Cheapest way to buy IOTAs from SBDs using Bittrex and Bitfinex exchanges
IOTA is a promising cryptocurrency which might rise quite high in the future. What is really promising about IOTA is that it doesn't even use the blockchain technology, but instead use the Tangle, which makes it much more scalable than blockchain based cryptocurrencies [1]. Therefore, you might not wanna lose the opportunity to buy IOTA cheap.
However, its not straightforward to buy IOTAs from your SBDs, as I don't know of any exchange that supports both. So, what you can do is to convert your SBDs to a currency which is also supported by an exchange that supports IOTA, and then send that currency there to convert it to IOTAs. For our example, we are going to use Bittrex to exchange SBDs, and Bitfinex to buy IOTAs.
One thing we need to keep in mind here is that Bittrex has withdrawal fees while Bitfinex has deposit fees for amounts equivalent to less than $1000 [2]. So, we would like a common currency to be the one which has the lowest cost of transfer. Here the transfer cost is the sum of Bittrex's withdrawal fee and Bitfinex's deposit fee. For that purpose, we can refer to the table below.
| Currency | Bittrex withdrawal fee | Bitfinex deposit fee | Total fee | Total fee in $ |
|---|---|---|---|---|
| Bitcoin (BTC) | 0.001 | 0.0008 | 0.0018 | 31.7 |
| Ethereum (ETH) | 0.006 | 0.01 | 0.016 | 16.7 |
| Ethereum classic (ETC) | 0.01 | 0.01 | 0.02 | 0.8 |
| Litecoin (LTC) | 0.01 | 0.001 | 0.011 | 3.3 |
| Ripple (XRP) | 1 | 0.02 | 1.02 | 3.15 |
From the table, we can clearly see that the best way to buy IOTAs from your SBDs, is to first convert your SBDs to Ethereum classic on Bittrex, and transfer those classic Ethers to Bitfinex, where you would exchange them for IOTAs. The combined cost of withdrawal and deposit in that case is just $0.8. Compare that with the case of Bitcoin, where the combined cost of withdrawal and deposit is as high as $31.7!
Note that we can also apply this method to purchase other currencies, which are available on Bitfinex but not on Bittrex, such as EOS.
References
[1].https://www.tangleblog.com/2017/01/25/the-tech-behind-iota-explained
[2].https://www.bitfinex.com/fees
Thanks for highlighting great opportunity with us. IOTA is a new for me but still my account is not working on Bittrex. Thanks for sharing such an informative Post.
That's bad that your bittrex account is not working. You can try HitBTC. It also supports SBD.
nice am going to try sending my sbd first need to earn sum sbd thanks
upvote if you like iota
Personally, I love IOTA, I've seen its operation as a developer and it seems simply great, it's one of the ico that I see growing this year
It is a crypto currency that I will buy as soon as I can.
:)
Thanks for the info! pretty scary to buy IOTA at this price but :P
I can't signup for Bittrex. :(
You can try HitBTC. It also supports SBD and STEEM.
Bittrex problem is also affecting me and I really want to start an investment plan in these fields, I'm just starting but articles like this are very useful to start planning many thanks very useful @hmushtaq
If Bittrex isn't working, try HitBTC.
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