Is there a reason not everyone use Circle/Coinbase to sell BTC in the USA?

sase007

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Quote from: notlist3d on January 14, 2016, 03:42:30 PM

Quote from: sase007 on January 14, 2016, 01:46:29 PM

Companies like Coinbase, tend to charge the market face value. Meaning, that some people will purchase on forums to get a discount.

Coinbase also charge fees for transferring from money-to-money, usually for deposits of USD/GBP/EUR and withdraws (once the user exceeds $1 million).

There are also peope that believe that Coinbase are tracking people's identities.

I think any tracking has to do with KYC and staying out of money laundering. It's been a while but I have seen coinbase take action if you are suspected of selling on LBC. SO there is somesort of tracking for them to stay legal how much no one really knows.

I don't know if I agree on forums it's a discount. Normally forums and LBC cost more to buy BTC then Coinbase. They are normally cheaper to what I have seen.

Some sites like bitbargain.co.uk are usually cheaper than Coinbase. I know that is is not USD but it counts for the same.

Mostly, people try to get away with using Bitcoin on The Dark Web, so tracking in this way may not be a good thing for some users.

Though, prosecuting people for illegal activity is a good way of controlling Bitcoin and also to stop it from falling into the hands of extremist organisations.

notlist3d

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Quote from: sase007 on January 14, 2016, 01:46:29 PM

Companies like Coinbase, tend to charge the market face value. Meaning, that some people will purchase on forums to get a discount.

Coinbase also charge fees for transferring from money-to-money, usually for deposits of USD/GBP/EUR and withdraws (once the user exceeds $1 million).

There are also peope that believe that Coinbase are tracking people's identities.

I think any tracking has to do with KYC and staying out of money laundering. It's been a while but I have seen coinbase take action if you are suspected of selling on LBC. SO there is somesort of tracking for them to stay legal how much no one really knows.

I don't know if I agree on forums it's a discount. Normally forums and LBC cost more to buy BTC then Coinbase. They are normally cheaper to what I have seen.

sase007

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Companies like Coinbase, tend to charge the market face value. Meaning, that some people will purchase on forums to get a discount.

Coinbase also charge fees for transferring from money-to-money, usually for deposits of USD/GBP/EUR and withdraws (once the user exceeds $1 million).

There are also peope that believe that Coinbase are tracking people's identities.

Amph

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Quote from: viking02 on January 14, 2016, 12:39:30 PM

Quote from: Amph on January 14, 2016, 02:29:19 AM

because they trace everything you sell there, they are auto-regulated with IRS, people want to avoid paying taxes at least for small thing

so it make sense for many to not use coinbase, despite they have a high security thanks to their insurance that cover your funds

so you are saying one would rather receive a bank transfer or wire or boa online transfer which goes through the bank anyway as oppose to circle/coinbase because its auto regulated with irs?

thus it still goes through the bank but it isn't notified by irs?

IRS can not directly acquire info from your bank, at least this how it work here, with the autorithy, it should work the same in USA with IRS

they need your permission, unless of course you're evading a shittons of money

notlist3d

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Quote from: viking02 on January 14, 2016, 12:39:30 PM

Quote from: Amph on January 14, 2016, 02:29:19 AM

because they trace everything you sell there, they are auto-regulated with IRS, people want to avoid paying taxes at least for small thing

so it make sense for many to not use coinbase, despite they have a high security thanks to their insurance that cover your funds

so you are saying one would rather receive a bank transfer or wire or boa online transfer which goes through the bank anyway as oppose to circle/coinbase because its auto regulated with irs?

thus it still goes through the bank but it isn't notified by irs?

If your dealing with large amount's chances of IRS knowing is much higher. I'm not sure at what limit they do something. I have kept a decent log of expenses if I ever do hit a spot where I cash out big I at least will have my expenses.

But yes coinbase likely knows and reports it as they follow KYC rules. This keeps them from being a money launder. They really have no choice but to follow it. Say you go LBC there is not much chance of tax, but you are dealing with higher risk of scams, and at a certain level you could possibly be considered a money launder.

I personally say stick with the exchange.

viking02

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Quote from: Amph on January 14, 2016, 02:29:19 AM

because they trace everything you sell there, they are auto-regulated with IRS, people want to avoid paying taxes at least for small thing

so it make sense for many to not use coinbase, despite they have a high security thanks to their insurance that cover your funds

so you are saying one would rather receive a bank transfer or wire or boa online transfer which goes through the bank anyway as oppose to circle/coinbase because its auto regulated with irs?

thus it still goes through the bank but it isn't notified by irs?

Amph

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because they trace everything you sell there, they are auto-regulated with IRS, people want to avoid paying taxes at least for small thing

so it make sense for many to not use coinbase, despite they have a high security thanks to their insurance that cover your funds

notlist3d

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Quote from: achow101 on January 13, 2016, 09:25:41 PM

Quote from: VirosaGITS on January 13, 2016, 08:59:55 PM

Some people want to do it anonymously i guess, or leave the trace out of their main bank account, or distrust a Centralized exchange since the point of BTC is just that.

I do it in Canada now and it takes at most 24 hours to receive the money in my bank account and buying with interact is instant and cost a flat fee of 1CAD$

Besides anonymity, people have had issues with Coinbase mysteriously closing accounts and preventing people from withdrawing the coins that they bought or deposited.

Also, some people are not comfortable with sharing all of their personal info with an exchange.

In US though there is KYC so no matter what exchange you pick... you have to provide a lot of info. It is to prevent money laundering which I can see why governments would want.

Coinbase is actually pretty good as a exchange. I do take extra precautions such as having a bank account just for it. So I can move money easily into another account linked to nothing and safe.

Biggest reason on closing accounts I know is if they suspect your are buying and selling on like LBC. That is to keep them legal though ... so not sure if they close due to no reason.

viking02

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if thats the case, then what is the most likely methods people use to get cash/bank transfer for their bitcoin then?

i assume its like

localbitcoins
paypal
western union?

Another thing that im curious about. If they receive a bank transfer from someone, would that be similar to them getting an ach transfer from coinbase/circle? Or thats different because coinbase/circle has information on them and them withdrawing? Thus they rather receive a bank transfer or wire even though it still goes through their bank account? Or is them getting a bank transfer/wire from a buyer going to be the same as getting ach transfer from coinbase/circle?

achow101

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Quote from: VirosaGITS on January 13, 2016, 08:59:55 PM

Some people want to do it anonymously i guess, or leave the trace out of their main bank account, or distrust a Centralized exchange since the point of BTC is just that.

I do it in Canada now and it takes at most 24 hours to receive the money in my bank account and buying with interact is instant and cost a flat fee of 1CAD$

Besides anonymity, people have had issues with Coinbase mysteriously closing accounts and preventing people from withdrawing the coins that they bought or deposited.

Also, some people are not comfortable with sharing all of their personal info with an exchange.

VirosaGITS

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Quote from: viking02 on January 13, 2016, 08:56:02 PM

You can sell your bitcoin to circle for no cost. Last time they btc rate was actually higher than on google if you search btc to usd. Coinbase charges about 1% fee. And i did 1 transaction with circle and got the ACH transfer to my bank of america account in a few days.

Is there a reason anyone who wants to sell btc for bank transfer not use circle or coinbase? I mean... you never have to worry about getting scammed at all.

Can someone tell me why ppl in the usa sell bitcoin for other funds? I believe many sell btc to others on localbitcoins for profit. But then again, it isn't exactly safe because of scams that i read about on localbitcoins.

Is there a reason why ppl even ask for wire/western union as oppose to doing this all through circle/coinbase? Because if you trade btc for someone's else bank wire or boa online transfer, i assume there is either no fee or YOU have to pay a fee. And with circle, there's no fee and with coinbase, 1 percent fee.

Now if you trade btc for someone elses funds and got a vig on it... like 1000 btc get 1020 cash or bank transfer, i can understand that. However, don't most ppl who sell bitcoin have to give a vig anyways?

That is what im confused. Thanks.

Some people want to do it anonymously i guess, or leave the trace out of their main bank account, or distrust a Centralized exchange since the point of BTC is just that.

I do it in Canada now and it takes at most 24 hours to receive the money in my bank account and buying with interact is instant and cost a flat fee of 1CAD$

viking02

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You can sell your bitcoin to circle for no cost. Last time they btc rate was actually higher than on google if you search btc to usd. Coinbase charges about 1% fee. And i did 1 transaction with circle and got the ACH transfer to my bank of america account in a few days.

Is there a reason anyone who wants to sell btc for bank transfer not use circle or coinbase? I mean... you never have to worry about getting scammed at all.

Can someone tell me why ppl in the usa sell bitcoin for other funds? I believe many sell btc to others on localbitcoins for profit. But then again, it isn't exactly safe because of scams that i read about on localbitcoins.

Is there a reason why ppl even ask for wire/western union as oppose to doing this all through circle/coinbase? Because if you trade btc for someone's else bank wire or boa online transfer, i assume there is either no fee or YOU have to pay a fee. And with circle, there's no fee and with coinbase, 1 percent fee.

Now if you trade btc for someone elses funds and got a vig on it... like 1000 btc get 1020 cash or bank transfer, i can understand that. However, don't most ppl who sell bitcoin have to give a vig anyways?

That is what im confused. Thanks.

Topic: Is there a reason not everyone use Circle/Coinbase to sell BTC in the USA? (Read 1284 times)