Jeremy Cady on Nostr: I never understood the premium charge when buying/selling Bitcoin on Robosats or ...
I never understood the premium charge when buying/selling Bitcoin on Robosats or Bisq.
Bitcoin is volatile in the short term. The longer your trade is sitting there, the more potential there is to be a drop in the price before it sells.
It could easily drop more than the percentage you want in premium.
I would almost prefer to calculate how much I need to sell at the current price and then lock that in as quickly as possible, with a zero premium trade.
I suppose, alternatively, the price could go up just as quickly. But no one knows.
The only time it would seem to make sense is if one is immediately purchasing more Bitcoin, at that same price, from someone else, with a lower premium fee.
I suppose, maybe, it could be the markets aren't heavily used and the premium is there in case the market does move to a negative position after posting.
I don't know because I don't do a lot of selling (none) but it seems premium fees have the ability to increase uncertainty in the trade rather than increase it.
Published at
2024-05-29 10:53:33Event JSON
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"content": "I never understood the premium charge when buying/selling Bitcoin on Robosats or Bisq.\n\nBitcoin is volatile in the short term. The longer your trade is sitting there, the more potential there is to be a drop in the price before it sells.\n\nIt could easily drop more than the percentage you want in premium.\n\nI would almost prefer to calculate how much I need to sell at the current price and then lock that in as quickly as possible, with a zero premium trade.\n\nI suppose, alternatively, the price could go up just as quickly. But no one knows.\n\nThe only time it would seem to make sense is if one is immediately purchasing more Bitcoin, at that same price, from someone else, with a lower premium fee.\n\nI suppose, maybe, it could be the markets aren't heavily used and the premium is there in case the market does move to a negative position after posting. \n\nI don't know because I don't do a lot of selling (none) but it seems premium fees have the ability to increase uncertainty in the trade rather than increase it. ",
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