Selling Rate of BTC on Circle Higher Than Coinbase?

Why does it show btc value of circle is 313 usd at the moment yet on coinbase its 307? I checked google and at the moment 1 btc is 307 usd. So one makes more money selling circle btc as oppose to coinbase?

Quote from: viking02 on October 29, 2015, 05:44:19 AM

I think at circle they set their prices just like any other exchange.

the price currently is $304-307 on any exchanges, even only $298 on btc-e, so $313 is impractical

I haven't used circle, but according to my experience, better price is usually meaned it has a higher fee

it's called arbitrage and for circle, the trnsaction are faster, you get the money without much hassle, this explain the higher price

this is true for localbiotcoin too

Quote from: viking02 on October 29, 2015, 05:44:19 AM

Every exchange has its own price that depends on the supply and demand of that exchange. They match other users asks and buys. That's why you will see difference between that exchanges. So historically btc-e has the lowest price while Chinese exchanges have among the highest prices.

Those discrepancies mean money if you are able to move fast. Some people earn money by buying in some exchange (the lowest price one) and selling in another (the higher priced one). Although it is getting harder every day as I have seen here.

These discrepancies between exhanges are not that uncommon.
Especially if you compare the prices of bitcoins trading in different currencies, e.g. USD and EUR or SGD.

Most often that not, if you factor in the cost of the international transfer and the exchange fees, the actual profit is close to zero or negligebile, but sometimes there is an opportunity to make some money almost risk-free.

These discrepancies arise because there are number of inefficiencies built in the bitcoin trading, such as the fees and time it takes to transfer the fiat money, as well as different structure of demand and supply - some exchanges have more sellers, some have more buyers.

That's a good margin to do some good arbitrage trading. If you have the money in position you should take the chance!

This is excellent profit opportunity Wink

Just buy BTC at lowest price in one exchange, and sale it in another at higher price Grin

It isn't a big difference, but it is notable because Circle makes money from the spread, while Coinbase makes money from a 1% fee. So, it would be more logical for Circle's price to be lower than Coinbase's price.

Things to note:

Circle is not an exchange, and if you buy from Coinbase, you are buying from Coinbase and not on their exchange.
Because of Coinbase's 1% fee, you can only make money from arbitrage if Coinbase's price is at least 1% lower than what Circle will pay, though Coinbase's exchange has lower fees and a different price.
Circle limits you to $3000 per week (or something like that), so if you can make a 1% profit on arbitrage, that's only $30.

I like to add on to this. Someone in another forum mentioned he sold bitcoin through circle/coinbase many times. He had noticed that with coinbase you always have to pay 1 percent fee whether buy or sell bitcoin.

He said with circle... they actually give him 1.5 percent every time he sells bitcoin. He says this happens every single time. If thats the case, isn't that arbitrage? Example if you buy bitcoin through coinbase... then sell it through circle assuming price stays the same?

If u were able to buy bitcoin for free no charge at all... then sell bitcoin through circle... aren't you going to make 1.5 percent each time almost then assuming price stays the same? But again... price can't really stay the same right? Because no one could receive bitcoin and then sell it so fast like within same time?

There are many abitrage opportunities between bitcoin exchanges.
Some may last only a short period of time, other may be for a relatively low volume, so few may bother to exploit them, but if you keep looking, you will find the profitable opportunities.

The key is to have enough capital available, so you don't have to wait for transferring your crypto and fiats.

Quote from: viking02 on May 07, 2016, 06:13:46 AM

He said with circle... they actually give him 1.5 percent every time he sells bitcoin. He says this happens every single time. If thats the case, isn't that arbitrage? Example if you buy bitcoin through coinbase... then sell it through circle assuming price stays the same?

There are some exchanges with the maker-taker fee model, meaning you pay a fee if you send a market order, but they will pay you a fee if your resting limit order gets executed.
1.5% would be a unusually high rebate, though.

Quote from: bitmarket.net on May 10, 2016, 09:35:52 AM

well i can acquire btc through sites i bet on. So how can i do this then?