Purse.io is a great way to buy goods from Amazon at a discount, while using Bitcoin. People who are looking to buy Bitcoin through Purse.io can do so by using convenient payment methods, including credit cards. Despite the likelihood of fraudulent orders, Purse has been in business for quite some time now, even though their platform might not be seeing as much success in recent times. In fact, this platform opens up the door for many arbitrage opportunities, if you know how to play your cards right.
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Common Misconceptions About Purse.io
When it comes to popular services where users can spend Bitcoin on popular sites such as Amazon, customers are shortsighted for the most part. That is only natural, as an individual user will think of the things they need to purchase right away and give those the biggest priority. But what if there was another way to go about things, and use Purse.io as a platform to make money while spending Bitcoin?
There are a few basic guidelines consumers need to understand about a platform such as Purse.io. Orders are being filled by people who are willing to pay a hefty premium price for Bitcoin, by using convenient payment methods. However, there are unwritten rules as to how high this premium price should be.
As much as every Bitcoin enthusiasts would like to sell 4 Bitcoin to pay for an order costing over 6 Bitcoin at regular rates, that simply will not happen. No customer would pay a premium price of 50%, just to buy Bitcoin in a convenient manner. Some industry experts might even argue that driving to a Bitcoin ATM 250 miles away is a cheaper option to buy virtual currency.
Despite the recent shift in consumerism towards a more “aggressive price deal” nature, common sense still prevails in most cases. Small orders on Purse.io will get filled a lot quicker, compared to those orders priced at over US$1000. The reason for this is simple: people are buying Bitcoin in small quantities, and the current Bitcoin price allows for that opportunity.
It is important to keep in mind that the person buying Bitcoin through Purse.io, is effectively buying an item on Amazon for somebody else. Ringing up a credit card bill of 4 digits on an order placed on Amazon that was not delivered to their home, might raise unwanted questions from a spouse, children, and family. Not to mention, credit card bills still need to paid on time, and major expenses can throw a monkey wrench in those plans.
That being said, there are plenty of opportunities to sell Bitcoin at a premium price, and make an additional profit on top of that price. This method is called “arbitrage,” a term well-known in the financial sector. Those who hold Bitcoin have leverage over customers looking to buy Bitcoin, but without a proper plan, those orders will not get fulfilled any time soon.
Buying Goods You Can Sell, Rather Than Need
Arbitrage is a very simple process, yet it is difficult to master, and it still depends on factors, not in your control. If there is simply no demand for a Bitcoin order in your price category, it can take anywhere from days to months until it is either fulfilled or canceled. Do not be disheartened if this were to be the case, as a small revision of strategy is all you really need.
The number of Purse.io orders being completed heavily depends on the current Bitcoin price. At the time of publication, 1 Bitcoin was worth roughly US$241. It is safe to say that any order exceeding the US$ value of 2 Bitcoin will take a while to complete. After all, two Bitcoin, at a premium price of an average 20%, totals up to a US$578.4.
Successfully executing an arbitrage opportunity through Purse.io will require extensive research on what items can easily be sold for a higher price. Amazon is one of the world’s largest online marketplaces, and any item they sell will be of – potentially higher – value to someone else. Without proper research, finding that niche market is next to impossible, though.
There are a few things you will need before exploring arbitrage opportunities through Purse.io though. First and foremost, an easy way to re-purchase Bitcoin with the money you earned would be a good start. Secondly, you will need a Purse.io account, which speaks for itself. Last but not least, a small stash of Bitcoins to spend and get the ball rolling is a definite must.
Unlike Bitcoin exchange arbitrage, dealing with tangible goods is a more approachable option for novice users. Every Bitcoin exchange has its own fees and withdrawal limits, as well as funding fees in some cases. As a result, one would need to make a very large profit to make Bitcoin exchange arbitrage even remotely appealing.
Have you ever explored arbitrage opportunities through Purse.io? If so, share your thoughts in the comments below!
Images courtesy of Purse, Amazon, Shutterstock