This is one of the disadvantages of using non-custodial services, which ChangeNOW claimed are non-custodial services.
@20kevin20 is right, they have the right to charge like those amount which for some client for sure it will not matter. It is one of their ways to earn profits for sure. So our choice is either we use other alternatives or stay using their service with given consequences.
Topic: Why do exchanges give you so much less coin in return exchanging vs buying? (Read 149 times)
April 22, 2021, 09:31:01 PM
April 22, 2021, 05:27:09 PM
Well, let me give you a simple answer and that is, --business. If in case that they reduce the price of the return, possibly is that. People would tend to return instead of going in. Second, that is almost the only place where they earn and keep their business operating. I think we could just consider that as their pay for the wonder exchanges they have provided to the world. In my opinion, their transaction fees are justified and reasonable considering the amount of time, effort, and stress they sacrificed to build a disruptive business model? I think we should just let them enjoy their reward for that.
April 22, 2021, 10:00:49 AM
Out of curiosity OP, where those small sums you tried to exchange, as I went to changenow to see what they charge if you want to make the same USDT>BTC and the results are let's say "interesting", if not pure BS, they say no extra fee but they change the exchange rate for lower amounts:
For 5000 you get an exchange rate of 1 USDTERC20 ~ 0.000018 BTC
For 100 you get an exchange rate of 1 USDTERC20 ~ 0.000007 BTC
And again, they have the nerve to claim "No extra fees".
For 5000 you get an exchange rate of 1 USDTERC20 ~ 0.000018 BTC
For 100 you get an exchange rate of 1 USDTERC20 ~ 0.000007 BTC
And again, they have the nerve to claim "No extra fees".
April 22, 2021, 08:52:51 AM
Do you mean transaction fees or what? I don't quite understand you.
April 22, 2021, 07:44:46 AM
Why not just use Coinbase and suck up 5% fees? Might as well sell it at ATM.
I do use Coinbase, but they don't offer a lot of other coins.
April 22, 2021, 06:55:32 AM
Convenience has a price. Privacy has one as well, usually even more expensive. Exchanging is instant and much simpler to use than placing orders is. And since all you have to do to instantly exchange a coin is to send an alt and receive another instantly in your personal wallet, there's a transaction fee you have to pay for the on-chain tx. ETH and BTC instant exchanges are usually way more expensive than altcoin exchanges are.
Binance's txs happen within their website, unless you withdraw. When you withdraw BTC or ETH, it's expensive even there as well.
Binance's txs happen within their website, unless you withdraw. When you withdraw BTC or ETH, it's expensive even there as well.
April 22, 2021, 06:32:34 AM
-cut-
Or, try to make use of noncustododial exchanges like Coinbase or Kraken.
Or, try to make use of noncustododial exchanges like Coinbase or Kraken.
I don't want to derail the discussion, so please excuse any off-topic questions, but what do you mean by "noncustodial exchanges"?
If I understand right, Coinbase and Kraken are centralized exchanges; doesn't this imply that they are custodial, that is, that they hold private keys to our wallets?
EDIT: Oh, I see. It was a typo.
April 22, 2021, 06:16:33 AM
According to what I researched just now, ChnageNow is a decentralized exchanges, I do not know how decentralized actually is it, but it will definitely charged transaction fees paid to miners for every buying and selling, in addition to the normal fee charges. I guess the fee paid to miners for transaction confirmation is responsible for this. Is there no option to edit the fee? This will be the best option, also trying to make use of weekends to buy and sell if you can edit the fee (especially Sundays) because the fee are usually less during weekends, but not all weekends. Or, you can try to make use of direct p2p exchange performs (but be mindful of scammers), you will need to make use of a trusted escrow provider. Or, try to make use of noncustodial custododial exchanges like Coinbase or Kraken.
April 22, 2021, 06:11:51 AM
Welcome to the world of "convenient" exchanges. Changenow is well known for having high fees, most exchanges anyway that are regulated (I know Changenow is regulated recently) will charge you high fees of 5% and upwards, even more for those who want to use these types of exchanges. Why not just use Coinbase and suck up 5% fees? Might as well sell it at ATM.
April 22, 2021, 06:06:45 AM
Just something I'm confused on. I used "changenow" because I couldn't seem to find a way to purchase a certain crypto because I am in USA and/or NY. So the only way I know is to purchase USDC with USD, then go to "changenow" and exchange the USDC for the crypto of choice. My question is, why do you get so much less crypto in return when exchanging crypto for crypto vs buying with USD? Im talking about 25% - 30% less crypto doing it this way. This is insane considering USDC to USD is equal. I think they also do this when exchanging any crypto for crypto. What gives?
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