Tag Archives: bitcoin exchange

What do Bitcoin exchanges have to do to stop getting hacked?

One of the easiest things that an exchange could do is use a hardware wallet combined with a multi-signiture wallet.  Hardware wallets are quite cheap when compared to the amount of money that Bitcoin exchanges deal with and very secure.  Using it with a multi-signiture based wallet would add another layer of security to the wallet, as multiple signatures would be needed.  This solution could put an end to many of the hacks against Bitcoin exchanges and make the Bitcoin ecosystem a bit safer and friendlier.

Buttercoin

Buttercoin is a new Bitcoin exchange that focuses on ease of use, speed and security.  One of the more notable factors of Buttercoin is thattheyare backed by some big names in the tech world, such as Google Ventures, Y Combinator and the Reddit co-founder Alexis Ohanian.  Currently there is a waiting list to get in, or if someone you know is already a member they can send you an affiliate link.  The affiliate link lets you earn money for every person that you invited who buys bitcoin.  My friend invited me, and we both got 20$ as a result (it is going down to 15$ soon), which was quite nice.  Buying bitcoin the Buttercoin is effortless, as almost every other exchange you have to get verified.  Onceyouare approved you buy bitcoin using your banks credentials (you can also wire money but its only available to business accounts).  It usually takes about 2-3 days for the money to be put into your account but note, the first time you add money is the longest as their payment processor has to manually check it.  This ended up taking 9 days for me, as something went wrong along the way, but that was no problem for me; Buttercoin gave me 10$ credit “for my patience”.  Once the funds arrived, you can either set your own price to buy/sell bitcoins at or use the market price.  The moment I hit buy, it went through and a short while later I had 30$ worth of bitcoin in my Trezor hardware wallet.  It was super easy to buy bitcoin, and the customer support was very helpful and did a great job (Thanks for giving me the 10$ credit, it was really nice that even though the transaction got stuck in pending you guys gave me credit).  Buttercoin is a really easy exchange to use, I definitely will be using them again in the future.


My referral link here, if you sign up by the 16th of February and buy bitcoins before the 23, you can get 20$ free.  After that it drops down to 15$.

Circle

Circle is a new Bitcoin exchange that is currently in an invitation only program.  I signed up for Circle as soon as I heard about it, the thing that caught my eye was that there was no fee when it came to using their service, second their ideas and goals were pretty neat.  Circle is trying to increase the security and ease of use of electronic payments using Bitcoin.  I really like companies that put the community before themselves as it shows they really care about their customers and their product.

Their website is very easy to use and their gui (graphical user interface) is quite nice.  Soon after getting my invitation by email I began setting everything up.  Before you can buy Bitcoins you must verify your identity, then you must add a bank account or credit card.  Once you do that you can instantly begin buying Bitcoins, there is no delay for buying Bitcoins.  Selling Bitcoins is a little longer and the money takes a little longer than it does to buy Bitcoins.  Also if you don’t want to keep your Bitcoins on your computer and want to securely store it and have easy access, then Circle is a good choice for you.  So if they are hacked and your Bitcoins are stolen your money is still yours (see their blog post for more on their insurance here).  They also have an excellent customer service program which makes dealing with them very easy and painless.

I ended up switching from Coinbase to Circle because Coinbase didn’t allow me to instantly buy and withdraw Bitcoins unless I had a Visa credit card and completely verify every part of your identity.