Recently, while exploring the different functions across trading, purchasing and exchanging platforms, there was an interesting thing that came up as the differences in exchanges were becoming more clear and it gave an interesting idea: Need to Exchange BTC, ETH, EOS, XRP or USDT? Here's an out of the box idea.
What the Fee!!!
Talk of fees has become quite common place over the last 12 months or so. Really, it has been the bone of contention for some time.
In late 2020 the BCH and BCHA split which took place was over distribution of fees (yes ultimately payments, but originated from fees). And there are countless other instances where fees have become more and more the focus of negative publicity, rightly so.
Who wants to pay 5 or even 10 times the amount of a transaction... to execute the transaction. It's a head scratcher for sure.
Nevertheless fees are not the only place where there is curious shenanigans at work.
Swaps & Exchanges
If you have been in the crypto space for a year, month, week or even a minute you probably have utilized a swapping or exchange service somewhere in your journey.
Ever notice how it's totally clear about the exchange rates and fees... but it's not. I'm sure there are others who are far more in depth on the topic but for the everyday operator who wants to execute a quick exchange or swap of a token or coin, sometimes there just needs to be a straight forward option.
Don't get me wrong, Instaswap, Simpleswap and all of the other swaperoos out there are extremely valuable in a pinch, but I came across something that might give you another perspective.
Or at least something to compare too.
ByBit Exchange
While delving into the world of derivatives trading (will save that for another post), I came across ByBit exchange, which has been a game changer on many levels (also for the next article).
In regards to exchanging, I came across something that was of interest. I haven't done it yet, and do not know anyone who has, but can't find anything that says you can't do it.
So check this out. Right now in ByBit, can deposit and withdraw just a few cryptos which include;
BTC
ETH
EOS
XRP
USDT
On the surface, this is not necessarily your stop and shop portfolio but it doesn't have to be, here's why especially if you have any of these and are looking to step into BTC or USDT.
Now internally once you are in ByBit, and remember you only need an email address to set up a logon and it's functionality is improved with a VPN, now you can move pretty quickly.
The deposit addresses are like you would find any where else. With EOS and XRP you still need a memo, which is status quo, but this is where it gets interesting.
Because the movement on ByBit is so quick and you are able to trade in different derivative contracts you don't necessarily trade across contracts with the different crypto so there is an in program exchange function.
The first time I changed over some XRP or BTC to USDT or back to BTC, I notice that the exchange was just at the rate of a few cents. Yes, you read that correctly, it was less than a dollar with one of the higher transactions.
So that got me to thinking. If you can exchange between a few currencies for pennies, I'm curious what the withdrawal fees are?
Found that info in ByBit's FAQ as well.
So what does all of this mean? I don't know about you, but it seems pretty straight forward to me.
Here's What Seems Possible
I know that I have been absolutely shocked by some of the fees that are out there when testing the waters on different platforms, but using a solution like this only makes sense at a certain scale.
What you would make up for in maker/taker fees is replaced with the withdrawal fee. Let's make a specific example
At today's BTC price of ~ $48000
.001 BTC = $48 USD
.0005 BTC = $24 USD
Now obviously at this rate, it does not make sense. Now keep in mind that you have spend an incredibly small amount on the exchange itself so now it's just a matter of moving value back to wherever you are looking to do that from and to.
Does it make sense at .01 BTC, which is $480 USD? Then the .0005 BTC fee would be 20%. Yup that would be too high in my opinion as well.
How about at 0.1 BTC? Now you would be at a 10% withdrawal fee.
You get my drift here. When would it make sense for you? 1%, maybe a quarter to half a percent? So then what scale would you need? Here's my rough math.
To reach lower withdrawal fee percentage of overall withdrawal:
.001 BTC - (24 / 48 = .5) or 50% of the total.
.01 BTC - (24 /480 = .05) or 5% of the total.
0.1 BTC - (24 / 4,800 = .005) or 0.5% of the total.
0.2 BTC - (24 / 9,600 = .0025) or 0.25% of the total.
0.5 BTC - (24 / 24,000 = .001) or 0.1% of the total.
1 BTC - (24 / 48,000 = .0005) or 0.05% of the total.
So remember this is just for BTC which is much higher, but the other 4 are much lower. It would only be 10$ for USDT and a couple dollars for XRP. Point being this is in the realm of possibilities.
Now the one other thing to keep in mind is the transaction fee, but if you're in the market to convert one of the 5 cryptos on the list, and the scale is right, this may be a possible avenue.
Like I said, I haven't tried this yet and don't know anyone who has, but it sure seems like a viable option that's out of the box.
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NOTE: Thanks for taking a moment to check out this idea on ByBit. It may work on other platforms as well, but so far I have been really happy with ByBit.
If this out of the box idea sounds compelling, or you even have a slight interest in learning more about derivatives trading, you can use my referral code for ByBit and receive $10 BTC.
I'm very skeptical and discerning of most to all platforms these days, but have been really pleased with the ease of use of ByBit.
Check it out if you like
https://www.ByBit.com
referral code: wzLp8
Or here's the QR code if that's easier. Now go get it! Be blessed!
