transaction fee

Comparision of Canadian bitcoin exchanges

September 9, 2014 Bitcoin No comments , , , , , , , , , , , , , , , ,

 

I’ve made some small bitcoin purchases (an initial purchase at the decentral ATM, and a couple more at Quadriga CX.  I’ve noticed that there are often large splits between the buy and sell offers posted on the Quadriga trade page, which I suspect is due to low volumes.  Even factoring in the USD conversion costs their buy rates appear to higher than I’d expect comparing to the USD exchange prices.

Looking for options I’ve enumerated some of the features, limitations, and charges for the Canadian exchanges that I have stumbled upon.

Canadian exchanges

https://quickbt.com/ca/?

No Government ID/utility bill verification appears to be required.  They offer an interac online deposit, and I don’t see if they also impose a transaction fee.

Quickbt caps purchases at 0.2 BTC (about 50 CAD).

This “exchange” has a 10% transaction fee!  Like the decentral ATM on Spadina, this looks like a good way to make a very small initial bitcoin purchase, but not a good way to acquire any larger amount.

https://www.quadrigacx.com

Requires Government ID and utility bill verification for deposit.

No fee for interac online deposit.

0.25 % BTC fee for purchase.

No mining fee for transfer of purchased bitcoin into an external wallet.  I am not sure if the exchange covers the mining fee, or it just isn’t included (if so, perhaps that is why a transfer out seems slow).

https://www.vaultofsatoshi.com

Requires ID verification.

There is a $1.5 CAD fee for fiat deposit using interac online.

0.4 % per trade (higher than Quadriga CX’s 0.25%)

https://www.cavirtex.com

Requires ID verification.

Appears that you can set up direct deposit for cashing out bitcoin sales.

$1.5 CAD fee for interac online deposit.

Buy rates with this exchange appears to be lower than Quadriga CX.  I don’t know if they also impose a transaction fee for purchase or wallet transfer.

https://www.canadianbitcoins.com

Requires ID verification.

Looks like you can supply Canadian bank information for direct deposit after sale of bitcoin.

Buy/sell rates appears to be much higher than cavirtex.  For example when I looked the canadianbitcoins buy rate was $556 CAD when the cavirtex buy rate was $527 CAD.  This exchange also posts a very large split between buy and sell, with sell clocking in at the very low rate of $504 CAD (vs. their $556 CAD buy rate!)  I don’t intend to use this exchange.

https://www.cointrader.net

Requires ID verification.

While this is a Vancouver company, they don’t appear to have a CAD funding option.  They charge a $2 fee for interac online, but I suspect there are probably USD conversion costs too.

Comparison of samples rates

Using rates/bid/ask/volumes sampled at about 9:15am on Sept 9, 2014, we can get a bit of an idea of how the exchanges compare

https://www.quadrigacx.com

Last trade: $509.00 CAD Volume: 89.48651284 XBT Low: $503.65 CAD High: $523.52 CAD

Top buy order:
$510.93 CAD  0.15400000 XBT  $78.68 CAD

Top sell order:

$518.34 CAD  1.09959000 XBT  $569.96 CAD

https://www.cavirtex.com

BTC/CAD : 513.20
   DAILY             WEEKLY
HIGH  520.00 CAD  535.00 CAD
LOW   503.03 CAD  500.00 CAD
VOL   173.277 BTC 859.534 BTC

Top buy order:

09/09, 07:15   0.2500/0.2500  511.98704   128.00

Top sell order:

09/08, 14:55   4.3413/6.2000 513.29500   2228.37

last trade:

Sept. 9, 2014, 07:03 0.2218   113.83   513.19576

https://www.vaultofsatoshi.com

Last Price: 521.00000000   High: $530.50000000   Low: $514.50000001   24-hour Volume: 82.12   7 Day Volume: 465.50

top buy order:

521.00000000   0.03146457  16.39304
top sell order:
526.00000000   0.00382869  2.01389
Last Trade: 521.00000000 – 24 Hour Volume: 82.19054910
https://www.canadianbitcoins.com

BTC Buy Rate:  $541.74     BTC Sell Rate: $502.91

 

Observations

First off, notice that canadianbitcoins has uniformly poorer rates than any of the other Canadian exchanges.  It looks like they impose both buy and sell fees that are significant.

The best exchange for volume appears to be cavirtex.  I haven’t used that exchange, since I didn’t want to eat any fees for deposit, and haven’t made any purchases larger than $50 CAD (so their interac fee was significant in comparison).  It looks like it would be worth my while if I were to commit to making a larger one time deposit (say $200 CAD) in order to spread that transaction fee.

Both vaultofsatoshi and quadrigacx have larger splits between their top buy and sell bids.  Looks like those would both be better places to sell bitcoin if that was desired.  I happen to be buying bitcoin because I am assuming that there will be more and more places to spend it, and want to have some to play with.  I don’t have any intention of trying to play a day trading game with buy and sell, and suspect that this would require both trading skill that I don’t have, and larger amounts of cash than I am willing to loose.

A first bitcoin purchase, at Decentral’s ATM

July 24, 2014 Bitcoin 1 comment , , , , , , ,

 

I went to the bitcoin ATM today at decentral, in Toronto, on 64 Spadina Ave just south of King St.  It has the following awesome sign:

photo

I love their self description “Coworking Space For Disruptive Technology Innovation”.  I didn’t think of taking any picture of the ATM, but it worked nicely.  Here’s what was required.

First step to make a purchase was entering my phone number.  The ATM sends a text message with a verification code to the phone, and you have to enter that into the ATM once it’s received.  I am not sure how this would have worked should the battery in my phone have been dead, something happens too easily on my ancient phone these days.

Once the verification code from your phone is entered, you feed in a printout of your wallet’s QR code.  Something like:

photo (1)

I deposited $100 and the transaction appeared to go smoothly.  The ATM sends a receipt text message to your phone with your wallet and the amount that was deposited.  My phone is not a smart phone, something that a bitcoin using generation probably takes for granted, so I wasn’t able to login to blockchain.info and see the new bitcoins in my wallet.  The nice guy (who’s name I have now forgotten) at decentral showed me with an app on my phone that the transaction was on the blockchain.

He was able to do that by scanning my QR code, which was interesting.  I am surprised about the non-anonymous nature of that blockchain peek.  So, it appears that if you advertise your wallet address (which appears to function like a public key) so that you can accept payments, then does that mean somebody could sum the deposits to that address from info available on the blockchain.  The work required to do that could be significant, but if anonymity is what you are looking for, some additional steps must be required.

Note that decentral’s ATM does not (at least currently) have any sort of ATM transaction fees, however you still take a hit on the transaction, since the exchange is at a rate 5% greater than the cavirtex CAD/BTC exchange rate (conversely, bitcoin sales at the ATM are at 5% less than this rate).  For example, my purchase using $100 CAD was at a buy rate of $681.47/BTC.  I see that the cavirtex rate ranged from $636 to $659 today.  This must mean that I bought when the ATM believed the cavirtex rate to be $649.

The best way to obtain bitcoin appears that it would be direct person to person transactions for work done, but I don’t currently have any services that I am trying to sell.  The decentral “nice guy” suggested that I could potentially do contract work for bitcoin.  Since much of my free time has been occupied by studies for the physics courses I have taken, that doesn’t leave much time for moonlighting.  Unfortunately, I don’t think there’s much market for the course notes that I have prepared for the courses I have taken.  I’ve made all of those available for free.  Somebody could tip me bitcoin if they find it useful, but chances of that are pretty slim.  The market for this level of physics material is pretty small.  For example, when I did the relativistic electrodynamics course, I think there were about 13 people in the course by the time it was done (offered once per year).