RE: How to convert Steem/SBD to USD/Euro more efficiently
@blocktrades I love your website so much I made a tutorial about it on Steem and a video tutorial on YouTube.
Would you please show the exact exchange rate and the blocktrades fee on each transaction because that is what would keep me coming back as a customer? For example, when I change Steem to ETH I can see the total I am going to get but I cannot see how much I am paying because of your fee vs how much I am getting because of the exchange rate. Bittrex and Changelly have been my choices recently because I know exactly what I am paying in the exchange rate and transaction fees.
Blocktrades is much faster than using an exchange and gives our community here the most support. I would start making exchanges again as a customer if I could see exactly what I was paying! Upvote for visibility.
Our system reports the exact exchange rate for the given input. Our estimator reports exactly how much we will give at a given time for a given amount sent. There's no fees beyond those incorporated into the final estimated amount we compute. I don't know what competitors are doing right now, but generally I think they don't show the fixed fee in their estimators although it can usually be found in their terms of service.
The algorithm we use for the our pricing is quite complicated, so there's no easy way to break out our service fee. We compute the price by first determining the price for us to buy equivalent amount of the output across a bunch of different markets. This price can be above or below coinmarketcap pricing due to available liquidity and selection of market paths we find available to us. This can often be the most significant determiner of how good a price we can offer (it even occasionally generates a negative spread for us, something we need to fix at some point). Then we subtract out the transaction fee we have to pay to send the coin. Typically this wasn't much, but it can now be a very significant cost for bitcoin outputs (and it's what inspired this post). Finally, we charge a percentage based on the particular coin input/output pair and that can be a function of how much volume we're seeing in each direction and how much of each coin we're holding at the time we receive the coin.
All the above is why we don't report some easy "percentage", it just doesn't make sense for our current pricing algorithm. It's something we may change in the future, since some people do seem more interested in the percentage rate than the bottom line.
But right now, we're mostly focused on improving our site to reduce customer support issues, as that's our biggest expense and our target market is maximal ease-of-use, low hassle service. I'm hoping we will be able to update the site in the next couple of weeks to reduce some of the most common issues we see.
Thank you very much for explaining this for our benefit here! Is it possible with your current system for a user to send a lot at once in different currencies to generate a large negative transaction given you are pulling the price from the available liquidity? For example, if someone sent 1000 SBD at the same time for ETH, LTC, BTC, Dash and a few others, would they lock in the higher exchange rate even though the liquidity might not be there?
I appreciate your response and hope what I've shared is useful to avoid getting exploited on the negative spread!
@blocktrades i promote you in Philippines tag in order to help my fellow Filipinos to there transaction using blocktrades at minimum of 16sbd...kindly see my post ..need badly your support to upvote my post..to bring in to trending so that my fellow Filipinos will see it.please help me to promote blocktrades on ph. community here @steemit.com
https://steemit.com/blocktrades/@dontryme2/how-to-trasnfer-your-steemit-steem-dollars-sbd-from-bloctrades-to-coinph-ph-transaction
How Minnow Withdraw Steem/SBD via BlockTrades with Lowest Transaction Fee
https://steemit.com/cn/@beautifulbella/blocktrades-steem-sbd-or-how-minnow-withdraw-steem-sbd-via-blocktrades-with-lowest-transaction-fee
Great tutorial Jerry!
Does blocktrades have a referral program ? I love the service but I need more clarification about fees .
I think it is not a big fees . Blocktrades is the best !
@jerrybanfield and @blocktrades. Your writing is both very useful for me as a beginner in steemit. I follow your writing both. I am from Aceh friend.
Regards
@bukharisulaiman