I have been using he likes of shapeshift and changelly to move coins about but have been watching trades take place on poloniex and noticed that lots of small bitcoin quantities are shifted about. I watched one pattern where it appeared like someone was drip feeding BTC in $2 blocks by the shed load. I assume to stop the price dropping too much while they cleared their position.
My question is how?
Given the block TX fees of BTC it would cost more in fees to than the amount being sold.
So my question is this. Are the exchange trades made off chain with the exchange keeping track of coins until someone does a cashout of their position?