The price of Bitcoin relative to the dollar changes constantly every day and determines how much you get from trades.
The amount of bitcoin you get also depends on whom you buy it from. Some sellers will sell you bitcoin with only a 5% margin, while others may set a margin as high as 50%. It is entirely up to the seller to set the price and you can choose to accept their terms or find a better offer that matches your expectations.
Why is the price of bitcoin not equal to the international rate?
While buying BTC, the price of bitcoin in an offer is not always equal to the official international rate. This logic is similar, for example, in buying American dollars for British pounds. Buying and selling fiat and cryptocurrencies is a free market where buyers and sellers can set their own prices and earn a profit for their time and service. Each seller sets their own price as he provides others an opportunity to actually make the exchange.
Who sets the price?
At Noones, the market price of bitcoin is calculated as an average of the rates as found on three different exchanges (Coinbase, Bitstamp, and Bitfinex). This is the rate that most sellers will use when you try to buy bitcoin. However, in Noones, sellers can define their own price. The price is usually slightly higher than the exchange price because of the convenience and speed you enjoy while trading bitcoin. The ultimate price of bitcoin is entirely up to the seller, and it is your responsibility as a buyer to look and identify the right offer for you.
How do I know the price of bitcoin and the amount I will receive?
Look at the price/rate of each seller's offer. The lesser the price, the more bitcoin you get for the money you pay. If you want to know the current exchange price, check Bitfinex, Bitstamp or Coinbase then compare it to the price quoted by the seller.
At Noones, you can see how much you get on the dollar under Rate per bitcoin. It is always based in US dollar as the bitcoin price, before it gets converted to any other currency, is set in USD.
- You choose an offer to buy bitcoin with bank transfer at a rate of 10,673.9 USD with a fee of 5,2%. This means for 1 USD of your bank transfer you get approximately 0,95 USD worth of bitcoin.
- Let’s say you are willing to pay 100 USD to the seller. This means you get 95,1 USD worth of bitcoin which is 0.00936865 BTC.
Is this trade profitable? If all other bank transfer offers have a less profitable margin, this trade would be a good idea. The profit or loss of a trade depends on the performance of bitcoin in the days following your purchase. If the bitcoin price goes up, you will be able to sell it and make a profit. If the price goes down, you may incur a loss if you try to sell it.
Note: The bitcoin rate in the example is used for explanatory purposes. On the website, it is subject to constant change.
Tip: Always plan ahead. As a buyer, you can always look for the right seller, offers, and rate that suit your budget and requirements.