EDIT: For the sake of saving you time: if you just came to answer my questions about MtGox->BitInstant->PayPal, scroll down to the heading reading "MtGox->BitInstant->PayPal" and read the bullet points.
So this is my first time experience going from BTC->USD that isn't a private, in-person trade (eg localbitcoins.com). I'm doing little trial runs of trying to cash out my BTC in as many ways as possible to test out the time it takes and the net amount (compared to other methods I try to do at the same time). I'm trying to do this in equivalent amounts of $20, but of course this is difficult as the price is constantly shifting.
And before you ask why: I divvy up my investments by percent, and I promised myself I'd never invest more than 10% of my investment assets in a speculative commodity. I've dedicated all 10% of that to BitCoin at this point, mostly because I've earned so much (playing Poker @ SealsWithClubs, Mining, and selling In-Game Virtual Items/Currency on different games). However, I've got way too much BitCoin and it's throwing my portfolio's risk balance off. Needless to say, I need to start cashing in on my BTC until I get below a certain amount (in USD) to balance everything out again.
The good news is, I want to publish my results and share them with you. To most of you this will probably all be old news, but to some of you (especially since this is the Newbie forums) it might actually be useful.
If you can make these results any more meaningful by correcting me, please do! For example, I have timestamps on when I sent the BTC and when I opened each order, but I do not know how to find a corresponding BTC<->USD value at that precise time to get an expected value for each trade.Preface for this first run:
I do not have a verified MtGox Acct (yet) nor a verified Dwolla Acct (yet) nor a verified OKPay Acct (yet). When I do get those going I will try out each of those methods too. So I am stuck with "anonymous" methods. This rules out the standard line from BTC Transfer->MtGox->Dwolla->Bank, which is unfortunate because I think that's still the best way to do it? Not sure. Will probably do another trial run when I get verified.
Additionally, it's worth noting that it's the FIRST time I've used any of these services, so that might be a factor in speed in distributing funds (since I'm not a known customer)?
I pulled most of these from reddit's bitcoin subreddit and reading a few of the recent (top rated) posts. If you have any other suggestions, let me know and I'll try them out. I have lots of $20s worth of BitCoin to throw around for trustworthy, vouched
methods. Anyway, here's the list of what I tested:
- FashCash4BitCoins->ACH Transfer to Bank
FastCash4BitCoins->ACH Transfer to Bank
- I sent 3.01BTC, rated by the site as $20, at 6/29 9:34 AM MST.
- I received a PayPal payment at 6/30 12:06 AM MST of $20, but PayPal took their standard fee from the amount, netting me $19.12.
- The total wait time was 14hrs and 32min with an effective fee of 4.4% from expected value ($20).
- I sent 3.0488BTC, rated by the site as $19.60, at 6/29 10:25 AM MST. I have not yet received a payment for this, but this is somewhat expected: ACH Transfers can take 3-5 business days. I will get back to this one?
- I sent 3.0488BTC (approximately $20?) at 6/29 11:25 AM MST.
- I received a PayPal payment at 6/29 5:53PM for a net $19.54 (no PayPal fees taken).
- This total wait time was 6hrs and 28min with an effective fee of 2.3% from expected value ($20).
- Buckle your seatbelts, I need help with this one!
- I sent 3.0488BTC (approximately $20?) over a period of time and traded over a period of time from 6/29 10:35 PM MST to 12:25 PM MST. This makes it hard to tag a value. However, my BitInstant order tracking lists amount I paid as $20.09, so we'll use that.
- I received a PayPal payment at 6/29 1:53PM for a net $17.52 (no PayPal fees taken).
- This total wait time was 1hr and 28min with an effective fee of wtfomgbbq?
- This is where things get weird: BitInstant order page displays that fees are 6.0% incl. paypal. However, it lists amount I paid as $20.09 and amount I will receive as $17.900672. Not sure how that math works, but by my math, I should be receiving $18.8846! The effective rate for this method becomes (1-($17.900672/$20.09)) = 10.8965%! Even that aside, I received $17.52 by PayPal, and not $17.90 as quoted in the order sheet. What's going on here?
MtGox->BitInstant->PayPal at 1hr,28min. Second place would be FastCash4BitCoins->PayPal taking about an additional 5hrs. Third comes SpendBitCoins->PayPal, taking about another 8hrs on top of second place. Big division here!Best Value:
FastCash4BitCoins->PayPal with an approximate actual effective fee of 2.3%. Second place is SpendBitCoins->PayPal with an approximate actual effective fee of 4.4%. Third place by a HUGE margin is MtGox->BitInstant->PayPal, with a fee I can't figure out but approximated to about an actual effective fee of 10.9%!
Let me know what you guys think. I realize this sample size is super small with only one trial run per method, but I will expand on this and hopefully provide updates as I slowly bleed my BTC balance to something more acceptable to my risk tolerance.
Thanks for reading!