Mt. Gox Currency funding

[phatefolder]

Hi,

Just starting out in the Bitcoin game and I've got a questions about funding certain currency types to your Mt. Gox account, I know you can have multiple currency wallets in one Mt. Gox account.

If I fund X amount of AUD to my Mt. Gox account, can I then only purchase bitcoins on the exchange for sellers willing to accept AUD? Or can I buy coins from anyone at all on the exchange and the currency is converted to whatever currency their wallet is set at? If the first case were true, then would it make more sense to fund your account in USD as the majority of transactions are happening using this currency, then just transfer the bitcoins out of Mt. Gox into your local currency and take the conversion hit there?

Thanks guys.

Phatefolder

P.S. Crypto X Change is offering zero fees on AUD cash deposits over $1000. Has anyone tried this and can Crypto X Change be trusted with > AUD $1000?

[1715668003]

1715668003

[1715668003]

1715668003

[tbcoin]

You buy in your balance currency

Always can spend all your AUD in btc, wait bitcoin go up and sell in USD, then operate normaly in USD.

[Stephen Gornick]

If the first case were true, then would it make more sense to fund your account in USD as the majority of transactions are happening using this currency, then just transfer the bitcoins out of Mt. Gox into your local currency and take the conversion hit there?

The wallet used for your funds transfer is in whatever currency was sent.  So if you send AUD, that would go to your AUD wallet.  So if you want that to be received as USDs, you'll have to do that conversion occur by your bank and then wire USDs.

Whether it is a better deal doing that through your bank or by sending AUD and then buying bitcoins with those AUD funds depends on a few factors.  Sometimes the BTC/AUD is higher than the BTC/USD after accounting for the AUD/USD conversion.  So in that case, you come out ahead transferring in AUD and buying coins with that.  You aren't tied to any one wallet, so you can go ahead and sell coins for USDs and "move" the funds from AUD to USD that way, but you pay exchange fees on those trades.

[phatefolder]

Thanks, that was an awesome explanation, I think it would be best to get AUD on my account and we're trading up against the US so can buy more bitcoins. Thanks again guys you're awesome!

[phatefolder]

Sorry just to be clear, when I'm purchasing bitcoins on Mt. Gox, can I only buy bitcoins off those people who are selling them for AUD or can I buy off the general exchange and the amount is just converted? Because when I change the currency on the Mt. Gox home page it shows the amount of bitcoins traded and for AUD it is small, but for USD it is massive, tens of thousands. Is this because more people buy using USD or because most people selling are only excepting USD for the exchange?

Cheers,
Phatefolder

[Stephen Gornick]

Sorry just to be clear, when I'm purchasing bitcoins on Mt. Gox, can I only buy bitcoins off those people who are selling them for AUD or can I buy off the general exchange and the amount is just converted? Because when I change the currency on the Mt. Gox home page it shows the amount of bitcoins traded and for AUD it is small, but for USD it is massive, tens of thousands. Is this because more people buy using USD or because most people selling are only excepting USD for the exchange?

The funds in your AUD wallet can only buy from the BTC/AUD market.    Because traders buying and selling over and over (versus just depositing fiat, buying and then withdrawing BTCs) prefer the market that has the most liquidity, they mostly only trade on the Mt. Gox BTC/USD market so that is why there is such a big difference in the size of the order book depth.

Now whether you are better off buying with USD on the BTC/USD market or buying with AUD on the BTC/AUD market depends on the open bids at the time, how many you are looking to buy, and the depth (to know how much "slippage" will cost),  If you are talking about buying a large enough amount that you worry about there not being enough for sale at a decent price, know that there are people waiting for that to happen and will arbitrage between the BTC/AUD in on market versus the BTC/AUD on another exchange.  So just because you don't see sell orders doesn't mean they won't arrive once you start buying.

[phatefolder]

Brilliant reply, thanks so much, it is must clearer in my head now. Do you know the reputation of Crypto X Change? They have some great offers at the moment with very low fees for depositing AUD and it will automatically be converted to USD and from there can be used to purchase Mt. Gox codes. Are they a trustworthy company?

Cheers,
Phatefolder