Bitcoin Forum

Well i know its very basic question.. But i'm facing a problem in it.

I want to buy a commodity from a guy. He is willing to sell it at 110usd and accept payment in bitcoin. If he would specifically asked for this amount of bitcoin i can easily pay him, but how in usd?

I mean if i buy a bitcoin, the seller will include his premium in it. So if i pay him 1000 usd, he'll pay me bitcoin worth 950$ or something like that.

So, how much amount of btc i need to pay to that guy so i get 110 usd of that commodity, as if i pay him at the same rate as of marketprice i would be in loss.

For example,
The current market price of 110 usd is 0.109BTC. If i buy from anyone he'll definately include his premium amount and i'll get less bitcoin in return. So, If i pay to other guy 110 usd of bitcoin, i should include my premium too? So, i need to pay what amount? Marketprice amount or bitcoin amount ( after deducting my share of premium)?

I'm also new here.
Please tell me if i've posted in a wrong thread.

Please teach me some basic of this trading.

Regards

The fair way is use marketplace amount to trade, in the time when you have a deal and ready to transfer such amount to that guy.

Use such a premium amount looks not really fair, because the price is fluctuate.

If you already have 110usd in usd, why not find a way to pay him that using paypal? If you are going to convert that 110usd to btc first, you will end up with around 105 usd after some fees, depending on market conditions your new btc would be worth anywhere between 95-105 usd by the time u and him decide on an amount.

The buyer will always pay a premium, not the seller, in this case you would be paying the premium twice, once to exchange to btc and second to get that commodity you wanted.

What you are doing isnt exactly trading but well, I hope you have a better understanding

If you can manage to buy bitcoin from an exchange it will save you the trouble.  But if you are buying Bitcoin from someone else, you only need to pay the premium from the person who sells you bitcoin and automatically, the amount of Bitcoin your paying the person whom you wanted to trade is the same amount of Bitcoin in sell order of a third party exchange / converter.

example :

In a clearer view

A = Sell cost  B = Buy cost (higher in x percent than A)

If you buy BTC you will pay for B cost but get y amount of BTC which is equal to A cost if you sell it. 
The guy will charge you wiht A cost conversion to make his goods worth more bitcoins.
YOu will have A cost bitcoin that will pay A cost goods, so the only adjustment you will have is when you buy your bitcoins.

If that person is have some rules in trading like convertion rate.Just follow it but think if this is reasonable rate.
Or just make a rules too.

Buy bitcoin straight from the trading platform if you can rather than buying it from another guy who want more than market price. I dont think whom you gonna pay will be happy to receive less than his price so you may have to pay him at market price. Also there will be risk of loss due to high price volatility along with chance of profit. But if you dont like to take this risk you better pay him directly in fiat.

There are sites like this forum where you'll be able to buy bitcoin with no/little rates added.

Trading platforms normally charge a fee don't they also - unless you find somewhere like localbitcoins which may not charge a fee - yobit.net or bitfinex may also have low rates as well as coinbase.com (which is 1%)?

Price at localbitcoins is way higher than in normal trading platforms so it will be expensive to buy from such p2p based platform. Look at price difference between localbitcoin and coinbase you will find out how much expensive it is to buy from LB.

Yes it is quite expensive, probably to stop things such as scamming. I think coinbase has a 1% fee so that's about a $10 conversion fee or a $1 fee on $110. Although I recall a while back that it is only BTC→USD transactions that are charged a fee for the first $1m so there may be a good thing to go for there.

(EDIT: the fee has increased now to 3.99% for Visa/Debit cards so it is more like $4 forthe conversion - still not too much though in comparison)...

Yes, that is true, but although the buy prices for the bitcoin in local bitcoin are high that makes them a perfect platform for selling bitcoin, and all the p2p platforms are like that because they usually have a limited amount of bitcoin to sell not like the other platforms which are constantly buying bitcoin, so a good trading opportunity would be buying from coin base or any other trading platform and selling them on local bitcoin.

It's probably also due to the hassle and scams that occur there.
For example, payment has to be handled manually, whereas a company like coinbase will just have a script running for accepting visa payments. There's also a greater risk for trust on both sides for p2p when exchanged have volumes of several million dollars per day being transacted through them.

So if your going to pay him 1000$ and he's going to pay you in bitcoin worth 950$ I think that's fine. Because the price value of bitcoin now was dropped into 1097$, which can be recover again to 1280$. This happened because of fluctuation, So with or without premium thats fine.

Well, it is a good thing that the payments are made manually  that way you ensure your own outcome, because you are the one who picks the buyer or the seller and the whole website works on trust so you pick the person with the highest amount of trust and whoever has the most transactions made, besides the escrow works on timing and a proof, so the seller has to give confirmation and upon that the sites releases the payment from the buyer, so basically there is no chance of getting scammed.

Trading works on a simple principle "BUY" AT "LOW" and "SELL" at "HIGH".

OP is not asking about trading on some exchange, he is pointing out P2P trading ang buying low sell high is very hard to apply since the other person that he will going to transact was applying that principle too.
@OP, just buy it for market price then just wait for it to fluctuate, you can easily recover the amount you loss on P2P trading once it's inflate.