Fiat-to-crypto - what's with the fees? - page 3.

InwardContour

sr. member

Activity: 644

Merit: 260

Quote from: Mttewndew on November 05, 2019, 09:12:57 AM

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?
Aren't you afraid that your personal data may be stolen or sell somehow?

I usually exchange FIAT to crypto by direct P2P purchase from my pals, but the very first time I exchanged FIAT to crypto using an online service was on LUNO and the fees was outrageous. The fees too on KUCOIN and other similar exchanges doesn't really make sense to me hence I don't even try that. Most of these exchanges use SIMPLEX, I think something need to be done about this very high conversion fees. If there is a trusted exchange that gives lower rate, I will like to know so that when I introduce people to crypto, they can easily convert FIAT to CRYPTO with credit card. Well, the goodnews is that there are a few projects promising to provide a lasting solution to this.

josephdd1

hero member

Activity: 1358

Merit: 513

The fee is usually only particularly high when you are buying low amounts, most platforms don't actually charge a percentage based fee, but rather a fixed deposit fee.

Similarly, if you use P2P platforms then you'll have contend with the platform fee on-top, which can be substantial.

That's why you should buy in bulk, or face to face, since you can avoid most of the fees this way.

desticy

sr. member

Activity: 1512

Merit: 292

www.cd3d.app

I don’t buy Bitcoin too often for fiat money, but sometimes it happens, about a couple of times a month.
As a rule, I use dollars or euros received from my main activity, they are on my credit cards.

Previously, I used the site https://localbitcoins.com to buy bitcoin, however, after entering the verification procedure, I refused it.
Now I use the Binance exchange, or Cucoin, I buy bitcoin there using a credit card, it suits me perfectly.

DaMut

sr. member

Activity: 1274

Merit: 263

I only do it once or two in a week, I am using a platform to make or redeem the voucher and I do not use the platform directly to make a transaction. I made the transaction OTC, I prefer to buy it from someone I know because it is fast, friendly and cheap because we know each other.
I rarely do the transaction on the platform because it is slow and complicated, the majority of people that I know prefer to do it OTC too.

Kunotcoin

jr. member

Activity: 109

Merit: 1

Quote from: Mttewndew on November 05, 2019, 09:12:57 AM

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?

In my country i can buy crypto from crypto Atm's or in a multipurpose wallets, and i think buying with fiat to crypto was charge a little bit higher compare to crypto-fiat i dont know how they calculate the fees or just they have there own setting about fees regarding that matter.

ajiz138

hero member

Activity: 1498

Merit: 785

I don't buy crypto too often using FIAT, but I get crypto from the Bounty token that I sell. Most trading capital from bounties. Only a few times to buy Fiat with crypto, but the fee is indeed around% 0.25.

To choose the right platform is to look at security and speed of service. If the speed and security are good and the fee is a little expensive, it is reasonable, because the transaction fee is expensive, it will be faster. If you want a cheap fee, usually the transaction will be slower.

Mttewndew

jr. member

Activity: 433

Merit: 5

Quote from: CjMapope on November 05, 2019, 09:44:48 AM

Quote from: Mttewndew on November 05, 2019, 09:12:57 AM

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?

its because FIAT is not for this scene, most people hate it in crypto. Its super complicated to register as a money transmitter and the gov takes taxes
So they have to change that high, its sux, but its the same everywhere for fiat Sad

Just dont use FIAT in this scene man, buy/sell with coinbase, fees are like nonexistant that way

Why coinbase exactly? They also charge a lot, just using a different scheme. The same rules apply for binance and other platforms.
I mean - specific locations, amount of transaction, presence of precise coin, etc. This all looks like a big field of opportunities to mess up with the customer's expectations about the price.

Kahoy01

full member

Activity: 481

Merit: 100

Quote from: Mttewndew on November 05, 2019, 09:12:57 AM

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?

I'm not sure about this but I guess they were trying to give a certain fees on range? like 0-5 or 6- 10 it varies on the amount to convert. Obviously it includes all the thing you need to convert like taxes. That's why I also include the fee on computation every time I convert from crypto to fiat, vice versa.

CjMapope

legendary

Activity: 1820

Merit: 1092

~Full-Time Minter since 2016~

Quote from: Mttewndew on November 05, 2019, 09:12:57 AM

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?

its because FIAT is not for this scene, most people hate it in crypto. Its super complicated to register as a money transmitter and the gov takes taxes
So they have to change that high, its sux, but its the same everywhere for fiat Sad

Just dont use FIAT in this scene man, buy/sell with coinbase, fees are like nonexistant that way

BlacksmithCorporation

full member

Activity: 438

Merit: 100

arcs-chain.com

I often buy cryptocurrencies in the form of OTC, because the OTC fee is very cheap, only from 0 -1%. OTC is a form of Fiat - Crypto exchange between sellers and buyers, an intermediary platform only plays a role in ensuring transactions. Currently, I have many OTC support exchanges with almost negligible fees like Houbi and OKex.

Mttewndew

jr. member

Activity: 433

Merit: 5

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?
Aren't you afraid that your personal data may be stolen or sell somehow?

Topic: Fiat-to-crypto - what's with the fees? - page 3. (Read 321 times)