How to avoid the Luno price premium.

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Metaljockey

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I've been comparing the Luno BTC price against Binance, Coinbase and Kraken prices. It appears that in general the price of BTC is about 4-5% higher on Luno.

This means that with every ZAR purchase of BTC I lose 4% value. Unfortunately the Binance ZAR onramp gateway is supended since May already.

Are there other ZAR onramps that more closely resemble the international BTC price?
 
The 4% may be insignificant when one is talking about a couple of hundred rands worth of purchase; however when you want to buy R200k worth of BTC it makes quite a difference.

R8000 is one hell of a 'transaction fee'. R8k is R8k.
 
Metaljockey said:
I've been comparing the Luno BTC price against Binance, Coinbase and Kraken prices. It appears that in general the price of BTC is about 4-5% higher on Luno.

This means that with every ZAR purchase of BTC I lose 4% value. Unfortunately the Binance ZAR onramp gateway is supended since May already.

Are there other ZAR onramps that more closely resemble the international BTC price?
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you can't really compare ZARBTC pair prices to USDBTC pair prices regardless of the exchange

liquidity in direct fiat-to-crypto pairs differs depending on the pairs involved, and therefor the price differs along with it

you're not comparing Luno to Binance, you're in effect comparing ZARBTC to USDBTC, for a more apples to apples comparison look at the ZARBTC price on other exchanges that offer it, like Valr for example

of course if you get a substantial saving in buying USDBTC to the extent that even an on-chain send would be covered ... buy as much as you can and sell on Luno's exchange = instant profit in ZAR terms
 
backstreetboy said:
Just buy overseas with a Credit Card.
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Remember to add a 2.75% currency conversion fee if you are buying crypto in USD, plus a general credit card transaction fee of +-3.5% over and above. Lastly, you run the risk of getting your CC blocked, or worse your bank might just close your account.

Not worth it anymore IMO, that ship has sailed.
 
Metaljockey said:
The R1m cap refers to the SDA. Where do the R50k per transaction cap come from?
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Buying on a foreign exchange with a credit card is limited to 50k per transaction. It was a limit imposed by SARB years ago. Same would apply to buying any foreign anything with a cc. You can buy 200k it would just be 50kx4
 
Tman* said:
Remember to add a 2.75% currency conversion fee if you are buying crypto in USD, plus a general credit card transaction fee of +-3.5% over and above. Lastly, you run the risk of getting your CC blocked, or worse your bank might just close your account.

Not worth it anymore IMO, that ship has sailed.
Click to expand...
My Capitec Credit Card has zero currency conversion fees.
 
Tman* said:
Remember to add a 2.75% currency conversion fee if you are buying crypto in USD, plus a general credit card transaction fee of +-3.5% over and above. Lastly, you run the risk of getting your CC blocked, or worse your bank might just close your account.

Not worth it anymore IMO, that ship has sailed.
Click to expand...
I agree.
Snyper564 said:
Buying on a foreign exchange with a credit card is limited to 50k per transaction. It was a limit imposed by SARB years ago. Same would apply to buying any foreign anything with a cc. You can buy 200k it would just be 50kx4
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Thank you.
 
I do notice on Binance that they announced in October that they will be accepting direct payments by e-wallet. Has anyone tried this?
 
Exchange arbitrage
medium.com

Exchange arbitrage: explained

Is crypto exchange arbitrage any different from regular arbitrage strategies at the exchange? What are the catches and downsides of the…
medium.com medium.com

ZARBTC to USDBTC arbitrage means you also have to manage the currency risk.
 
Metaljockey said:
I've been comparing the Luno BTC price against Binance, Coinbase and Kraken prices. It appears that in general the price of BTC is about 4-5% higher on Luno.

This means that with every ZAR purchase of BTC I lose 4% value. Unfortunately the Binance ZAR onramp gateway is supended since May already.

Are there other ZAR onramps that more closely resemble the international BTC price?
Click to expand...
But aren't you're getting that premium back when you cash out locally? That 4-5% higher price also factors in when you convert back to ZAR. Or are you not planning to cash out locally?
 
saor said:
But aren't you're getting that premium back when you cash out locally? That 4-5% higher price also factors in when you convert back to ZAR. Or are you not planning to cash out locally?
Click to expand...
Ed Zachery.
 
Metaljockey said:
I do notice on Binance that they announced in October that they will be accepting direct payments by e-wallet. Has anyone tried this?
Click to expand...
I'll answer my own question for in case someone else is interested.

To do an FNB e-wallet purchase, you need firstly to have an FNB transactional account. Then, your transactions are also limited to a max of R3k. (per day)

I do not know if these transactions qualify as local or international. So it is unclear if they will affect your SDA.
 
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