Silk Road forums

Discussion => Security => Topic started by: Crisis on December 03, 2011, 12:44 am

Title: Question about Bitcoin fees
Post by: Crisis on December 03, 2011, 12:44 am
Hi all,

There's an bitcoin dealer on SR that's selling without a fee. However, he's charging $3.50 per BT whose value is currently hovering around 3.10-3.12 US dollars. If my maths correct, that's roughly 8-10% extra or $8-10 dollars per every hundred dollars spent, which is consistent with the service he's providing.

Get-BitCoin, I believe, is charging around 5-6 percent with around a week turnaround.

While this dealer's claims of not charging a fee is correct, an upcharge is certainly being applied.

I am in no way knocking the business or claiming it's involved in shady practices, I'm just curious if my math is in anyway correct (mathematics isn't my strongest suit) and with larger transactions, say around $200-250, if fast turnaround makes up the difference in charges.

Hope I'm not being too confusing or overthinking this.

Thanks,
Crisis
Title: Re: Question about Bitcoin fees
Post by: subtlety on December 03, 2011, 01:25 am
You're always going to pay less for BTC off-site.  The extra you pay on the Road is for the convenience, it's always instant, and you can use cash for a Money-Pac at just about any chain store in the US (eg; walmart, right-aid, gas station.)  Get-Bitcoin, like you said, takes about a week.  I just went through the exact vendor you're talking about, and it went like this:

1.Cashed my paycheck and picked up an MP on my way home from work.
2. Logged into SR and Pm'd the vendor.
3. He confirmed he had the BTC, I ordered the listing, BTC in my account less than 2 hours after getting paid today.

You just cannot beat that speed and convenience. I didn't do your math, but I wanted to place orders this weekend and not next weekend. Now I can, and I'm willing to pay extra to do so.  Now, if I were looking to buy $1000 dollars in coins, I'd probably go for the best deal and wait it out.  It's all relative to what you're trying to do and how quickly you want to do it.

Also, I'm pretty sure you're talking about BTC-Buddy, and if so I'd just like to chime in that so far he's been the fastest exchanger I've used.  I used to go with SumYunGai, but he ran into some trouble.  Normally I'd stick with him because I'm loyal like that, but he was gone so I went with Buddy, and couldn't be happier.  It was REALLY fast!
Title: Re: Question about Bitcoin fees
Post by: Crisis on December 03, 2011, 02:07 am
Thanks subtlety,

You confirmed everything I was thinking. I just wanted some level headed advice.

And you're correct, I was referring to BTC-Buddy. I just didn't want anyone to think I was questioning his practice or ethics. He seems to be out of BT at the moment so I was  trying to figure out if I should wait for him to get some more in or go through Get-bitcoin. Either way, I'll be tying up cash.

Thanks for the advice,
Crisis
Title: Re: Question about Bitcoin fees
Post by: CrunchyFrog on December 03, 2011, 03:32 am
Quote from: Crisis
Get-BitCoin, I believe, is charging around 5-6 percent with around a week turnaround.
Quote from: get-bitcoin.com/home/faq
Q). How much is the fee?
A). GetBitcoin charges a 5% fee for purchasing Bitcoins, and a 3% fee for selling Bitcoins.

Q). How soon will I get my Bitcoins?
A). We guarantee that you will receive your Bitcoins within 24 hours of us receiving payment - always.
They probably should say "within 24 hours of us verifying" -- rather than "receiving" -- payment, since some methods involve more verificaion than others.  You can always ask them [ get-bitcoin.com/home/contact ] which would be the fastest before you decide.  The slowest method would probably be check of any kind (cashiers, money order) by mail -- even PriorityMail or FedEx -- since they'll wait for it to "clear" before sending the coins.
Title: Re: Question about Bitcoin fees
Post by: subtlety on December 03, 2011, 04:02 am
I've never used them so I just assumed what crisis said was correct.  Even so, 24 hous from them verifying, then the time to tumble to instawallets (optional, but a good idea if you do direct bank transfer, of if Get-bitcoin deposits to a personal wallet or an MtGox, Campbx, ect. account.) Then the time to go from instawallet(s) to the Road. Gonna take a lot longer than two hours from the moment you get paid.
Title: Re: Question about Bitcoin fees
Post by: Crisis on December 03, 2011, 05:22 am
The one and only time I used Get-BitCoin, I paid directly with an echeck through my checking account.

Verification of my order was immediate but it took about a day for them to reply as to where to go and pay for my order. Then it took 3 days for my bank to set up an account to pay through echeck. Then another two days or so for Get-BitCoin to process my order. So about 6-7 days total. May go faster since I have my echecking set up.

I think Get-BitCoin now has a one day turnaround with a 3 percent surcharge. Haven't tried it. Or you can pay them direct through their account by paying cash at BOA or Chase.

Not the speediest nor, in some people's eyes, the safest way to order bitcoins but it worked without a hitch.

Just contacted BTC Buddy and it looks as if he has bitcoins in again. Going that route this time.

Thanks for you help subtlety,
Crisis
Title: Re: Question about Bitcoin fees
Post by: Crisis on December 03, 2011, 05:49 am
Just placed an order with BTC Buddy. Less than 5 minutes from placing order to finalizing. Amazing!

Thanks for everyone's help.