? Thanks Hello 'email addie', Thank you for contacting us. Please try to clear your cache/cookies and delete your browsing history. Kindly then try to re-initiate your request and see if you are still getting the same error. Let us know if you are still unable to process a withdrawal request. Sincerely, Karen Cryptsy.com <<< I was then locked out of my account >>> 6 Oct Nearly 24 hours now and still no BTC & LTC withdrawals, kindly update me on when these will be processed and why I've been locked out of my account now, this is totally unprofessional and unacceptable. Hello email addie, Please reset your pw Sincerely, Jim aka: JShock Customer Service Manager Cryptsy.com 12 Oct Hi Jim, Thanks I have now done so and have access to my account once again, the main issue here is that on the 5th Oct I requested the following withdrawals: 2,886 LTC & 76.24 BTC These are show in the attached screenshot as confirmed, but still pending and with no trxID as they have not been sent, kindly let me know ASAP when they will be sent as they are now one week overdue with no explanation, no apology, nothing! I had over $50,000 on your site, that I trusted you with, maybe one of your larger long term clients and on the 5th Oct I sold it for BTC, LTC & DASH, at a loss because I needed those funds right away, you sent the DASH but kept the main part of 2,886 LTC & 76.24 BTC then locked me out of my account and tried to ignore me, I have no idea what is going on with your exchange but I will continue with my plans Monday to seek legal representation and pursue this matter in every relevant jurisdiction regardless of the cost and inconvenience to me, unless my funds are returned to me this week. I would appreciate a direct contact phone number with a responsible admin who is able to resolve this mess and also the address of your company's registered offices and the advocates who represent you. Many thanks, Otoh 13 Oct Hi Jim, Due the the continuing lack of communication and progress on withdrawing my funds the advocates that I've retained have advised that I begin with documenting this fiasco on the crypto social media, as this will have a wide reach on your client base at a low cost for me compared to when they start actions proactively themselves on my behalf. https://www.reddit.com/Bitcoin/comments/3nkotcryptsy_responds_to_coinfire 14 Oct Three days since your last curt communication and still no explanation for why the withdrawal of my funds has been disabled by you and when they will be released, they show as pending on the withdrawals page, for well over one week, but no pending withdrawals are shown on the balances page, you've simply disappeared them! I asked for the address of your registered offices, the owners/partners names and the contact details for your advocates, this is moving ever closer to a multi jurisdiction claim for fraud and theft, my advocates require a $10,000 retainer from me which is no problem, they are not cheap but are extremely effective and any fees spent on the recovery of my funds will be added to my claim of course and I am in discussions with them about how best to denounce Cryptsy for criminal investigation and prosecution, it's totally up to you if this happens but once it begins then it will not be able to be halted. Kindly send the info requested today &/or better still my funds. Regards, Otoh 16 Oct Hello email addie, I deeply apologize for the recent delays. We have been undergoing major site upgrades, part of which is the verification systems. Some users who have verified accounts have been affected with these delays. I see that you have withdrawals pending and these should now process soon as we are nearing completion of our upgrade. If you have not received your withdrawal, by Monday October 19, please reply to this ticket and let me know. I plan to compensate you for the inconvenience by issuing you a free upgrade to pro account status which is also included in the upgrade and will go live also very soon. Sincerely, Jim aka: JShock Customer Service Manager Cryptsy.com 16 Oct Hello email addie, Your LTC withdrawal has processed, BTC withdrawal should move soon. I had to cancel the XRP withdrawals, please try sending those again. <<< I did not have any XRP or a XRP withdrawal >>> 20 Oct Hi Jim, I have still not received my Bitcoin withdrawal, over 70 BTC and very overdue! Kindly just manually send it today, an exchange that fails to honor client withdrawals is finished as all trust has gone. Please confirm ASAP, many thanks, Otoh 23 Oct Hi Jim, Why do you not even bother to reply to me anymore, do you really think that stealing 72 BTC, over $20,000 from me is something that you can just ignore? First thing next week this goes back to the advocates that I briefed and I am paying them their requested $10,000 retainer which will also be claimed for, you have had a ton of notice but still haven't returned MY money after nearly three weeks. I shall press the lawyers to pursue those responsible personally for civil and criminal damages, fraud and theft, in each relevant jurisdiction, kindly make sure that this is cleat to 'Vince' and the others that will end up in jail and bankrupt as a result of this. You have until Monday to return my funds, after that the process will begin with denouncements to the police and regulators in the relevant jurisdictions and I will then have no way to prevent it all taking it's just course. Regards, Otoh 24 Oct Hello email addie, I am sorry for the inconvenience this may have caused you. There are two separate issues going on with BTC withdrawals currently. 1: Due to the new Verifications Tier system handed to us to use, many users are frozen and flagged to become verified depending on the amounts of w/d they are making. For these, a verification agent should be contacting you soon. 2 We are experiencing some delays with BTC withdrawals and developers are working on them to get them moving again. Looking at your account, it appears you have exceeded your withdrawal limit for your current verification tier. Please click this link to upgrade and view the limits for your tier https://www.cryptsy.com/users/verify *Please note that not all verification Tiers require that you upload ID or documents. Sincerely, Elen Customer Service Manager Cryptsy.com 25 Oct Hi Elen, Cryptsy have introduced a withdrawal limit for my account that wasn't there when I deposited the coins, this is illegal without first offering me to withdraw the my coins under the same terms and conditions as when I deposited them. This, so called tier three level, that it says I need now takes three months to obtain, in other words you plan to rob me of my coins for three months or how ever long you feel like, this is so illegal it is untrue. Kindly just return MY 76 BTC, approx > $22,000 and do this right away with no more excuses, anything else is not an 'inconvenience' - it is theft pure and simple! Regards, Otoh cc being sent to my advocates 27 Oct Hi Elen, 22 days since my withdrawal request for 76 BTC was made, October 5th, and it's still stuck, conf, but pending and all that I hear from Cryptsy is being ignored or excuses. Cancel that withdrawal immediately today so that the coins show up again in my balance, then make me tier three verified as I have been fully verified for months if not over one year and was so when I deposited those funds and had no withdrawal limits then. Do not continue to ignore this issue, the theft of over $22,000 from my account is a serious crime and you will be held to account for it, kindly confirm that my instructions have been carried out today. Regards, Otoh 30 Oct Hi Elen, Six days and you haven't bothered to let me know when I can have MY 76 BITCOINS back, now worth over $23,000 and nearly one month that you have blocked my withdrawal. Cancel the confirmed but stuck on pending withdrawal as requested so that my coins show up in my account balance again! Change my verification from so called tier two to tier three, I was fully verified with you and had no withdrawal limits, the longer this goes on the more it becomes certain that you just rob the larger holders of tens of thousands of dollars worth of Bitcoins. I have also requested many times, the name of the ownes and registered office/s plus the contact details for your lawyers, it is illegal to withhold this information from your clients and the longer that this goes unresolved the greater will be the damage to your business and the more likely that you will be charged with serious theft and corruption. Pass this email and my prior ones to Vince right away as he will be the one that will be held the most responsible for this fiasco. Thanks, Otoh & when I raised the issue in Cryptsy chat now I just get banned, WTG, so corrupt, unbelievable, I shall post all my emails and your lack of useful response to Reddit and BCT forum. Cancel my withdrawal, verify me to tier three and show MY BTC in my balance so that I can withdrawal them! Hello email addie, We sincerely apologize for the late response to your ticket. Upon checking, your withdrawal had been canceled and coins were returned to your balance. As for your Tier 3 upgrade request, Your request has been acknowledged by our team and your case will be reviewed shortly. We do apologize for any inconvenience and thank you for your patience. Sincerely, Gretchen Cryptsy.com Hi Gretchen, Thank goodness, many thanks, finally, much appreciated! -Otoh PS I can also be reached on my UK mobile: ------------- 6th Nov Hi Gretchen, "As for your Tier 3 upgrade request, Your request has been acknowledged by our team and your case will be reviewed shortly." Another week passed and no one has contacted me, it is now over one month since I requested withdrawal of my 76 BTC and at the time I was fully verified with no W/D limits at all, same as when I deposited the coins. Why do you treat your customers with such blase contempt, are you really intent on alienating everyone who has supported your business and especially the larger players like myself? I find it quite unbelievable, kindly forward this to 'Vince' so at least he is aware of this totally unacceptable and illegal freezing of my funds, later today I shall be updating the total lack of promised progress yet again on Cryptsy's chat as it seems that you only pay attention to being called out publicly. Just allow me to take my own money out and stop this stupid game playing waste of time. Thanks, Otoh 7 Nov STOP STEALING MY MONEY!! Send me the address of your registered offices and lawyer's contact details as requested multiple times - DO THIS TODAY, robbing over $20,000 is a serious crime and by ignoring the matter you are only making your guilt more obvious and the consequences worse for yourselves. Any advise on how to proceed would be much appreciated, I just run in to a blank wall with them atm.
How to accept Dogecoin with your business, and why. A few pointers.
THE UPDATED VERSION OF THIS POST CAN BE FOUND HERE. You are a business owner and sell goods or services. You heard about Dogecoin. You wonder how you can use it in your business. This thread is for you. If you have no idea what Dogecoin is, read up on it here (click). In short, it is a digital currency that is perfect for everyday use. Read on if you want to know why it would be good for your enterprise.
Why should I accept payments in Dogecoin?
Dogecoin offers you:
international transfers of any size at near-zero cost (currently less than one cent)
no risk of chargebacks or cc fraud
no base fees
no vendor lock-in
no setup costs except a computer
fast and easy setup (literally minutes to get a wallet)
Dogecoin can be exchanged to national currencies. You can do this easily by yourself or use the automatic conversion offered by some payment processors (all is explained further down). You can also just keep your Dogecoin and spend it or offer it to your employees! :) Dogecoin is fun and it gets ever more useful the more people like you use and accept it. There are other merchants who have gone this path before you - you can read interviews about them and their experiences on this blog. You can also talk with other merchants in /dogevendors, check out these testimonials ([1, 2], 3), search this subreddit and post any questions you have right here!
I want to accept donations. What are my options?
Just download the client and put up the wallet address up on your page with donation info. Done! That's it! If you want something snazzy, check out this widget or this one (or this one) (or this one). If you need to track who sent you how much money (for goodies and that), you could ask that donators tell you that they're sending you a very specific amount of coins (e.g. 100.424242), and match it to their name. However, this can be abused as your transaction history is public. If you're actually selling stuff, check out the next section instead.
I sell stuff online. What are my options?
You have a lot! It boils down to one of these:
1) Manually accept payment with Dogecoin
2) Process payments automatically by integrating a Dogecoin API/checkout into your web store
3) Enter your stuff at a site that sells it for you (think Etsy or eBay, just with Dogecoin)
The last option can be interesting if you don't have your own web store, are selling digital goods and/or are just selling on as a side business. If your business is your main income, handling payment yourself is probably better. 1) Manually processing transactions All you need for this is a Dogecoin wallet. You simply generate a payment address for each of your customers, send it to them and confirm that your coins arrived at the address. This is super fast to set up and there is absolutely no commitment. If you just want to try it out before investing a lot of effort, just set up a wallet (either with the Dogecoin desktop client or an online wallet (listed under Browser "here") and let your customers know that they can now pay with Dogecoin. You can use some of these buttons if you wish( 12345) and browse this asset repository of useful artwork. The graphical interface is still being developed, but you can browse the files and find license information already :) 2) Automatically processing transactions Check out the section on APIs and payment processors further down! 3) Selling stuff through a 3rd-party site There are a number of sites that function a lot like eBay, Etsy and Xmart. You enter your products and they handle the payment and web store stuff. This is most convenient if you have digital goods to sell (music, books...) and want to send them out automatically.
suchlist (Permanent listings, auto-adjusted price, auctions, no fees)
DogeLet (Permanent listings, widget to sell on your website, digital goods ok, 3% fee)
stuffcoins (Auction site, digital items ok and automatic, 2.5% fees)
Dogeslist (Permanent listings, digital items ok, ~4% fees)
If you are an Etsy user who wants to accept Dogecoin, click here.
I sell from a physical store or location. What are my options?
All you need is an internet connection in your store and a web-capable device, such as a mobile phone, cheap tablet or a nearby PC. On-site, your customers can send you coins using their phone, or you can sell coupons for your goods online in advance. DogePos is a point-of-sales app that is open source and Koupah announced that they will accept Doge as well. You can use or apply for all of these tools right now! Either way, all you need is a way to 1) convert a USD price into Doge, and to 2) check that the coins have arrived in your wallet. To check your wallet balance and Doge prices, you can use the app MyDOGE oniPhones and iPads, and this app on Android devices. This is one of many useful price converter websites you can bookmark. Checking your balance on the PC can be done with the wallet client. If you want to sell your goods or coupons for them online, it might be easiest use a ready-made stores capable of digital distribution. Check point "3)" in the above section for some options.
Dogecoin payment processors, APIs, checkouts
Currently, the established platforms accepting Dogecoin seem to be these:
You can probably find people who have used one of these in this thread. This guy volunteered his code for automatic currency conversion and his help setting up the plugin for OpenCart, for example! If you are tech-inclined, you could run your own payment server with dogecoind and an API like this. This is not yet ready for laypeople though, so don't do that unless you want to get messy.
Exchanging Doge to USD/EUGBP/other national currencies
If you don't have your payment processor do it for you, at some point you will want to get your Doge converted to your currency of choice, which you should do at an exchange. Keep in mind that you will have to get registered and verified at the exchange, which can take up to a week. Transfers to and from national currency can take a few days, but trading and transferring digital currencies is very fast and usually near-instant. The following exchanges let you trade your Doge for national currency directly (last updated Sep 17):
ANXPRO (lots of currencies, but based in HK so deposit/withdrawal fees are high)
If your currency is not listed above, you can either sell your Doge here, or exchange them to Bitcoin and then sell those. I find Kraken (EUR, KRW, USD) to be the best option for EUR, but you can sell Doge for BTC on all of the exchanges mentioned above, or choose one from this list. To sell BTC for national currency, you can also go to Justcoin or LocalBitcoins. There are many similar sites - just pick the one you like best! Things get developed incredibly fast and Dogecoin is not even a year old. This will only get easier, so keep checking back! Justcoin is looking to trade Dogecoin to national currency, and others are sure to follow.
Alright! How do I promote my business now that I accept Dogecoin?
Note that there's a collection of Dogecoin artwork and assets for you to use in this repository, complete with license information so you can design your promotions and website with it. 1) Submit your business to these directories:
You will get views, especially if you offer an interesting product or a Doge-related promotion. Hint: the best promotion is to offer a few % off for all Dogecoin purchases. Also post and comment to this just to discuss your plans and ask your questions. Come talk to us here and in /dogevendors, we are a fun community :) This post is not updated anymore. Check the thread linked at the top of this post for the newest version. The last big edits were on Aug 4 (DogeAPI, Prelude) and Sep 17 (Updates on exchanges and websites) and Oct 22 (Moolah).
The best running theory on what is happening at Cryptsy.
Many users had reported the Cryptsy system mistakenly producing larger withdrawals thus making their balance negative. Somebody managed to exploit that vulnerability to withdraw a large amount of bitcoin. Low on bitcoin reserves, Paul Vernon created a plan to attempt to recoup the lost funds. They changed their fee system from trade fees to withdrawal fees, thus encouraging users to keep funds on the site and to keep more of the money of those that do decide to withdraw. Holding a significant value as altcoins, Paul Vernon decides to restrict bitcoin, litecoin and ripple withdrawals while maintaining withdrawals of some altcoins. This allowed him to sell his own altcoins at a premium, possibly while arbitraging on other exchanges. Notice, the mods don't restrict chat about what altcoins to use to withdraw, but they do ban users who get upset at the site issues or shout "Gox". By blaming account inactivity, AML's or KYC, they are able to maintain their remaining bitcoin reserves to keep operations going and leak out some withdrawals so that there are hopeful reports from users. By releasing vague tweets about equipment issues every few weeks they hope to drag things out long enough that they have hope of again reaching liquidity before their reputation is irreparably damaged. Rumor is that Paul is currently in China where he is working on the Chinese Cryptsy clone 'Bitebi9'. While it is possible that Cryptsy recovers user funds, their reputation is degrading every day and there is still the question of how much of this article is accurate.
Cryptsy increases withdrawal fees to 0.5% with zero prior notice to its users
Today, without any prior notice, Cryptsy increased its withdrawal fees to 0.5% of your withdrawal plus 0.001BTC (https://www.cryptsy.com/pages/fees). The previous withdrawal fees were 0.001BTC. They have removed trading fees at the same time, which were previously 0.25%. Even taking into account the removal of trading fees, many customers will still be worse off under the new fee policy. For example, I had a significant amount of bitcoin stored in the exchange for trading. Now I cannot withdraw this without paying 0.5% to Cryptsy. By increasing withdrawal fees with no advance notice to users, Cryptsy has effectively just stolen 0.5% of deposits in the exchange. When Bitfinex changed their fee policy recently, they gave people almost 2 weeks prior notice of the change. Cryptsy on the other hand gave people zero notice. This is extremely unprofessional, and I recommend staying well away from this exchange.
I mean it wasn't much. Like maybe .16 a bitcoin but still. I was bamboozled,. Hoodwinked. Jipped. They're refusing to return my emails, none of my help tickets are being looked at. I feel like I was scammed hard. I tried to withdraw my bit to a different wallet on 3 separate occasions, about .05 each withdrawal, and they're all just stuck on pending. I even have a withdrawal from as late as the 21st of December that hasn't cleared yet. DO NOT USE CRYPTSY. Edit: I would like to publicly thank huntingisland. He generously gave me 17.80 in bitcoin today. This person is a true hero.
My reviews of bitcoin exchanges and services my business used
Over the past weeks myself (a 23 year old from Vancouver, Canada) & my business partner (a 21 Regensburg, Germany) have tried a lot of different XBT exchanges and sellers. He reddits a lot and suggested I type up what I wrote down about our experience to share them with you. Great experiences: Kraken - 9.8 General: Kraken is one of the better platforms we used, mostly when dealing with the Euro. We opened a Kraken account, made a $5000 USD deposit and a €7000 deposit and were ready to begin trading in under 24 hours. We ran into no problems with them, our orders filled quickly and the emails that we had with their team were fairly straight forward. More payment methods would make them a 10. Pros: They have many pair listings, special types of trading orders including stop loss, take profit, and others. They accept SEPA payments for Euro and bank wires for most other deposits. They have good security practices (https://www.kraken.com/security/practices) and have done an audit with proof of solvency (https://www.kraken.com/security/audit). Well known team, public facing. Has LTC, NameCoin and Ripple. Cons: Does not accept ACH payments for US users. Lack's transparency of cost on USD bankwires (TBD*). Some users have raised concerns over the pasts of the investment team (this had no impact on score but should be mentioned). Support team was quick and solved our problems. Bitstamp - 9.5 General: Bitstamp is a market leader and great exchange. We had a very good experience with them. They are probably our default choice if we had to use a general USD exchange to run an ATM or something. We made a deposit of $15,000 USD and trading went smoothly. It is important to note this exchange we withdrew only in Bitcoin, we did not try the Fiat withdrawals. Full transparency could make them a 10. Pros: Large volume, great liquidity, fairly quick to get an account open and money deposits. Our time from opening an account to trading was under 24 hours. They take a decently low fee .5% Has a proof of reserves audit by third-party. Cons: Audit is third-party and not proof of solvency. Little is known about management team. Bankwires are only real method to be used here. Does not allow trading in non-USD. Trades are only do Bitcoin. Many claims of Bitstamp freezing users Bitcoin under AML/KYC claims and asking for lots information such as signed wallets proving source of those coins (We did not experience this). Vault of Satoshi - 9.2 General: Vault of Satoshi is a much smaller exchange then the other "great" exchanges but they do really awesome things for XBT. Their team was very supportive and really quick. We had our account open, verified and trading in under an hour ON A SUNDAY. It was the fastest set up time of any exchange that deals with fiat currency. For user experience and security they would be our top pick. International support and higher volume could make them a high 9 if not a 10. Pros: High security (http://www.reddit.com/vos/comments/27hd8d/are_my_coins_safe_on_vos/ci0yeua) and transparency including daily generation of Proof of Solvency audits, very transparent team (https://www.vaultofsatoshi.com/about) who are active on Reddit. Allows trading of over 20 coins to both fiat and to any other coin. Has Interac deposits for Canadians, they apparently can take an hour or two to enter the account, but ours took maybe ten minutes. Easily the fastest deposit method we found. Cons: Pretty much just for Canadians unless you transfer coins in for day trading. Supposed to be expanding soon. Volume was lower but seems to be picking up. Needs a lot of personal information. Would be great to see more payment methods outbound. Good Experiences: Coinbase - 8.7 General: Coinbase is a great service, backed with good money and clearly a very secure environment. Being a dual resident and citizen I was able to use Coinbase for some of our purchases via my US bank account. It was really quick to open an account and get buying. We bought around $5000 worth of Bitcoin to send into other coin-only exchanges. The support staff were helpful, but could have been trained a bit more about Bitcoin knowledge. Overall things went really well. More coins, international support and proof of solvency could put it up to a 9. Pros: Clear set price not dealing with any "orderbooks", great platform very easy and straight foward to user. Great for new users. Has ACH payments for American Users so you don't have to do a bankwire. It is backed by a major investors. Has stable relationships with a bank unlike many other small exchanges. It is fast, secure, and friendly support staff. Cons: Not a full exchange, US only, support can be slow to respond, has no proof of reserves, promotes the use of online wallet services. Does not allow you to buy or sell coins other than XBT. Cryptsy - 7.2 General: Was used for dealing with smaller altcoins that weren't on other exchanges. Our total volume on there was roughly 8 BTC. Deposits went fairly smoothly, although we did have to contact support in regards to one submission of Blackcoin that did not appear in our balance. The support team was slow and rather rude but did get the job done eventually. Pros: No verification needed for trades, deposit and go. Lots of currency pairs. High volumes. Strong platform. Great chart features. Great price ticker on the side. Cons: No proof of funds, not much security, doesn't support fiat, support team is kind of a pain to deal with if something does go wrong. Should really only use if you are day trading QuadrigaCX- 7.0 General: QuadrigaCX is a small Canadian exchange. All around a decent service we only did around $500 transaction with them in order to do a quick test but we were quite happy with the Canadian provider we had selected. These guys are decent backup. It took less than 48 hours to get my account open and trading. If they had proof of solvency and support staff then we would have likely given them an 8 or a 9. Pros: Low fee (0.5%), has book for XBT/AU (gold). Has online interac payments. Cons: Not large books, no proof of solvency, lower transparency, called contact number twice during operation hours and got voicemail, email response was next day and was short but answered my questions. InstaBT - 6.5 General: These guys are similar in concept to a Coinbase. It's small limit purchases of XBT instantly. Site looks a little dodgy but they are an accepted payment method on Vault of Satoshi so we decided to give them a try for about $100 in XBT. Pros: It was quick and easy and did not require any type of I.D. verification. We had a support phonecall and the guy seemed friendly enough. Lower fees would make this method a 7. Cons: Has limits and really high fees. I think the fee was around 9%. QuickBT - 6.4 General*: These guys are pretty much the same as above, although rather than being used for Vault of Satoshi they are used for CAvirtex. The service was all in all the same, nicer website, did $100 in XBT. Only reason for the lower score is when they guy called me to verify my phone number he was a bit of a grump. Lower fees and friendly support would increase their score. Pros: Quick online interac without verification Cons: Guy was a bit of a grump, and had really high fees. Bad Experiences CAVirtex - 4 General: CAvirtex is a Canadian only exchange. If I am not mistaken it's the oldest one around. They only do XBT and LTC. We did about $10,000 through them before we started exploring other options. A number of accusations have been posted in this sub against them that make them questionable, but their user support, slow time in dealing with funds and general attitude towards there users is what got them the low score from us. There would need to be lots of changes to raise their score. Pros: Usually the price is a few bucks cheaper here than at other exchanges, not sure why though. You can withdraw your money to a pre-paid debit card. Cons: In our experience we found it extremely slow to get started. We tried to open an account and it was almost a week before we got verified. We made a deposit via Direct Debit (EFT) and it took about a week before it showed up in our account. When we tried to reach out to support about this it took 3 days before we got a snippy reply. All in all we were not impressed. It's not how people should handle customers. The Rock Trading - 2.5 General: We had decided to try this Malta based e-trading platform with our Euro funds. The exchange is rather small but has some ok features. Ultimately we only did about €700 before we got fed up using them. They support SEPA payments which is great but their support team could not give a shit about you. Pros SEPA payments, lots of currency support, BTC shares Cons: By far the worst support around LocalBitcoins - No Score General: Localbitcoins pairs you with sellers in your area, digitally or by meet up and then exchange Bitcoin. Before we got into exchanges I had done maybe $2500 through localbitcoin purchases. You always end up over paying, you have to meet up with the person which is time consuming and you never know who you are going to get. Pros: The only real advantage to this method is that you aren't going through an exchange and having to verify. It allows those who are worried about their identity to keep it secure Cons: You end up way over paying for the bitcoins that you purchase, you never know who you are going to get and some users have even been mugged at such meetups. In my case I arranged to meet someone and waited over an hour at the meetup spot and no one showed up. Next to Try: -Bitcoin.de -BitFinX -BTC-E -OKcoin -Bitpay (for sales tool) -Itbit
You've taken care of my last few scraps in crypto without me having to worry. You can have my $5K USD. Congratulations on becoming billionaires. Over the years I've had money stolen by MtGox, Cryptsy, Cryptorush.in, Mintpal, Moolah, and several mining pools many years ago. I never set up legitimate identity with any of them, can you guess why? So my final departure from BTC is bittersweet, I eventually managed to make a net gain of several hundred thousand USD from very little investment (perhaps $2K USD), but not without a lot of frustration and stress during the process. The locking of my account was always coming because when KYC became an issue, I was unable to change my online name to my real name. As much as I wanted to verify my account it was technically impossible irrespective of my account retaining the same email address which is indicative of my name. I remember in December when things went stupid, I was confident I'd never be able to get all of my money out of Polo, I was pulling out $2500USD from each of two accounts a day (the maximum I could) and my balance was going up faster than I could withdraw it. So while crypto has been good to me, it was equally one of the biggest nightmares of my life. I can now happily continue my fiat life. Bye bye bitcoin, it was a fun fling.
Hey all! GoodShibe here! So, yesterday I started putting this thing together and WOW did you come out in droves to help! Thank you so much for sharing your ideas and memories. And thank you kindly to the mods for stickying that post! In one day we reached 60% completion on a list of top 100 Memories and Achievements of Dogecoin! That's amazing! So many fantastic memories and accomplishments! Which leads me to share some developments. The title of this endeavor is now - unless someone comes up with something better: Such Memories: The First 100 Days of Dogecoin I'm going to be putting this together as a 100-ish paged commemorative book - for free in PDF, probably with some cost as a fancy, printed book (Sold as close to 'at cost' as I can get it -- slipstream- has recommended selling it at a small profit, with profits going toward charities or Dogecoin Foundation for charities, etc - thoughts?). Artists, if you've got Dogecoin-themed artwork you want to see in this, please, put forward some links to hi-res CMYK copies and I'll do my best to fit it in. Also! Let's find the funniest, best Dogecoin-related memes that we have put together so far and include them as well! :D) We're also going to need a cover. Any artists out there care to try their hand at designing a cover for this? We'll put it to the community to vote for the one they like the most, and we'll include the others in the book somewhere :D) If you're an artist who submits to the project, you'll get full credit and promotion for your site inside the book (probably in a credits section at the back). I also want to hear from the community - think up some interesting stories, maybe what got you into Dogecoin. What your fondest memories of Dogecoin are. These first 100 days have been an exciting rollercoaster of adventure... let's make that we never forget all the fun memories we've had together. If you have personal, fun pictures you'd like to share, fun, personal stories you want to see get into the book, then start working on them now, put them into the comments, keep them on hand!. Here's the list that I have right now - in no particular order: MOMENTS/ACHIEVEMENTS:
ummjackson's first 'joke' on Twitter about Dogecoin being 'the next big thing'
The original bitcointalk Dogecoin forum page
The first Dogecoin paperwallet design
Save Dogemas is put together by the community, to help out victims of the hack. (News articles?)
15 Million doge raised by the community to save dogemas
TOTAL: 100/100 Also: I was thinking we might have a pour-one-out for all the Orphans - a page dedicated to all the blocks we lost along the way... thoughts? What have I missed?! Let me know in the comments! It's 8:29AM EST and we're at 53.95% of DOGEs found. Our Global Hashrate is spiking from ~61 to ~98 Gigahashes per second and our Difficulty is down slightly from ~1024 to ~1014. Lots of fantastic things in store, let's keep this list growing! As always, I appreciate your support! GoodShibe TL;DR: 100/100!!!
Thank you for taking part in our AMA and submitting your questions. Here are responses from John Caldwell (Director of Advocacy), Duncan Cameron (Technical Director) and Andre Jochems (Lead Developer). Get to know them better by visiting our website.
Nole34 (Reddit): How and where will this coin be used? Not meaning as in the network and relay nodes but by a user.
TwoproApps (Reddit): What are the benefits or incentives for casinos to use a crypto currency?
Whufc4life1 (Reddit): What would be the main advantages of using this coin, as an end user, instead of regular fiat currency?
We see CasinoCoin being used as a payment option right alongside USD, EUR, etc. There are many ways to use CasinoCoin, for the customer and the operator that represent tremendous advantages over traditional funding methods. For the customer, you will have to complete KYC once, then you will be able to play on multiple vendors in seconds, deposit and withdraw for a fraction of current rates and have a suite of tools at your disposal to manage and control your play. For the operator, you get a customer that is pre-vetted by a licensed, approved KYC vendor that lands at your door, deposits in seconds in a way where the deposit is permanently and transparently recorded and is not subject to chargebacks.
TwoproApps (Reddit): With the coin being potentially volatile in the future, could it affect casinos wanting to use it?
We don’t believe so. Like any payment instrument, the customer would deposit in CSC and withdraw in CSC - making volatility a non-factor for the casino in the short term, provided the casino maintains a sufficient balance of CSC.
TwoproApps (Reddit): How do casinos exchange CSC for fiat if they wanted to?
Casinos will have several options to acquire CSC, all of which will take treasury functions into account to mitigate possible volatility to the greatest extent possible. This will be done via traditional processing methods.
TwoproApps (Reddit): Will casinos have to make their CSC games payout in CSC or can they also pay in fiat and vise versa. Can a fiat gambler cash out in CSC if they wanted to?
This will eventually be possible, but it will be the choice of the operator. Once a casino starts to allow cashouts in different currencies, the volatility risks rise. We are designing CSC to be used in game, but our first step is to get casinos to adopt CSC as a payment method.
Lowmm (Reddit): Will you go into other trading markets, bittrex for example?Boyo (Reddit): will bittrex be adding CasinoCoin? after the swap?
Our focus is:
1.Designing the best product for the market, users & operators,
2.Compliance within regulated markets
3.Creating strong partnerships within the gaming industry.
We strongly feel if we work on the things we can control, all the external elements like exchanges will take care of themselves.
paulkt (Reddit): When can we expect to see the first Casino using Casinocoin?
We will be ready for real partner integration in Q1 of 2018. However, the actual timeline will be dictated more by potential partners, regulators, banks, and other external forces. We are under no illusion that getting to market with licensed operators in regulated markets (we’ll only operate under these conditions) will not be a quick process, but we are confident it will happen.
hurdamurda (Reddit): I had 50.000 CSC and then cryptsy stole them. :( I still believe
Anyone who has been in crypto for a year or more has a story to tell like this. We can’t control what happens at third party providers like exchanges, and can only encourage holders of any crypto to adopt best practices with respect to protecting your coins. Most of us have been in crypto for a long time, with our own stories like this, so we are building the CSC solution to provide maximum security to customers.
powpow44 (Reddit): In the roadmap you state "New CasinoCoin Brand & Website Launch". Can you share what the foundation has in mind for a rebrand?
The rebrand is more about the logo itself. Most of us really like the ‘button’ logo that has been with CSC since the beginning. However, we don’t love all elements of the logo, and the presentation from both a visual and format perspective is not ideal (ie: no proper graphical/vector files exist). We’re fixing that. It won’t change drastically.
rambroziak (Discord): I do not know, it's possible, CSC has the opportunity to develop !!! Now we have a more important problem !!! When Cryptopia urucchomi payouts CSC
Although the Cryptopia situation occurred before the formation of the foundation, members of the team have been working on collecting data from the CSC community to attempt to first establish how many coins may have been lost on Cryptopia. We have a reasonable idea of the figure now, but in our correspondence with Cryptopia, our figures don’t match. We’re currently waiting on a response from them to our latest email and we hope to have something to share with the community this month.
Whufc4life1 (Discord): Just wondering - how are you guys planning to handle KYC/AML procedures across different jurisdictions?
With a licensed KYC provider, the visibility/transparency of a blockchain and a GLI compliant product, AML issues will be to the highest standard possible. This is actually an area where blockchain is a significant upgrade over current best practices.
nioConisaC (Discord): Will the Bankroll Manager wallet offer feature of bridge currency?
We will not use that feature from the start but it does allow us to implement customer specific reward programs in the future where points/rewards are being issued and linked to CSC.
Boyo (Discord): have the devs contact coinmarketcap to add the new csc?
CoinMarketCap has been contacted and will update CSC to the new network once an already connected exchange implements it.
mark (Discord): I’m still curious how the csc revival came about, I recognise a few of you from the bitcointalk forum a few years ago, but how did the likes of john and the rest of the board come about?
John: It’s really about timing. When I left PokerStars in ‘14, I took some much needed time off. I studied the crypto markets (including CSC) at that time, and felt that the market/world wasn’t ready yet. Then, in early 2016, my wife started really getting into crypto. This got me back into it on a regular basis. The possibility of starting the Foundation was broached to me summer of this year and I felt the timing was right.
Cryptsy has not released an offical update or a blog post at least to explain their current problems and notify its users of withdrawals problems. Instead, they temporarily shut down their platform as a short-term solution to their failure to address technological problems. Depositing into an exchange which have held customer funds for over the past 4 months may not be a smart decision ... I would highly advise anyone with any coins on cryptsy to withdraw them, i had a large bag of a alt coin, was able to withdraw, but they only gave me 50% of the withdraw request each time, until the last withdraw that was under 50k. So, yeah, something is up at cryptsy. Bitcoin and altcoin exchange Cryptsy is having withdrawal issues. Withdrawing Bitcoin from Cryptsy [closed] Ask Question Asked 6 years, 7 months ago. Active 6 years, 7 months ago. Viewed 2k times -1. Closed. This question is opinion-based. It is not currently accepting answers. Want to improve this question? Update the question so it can be answered with facts and citations by editing this post. Closed 6 years ago. Improve this question Does anyone think ... [PSA] Cryptsy is not allowing bitcoin withdrawal. Thought the community would like to know that the exchange Cryptsy has not allowed me to withdraw my coins for over two weeks now. First request to withdraw coins was made on the 5th of November, 2015.
Today in Bitcoin (2017-07-30) - Slush Pool, India reject the fork - Coinbase Withdrawal Delays
Live Bitcoin Trading With DeriBot on Deribit DeriBot Backup 603 watching Live now LNbits Extension: LNURL Withdraw, a revolution in bitcoin payment pulling - Duration: 9:10. https://www.haasonline.com/?ref=1 Trade bitcoin in your sleep, drop loss, scalping, big trades , small trades, all styles are possible with this bot. https:/... Today in Bitcoin (2017-07-30) - Slush Pool, India reject the fork - Coinbase Withdrawal Delays World Crypto Network . Loading... Unsubscribe from World Crypto Network? Cancel Unsubscribe. Working ... Omni Layer (formerly Mastercoin) is one of several efforts to enable complex financial functions in a cryptocurrency. Planned features include the development of a decentralized Omni exchange and ... In today's episode, I talk about Bitcoin dips and how to get through them by holding them in altcoins plus some issues with Poloniex pending withdrawals, perhaps sign of Mt. Gox/Cryptsy. FYI, same ...