why is the price at localbitcoins so much higher? - page 2.

webtricks

legendary

Activity: 1918

Merit: 1728

Quote from: stelee68 on December 15, 2017, 10:00:34 AM

As per subject header, I noted that the price quoted on localbitcoins is much higher that the actual BTC price.

An example, as of now: BTC is trading at (my country Singapore) S$23,900 but on localbitcoins, sellers are quoting S$26,000 plus.

Why so? I do understand that there is a TX fee and some profit margin for the seller, but S$3000+?

I might as well buy from coinbase and sell BTC at localbitcoins to make a profit..??

There is no such thing like actual BTC price. The price of Bitcoin is shaped from its demand.
The international price is the average of prices of markets around the world. The demand of bitcoin is higher in some countries than the demand in other countries. So the average price is Combined Arithmetic Mean of these prices. While what you see on LocalBitcoin is the real price at your location. If it is higher than international price then it means demand in your location is higher than worldwide average and people there are ready to pay higher prices. This is nothing to do with TX id or other expenses.

PS: If you see such difference, you can make good profits using Arbitrage Trading. Search Google for more info.

olushakes

sr. member

Activity: 476

Merit: 254

Quote from: stelee68 on December 15, 2017, 10:00:34 AM

As per subject header, I noted that the price quoted on localbitcoins is much higher that the actual BTC price.

An example, as of now: BTC is trading at (my country Singapore) S$23,900 but on localbitcoins, sellers are quoting S$26,000 plus.

Why so? I do understand that there is a TX fee and some profit margin for the seller, but S$3000+?

I might as well buy from coinbase and sell BTC at localbitcoins to make a profit..??

Localbitcoin is a peer to peer platform where people are allowed to quote the price they so wish to while the buyers have the option to buy from them or not. I am sure that if you look closely, you will see someone quoting a lower price depending on individual quest to make profit if you see an opportunity of getting it lower and selling at a fairly higher price then go for it. No one is restricting entry and exit in the market.

DaMut

sr. member

Activity: 1274

Merit: 263

first of all that's the place for buyer or seller to face one and another,
which mean it's the place for them who offer their coin with their prices or the seller can put the sell order as much as he/she want.
actually it's due to fee that they need to pay whenever they make a trade in there .
go here if you want to know how much is the fee that you need to pay for every transaction :
https://localbitcoins.com/fees
look at here :

Quote

LocalBitcoins users who create advertisements are charged a 1% fee for every completed trade.

do your own math and tell me,it's higher from others ? or it's just the same ?
they increased the price because they want to cover up the fees that they need to pay whenever they make a trade.
every trade,you will be charged for around 1% from your total transaction.

alani123

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Leading Crypto Sports Betting & Casino Platform

Because its actually people that sell there and they too have to determin a price at which they'd be able to value their time by earning something by providing the service of selling bitcoin. In person trades serve a special purpose and some buyers are willing to pay a little extra. There are many use cases, for example those that can't or do not want to get verified at exchanges.

deadsilent

hero member

Activity: 1148

Merit: 500

Because localbitcoins.com it self don't have the control over the seller on their site. The seller has the authority to change the price which the seller could take advantage of that. That's the bad thing localbitcoins. Some sellers are abusive at their pricing. They price too much compares to exchanges regular price. Others are scammers. So be careful dealing with sellers there. Make sure you check everything before you make order to avoid mistakes which cause you losses. I saw a user here bought $200+ worth of Bitcoin for $875. That's not even on it's half.

Lucius

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Quote from: stelee68 on December 15, 2017, 10:00:34 AM

As per subject header, I noted that the price quoted on localbitcoins is much higher that the actual BTC price.

An example, as of now: BTC is trading at (my country Singapore) S$23,900 but on localbitcoins, sellers are quoting S$26,000 plus.

Why so? I do understand that there is a TX fee and some profit margin for the seller, but S$3000+?

I might as well buy from coinbase and sell BTC at localbitcoins to make a profit..??

People who sell on LocalBitcoins can determine the price whatever they want,and it is all about profit.Since price in your county is almost 24 000$ it is realistic to expect that some resellers want to make profit.If LocalBitcoins is only way for someone to buy BTC then he will pay such high price because there is no other choice.

You can buy BTC and then sell at whatever price you want,the question is will you find a buyer.The market always determines the price,but it is not same in every country,and in your example is visible that the demand is bigger then supply in your county.

stelee68

member

Activity: 684

Merit: 19

As per subject header, I noted that the price quoted on localbitcoins is much higher that the actual BTC price.

An example, as of now: BTC is trading at (my country Singapore) S$23,900 but on localbitcoins, sellers are quoting S$26,000 plus.

Why so? I do understand that there is a TX fee and some profit margin for the seller, but S$3000+?

I might as well buy from coinbase and sell BTC at localbitcoins to make a profit..??

Topic: why is the price at localbitcoins so much higher? - page 2. (Read 272 times)