bitstamp USD on Gatehub

[Verndoggin]

I just sent some USD from Bitstamp to Gatehub using the Ripple network.  Now I have Bitstamp USD sitting in my Gatehub wallet, which is great, but when I try to exchange that for Ripple I get quoted a higher price than if I were using Gatehub USD.  Similarly, if I try to exchange my Bitstamp USD for Gatehub USD I'm quoted a rate of about $1.08 Bitstamp USD to buy a Gatehub USD.  Why is this not $1 to $1?  That's a massive 8% fee to convert dollars to dollars.

[inative]

That's just current price of those assets. People simply value (trust) USD.Bitstamp more less than USD.Gatehub. The ratio USD / USD reflects that too. But the ratio actually oscillates around 1.0, so if you don't hurry, you can place a limit order and wait. Current USD-to-USD market can be seen at RippleCharts USD/USD . Don't forget that those two gateways have 0.2% fees, so you'd pay some anyway (way lower than 8% though).

And welcome to XRPChat ;-)

Edited April 6, 2017 by inative

[corak]

Good question.

USD debt of an exchange would only decrease from its face value that significantly if the market thought there was a risk the debt will not be honored.

Had there been any concerning developments regarding Bitstamp lately? I'd be interested to know...

[corak]

inative: it seems Gatehub USDs are priced _higher_ than Bitstamp USDs, which is actually strange.

I'd understand if it was the other way around. AFAIK Bitstamp is an old and trusted exchange.

[inative]

3 minutes ago, corak said:

inative: it seems Gatehub USDs are priced _higher_ than Bitstamp USDs, which is actually strange.

I'd understand if it was the other way around. AFAIK Bitstamp is an old and trusted exchange.

You're right, currently it's the opposite of what I wrote. When you extend that chart to longer period, e.g. 6 months, you can nicely see how trust moved from Bitstamp to Gatehub. I believe it's because of how Gatehub work with the community and keep improving their service.

[Guest]

@Verndoggin, you can always just place a limit order for XRP at your chosen price near current prices and it will (probably) eventually get filled. You don't have to buy at market rates.

[smoothy]

7 hours ago, inative said:

You're right, currently it's the opposite of what I wrote. When you extend that chart to longer period, e.g. 6 months, you can nicely see how trust moved from Bitstamp to Gatehub. I believe it's because of how Gatehub work with the community and keep improving their service.

Withdrawal fees could also be an explanation. But I have not yet had the time to compare those. But that could well be an explanation.

 

For example: if the withdrawal of 100usd costs:

0.5usd at gateway A

10 usd at gateway B

Than a balance of 100usd is actually worth

99.5 usd at gateway A

90 usd at gateway B

[Verndoggin]

Yeah, I think that's the issue.  It looks like Gatehub USD have large trade gaps with all the digital currencies on Gatehub.  It's probably because you have to send an international wire transfer (which comes with fees) to Gatehub in order to deposit USD.  Gatehub isn't the best option for getting USD in and out of virtual currencies.  So not many people trade INTO USD there and therefore the supply seems limited.  Looks like most of the trading is done between the virtual currencies themselves.  If I'm understanding all of this correctly.

[cmbartley]

Sounds like it's time for Ripple to support a fiat to xrp marketmaking campaign on gatehub.

[gutsu001]

i have to agree on the customer service part, my gatehub account took 3 days to activate (oct 2016) and i have been waiting for bitstamp for over 2 weeks as i wanted to use them for new purchases as they seem to have much more volume. 

according to the chart, they always seem to bounce back around the 1.00 mark -/+ 2-3%. It would not be a bad idea to put 5-10k USD to buy when it is -/+10% and wait for it to come back?

i would like to try this and would appreciate any guidance on doing this (tutorials/articles/a quick 5 min chat). i have just about managed to learn gatehub's UI and do not know how to use RCL to buy bitstamp/gatehub IOUs. 

[gallomatteo]

Hi, I am new to this and I have the same issue as Verndoggin but my problem is simpler - have Bitstamp USD in my Gatehub acct - how do I even go about trying to exchange those? 

[cmbartley]

2 minutes ago, gallomatteo said:

Hi, I am new to this and I have the same issue as Verndoggin but my problem is simpler - have Bitstamp USD in my Gatehub acct - how do I even go about trying to exchange those? 

what do you want to convert it to? you can go to the exchange page or trade page select the asset you want to convert your bitstamp.usd to. 

Edited April 8, 2017 by cmbartley

[gallomatteo]

I just found out that Gatehub doesn't display Bistamp USD by default as a leg of a pair - didn't realize I had to manually add