Topic: Another reason to avoid CEX for buying Bitcoin (Read 147 times)
I think BTC was bought by fiat USD through banks or cards. Buying with another cryptocurrency (trade) won't fee this amount IMO. Almost everywhere have to spend such as fee if you buy Bitcoin with cash unless using a p2p platform with less fee. Dex isn't the perfect solution for Buying Bitcoin with cash.
Pretty much every exchange allows users to place limit orders.
Which will only be filled if the market moves in your favor. Whereas I've had plenty of orders filled on DEXs where I have ended up making a couple of percentage point profit over the market rate, because I posted an offer and simply waited for someone to take it.In general, liquidity on DEX's are lower than that of major exchanges, which will generally allow for better pricing on the major exchange than on a DEX.
Again, only if you are a taker. If you are a maker, then trading on DEXs will almost always work out in your favor, and significantly so, considering both the lower fees and the fact you can set your own price which anyone can accept at any time, and not have to wait for the market to move. 
I don't even seen any offer which is 1% off the market price. Some are even over 10% off
That means, even if you are not paying high fees, they are already earning because of the expensive rates they are offering.I would also not describe the price on coinbase as the "price it gives" the customer. I think it would be more accurate to say the price is based on the market participants on the coinbase pro exchange. In general, liquidity on DEX's are lower than that of major exchanges, which will generally allow for better pricing on the major exchange than on a DEX.
Anyone can avoid such fees by using a DEX.
Well, the case of ERC20 tokens to dexes and transferring it there is also costly sometimes. So there are some specific things needed to be remembered. You still have to check if the gas fees are high or not when you do the transaction and you can always wait for it to decrease randomly within a period of time.
I don't even seen any offer which is 1% off the market price. Some are even over 10% off
That means, even if you are not paying high fees, they are already earning because of the expensive rates they are offering.
1.4% fee doesn't look that much to me but yes there are other exchanges with less fee structure than Binance but its never good to trade huge amount on p2p like platforms because you will face two problems then one is liquidity issue, not much traders will have that much range of limits so if you pick one there you have to oay even 5% higher price than market price and next one is source of funds which can completely knock our bank account down if we choose to trade with a scammer.
Fees are usually commensurate with experience and security, so if you are a beginner and do not know anything about cryptocurrencies, you are looking for an easy and direct way to buy, so that it is safe and the support team responds quickly.
Therefore, Cexs (Coinbase) is suitable for beginners, but when you want to buy on a daily or weekly basis, the high fees may end all your profits and therefore you will look for alternatives.
Don't think of it as black and white, but as long as you have the option, DEXs may be less expensive than CEXs.
Therefore, Cexs (Coinbase) is suitable for beginners, but when you want to buy on a daily or weekly basis, the high fees may end all your profits and therefore you will look for alternatives.
Don't think of it as black and white, but as long as you have the option, DEXs may be less expensive than CEXs.
Noncustodial p2p platforms or decentralized exchange have a problem of liquidity at times, and the price of Bitcoins can be some percentage off the current market price.
For example, the person above my have tried to avoid the fees and gone to one of the noncustodial p2p exchanges. Look at the offers at local cryptos. I don't even seen any offer which is 1% off the market price. Some are even over 10% off
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If the offer is 3% above the market price. The person is going to buy bitcoin, which is less by $150. Now that is even minus the transaction and escrow fees
If you want liquidity and better offer using a centralized exchange is much better. If you don't love KYC, avoid CEXs.
The person should have used advanced exchanges like coinbase pro, binance, Kucoin etc instead of instant fiat to crypto exchanges like coinbase.com
For example, the person above my have tried to avoid the fees and gone to one of the noncustodial p2p exchanges. Look at the offers at local cryptos. I don't even seen any offer which is 1% off the market price. Some are even over 10% off
---
If the offer is 3% above the market price. The person is going to buy bitcoin, which is less by $150. Now that is even minus the transaction and escrow fees
If you want liquidity and better offer using a centralized exchange is much better. If you don't love KYC, avoid CEXs.
The person should have used advanced exchanges like coinbase pro, binance, Kucoin etc instead of instant fiat to crypto exchanges like coinbase.com
I can agree with your point here. Even if you say you will avail the noncustodial p2p exchanges, check their rates and it is quite expensive.
That means, even if you are not paying high fees, they are already earning because of the expensive rates they are offering.
Just look at your local crypto exchange, they may not be charging you for fees but look at the rates as compared to like binance rate.
If you are a small trader, $73 is a very expensive fee. But for some who want convenience, that amount may not matter to them.
Noncustodial p2p platforms or decentralized exchange have a problem of liquidity at times, and the price of Bitcoins can be some percentage off the current market price.
For example, the person above my have tried to avoid the fees and gone to one of the noncustodial p2p exchanges. Look at the offers at local cryptos. I don't even seen any offer which is 1% off the market price. Some are even over 10% off
If the offer is 3% above the market price. The person is going to buy bitcoin, which is less by $150. Now that is even minus the transaction and escrow fees
If you want liquidity and better offer using a centralized exchange is much better. If you don't love KYC, avoid CEXs.
The person should have used advanced exchanges like coinbase pro, binance, Kucoin etc instead of instant fiat to crypto exchanges like coinbase.com
For example, the person above my have tried to avoid the fees and gone to one of the noncustodial p2p exchanges. Look at the offers at local cryptos. I don't even seen any offer which is 1% off the market price. Some are even over 10% off
If the offer is 3% above the market price. The person is going to buy bitcoin, which is less by $150. Now that is even minus the transaction and escrow fees
If you want liquidity and better offer using a centralized exchange is much better. If you don't love KYC, avoid CEXs.
The person should have used advanced exchanges like coinbase pro, binance, Kucoin etc instead of instant fiat to crypto exchanges like coinbase.com
LOL!
We do even see that its Best Overall and Best for Beginners.
https://www.investopedia.com/best-crypto-exchanges-5071855
Transaction Fees: 0.00% to 0.60% ?
I agree that there are lots of exchangers to choose from and why Coinbase?
We do even see that its Best Overall and Best for Beginners.
https://www.investopedia.com/best-crypto-exchanges-5071855
Transaction Fees: 0.00% to 0.60% ?
I agree that there are lots of exchangers to choose from and why Coinbase?
It's one of the "best" because Coinbase is made to be really really noob-friendly(hence why a crap ton of people actually use it), it's really not because of the fees. They nailed the UI/UX hence why the company is worth like $30 billion today.
For this specific problem, you don't even need to use a "DEX", you just need to not use an exchange that has fees higher than freakin Coinbase of all exchanges lol. What's funny if that the dude actually used Coinbase and didn't want high fees, he/she could've just used Coinbase Pro. Ignorance is the problem here.
LOL!We do even see that its Best Overall and Best for Beginners.
https://www.investopedia.com/best-crypto-exchanges-5071855
Transaction Fees: 0.00% to 0.60% ?
I agree that there are lots of exchangers to choose from and why Coinbase?
Found this on another forum. This individual wanted to capitalize on the dip and in my opinion, he/she did the right thing. The purchase of Bitcoin was made on the 12th of this month you can see the buying price but check the fee paid for making this purchase. $73 is a big amount and I think the purchase was made using the Coinbase exchange app. Anyone can avoid such fees by using a DEX. In case anyone is interested in buying Bitcoin through a DEX then they can visit Bisq or hodlhodl to avoid huge fees.
This is not always the case especially if you are buying or selling smaller amount of Bitcoin on Bisq.You also need to make BTC deposit before making a trade in Bisq, and depending on payment methods on Bisq or p2p exchanges it can be even higher fees than on centralized exchanges.
Just to make it clear, trading fees are not high in Bisq (combined BTC trading fee rate is around 1%) but someone could set price for fiat trading pair that is different from average you can find on other exchanges.
Found this on another forum. This individual wanted to capitalize on the dip and in my opinion, he/she did the right thing.
Since the price was below $40k at one point, the buyer could have had an even better purchase if he had followed the market a little better. But in the long run this is very likely to be a very profitable investment.
The purchase of Bitcoin was made on the 12th of this month you can see the buying price but check the fee paid for making this purchase. $73 is a big amount and I think the purchase was made using the Coinbase exchange app. Anyone can avoid such fees by using a DEX. In case anyone is interested in buying Bitcoin through a DEX then they can visit Bisq or hodlhodl to avoid huge fees.
DEX or CEX, fees cannot be avoided because everyone wants to make money, and after all, intermediaries are not charities. The only way for people to avoid such high fees is to trade in person, but it always carries certain risks. Fortunately, as I have already written, the person who bought the BTC and paid that fee probably knows that it is a small price considering how much potential there is in the purchased BTC.
For this specific problem, you don't even need to use a "DEX", you just need to not use an exchange that has fees higher than freakin Coinbase of all exchanges lol. What's funny if that the dude actually used Coinbase and didn't want high fees, he/she could've just used Coinbase Pro. Ignorance is the problem here.
The $73 works out to about 1.4%, and the trader presumably got the market rate/price. On a DEX, there is a fee to the DEX plus the potential for the price to not be in your favor.
When trading, it is best to consider both the total fees, and the price you will get when compared to other mainstream markets.
When trading, it is best to consider both the total fees, and the price you will get when compared to other mainstream markets.
Quote from: https://bisq.wiki/Trading_fees
Combined BTC trading fee rate is 1% (0.12% by maker and 0.88% by taker). Absolute minimum fee to avoid dust is 0.00005 BTC.
Trading fee on bisq ranges between 0.12% and 0.88% for maker and taker. So, for a high trade the fees could be significantly high. If we are to consider the transaction in the op. If it was done on bisq and I was the taker, the fee would have been about $44, about half of the one in the screenshot.
All middle men take a certain fee for their services, some higher than others relatively.
Building trust and trading completely Peer-to-peer is an option where one does not have to pay a fee, but it involves high level of trust to work without some sort of escrow.
Found this on another forum. This individual wanted to capitalize on the dip and in my opinion, he/she did the right thing. The purchase of Bitcoin was made on the 12th of this month you can see the buying price but check the fee paid for making this purchase. $73 is a big amount and I think the purchase was made using the Coinbase exchange app. Anyone can avoid such fees by using a DEX. In case anyone is interested in buying Bitcoin through a DEX then they can visit Bisq or hodlhodl to avoid huge fees.
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