If you can sell Bitcoin on Exchange with good rate, why selling to resellers

[Johnlomape]

I have noticed people selling there bitcoin to resellers who will buy low and sell high making  few profits from what they bought from others. They do make frequent Bitcoin transactions selling to people that are urgently in need of it with bigger profits especially when the transaction is large. Exchanges had made Bitcoin transactions easier through peer to peer trading with an obvious rate which will be more profits to sellers when they sell through exchanges than when they sell to resellers who later sell to the public.

I had sold my Bitcoin before at a low rate lower than exchange rate which I later regret because I was new to crypto and doesn't have a better knowledge of selling to an exchange. Some people still prefer selling their Bitcoin to resellers which I will like to know. I use to have the feeling that selling to them may shorten the overall amount that one has to receive because they will need to sell it to others make there own profits.

[jackg]

I have noticed people selling there bitcoin to resellers who will buy low and sell high making  few profits from what they bought from others. They do make frequent Bitcoin transactions selling to people that are urgently in need of it with bigger profits especially when the transaction is large. Exchanges had made Bitcoin transactions easier through peer to peer trading with an obvious rate which will be more profits to sellers when they sell through exchanges than when they sell to resellers who later sell to the public.

It depends on what it is as people are after different things.
Some might be after a longer term fixed price, the exchange calculates rates by seconds while meeting up with someone can give you a rate that lasts a day or two if they've already bought the bitcoin.
There's also an anonymity standpoint to buying and selling bitcoin from individuals too. I think there's also a more personal touch with that method as well as they might provide better support as a small company/individual could respond and control issues a lot faster than an exchange.

[tranthidung]

You can buy or sell at better rate on Peer-to-peer marketplaces or in-person rather than on exchanges. On exchanges, you will have to be charged double fees

• Exchange/ trading fee
• Withdrawal fee: if you don't want to store money (in cryptocurrency) on exchange.
  
  • Old story. Exchanges get profits from users' withdrawal fees.
  • Exchanges charge you too high with withdrawal fee: they can try to convince you that they have to secure wallets, maintenance, process, etc. but generally in my opinion, it is unfair reason

[Oshosondy]

You can buy or sell at better rate on Peer-to-peer marketplaces or in-person rather than on exchanges. On exchanges, you will have to be charged double fees

What OP is saying is different, OP is only talking about selling not buying and he is right.

You have in mind already that the coin that will be sent to you will be converted to fiat and you will spend it, you give the sender your binance bitcoin address, the sender send it to your binance account, you use p2p to trade it directly into fiat and into your bank account which is zero fee, I am very sure that everything is zero fee.

Let me use USDT for this example and relate it to bitcoin.
If you use a reseller, bitcoin can worth $500, but if you us exchanges like binance, you will exchange it at $550. Can you see the huge difference, the seller would have gained more if used exchange directly.

What I just think about this is that some people are newbies and do not know that they are losing, while some people just like to stay anonymous.

[tranthidung]

You can buy or sell at better rate on Peer-to-peer marketplaces or in-person rather than on exchanges. On exchanges, you will have to be charged double fees

What OP is saying is different, OP is only talking about selling not buying and he is right.

So what did I say in my post? Buy only? Sell only? Both?

Why give a shit on how the sellers will profit? I think you should just focus on having the best exchange rate for your crypto if you ever need to convert, whether it's through an exchange or P2P. Don't think too much about it because you can't control it. Just focus on what you can control.

Me too. I am happy when I take profit and to be honest, I am not patient to create a buy offer and wait for others to pick mine. When I feel I have good profit, I choose instant sell on available buy offer on the Peer-to-peer marketplace.

It saves my time. Instant trade. Why do I have to care about difference between my sell offer (if I create it) and the highest buy offer on the marketplace. I take profit when Bitcoin, ie. increases good enough from my entry and that's it. I can wait patiently for price to rise but when I take profit, I would like to complete it instantly.

[crwth]

Why give a shit on how the sellers will profit? I think you should just focus on having the best exchange rate for your crypto if you ever need to convert, whether it's through an exchange or P2P. Don't think too much about it because you can't control it. Just focus on what you can control.

[Oshosondy]

So what did I say in my post? Buy only? Sell only? Both?

I am not saying that you are wrong, you are correct, but I just want to indicate that selling bitcoin can be most profitable on exchanges rather than resellers if not concerned about privacy. But with what you said, if it is buying, it is better to use reseller if the buyer is not trading and want to transfer the bitcoin to noncustodial wallet, but if the person is a constant trader and not making any trasfer than bitcoin to fiat and fiat to bitcoin, he can just make use of exchanges, but if he want to move his bitcoin to noncustodial wallet, he can use resellers which will be more profitable.

[Johnlomape]

@Tranthidung...i'm pointing at selling Bitcoin outside exchange where the reseller gain mostly and the seller end up forfieting some dollars just because of low selling rate. Almost all resellers do go for rate that are lower than the general/exchange rate just to make profit out of the transaction.

[tranthidung]

@Tranthidung...i'm pointing at selling Bitcoin outside exchange where the reseller gain mostly and the seller end up forfieting some dollars just because of low selling rate. Almost all resellers do go for rate that are lower than the general/exchange rate just to make profit out of the transaction.

It does not meet basics of a trade. The seller controls the game because they have multiple options to choose.

I experienced this. I used to believe that doing trades in-person (trusted one) will give me discount rate that is better than on exchanges. At the ends, I found out that it is not true.

Sellers try to get as much profit as possible and only buyers who are newbies and fearful of first trades on P2P marketplace/ exchange and/or have issues with KYC verification, will accept such trades.

It's better (rates) and safer to trade on exchanges or marketplaces (with Escrow)

[dansus021]

maybe one of reason is same like i do  when i need the money or urgent money

when i was in rush i dont pretty care about the spread who given by exchange i usually sell with "Taker" even tho

Taker usually pay high fee rather then maker and cost of the spread itself

[cabron]

If they profit from how they sell their BTC, it's up to them. I prefer to use exchanges since I don't have to talk to anyone and just pick a sell order and done.

I see some users in the exchange forum though that they need USD on their PayPal account, which is why they are selling it for less than the exchange rate. Or they are forced to sell BTCat a low rate because of the buyers bid.

[noorman0]

-snip-
I had sold my Bitcoin before at a low rate lower than exchange rate which I later regret because I was new to crypto and doesn't have a better knowledge of selling to an exchange.

Isn't this against your title? You here mean a beginner for which there is no other at least safe or friendly way to sell bitcoins. While that may sound unfair and pretty stupid, let's just say you paid for this lesson with a few dollars by accident. This also happened to me when I traded my first bitcoin to fiat when I didn't know how to use the exchange.

As @jackg said, someone (not a beginner) who sells btc to resellers at a lower price has other reasons to consider (eg wanting faster transactions, situation doesn't allow opening an exchange). But that doesn't mean they don't want to get the best price too (haggle before agreeing). This happens a lot in this forum especially exchanging bitcoins to fiat like the high rankings did in the Currency Exchanges board.

[mk4]

It's probably mostly because of the fact that some people are strict concerning their privacy—refusing to submit AML/KYC documents to exchanges that require them; and I'm on the same boat. I'm willing to pay 1-3% more through peer-to-peer transactions just so my privacy is preserved.

[cryptoaddictchie]

Perfect answer is conveniency. Some of those seller prefer an easier way to sell their holdings. If you are a holder let say a big holder. Then you want to sell yours without any hassle right? Then find someone who can easily suffice your need. I remember some selling btc via OTC and payment ia directed to remittance or bank. Anyway thats how they wanted it even though they are much better choice.

[DdmrDdmr]

I’ll go along with the trying to stay as anonymous as possible hypothesis, avoiding KYC. Same goes for using some bitcoin ATMs that still don’t require KYC, despite getting a worse deal than on an Exchange. There are of course situations whereby promptness may be a factor (depending on your bank, the transfers to/from the exchange may take a while), but I doubt that this would be a core factor. Some people are also nonbanked, being P2P TXs a way to get/sell BTCs.

[witcher_sense]

The short answer is you have to pay more to achieve more. If you want to be more private when acquiring or selling your bitcoin, your should at any cost avoid any centralized entities. Centralized exchanges are terrible when it comes to privacy, they collect all the data about you, both necessary and unnecessary, and later they either sell it to third parties without your consent or even knowledge or simply fall victims to hackers. There is no third option, your data will be shared with someone.

By the way, no matter at what price you sell your bitcoin today, you are gonna regret you sold it in the future.

[Charles-Tim]

If the question has to be answered correctly, another question can be asked, which is 'does exchanges require KYC? Is KYC extremely dangerous?

This is a very good article about how KYC is extremely dangerous

Why KYC is extremely dangerous – and useless

Experienced Bitcoin users will not want to risk using exchanges for any reason also because exchanges gives no full control. Example is Coinbase, if you transfer from gambling site into your Coinbase account, do not be surprised if your account is freezed as it is against their terms of service. Another example is the use of CoinJoin, why should exchanges freeze such account that send CoinJoin transactions to exchanges even when the sender is not engaging in illegal businesses.

Making use of direct P2P do not affect the privacy use of Bitcoin unlike exchanges, exchanges make no privacy to exist.

Also exchanges can be hacked, because some people are relying on exchanges will have no option than to leave their Bitcoin and other crypto assets on exchanges, what if the exchange is hacked.

If an exchange is hacked, Bitcoin and/or other crypto assets can be stolen, but not only that. What if it was a data breach hack in which customers data were stolen. This can be used against such exchange customers indirectly like sending phishing email to the person that can lead to attack like bank account's hack and wallet hack and the likes, even malware link can be sent to the person. There are many other ways attackers can impersonate someone just because of the KYC filled on exchanges.

The reason why exchanges have to verify users makes it not good for P2P trading as it is privacy depriving.

[BlackHatCoiner]

The answers must have satisfied you. Essentially, when you sell BTC to an exchange, you also sell your privacy. Selling to resellers will protect you from that, but they'll tax it unconsciously. It's down to you to decide if it is worth it.

Again, decentralized solutions, such as Bisq, beat both. It gives the chance to have one's cake and eat it too.

[TheNineClub]

Different people have different views on how they want their investments handled. There are numerous reasons, as privacy and trading strategies but also preferences wanting to do business on a more personal note if you could call it that. It all boils down to with whom the seller had the best experience when trading because sometimes the pleasure of doing business is more important than profit margins.

[examplens]

there are restrictions on many exchanges, from which countries do not accept users. these can be different reasons. It is also not possible for certain users to link a bank account to exchanges, so it is impossible to perform a withdrawal of fiat funds from there.
I have a similar situation, where there are additional (unnecessary) cash flow checks and it can sometimes take longer than expected. Also, some banks charge us too high a fee so in the end it comes to the same thing, only with more nervousness and waiting.