Why do Bitcoins on Bittylicious cost so much?: Difference between revisions

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Before asking this question, you should understand how Bittylicious works.
The price of Bitcoin on Bittylicious can be more than some of the large exchanges out there. To do a fair comparison you would need to compare it with other GBP sites.
 
Bittylicious actually works as a marketplace with many different Bitcoin sellers on the back end. They can each choose their own price and the cheapest one is provided to you, the buyer. This means that the price is the cheapest price that the sellers are willing to sell at. The price is ''not'' controlled by Bittylicious itself and there is no fixed price formula.
 
Often, the price is a bit more than some of the large exchanges out there, and to do a fair comparison you would need to compare it with GBP sites based in the UK.


There are many costs associated with offering Bitcoins and other virtual currencies to you, the user, on Bittylicious. Compared to the bigger exchanges, the benefits of Bittylicious over a large market include:
There are many costs associated with offering Bitcoins and other virtual currencies to you, the user, on Bittylicious. Compared to the bigger exchanges, the benefits of Bittylicious over a large market include:


# Bittylicious is UK based and follows UK law.
# Bittylicious is Isle of Man-based and follows Isle of Man law.
# Bittylicious is priced primarily in British pounds.
# Bittylicious is priced primarily in British pounds.
# You would need to pay foreign exchange costs to put GBP onto a market (e.g. converting to US Dollars).
# You would need to pay foreign exchange costs to put GBP onto a market (e.g. converting to US Dollars).
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# You often need to pay fees to put money onto the exchanges in the first place.
# You often need to pay fees to put money onto the exchanges in the first place.


And other costs that brokers have to face include:
And other costs that we face include:


# There is fraud in the banking world, meaning brokers sometimes lose money altogether.
# There is fraud in the banking world, meaning brokers sometimes lose money altogether.
# Most banks hate cryptocurrencies, meaning there's the risk of losing bank accounts.
# Most banks hate cryptocurrencies, meaning there's the risk of losing bank accounts.
# Banks often charge fees for transactions, especially on business bank accounts.
# Banks often charge fees for transactions, especially on business bank accounts.
# Bittylicious itself charges brokers a small fee.


Those costs, including time costs, all add up. We believe Bittylicious offers the easiest way for people to buy Bitcoins and sometimes this can come at a little extra cost.
Those costs, including time costs, all add up. We believe Bittylicious offers one of the simpler ways for people to buy Bitcoins and sometimes this can come at a little extra cost.
 
===Transaction fees===


===Small Trades===
As well as the costs listed above, the Bitcoin network has a concept of ''transaction fees'', which originally was designed to be a small fee for transactions to be sent and included in a Bitcoin block. Bittylicious uses the recommended fee set by the Bitcoin core client to get a transaction confirmed quickly, although if there are unexpected spikes in network activity or a lack of blocks it can take a little longer.  Generally these fees are not particularly high, however at times of extreme load on the network, these have however been exceptionally high (~£25) and would always need to be included within the price.


Trades for smaller amounts will cost significantly more current in terms of the price/BTC.  Transaction fees on the network are very high and this has to be included within the price shown which for smaller percentages of a BTC can mean the rate is increased significantly.
Estimates of the current network fees are available can be viewed at [https://bitinfocharts.com/comparison/bitcoin-transactionfees.html#3m BitInfoCharts].

Latest revision as of 11:45, 26 September 2024

The price of Bitcoin on Bittylicious can be more than some of the large exchanges out there. To do a fair comparison you would need to compare it with other GBP sites.

There are many costs associated with offering Bitcoins and other virtual currencies to you, the user, on Bittylicious. Compared to the bigger exchanges, the benefits of Bittylicious over a large market include:

  1. Bittylicious is Isle of Man-based and follows Isle of Man law.
  2. Bittylicious is priced primarily in British pounds.
  3. You would need to pay foreign exchange costs to put GBP onto a market (e.g. converting to US Dollars).
  4. On many markets, there are huge restrictions on withdrawing fiat and large Bitcoin amounts.
  5. You often need to pay fees to put money onto the exchanges in the first place.

And other costs that we face include:

  1. There is fraud in the banking world, meaning brokers sometimes lose money altogether.
  2. Most banks hate cryptocurrencies, meaning there's the risk of losing bank accounts.
  3. Banks often charge fees for transactions, especially on business bank accounts.

Those costs, including time costs, all add up. We believe Bittylicious offers one of the simpler ways for people to buy Bitcoins and sometimes this can come at a little extra cost.

Transaction fees

As well as the costs listed above, the Bitcoin network has a concept of transaction fees, which originally was designed to be a small fee for transactions to be sent and included in a Bitcoin block. Bittylicious uses the recommended fee set by the Bitcoin core client to get a transaction confirmed quickly, although if there are unexpected spikes in network activity or a lack of blocks it can take a little longer. Generally these fees are not particularly high, however at times of extreme load on the network, these have however been exceptionally high (~£25) and would always need to be included within the price.

Estimates of the current network fees are available can be viewed at BitInfoCharts.

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