BTC Exchange With BoA, Skrill, Paypal Rate Questions

[viking02]

I have BTC.  I also have skrill usd and neteller usd.  Most of the time i would like to receive boa online transfer.  However, i was told boa transfers are reversible.  I also have paypal account but wouldn't want paypal since that is definitely reversible.


I seen some people that have BTC or have paypal/skrill and want BTC vice versa.  I had always thought BTC was worth more than skrill or paypal.  I always see people selling btc for paypal or skrill and charging a fee for it.  Like 5 percent.  So that means $950 BTC for someones $1000 worth of skrill or paypal right?


However i spoke to a guy who has skrill usd and is legit based on his posts.  He wants BTC.  However he charges a fee for it.  Thus his $950 worth of Skrill for example for your $1000 worth of BTC.  First off, shouldn't it be the other away around almost always?  I know it depends on the demand but is BTC ever worth less than skrill?  Thus if i have btc... let say i want to trade $1000 worth of btc for someone's skrill usd... shouldn't i be getting at least $1000 skrill?  But most likely i should be getting maybe $1050? 


Also is there anyone here that trades BoA online transfer and is legit and would like BTC?  I have btc and like boa online transfer but few ppl a while back PM me and wanted a 5 percent fee.  I have no idea but shouldn't either one of us be paying say at most 3% fee?


So if i want to trade my skrill usd for someone elses btc, who should be paying a fee?  I have a legit skrill, paypal account etc since i play online poker and those are my source of funds. 

[btc-mike]

The person that wants the trade to happen the most pays a fee.

[viking02]

Okay.  But if both persons want to do the trade, who should be paying the fee?  I was very surprised when someone here who had skrill was charging a decent fee for BTC. 

[btc-mike]

Generally, BTC is worth more than the others.

[Quickseller]

I can deposit cash into your Bank of America bank account, and would be willing to do so at 4% under the coinbase last rate (with you covering any escrow fees if you are not willing to send first).

To answer your questions:

Yes if you have $1,000 worth of Bitcoin, and are paying a 5% fee then you would receive $950 in exchange for your $1,000 worth of bitcoin.

The decision as to who pays the fee has less to do with what is being exchanged and more to do with which party has a greater need to get the deal done. If you are wanting to sell your bicoin quickly then you would probably be more willing to accept a lower price. On the other hand, if you are willing to wait a longer time to close a deal, then you can ask for a higher price and end up waiting for someone who is willing to pay a higher rate. You should bear in mind however, if you are simply trying to cash out of some BTC that you have that it is possible that the exchange rate will fall while you are waiting for a trading partner, so even if you end up getting a better rate, you may end up receiving a less total amount.

The question of, "what is worth more, btc or x payment method" really depends on who you ask. If for example, it is the first of the month, your rent is due and your landlord does not accept btc, then USD is going to be more valuable to you because without it you will not be able to pay your rent. On the other hand, if you are planning on using btc to buy a gyft gift card with  3% discount, then btc might be more valuable to you (the same might be true for someone considering on buying a miner from bitmain that only accepts btc for payment).

The amount of the premium/discount/fee is really up to the two people trading, and will somewhat depend on how risky the payment method is as well as the reputation of the other party. For example if you do not have a strong reputation and wish to pay with a payment method that carries a higher risk (eg PayPal, gift cards) then you will need to pay a higher premium to cover these risks. If you wish to get the trade done quickly (see above), then you would also need to allow your trading partner to make some profit, and some amount for their time.

[btc-mike]

QS is correct. Mine was the TL;DR version