04-11-2023, 05:48 AM
There are too many layers of fees in buying crypto. This is a huge barrier to adopti
<!-- SC_OFF --><div class="md"><p>Buying some more of a small crypto the other day, I started to realise just how many fees there are on major crypto exchanges. Note: I'm only talking about fees from the exchange, not fees from the crypto itself.</p> <p>On Binance, my process went like this:</p> <p>- Deposit fiat onto the exchange. I paid a small debit card fee.</p> <p>- Trade my fiat into a currency that has a currency pair with the crypto I want. In this case, USDT. Small commission trading fee.</p> <p>- Trade my USDT for the crypto I want. Small commission trading fee.</p> <p>- Withdraw my crypto to my wallet. There is a flat fee on withdrawal (which overly punishes small holders).</p> <p>Overall, the entire process feels like a death from a thousand cuts. Every decision you make has a small fee on it, and these really add up. Additionally, if you make a mistake (e.g. trading your fiat to a currency that isn't tradable with the crypto you want and having to trade again) you pay an extra layer of fees. Finally, if you then want to sell on an exchange, you have to engage in the exact opposite process, doubling the layer of fees again.</p> <p>I believe that this is a huge barrier to adoption as it is very off-putting for new users to see their deposit balance slowly erode as they try and buy the crypto they want. There should be fewer layers of fees and that CEXs should be more transparent on the process involved.</p> <p>Admittedly, crypto still has lower fees than international transfers, but for me to use crypto to make regular every day purchases, these fees are not feasible...</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Laughingboy14"> /u/Laughingboy14 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12hnjmx/there_are_too_many_layers_of_fees_in_buying/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12hnjmx/there_are_too_many_layers_of_fees_in_buying/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Buying some more of a small crypto the other day, I started to realise just how many fees there are on major crypto exchanges. Note: I'm only talking about fees from the exchange, not fees from the crypto itself.</p> <p>On Binance, my process went like this:</p> <p>- Deposit fiat onto the exchange. I paid a small debit card fee.</p> <p>- Trade my fiat into a currency that has a currency pair with the crypto I want. In this case, USDT. Small commission trading fee.</p> <p>- Trade my USDT for the crypto I want. Small commission trading fee.</p> <p>- Withdraw my crypto to my wallet. There is a flat fee on withdrawal (which overly punishes small holders).</p> <p>Overall, the entire process feels like a death from a thousand cuts. Every decision you make has a small fee on it, and these really add up. Additionally, if you make a mistake (e.g. trading your fiat to a currency that isn't tradable with the crypto you want and having to trade again) you pay an extra layer of fees. Finally, if you then want to sell on an exchange, you have to engage in the exact opposite process, doubling the layer of fees again.</p> <p>I believe that this is a huge barrier to adoption as it is very off-putting for new users to see their deposit balance slowly erode as they try and buy the crypto they want. There should be fewer layers of fees and that CEXs should be more transparent on the process involved.</p> <p>Admittedly, crypto still has lower fees than international transfers, but for me to use crypto to make regular every day purchases, these fees are not feasible...</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Laughingboy14"> /u/Laughingboy14 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12hnjmx/there_are_too_many_layers_of_fees_in_buying/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/12hnjmx/there_are_too_many_layers_of_fees_in_buying/">[comments]</a></span>