Is it bad to use Xapo to receive small amount satashis from faucets?

Kakmakr

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The way I understand this is as follows :

Xapo have a internal ledger system, keeping track of internal transfers between Xapo accounts and none of this is reflected on the Bitcoin Blockchain. So no miners fees are payable to the miners, because these transactions are off-chain. < So doing transactions between Xapo accounts should be free >

If the faucet owner has a Xapo account and you have a Xapo account, these micro transactions are virtually free. You will only pay miners fees, when you push the balance of you transactions to a Bitcoin address that are on the Blockchain. < This is why they have a withdraw option, which takes the balance from their ledger to a external on-chain Bitcoin address >

So yes, you made the best decision to use Xapo for micro transactions < also called Dust > ^smile^

https://support.xapo.com/is-there-a-fee-to-transfer-between-different-currencies-within-xapo/view=faq

Make sure that you adhere to their rules, https://xapo.com/terms/

batang_bitcoin

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Quote from: Wandering Soul~ on April 19, 2017, 07:44:57 PM

Quote from: batang_bitcoin on April 18, 2017, 06:33:06 PM

Quote from: ethantaylor on April 10, 2017, 11:38:52 PM

So did I make a wrong choice to use Xapo to receive small amount satashis from Moonbit.co.in?

No, they are a very good wallet and it's a good choice for collecting small satoshi's that you are claiming from faucets. Just make sure that you are not going to send it immediately to other wallet once you received the satoshi's you got from faucet, because they will charged you base on their terms and conditions. It's a trusted one don't worry.

There's nothing special in online wallets anymore except when you can access it almost anywhere as their transactions are not miner-fee free anymore, You should use a different wallet not online because payouts on faucets are typically small and xapo charges 0.0002673 on incoming transactions equal to 0.00040095 or less . This is the first wallet that I know who charges for incoming transactions its trusted but not a good one for faucets Grin

More information here: https://in.xapo.com/fees/

Only if he is getting a very small amount of withdrawal from faucets. But if he was able to withdraw higher than the maximum amount of incoming charged transactions from xapo he is fine with it.

Wandering Soul~

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Quote from: batang_bitcoin on April 18, 2017, 06:33:06 PM

Quote from: ethantaylor on April 10, 2017, 11:38:52 PM

So did I make a wrong choice to use Xapo to receive small amount satashis from Moonbit.co.in?

No, they are a very good wallet and it's a good choice for collecting small satoshi's that you are claiming from faucets. Just make sure that you are not going to send it immediately to other wallet once you received the satoshi's you got from faucet, because they will charged you base on their terms and conditions. It's a trusted one don't worry.

There's nothing special in online wallets anymore except when you can access it almost anywhere as their transactions are not miner-fee free anymore, You should use a different wallet not online because payouts on faucets are typically small and xapo charges 0.0002673 on incoming transactions equal to 0.00040095 or less . This is the first wallet that I know who charges for incoming transactions its trusted but not a good one for faucets Grin

More information here: https://in.xapo.com/fees/

batang_bitcoin

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Quote from: ethantaylor on April 10, 2017, 11:38:52 PM

So did I make a wrong choice to use Xapo to receive small amount satashis from Moonbit.co.in?

No, they are a very good wallet and it's a good choice for collecting small satoshi's that you are claiming from faucets. Just make sure that you are not going to send it immediately to other wallet once you received the satoshi's you got from faucet, because they will charged you base on their terms and conditions. It's a trusted one don't worry.

ethantaylor

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Quote from: amacar2 on April 14, 2017, 12:49:38 PM

I suggest you to use xapo to receive all those micro payments so that you can save huge amount of bitcoin in fees. Just grab quite enough amount of bitcoin and than you can directly send those bitcoin out from your xapo wallet using minimum fees to wherever you want.

Xapo may not cause any problem if you are dealing with very small amount like you are getting from faucets but i don't suggest you to use them as web wallet and store larger amount of bitcoin there.

Yes. Since Xapo.com is also a regular wallet and is not just a micro wallet, I think I don't need to send my faucet income in my Xapo.com account to my Blockchain.info account. But I will still need to send my faucet income in my ePay.info account to my Blockchain.info account.

amacar2

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I suggest you to use xapo to receive all those micro payments so that you can save huge amount of bitcoin in fees. Just grab quite enough amount of bitcoin and than you can directly send those bitcoin out from your xapo wallet using minimum fees to wherever you want.

Xapo may not cause any problem if you are dealing with very small amount like you are getting from faucets but i don't suggest you to use them as web wallet and store larger amount of bitcoin there.

ethantaylor

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Quote from: Nagadota on April 14, 2017, 02:08:39 AM

Since Xapo is an online wallet, the chances are that if this faucet is giving instant payments to Xapo wallets the faucet is partnered with the wallet and therefore it's acting like a faucet cache in this case. It means you're probably not getting an actual blockchain transaction, just some numbers on your account screen that Xapo promise to spend for you. So it shouldn't be a problem accepting these small "payments".

Thank you! That makes sense.

Nagadota

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Quote from: ethantaylor on April 10, 2017, 11:38:52 PM

Hi all. I'm new to the Bitcoin world. I started using faucet Moonbit.co.in yesterday. When I was getting started, that website offered two options for me to receive satashis: 1) instant payment to Xapo wallet and 2) weekly payment to my Bitcoin wallet.

When I was reading the text of the two payment choices, I somehow mistakenly thought that Xapo is a faucet cache just like ePay.info and Faucethub.io are. I then thought: "Instant payment to a faucet cache? This choice is of course better." Therefore I chose that option, and then Moonbit.co.in automatically created a Xapo account for me. And so far, I have received six small amount satashis from Moonbit.co.in to my Xapo wallet.

A few minutes ago, I suddenly realized that Xapo is not a faucet cache at all! It is a Bitcoin wallet! And according to the advices I got from experienced members at this forum, it is a bad approach to receive small transactions to Bitcoin wallet because that will cause very high fees in the future when I want to spend my Bitcoin.

So did I make a wrong choice to use Xapo to receive small amount satashis from Moonbit.co.in?

Since Xapo is an online wallet, the chances are that if this faucet is giving instant payments to Xapo wallets the faucet is partnered with the wallet and therefore it's acting like a faucet cache in this case. It means you're probably not getting an actual blockchain transaction, just some numbers on your account screen that Xapo promise to spend for you. So it shouldn't be a problem accepting these small "payments".

ethantaylor

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Quote from: zend7 on April 13, 2017, 01:57:36 AM

The problem is though if you send these small amounts to another wallet for better security when you will try to send a transaction from the other wallet it will definitely need a large fee. This is the only downside of Xapo in such case, if you will keep only for faucet payments. Large fee is created when you want to spent your coins that you have gotten through multi small dust amounts , i.e faucets.

Hi. How do you know that? Have you experienced the same "large fee" issue with Xapo?

I can't figure out why people would still use Xapo to receive faucet satashis if such a "large fee" issue exists.

Devboy

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Quote from: LTU_btc on April 11, 2017, 06:43:29 PM

Quote from: ethantaylor on April 11, 2017, 09:45:36 AM

Quote from: ibuddy122505 on April 11, 2017, 09:03:08 AM

Welcome to the world. Like as newbie you need more research to relative information. Xapo, coinbase, blockchain such of web wallet might be the best choice to start your journey. About xapo to use receive small amount satashis from faucets, YES xapo has a receiving fee if you received less than the amount of 0.00040095 BTC

Thank you for welcoming me! So Xapo does charge fee for receiving "faucet dust"? But my Xapo account has received 7 transactions of faucet dusts so far, and I'm not seeing any info about fees in my transaction history.

Xapo don't charge fees for faucet payments Xapo to Xapo. If you are claiming from faucets with your Xapo email and getting payment instantly, fees aren't charged because everything happens inside Xapo wallet.
But if you are claiming with your Xapo address from faucets like Freebitco.in or Faucethub faucets and receiving payment bellow 40095 satoshi - fee will be charged.
I know it looks very confusing but I hope I explained enough clear.

Thanks for your explanation. Earlier it also confusing for me but after memorize your nice explanation, it now all clear. Only charged fees if we use outside xapo email but it will free of coast if we use xapo email only to claim the payment instantly.

zend7

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Quote from: ethantaylor on April 11, 2017, 08:39:57 PM

@LTU_btc,

Thank you! I finally understood it. So Xapo doesn't charge fees for faucet payments which on being claimed go into Xapo account instantly because everything happens inside Xapo account.

@everyone else,

Thank you for trying to help me.

The problem is though if you send these small amounts to another wallet for better security when you will try to send a transaction from the other wallet it will definitely need a large fee. This is the only downside of Xapo in such case, if you will keep only for faucet payments. Large fee is created when you want to spent your coins that you have gotten through multi small dust amounts , i.e faucets.

mrcash02

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Or you can use a exchange wallet to receive your faucet earnings or any other micro earnings transaction.

Exchange is where you trade your BTCs to Alt Coins or dollars, do you know? It won't take fees from you when depositing, probably there will be a fee when you try to withdraw from the exchange, but much better than send to conventional wallets like Blockchain.info or any other wallet like that.

ethantaylor

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@LTU_btc,

Thank you! I finally understood it. So Xapo doesn't charge fees for faucet payments which on being claimed go into Xapo account instantly because everything happens inside Xapo account.

@everyone else,

Thank you for trying to help me.

LTU_btc

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Quote from: ethantaylor on April 11, 2017, 09:45:36 AM

Quote from: ibuddy122505 on April 11, 2017, 09:03:08 AM

Welcome to the Bitcoin world. Like as newbie you need more research to Bitcoin relative information. Xapo, coinbase, blockchain such of web wallet might be the best choice to start your journey. About xapo to use receive small amount satashis from faucets, YES xapo has a receiving fee if you received less than the amount of 0.00040095 BTC

Thank you for welcoming me! So Xapo does charge fee for receiving "faucet dust"? But my Xapo account has received 7 transactions of faucet dusts so far, and I'm not seeing any info about fees in my transaction history.

Xapo don't charge fees for faucet payments Xapo to Xapo. If you are claiming from faucets with your Xapo email and getting payment instantly, fees aren't charged because everything happens inside Xapo wallet.
But if you are claiming with your Xapo bitcoin address from faucets like Freebitco.in or Faucethub faucets and receiving payment bellow 40095 satoshi - fee will be charged.
I know it looks very confusing but I hope I explained enough clear.

Myfe

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I've used Xapo and FreeBitco.in. Xapo faucet is owned by Xapo wallet so your payments automatically end up in that wallet. Same applies to FreeBitco.in.

The reason I only use and represent FreeBitco.in now is because they're the only wallet offering interest on deposits - 4% for doing nothing!? My balance would otherwise be sitting in a Coinbase wallet, earning nothing.

If you need a link, my signature url is active.

There's nothing bad about Xapo, it's just requires more time to earn the same amount of coin. FreeBitco.in is the best faucet option right now. Full stop.

erikalui

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Quote from: ethantaylor on April 11, 2017, 09:45:36 AM

Quote from: ibuddy122505 on April 11, 2017, 09:03:08 AM

Welcome to the Bitcoin world. Like as newbie you need more research to Bitcoin relative information. Xapo, coinbase, blockchain such of web wallet might be the best choice to start your journey. About xapo to use receive small amount satashis from faucets, YES xapo has a receiving fee if you received less than the amount of 0.00040095 BTC

Thank you for welcoming me! So Xapo does charge fee for receiving "faucet dust"? But my Xapo account has received 7 transactions of faucet dusts so far, and I'm not seeing any info about fees in my transaction history.

For incoming transactions, a fee of 0.0002 BTC is charged and for outgoing transactions there will be a fee charged. You cannot send an amount below 0.0004 BTC as the fee charged would be almost of the same amount (0.0003375). This is because Xapo has to bear the fee if they don't charge the users. You won't be able to see the fee charged but if you have received an amount below 0.0004 BTC, the fee is automatically deducted and you will have 0.0001-0.0002 BTC from that amount.

You can read more about this here: https://in.xapo.com/fees/

ethantaylor

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Quote from: ibuddy122505 on April 11, 2017, 09:03:08 AM

Welcome to the Bitcoin world. Like as newbie you need more research to Bitcoin relative information. Xapo, coinbase, blockchain such of web wallet might be the best choice to start your journey. About xapo to use receive small amount satashis from faucets, YES xapo has a receiving fee if you received less than the amount of 0.00040095 BTC

Thank you for welcoming me! So Xapo does charge fee for receiving "faucet dust"? But my Xapo account has received 7 transactions of faucet dusts so far, and I'm not seeing any info about fees in my transaction history.

ibuddy122505

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Quote from: ethantaylor on April 11, 2017, 03:10:57 AM

@pooya87,

Since third party Bitcoin services control everything except for password, what services do you personally use avoid that issue?

Could you explain how you know that Xapo is paying the fees and is good for "faucet dust"? I just checked Xapo's fees page and found that it says only internal transactions between Xapo accounts are not subject to processing fees.

Welcome to the Bitcoin world. Like as newbie you need more research to Bitcoin relative information. Xapo, coinbase, blockchain such of web wallet might be the best choice to start your journey. About xapo to use receive small amount satashis from faucets, YES xapo has a receiving fee if you received less than the amount of 0.00040095 BTC

ethantaylor

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@pooya87,

Since third party Bitcoin services control everything except for password, what services do you personally use avoid that issue?

Could you explain how you know that Xapo is paying the fees and is good for "faucet dust"? I just checked Xapo's fees page and found that it says only internal transactions between Xapo accounts are not subject to processing fees.

pooya87

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XAPO, COinbase, or any other similar services out there are third party bitcoin accounts calling themselves a "bitcoin web wallet". what they do is that they give you an account with a password and they control everything else.
this means in case you break any of their rules (their ToS) they can easily block your account with the funds inside of it and since you don't have the private keys, you can't do anything about it.

however it is good for your "faucet dust" problem since they are currently paying the fees and you don't have to worry about that for now.

Topic: Is it bad to use Xapo to receive small amount satashis from faucets? (Read 797 times)