Quote from: molecular on July 16, 2013, 06:46:16 PM

Quote from: cardcomm on July 16, 2013, 06:39:18 PM

Quote from: giszmo on July 16, 2013, 04:40:21 PM

Quote from: cardcomm on July 16, 2013, 04:14:02 PM

Hello,

I've just started looking at LocalBitcoins.com for an online buy funded from within the US. I'm having a little trouble sorting through and understanding all the available funding options, and their costs. I see many funding options listed - including OKPay, MoneyGram, Western Union, bank transfers from specific banks, etc.

Is there somewhere I can easily find out more about the cost and restrictions of each funding option, without researching each one individually? I'm a little overwhelmed by the funding options. I've tried doing the research myself, but some of the funding options (like MoneyGram) offer different services at different fees. I'm not sure even which service is correct.

Sorry for the noob question, and thanks in advance for any helpful response

Hi Cardcomm

yeah, a noob question it is but those are the most valuable for the devs as most noobs don't dare to ask and so the service ends up only being used by the experience users that flood the devs with more expert features making the noob experience even worse although more and more features get accomplished, so thanks again. We were all noobs at some point.

(terms made up by me. people please correct me if there are better names for these types of exchanges)
There are floating exchanges (the exchange allows you to make arbitrary buy and sell offers and the exchange matches them, having all the coins and $$ under their control. MtGox is one of them), market maker exchanges (the exchange is basically just one big market maker that offers a buy and a sell price that it adjusts much slower than some floating exchange, so you can buy and sell at a price at display) and there are "social" exchanges that facilitate the process of other people willing to exchange, but that don't actually hold your money. Most prominent example historically would be the OTC IRC where the first "exchange" established. These exchanges keep track of the reputation of traders and help you find out who you can trade with based on the payment methods available to you. Localbitcoins opted to target more for the in person exchange where you deal with cash but due to demand, now all the classical methods that you mentioned are offered by its users as well. Localbitcoins is agnostic to the payment option though. It only distinguishes between cash and electronic in that cash is advertised to your proximity and electronic to all within your currency independent of distance. Therefore Localbitcoins has no core interest in providing fee infos as neither can it know all the details of MPesa, Chinese wire transfer, Australian food tokens or whatnot people decide to use, nor the fees the advertiser is willing to cover. Therefore you have to read the single advertisements and judge for yourself if that trader is trustworthy and if you like the payment method. It is much more heterogeneous than MtGox for example but therefore also has a strength.

Thanks for all the responses.

I should have made it clear in my OP that I'm unable to do a face-to-face meet up to buy bitcoins. I realized that is what the site was originally designed for, but that won't work for me personally. So it's only the online purchase options that I'm interested in.

I also understand that LocalBitcoins really has no stake in how I pay, and it's up to the individual seller to set their method of payment, and for me to choose a seller based on their feedback, funding methods, etc.

The question arises when I try and determine the best (fastest/cheapest) funding method. Looking just at MoneyGram alone, there is a pretty complex fees schedule based on where you pay, where the payment recipient lives, and how fast you want the payment delivered. Those are just some of the variable for ONE of the possible payment options.

I believe I have a good understanding of bitcoin trading and how LocalBitcoins itself works. I clearly have to first narrow down my acceptable funding options before choosing a seller. But I'm daunted by the plethora of funding options, and I don't feel I have enough information to make an informed decision. For example, with MoneyGram, the only way I can see to determine what my ACTUAL costs are to send the funds is to do a transaction and see what they charge. LOL! There has to be a better way...

It seems to me you could also consider using an exchange. Depending on where you are (Europe? US?) there are probably some good options to get coins for a fair price.

I'm in the US, as stated. Unfortunately, there are no exchanges that I'm aware of that allow funding from the US without significant delays and fees. Hence my interest in Localbitcoins.

I'm fairly determined and literate. Yet I find the funding options sufficiently overwhelming that I have yet to do a transaction on Localbitcoins. I guess I just need to jump in and semi-blindly try some of the options, and figure out the fees by trial and error. I guess it would build my "reputation" as well.

I long for a future where purchasing bitcoins will be as easy as getting change for a $100. hahaha