How am I saving by sending via Bitcoin?

Devilish

newbie

Activity: 19

Merit: 0

Thanks so much guys!
I gotta say, this has to be one of the most helpful forums I have been to in forever!

I'll go with the Blockchain rates. I'm just hoping that I can buy bitcoins for less at the Vault than at LocalBitcoins. Didn't see how I got ripped off there!

To the user who mentioned exchange to exchange, I wouldn't mind it... but the receivers are a lot more clueless than I am, and I've been able to get them on board with blockchain with "frequent training calls", lol

To the user who kindly provided the Philippines thread - I'm not filipino so I can't really understand the conversation there Sad

But thanks so much!

Newar

legendary

Activity: 1358

Merit: 1001

https://gliph.me/hUF

If you buy on a Canadian exchange you don't necessarily need to transfer to your own wallet. Have the receiver open an account on one of the Philippines exchanges and send directly there from the Canadian exchange. Then you convert there.

The Pilipinas is helpful: https://bitcointalksearch.org/topic/pilipinas-philippines-27736

And what was posted earlier http://howtobuybitcoins.info/ph.html

Quote from: DannyHamilton on September 02, 2014, 07:37:10 PM

Does anyone know where blockchain.info gets their CAD prices? [...]

To me it looks like they use the price from their markets page and use an forex API; something like https://openexchangerates.org/documentation

It's what bitcoinaverage.com does for the currencies that have no exchanges.

Brewins

legendary

Activity: 1120

Merit: 1000

Not all countries have good and nice banking system that allows you to send money easily and with low fee. In some countries, it might take too long, or you might pay too many taxes, at the point of it being unpracticable.

Example: Countries under economic sanctions(Iran, etc), some african countries(ex: Ghana), I guess China maybe and other countries with too much state influence over economy.

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: Nagato4 on September 02, 2014, 07:11:19 PM

Google uses the real-time price feed from Coinbase https://www.google.com/intl/en/googlefinance/disclaimer/, while Preev uses the 24-hour trade volume weighted average price data from multiple markets.

So, the prices shown can/should be different.

Does anyone know where blockchain.info gets their CAD prices? Since the OP is using a blockchain.info wallet, that's the exchange rate he's most interested in.

Nagato4

hero member

Activity: 625

Merit: 500

Google uses the real-time price feed from Coinbase https://www.google.com/intl/en/googlefinance/disclaimer/, while Preev uses the 24-hour trade volume weighted average price data from multiple markets.

So, the prices shown can/should be different.

odolvlobo

legendary

Activity: 4466

Merit: 3391

Quote from: Devilish on September 02, 2014, 06:08:10 PM

Wow thanks so much again Danny! Much much much appreciated.

Is Google accurate with it though? I just checked another website called preev.com and their price is 525.6CAD and Google's is 516.00CAD
Also, if I buy BTC from an exchange like Vaultofsatoshi.com, would I be looking at pricing similar to 525CAD or 516CAD?

There is no single exchange rate. It is different on every exchange. I use the Bitstamp rate as a reference. The sellers on LocalBitcoins can base their rates off of any of the exchanges or even a combination of exchanges. In the end it doesn't matter. Look at the rate they are quoting and compare it to Preev or Bitstamp to get an idea of the premium.

Devilish

newbie

Activity: 19

Merit: 0

Quote from: DannyHamilton on September 02, 2014, 05:27:02 PM

Quote from: Devilish on September 02, 2014, 04:59:54 PM

Is there someplace where the advertiser shows how much his fees are going to be?

Some advertisers will list their costs in their advertisement. Many don't. Especially those that have excessively high costs.

Quote from: Devilish on September 02, 2014, 04:59:54 PM

I mean how could I have known before I got into the trade?

Use Google search to determine what the current exchange rate is at the time that you want to make the exchange.
https://www.google.com/?gws_rd=ssl#q=1+BTC+in+CAD

Then see what the ad says the seller is charging per bitcoin.

Subtract the two prices to figure out how much profit the seller is getting if he sells 1 BTC.

Divide the Google indicated exchange rate by the 1 BTC calculated profit to determine what percent the seller is charging.

Here's an example:

If I look at Google right now, I see that the current exchange rate is 523.58 CAD per BTC
Looking at localbitcoins, I see a user with the ID bullionxpress an advertiser in Toronto advertising 554.38 CAD / BTC right now.
554.38 - 523.58 = 30.80, so for each bitcoin sold, he is taking a profit of 30.80 CAD
30.80 / 523.58 = 0.0588, so it looks like he is getting a profit somewhere around 5.5% or 6% for the bitcoins

Wow thanks so much again Danny! Much much much appreciated.

Is Google accurate with it though? I just checked another website called preev.com and their price is 525.6CAD and Google's is 516.00CAD
Also, if I buy BTC from an exchange like Vaultofsatoshi.com, would I be looking at pricing similar to 525CAD or 516CAD?

Thanks again! This is invaluable to me.

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: Devilish on September 02, 2014, 04:59:54 PM

Is there someplace where the advertiser shows how much his fees are going to be?

Some advertisers will list their costs in their advertisement. Many don't. Especially those that have excessively high costs.

Quote from: Devilish on September 02, 2014, 04:59:54 PM

I mean how could I have known before I got into the trade?

Use Google search to determine what the current exchange rate is at the time that you want to make the exchange.
https://www.google.com/?gws_rd=ssl#q=1+BTC+in+CAD

Then see what the ad says the seller is charging per bitcoin.

Subtract the two prices to figure out how much profit the seller is getting if he sells 1 BTC.

Divide the Google indicated exchange rate by the 1 BTC calculated profit to determine what percent the seller is charging.

Here's an example:

If I look at Google right now, I see that the current exchange rate is 523.58 CAD per BTC
Looking at localbitcoins, I see a user with the ID bullionxpress an advertiser in Toronto advertising 554.38 CAD / BTC right now.
554.38 - 523.58 = 30.80, so for each bitcoin sold, he is taking a profit of 30.80 CAD
30.80 / 523.58 = 0.0588, so it looks like he is getting a profit somewhere around 5.5% or 6% for the bitcoins

Devilish

newbie

Activity: 19

Merit: 0

Quote from: DannyHamilton on September 02, 2014, 04:53:10 PM

Quote from: Devilish on September 02, 2014, 04:03:26 PM

Could you please let me know how I can figure out what his fees were and how you were able to deduce that he charged 12%? Sorry, I'm not just a BTC newb, but also a birdbrain in math.

You paid 500 and received 440.84 worth.

500 - 440.84 = 59.16

That means that he collected 59.16 on a 500 transaction.

59.16 / 500 = 0.11832

Multiply by 100 to get from a decimal to a percent:

0.11832 = 11.832%

Round off since localbitcoin advertisers typically set their costs to something a bit less specific than .832 and a small amount of the variation could have been due to changes in exchange rates.

11.832% rounds off to 12%

Thanks so much for the clarification Danny!
Is there someplace where the advertiser shows how much his fees are going to be? I mean how could I have known before I got into the trade?

DannyHamilton

legendary

Activity: 3472

Merit: 4801

Quote from: Devilish on September 02, 2014, 04:03:26 PM

Could you please let me know how I can figure out what his fees were and how you were able to deduce that he charged 12%? Sorry, I'm not just a BTC newb, but also a birdbrain in math.

You paid 500 and received 440.84 worth.

500 - 440.84 = 59.16

That means that he collected 59.16 on a 500 transaction.

59.16 / 500 = 0.11832

Multiply by 100 to get from a decimal to a percent:

0.11832 = 11.832%

Round off since localbitcoin advertisers typically set their costs to something a bit less specific than .832 and a small amount of the variation could have been due to changes in exchange rates.

11.832% rounds off to 12%

Devilish

newbie

Activity: 19

Merit: 0

Quote from: ChuckBuck on September 02, 2014, 03:55:56 PM

If you're based in Canada, why don't you just buy from one of the Canadian exchanges, withdraw BTCs to Blockchain.info wallet, then send to the other party in the Philippines Blockchain.info wallet for pennies?

http://howtobuybitcoins.info/ca.html

If you buy direct from an exchange, depending on the fees, it should potentially be much lower than that premium you paid to that seller on LocalBitcoins.

I didn't even know this existed!!
I went to LocalBitcoins because Canadian banks have something called "Email Money Transfer" where I can simply email the money to the "seller". If I can find an exchange in Toronto who has Email Money Transfer, I'm doing that moving forward and putting an ad on LocalBitcoins!!

Thanks soo much ChuckBuck!

minerpumpkin

hero member

Activity: 686

Merit: 500

A pumpkin mines 27 hours a night

Fees only apply when trading Bitcoin for FIAT or using some service. If everyone was using Bitcoin to begin with, there would be no need to exchange it for FIAT, and therefore it could be transferred from person to person without additional fees. That's the beauty!

Devilish

newbie

Activity: 19

Merit: 0

Quote from: DannyHamilton on September 02, 2014, 12:36:24 PM

Quote from: Devilish on September 02, 2014, 10:56:31 AM

I paid CAD $500 for those BTC, by the time it arrived in BlockChain wallet, it shows up as $440.84.

- snip -

So where is the $20-$60 CAD gone

- snip -

Am I wrong in thinking that I just kind of "lost" some dollars? or am I confusing the currency exchange?

It looks to me like you chose a bitcoin seller on localbitcoins that was charging a 12% fee. That's a rather high fee. I wouldn't have bought from them. I'd have looked for someone that was willing to sell cheaper.

If you aren't in a hurry, you're better off putting up your own ad on localbitcoins. Then you get to charge the fee on someone else that is in a hurry to sell their bitcoins. As an example, you might have put up an ad to buy 500 CAD worth of bitcoins and charge a 5% fee. This would have resulted in you receiving 520 CAD worth of bitcoins for your 500 CAD.

Thanks again Danny!
Could you please let me know how I can figure out what his fees were and how you were able to deduce that he charged 12%? Sorry, I'm not just a BTC newb, but also a birdbrain in math.

This ad thing makes so much sense, I should have done it this time around just like you recommended the first time!

ChuckBuck

hero member

Activity: 1372

Merit: 783

better everyday ♥

If you're based in Canada, why don't you just buy from one of the Canadian exchanges, withdraw BTCs to Blockchain.info wallet, then send to the other party in the Philippines Blockchain.info wallet for pennies?

http://howtobuybitcoins.info/ca.html

If you buy direct from an exchange, depending on the fees, it should potentially be much lower than that premium you paid to that seller on LocalBitcoins.

JerryCurlzzz

hero member

Activity: 504

Merit: 500

Quote from: danynx on September 02, 2014, 02:11:34 PM

the goal is not to "sell and buy" btcs.. the project is aimed to use bitcoin like money, so if you send 1 bitcoin to your friend on another country, he will receive that bitcoin at almost cero fees and he will spend that bitcoin buying goods, not selling it for fiat.

It doesn't have to be limited to using BTC as "a currency." Ideally, BTC could be used to transfer great amounts of value -- even if that means directly cashing out to fiat on the other end.

cameltoe

member

Activity: 98

Merit: 10

Try using western union, money gram, paypal or any other money transfer services and you will understand why we need bitcoin to succeed. Just this morning I sent 100 dollars to a relative in the Philippines and it cost me just 5 cents.

danynx

full member

Activity: 139

Merit: 100

Quote from: Devilish on May 03, 2014, 08:22:32 PM

Hi,

I have a question.
Using places like LocalBitcoins, I see I have a particular rate that I will have to pay for BTC. Then, I sent this BTC to another country, and if the receiver also goes to LocalBitcoins and sells the BTC, he gets lower money (of course, depending on the seller).

Now, if I have Western Union, I send $200 and pay a fee of $9 (for example). The receiver in the other country receives the cash based on the foreign exchange of the currency that was locked in upon the time of sending.

What am I missing? I'm seeing everywhere that it says Bitcoin will remove fees, etc but the disparity in the selling/buying is so much that it's almost like paying fees similar to WU.

Thanks!

the goal is not to "sell and buy" btcs.. the project is aimed to use bitcoin like money, so if you send 1 bitcoin to your friend on another country, he will receive that bitcoin at almost cero fees and he will spend that bitcoin buying goods, not selling it for fiat.

JerryCurlzzz

hero member

Activity: 504

Merit: 500

Quote from: cookiemonsterwhat on September 02, 2014, 12:52:59 PM

localbitcoins take a huge chunk, so try on this forum and build some rep.

Its well worth it. And when I mean by rep, its the "trusted feedback" that counts with green + marks.

Localbitcoins doesn't necessarily take anything. If you do in-person cash deals, there is no reason to use escrow, so no 1% fee. So if you don't agree to pay a premium to a seller, you can buy at exchange rate or even buy at a discount if you are willing to wait for the right seller.

cookiemonsterwhat

sr. member

Activity: 252

Merit: 250

localbitcoins take a huge chunk, so try on this forum and build some rep.

Its well worth it. And when I mean by rep, its the "trusted feedback" that counts with green + marks.

iluvpie60

hero member

Activity: 700

Merit: 500

Quote from: Devilish on May 03, 2014, 08:22:32 PM

Hi,

I have a question.
Using places like LocalBitcoins, I see I have a particular rate that I will have to pay for BTC. Then, I sent this BTC to another country, and if the receiver also goes to LocalBitcoins and sells the BTC, he gets lower money (of course, depending on the seller).

Now, if I have Western Union, I send $200 and pay a fee of $9 (for example). The receiver in the other country receives the cash based on the foreign exchange of the currency that was locked in upon the time of sending.

What am I missing? I'm seeing everywhere that it says Bitcoin will remove fees, etc but the disparity in the selling/buying is so much that it's almost like paying fees similar to WU.

Thanks!

bitcoin doesn't remove fees, that was said in the beginning when fees were cheaper or didnt need to have a fee. now you basically need a mandatory fee of .0001 btc or usually .00005 btc for a transaction to go through, about 5 cents or 2.5 cents is what that works out to.

if you are sending 10 bucks its still not a big deal, think of sending 100 bucks or a few thousand bucks that way, using your western union is 9 bucks, using btc is 5 cents.

also right now newegg is giving 30% off if you pay in bitcoins

Topic: How am I saving by sending via Bitcoin? (Read 1810 times)