Hey everyone, just a quick article about Bitcoin and it’s fees!
As we all know there can be some crazy pretty high fees when it comes to either depositing or withdrawing your bitcoins. Never mind trading fees. We’ve noticed a lot of followers promoting services and products and not really talking about the fees involved. So let’s have a look at the fees and what’s involved. For this example, we’ll use Coinbase, and Coinbase Pro.
Ok, so you’ve just joined Coinbase and you’re wondering, wow this looks really simple. Well, it actually is. You basically deposit some fiat currency into it and then boom , there you have it! You’re now the owner of some Satoshis or some other coin. But wait. Now what’s that I hear you asking? What do you do with it? We’ll you can either hold it (Hodl) and keep looking at the value of it going up or down or you can come to sell it. At this time, you’ve realised that you’ve already paid a small fee for actually purchasing some Bitcoin, and it’s most likely going to take you some time before you’ve made that back up. So you decide to keep it in your portfolio in the hope that you make some profits and you can convert your Bitcoin to GBP and you’ve made some profit? Well it’s not that simple. Coinbase charges a higher fee if you were to go down this route compared to selling your Bitcoin on Coinbase Pro, which we recommend to use instead (to avoid the high fees Coinbase offers).
Even when it comes to selling the bitcoins you purchased back on the market, there will be some fees involved, and then some more when it comes to withdrawing it. Either to your cold wallet or to your bank/PayPal.
This makes a lot of people wonder, how do I even make profits with this? Well, the answers simple. You should study the charts and learn how to differentiate the differences between when the market is at it’s all time low and when it’s at its all time highs.
This way you can cover the fees involved in between and you won’t worry about the middle. We’ve found when it comes to day trading this volatile market, the fees involved can quickly suck up the profits you’ve made. From the beginning till the end.
All in all the lessons here are that the fees involved when dealing with small amounts of coins is that the fees involved doesn’t make it feasible for quick profits. As everyone knows, it’s not a get rich quick scheme.
However, you can only imagine what the fees will be like once Bitcoin and other crypto currencies reach hundred of thousands of pounds. Consider these early days as a bit fo a bonus and that these fees are miniscule compared to what you’re about to face in the future.