Post: #1

Is it worth setting up a way for members to exchange coins with each other? For example, say I want to trade Litecoin with another member's Bitcoin. We send our coins to a trusted escrow member who has wallets for both coins, and once both coins are received, the escrow agent completes the trade and gets a fee that is comparable or less to what an exchange site offers.

The first escrow agent would have to be a highly trusted member of the community. We also have to consider legal ramifications depending on his local jurisdiction.

Post: #2

There's already a service that works well for exchanging crypto- shapeshift.io. It costs about $15 USD to do a trade because Shapeshift makes money on the spread.

I would suggest setting up a system here for buying and selling.

Post: #3

If you can handle the legal issues, it's a great idea. Might cause a lot of unexpected headaches for you though.

Post: #4

Why would you want to do this? Is someone here barred from using exchanges?

Post: #5

Yes! Exchanges are a fucking ripoff. By the time you buy the bitcoin with your bank and then pay to withdraw the bitcoin and the fees it sucks. I'm trying to buy some more bitcoin right now and it's a pain in the ass.

Post: #6

There are a few places to do over the counter (OTC) trades. I know that Bitfinex is one of them but it requires a minimum of $100k deal. Localbitcoins actually has a decent escrow type system from what I've heard and I think meeting someone directly for over the counter trades is probably safe if the person is properly vetted and precautions are taken.

The only reason I would think that it would be good to engage in OTC trades via some sort of trust-based system on the forum is if some members are in places where purchasing is either extremely difficult or illegal. I have heard of some sting operations on localbitcoins in Russia and other places where Bitcoin is illegal or where making trades is illegal.

I would be interested in participating in some sort of OTC trading program with forum members. I have done some types of deals with other members where large amounts of money were exchanged and everything went smoothly.