Author

Topic: Circle pay exchange rate/spread (Read 477 times)

newbie
Activity: 8
Merit: 0
August 01, 2016, 11:30:27 PM
#3
It is supply and demand. There is very little friction in being able to buy bitcoin via circle so users will naturally want to buy on circle more then they wish to buy via say bitstamp where you need to bear the cost of wiring USD to them, paying a deposit fee, and waiting however many days to have your account credited.

With circle, if you have a debit card attached to your account, then you can buy BTC instantly.

Makes sense.  I'm used to seeing a bid ask spread.  I guess with circle pay there's just a market order and you're given the market price before you transfer money in.  I wonder how they'll end up generating their revenue.
copper member
Activity: 2926
Merit: 2348
August 01, 2016, 07:55:46 PM
#2
It is supply and demand. There is very little friction in being able to buy bitcoin via circle so users will naturally want to buy on circle more then they wish to buy via say bitstamp where you need to bear the cost of wiring USD to them, paying a deposit fee, and waiting however many days to have your account credited.

With circle, if you have a debit card attached to your account, then you can buy BTC instantly.
newbie
Activity: 8
Merit: 0
August 01, 2016, 07:51:56 PM
#1
Seems like circle pay has an exchange of USD to BTC rait of about 1-2% above what the average exchanges have that exchange rate set at.  They advertise free conversion etc.  When asked directly they say they don't make any money on "spreads."  1-2% isn't crazy out of line, and it looks like there's a higher premium at places like localbitcoin, but does anyone know more about this? Why not state what their exchange rate markup is?
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