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Author Topic: why is the price at localbitcoins so much higher?  (Read 138 times)
stelee68
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December 15, 2017, 02:00:34 PM
 #1

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..??

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December 15, 2017, 02:26:12 PM
 #2

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.

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December 15, 2017, 02:41:25 PM
 #3

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.

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December 15, 2017, 02:43:52 PM
 #4

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.
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December 15, 2017, 03:00:07 PM
 #5

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.

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December 15, 2017, 03:08:28 PM
 #6

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.
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December 15, 2017, 04:24:27 PM
 #7

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.
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December 15, 2017, 04:43:21 PM
 #8

This is the problem if Bitcoin is being controlled by a certain person. They bully buyers by selling at higher price compared to its SRP (Selling Retail Price). However, there's a scarcity of supply and availability going on, that's why we can't blame them. Also, I see this as one of the main reason why the general public goes crazy over BTC.

Localbitcoins should not tolerate it. They'll lose reputation and potential customers if this goes on. You don't need to take advantage of its volatility just to gain profits. Now that BTC has become more mainstream, it will eventually become more available to any platforms, sites or apps. Its just a matter of time for the site being taken down.
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December 15, 2017, 04:53:39 PM
 #9

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..??

That is precisely what some of them are doing, they are using arbitraging in order to earn money, not only that, if they have been doing that for some time it is very likely that their earnings are way bigger than that, imagine if they bought a lot of bitcoin at the beginning of the year, not only they earned a lot of money through arbitrage but through the appreciation of the price of bitcoin.


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December 15, 2017, 10:01:13 PM
 #10

I think that bitcoin ATM's, crypto resellers and some exchanges who can get away with marking up the price of crypto, often do so. Its similar to ticket scalping for sports events or concerts where all of the tickets will set out quickly only to be resold for a higher price on ebay, etc.

The most expensive bitcoin resellers I know of are in africa on the http://golix.com exchange. I've seen bitcoin selling higher than $30,000 on there. Fees and taxes are so high on electronic transactions in africa that people there are willing to pay a lot more for bitcoins as they're much better and more affordable than using bankers electronic payment systems.


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December 16, 2017, 06:04:11 AM
 #11

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..??

Since you can buy from coinbase and sell at localbitcoin in Singapore and make some money why not embark on that? At local bitcoin one can easily change his bitcoin to fiat through local exchangers and since people find it difficult to pay for goods and services in Singapore they have to make exchange to Singaporeans dollars before use the value and this will definitely rise the exchange value.

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December 16, 2017, 06:11:16 PM
 #12

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..??

Localbitcoins.com is not an exchange like poloniex or bittrex.It jut provides a platform between sellers and buyers.Sellers usually sell their bitcoins much higher in price than its market value.Even when they buy in LBC,they buy at a price more than its market price.


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December 16, 2017, 06:22:40 PM
 #13

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..??

Localbitcoins.com is not an exchange like poloniex or bittrex.It jut provides a platform between sellers and buyers.Sellers usually sell their bitcoins much higher in price than its market value.Even when they buy in LBC,they buy at a price more than its market price.

Yes this may be the reason for the price was high to buy in local bitcoin and you can sell at high price.So I suggest you to sell at local bitcoin to get more profit and buy at any other exchange like Poloniex or Bittex.If you hold your bitcoin for a couple of period and sell when the price reaches the peak means, you will get some more dollars.

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Heisenberg8
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December 16, 2017, 06:23:53 PM
 #14

I guess the point of buing at high prices from localbitcoin, with the exception of particular local gouvernment regulations, is owning perfectly anonimous bitcoins you can spend i places you fear being traced in.
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December 16, 2017, 08:35:00 PM
 #15

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..??


Being one of localbitcoin user, i would love to say yes, the bitcoin price is 7-10% higher than the normal bitcoin rate in localbitcoin.com. I always exchange my bitcoin into local fiats in localbitcoin. The traders are really trustworthy and trasations happen in 5 to 10 minutes. Well secured and easy to use. No fees on trading.

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December 16, 2017, 10:29:11 PM
 #16

As per subject header, I noted that the price quoted on localbitcoins is much higher that the actual BTC price.
You have noticed the right thing and the reason for that is the seller who is selling the Bitcoins not the site itself.

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+?
The sellers at that site have been doing the thing for a long time and because of higher rates they are making more profits than those who are selling Bitcoin at the exchanges. They set higher prices for many purposes, like the localbitcoins site fees, transaction safety, and the foremost important reason is the profits that they make.


I might as well buy from coinbase and sell BTC at localbitcoins to make a profit..??
Yes, you can do that and it is not objectionable that you can make some good profits. But in order to do that you will need to verify your account completely and have at least 0.1 BTC to start.
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December 17, 2017, 11:54:22 PM
 #17

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..??

Its because its the individual sellers who sell bitcoins there.Localbitcoins.com is not an exchange.Even we too can register in it and start selling our bitcoins.We could mostly buy bitcoins here even without disclosing any of our personal details.It's available in almost 249 countries.No big formalities needed.

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December 18, 2017, 04:35:14 PM
 #18

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..??

The market is unstable, so the bitcoin sellers overestimate the commission for exchange from the market price.

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December 18, 2017, 04:50:50 PM
 #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..??

So, you are thinking of arbitrage. You can very well do that and many are doing that specially at Korean exchanges where Bitcoin price almost always at premium from international price. But do you think getting into a localbitcoin exchange is easy? Certainly not. Korean government recently released an announcement that they'll be banning foreigners from having accounts on Korean exchanges. Similarly, many such rules and regulations comes in way when you think of arbitrage including tx fees and time as Bitcoin is highly volatile. So, at the end, unless you have huge amount(which most of the local exchanges would want verification for), you end up with minimal profit that doesn't worth the hassle.

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December 18, 2017, 04:54:06 PM
 #20

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..??

The market is unstable, so the bitcoin sellers overestimate the commission for exchange from the market price.

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