How is the Bitcoin Exchange Rate Determined?


#1

From a cost/exchange rate perspective, we like to think of this from a Total Cost of Services standpoint:

When sending funds to an exchange, you typically have to send an international wire, which costs $45 on average and can take 3-5 business days. Some local exchanges allow you to use the ACH system, which takes 2-4 business and locks in the price before the funds get there (this has tax implications). Some systems enable instant buys, but the limits on these features are prohibitive for paying a group of employees. Our system hooks into the back of any payroll system, costs nothing for the transmission of funds, enables same-day payments for Premium users and next business day payments for non-premium users and places no limits on the size of the payroll (permitting that it is actually a payroll payment). More details on Bitwage Premium here.

While we won’t always offer the best exchange rate on Bitcoin, we are always working with partner exchanges to get get the lowest rates possible. The resulting rate factors various costs we incur in order to manage next day payouts without limits. However, when you compare the fees of other exchanges and the cost of sending funds vs our exchange rate and convenience (ease of use, next day and limitless), the total costs of services are lower.

Click Here to compare the Bitwage Exchange Rate to that of other Sources for Buying Bitcoin in the US.

View Historical Bitwage Exchange Rates for the past 30 days Here.


Funds Flow and Timing
#2

#5

Hi Hobarrera,

8% sounds quite high. If you send an email through support@bitwage.com, we can take a look at it further.

Sorry for the confusion on timing, this post should be updated to say: The daily batch is then fulfilled same-day for premium users, and next-business-day for non-premium users.

You can find these details in the following locations:


#6

Hi Do you have a link to compare the rates that you offer on bitcoin ? What is the percentage difference to e.g coinbase direct deposit seen here http://bittybot.co/us/buy-bitcoins-united-states/


#7

www.bitwage.com/rates


#8

Thanks for the response.

So i would usually transfer 25k usd.
Based on the information available this is the cost of your service:

current bitcoin market price : usd 10 700
bitwage rate offered 1000 / 0,92 * 100 = 10 834

so the cost for your service is approx 134 usd per bitcoin transfered ?

Are you negotiable on your rate as this would be a deal breaker for me ?


#9

Hello. We batch our transactions so we’re not able to give individualized rates.


#10

I feel disappointed about the exchange rate you inform on your website https://www.bitwage.com/rates. I made a transaction in which the market exchange rate from EUR to USD was of 1.18 and Bitwage applied 1.14, meaning is 4% lower.

By comparing the wire transfer money received and the Bitwage amount receive is exactly the same so there’s no real win for Bitwage users here.

I thought Bitwage was the best service in the market to get the lowest fees. Seems like it isn’t…


#11

This post about Bitcoin exchange rates needs an update. The http://bittybot.co/us/buy-bitcoin-united-states/ does not list Bitwage and the https://www.bitwage.com/rates does not show the exchange rate for Bitcoin at all.