Fees are basically broken down into two parts. The first is the Fees that you pay at an exchange to purchase or send cryptocurrency. The second are fees that are charged as part of the blockchain that is charged when moving crypto between wallets. At the lowest level, we convert our local currency by sending it to the exchange. (A fee will apply) We then purchase some cryptocurrency ie Bitcoin, NEO, IOTA, etc. (A fee will apply) We then send the crypto to a wallet. (Another fee will apply). The first Fee is most likely for the service to move your fiat currency to the exchange, the second is for the exchange and the third is the fee that the blockchain/crypto itself will chew up.
So I hear you saying if there are so many fees what is the benefit of CryptoCurrency… Well at present, there is not a lot of incentive to use it. Most of those holding crypto are for investment purposes. The end goal will be to pay with items directly using your crypto of choice. Thus cutting out the middle-men. We will start to see more of this into the future. However, for now, this is where we are at. I hope to look back on this blog post in 2-3 years and see that we are making progress towards a system that is easy to access and easy to use.
Check, Double Check and Triple Check your Fees
- Decide on your payment method and Check Fees.
- Polipay $3.30 each time is not bad
- Bpay 2% on some exchanges
- Check wallet fees and ensure you send enough
- IOTA = No Fees on transactions
- Check Exchange fees
- Coinspot 2% – 3% fee for Transactions
- BTC Markets 0.85% for Transactions
- Ensure the value sent is what will be received
- Triple Check Senders Address