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Did I overpay for Bitcoin purchase

by TrafficFlow
9 replies
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This past weekend I went on Paxful to purchase $15 (USD) of bitcoin so I could use it to purchase classified ads on Backpage.com

I selected the option of letting Paxful pick the best seller for the transaction.

I paid $15 but only got about $8 worth of bitcoin?

I sent both the seller and Paxful an email asking if I overpaid and got no response.

What is the value of bitcoin currency if it cost $15 to get $8 worth of bitcoin?

So did I overpay and if so how can I avoid overpaying on Paxful in the future.
  • Profile picture of the author ThomM
    https://paxful.com/faq
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    • Profile picture of the author TrafficFlow
      Originally Posted by ThomM View Post


      OK. I see it says under FAQ

      How come buying isn't 1 to 1? How much does $100 get me?

      For the same reason buying American dollars for British pounds isn't one to one. Buying and selling is not one to one because this is a free market where buyers and sellers set their own price and earn profit for their time and service.

      Each vendor sets their own price. Look at the "You get" column, it shows you how much you get on the dollar, the more the better. Before your click Start Escrow now it tells you how much bitcoin you will get.

      But given that the site contains an option to have the site pick the best deal for the buyer, I think it is pathetic that the site picks a deal where the buyer makes almost a 100% markup.
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      • Profile picture of the author ThomM
        Originally Posted by TrafficFlow View Post

        OK. I see it says under FAQ

        How come buying isn't 1 to 1? How much does $100 get me?

        For the same reason buying American dollars for British pounds isn't one to one. Buying and selling is not one to one because this is a free market where buyers and sellers set their own price and earn profit for their time and service.

        Each vendor sets their own price. Look at the "You get" column, it shows you how much you get on the dollar, the more the better. Before your click Start Escrow now it tells you how much bitcoin you will get.

        But given that the site contains an option to have the site pick the best deal for the buyer, I think it is pathetic that the site picks a deal where the buyer makes almost a 100% markup.
        I thought the one after that was interesting also.
        How do i know which is the price and the amount I am getting? The price of a single bitcoin is set by 5 different exchanges. This is the rate that most merchants will use when you try and spend bitcoin. Here on our marketplace each seller defines their own price which is usually slightly higher than the exchange price because of convenience and speed you are will receive your bitcoin.
        Look at the PRICE/RATE of each sellers offer. The lower it is the more bitcoin you get for your dollars/euros/etc... If you want to know the current exchange price check http://bitcoinwisdom.com and compare it to the price of the seller.
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        As you are I was, as I am you will be
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  • Profile picture of the author yukon
    Banned
    Maybe look into coinbase.com, they say $100 cap until you're account is established but I could have sworn they didn't used to have a cap on purchases.

    That paxful sounds like a ripoff, how long between your transaction? Days, weeks? Bitcoin hasn't been fluctuating much over the last week so it should be close to a 1:1 match, not perfect but very close.
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  • Profile picture of the author David Beroff
    Originally Posted by TrafficFlow View Post

    I selected the option of letting Paxful pick the best seller for the transaction.

    I paid $15 but only got about $8 worth of bitcoin?
    "Best" for whom?

    I'd never heard of Paxful previously, (nor do I play with Bitcoin at all), but just a few minutes with their site told me that they are simply a marketplace that connects buyers and sellers; they are not the ones setting the prices. Even if you choose "best", your rates are very clearly displayed before you commit.

    Just for grins, I took a look at who was willing to sell Bitcoin for US$100 from PayPal, and got offers ranging from 83 down to 10 cents on the dollar. It's a free market, and sellers can set whatever price they wish. But if you decided to enter into a transaction without even looking at the rate, that was your choice.

    Look at the bright side: You only paid $7 for an education. Most people in life spend far more than that.
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  • Profile picture of the author MikeTucker
    I'll give you 2 cents and it will cost you nothing:

    Did you pay actual money for bitcoin?
    Then yes, you overpaid.

    Also... stay away from Backpage...
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  • Profile picture of the author seasoned
    It looks like the current value is about 319.54. It looks like the current FAIR value is closer to $200. And currency is funny. IDEALLY the bid, ask, intrinsic, and extrinsic should be the SAME! Right now, bitcoin is probably like 200,319.54,0,?! That is about as crazy as you can get! I mean if the bid and ask are different, the owner gets cheated one way or another, because they pay more for it, and get it for less. The bid is RARELY over the ask. With a product with REAL intrinsic value, like a home, the bid COULD be over the ask, because the buyer would be afraid of losing the home!. But that RARELY happens with money and won't with bitcoin unless the person believes they have a hot tip on a REAL solid and fast upward trend.

    Steve
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  • Profile picture of the author tahoecale
    I checked out the site, it is just a marketplace. Sellers can set whatever percentage they want. You just need to read what peoples rates are before doing g any deals. If you want a 1:1 deal I would recommend trying out coinbase or something like it. It might take a couple of days but you get exactly what you are asking for
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