If the customer buys and I'm available to buy it from my exchange I will not waste anytime in getting it to them. Once I have the crypto in my possession it gets transferred to the customer. If there's heavy price action involved then that's the risk that's taken but the customer will get the same amount of coins they paid for regardless of the price at that time so there's no need to wait the full 24 hours to transfer the coins to the customer. They can be delivered 30 minutes to 3 hours from the time they purchased. The 24 hours is used to give the seller time to get the coins from the exchange. Some exchanges have delays on the blockchain so that allows the extra time to receive the coins.
The KYC benefit is to the customer it's really just Paxful without using Paxful as a seller. Customers buy from people like us to avoid KYC. Yes, the contracts are used to end up with a profit we mark the price up higher than the actual worth of the coin. Like a coin could be worth $300 and we sell it for $500-$600 to make $200-$300 profit.
That's why I'm trying to avoid accepting cards or using 3rd party merchants or fintechs who would shut my business down once I make too much money. I actually did accept bank transfers on Paxful one of my bank accounts got frozen but this will really be the best way to accept payment. I would have to use a bank account I don't care about and accept money through there until it gets frozen and just transfer funds regularly to my other banks. I'm going into it knowing that if I accept FIAT money then that part of the business won't last very long.
That's why I'm trying to figure out crypto to crypto to keep the business going in the long run but I might start it out with a bank transfer initially just to get the business going off the ground.
Yep exactly you got it, I probably could've worded it better but I'm glad you got it.
Yeah so I'm definitely acting as a middleman or bridge I'm just following the same practice I used on Paxful to deliver coins to people to certain countries due to regulations where they're willing to pay a premium to get the coins without having to use KYC.
I've been told that people have been doing it on eBay since the early 2010s surprisingly it's not a mainstream method but it's made people some serious money.
It's definitely an interesting business as long as you have a way of getting the coins and advertising it to customers it can definitely make you some good money.
I'm only no longer using it on Paxful because I've had trouble with the payment gateways they accept and with eBay I hate GayPal and don't want to use any escrow service which can easily scam me if the customer doesn't pay first.
If the goal is to sell to people who wan to avoid KYC, crytpo to crypto is worthless bc they already would have had crytpto so they wont need you. You can exchange coins anywhere without kyc.
If you are selling to people who want to avoid KYC while using a card there are two possibilities here:
1) they charge back right away, either the card is stolen or they are doing friendly fraud, either way you lose the $$ and the account. Using paypal stealth means you also lost the investment in that.
2) they are not going to charge back:
They need to cash out anonymously and have need to avoid KYC. In this case they have an anonymous card but it is the card they will be using and keeping, they arent looking to commit fraud with it and jeopardize the account. In this case, they will be able to pass KYC anywhere without the need to have to pass KYC personally. ie they have super stealth. So kyc doesnt matter to them.
If they really just wanted to buy crypto and get around their local laws they would use bank transfer to pay, they wouldn't be holding out for card ojnly payment, thats a giveaway that its fraud.
You need a better bank transfer setup, a merchant account for bank transfers so you can pull the money out of their account. They can still dispute it though so youd really need to trust cusotmers or be ready to abandon the bank account if you get disputes.
What payment accounts did you use that got shut down? Or was it just your bank account that got shut down and what was the reason given?
