Fiat, Fees & USDT

Fiat, Fees & USDT

No one wants to pay fees. Why would you?

Let me give you a look at my P&L from my first 3 weeks of trading. Such a newbie!

I’m sharing my experience in the hope that no one else will have to go through the same thing. While trading on Coinspot is good for simplicity the fees are quite high.

“The fee for buying and selling coins for AUD is between 2% to 3% depending on the coin, the exact rate is listed on the buy and sell page for each coin. When trading between coins the fee is 1%.” - Coinspot

And guess what I did? Yep, closed all my trades between crypto and AUD. Once again, such a newbie!

So the question is, why did I do this? Why did I transfer so many times between crypto and AUD without considering the costs? The answer is that I just really love trading! I had just started trading and I was making money from my buying and selling so I didn’t really stop to consider all of the options at my disposal when it came to declaring a profit.

In my mind, as an accountant I was closing my open position to crypto by converting back to AUD and therefore doing well on my trading. It’s only when the market tanked initially on bitcoin hitting 5K and then on the China bear China Bear, which was later compounded by Jamie Dimon’s remarks about bitcoin as a fraud that my portfolio was rapidly devalued and I was left holding the bag.

This forced me to stop and update my position. I downloaded my entire transaction history and accounted for all of my trades. As you could see, I did a good job in trading but most of it was eaten up by fees.

So I used the downtime waiting for the market to pick back up again to find some better exchanges, find some good books to read about trading and find out more about the crypto world in general.

Considering I’ve only been in the game since August it’s been a hell of a ride so far. I heard a guy in one of the facebook groups say once, ‘when is all this volatility going to calm down and I can get back to making money?’ Looking back to the past though it seems life in bitcoin and crypto land is always like this.

Cheers to the guys at Coinspotting for the share.

So, earlier today I posted that I was excited to finally get my USDT account approved and some of y’all want to know why.

So, from what I’ve experienced so far is that it costs more to transfer from Fiat to Crypto and back again than it does to transfer from crypto to crypto.

Enter USDT

I hope you enjoyed his accent as much as I did. So, USDT is a good way to lock in any trading profits while you scope out your next possible trade. You can also use the Tether wallet to transfer to your bank account, but for a fee of course.

So you are better keeping your money in crypto land unless you really need to withdraw capital. But even then you can look into a crypto payment card. I have my Monaco card on order; should be coming in about October. There is also Tenx. Check out a video comparing both. I think there are also some other ways of paying also, welcome any comments about this below.

Wonder if my Monaco card will work in China when I go over in December 😊.

Also, if you live in Australia ACX will allow you to buy Bitcoin without any fees at all.

So, on wards and upwards with life in cryptocurrency!

Also, check out the ICO for Cobinhood, the exchange without fees!

If anyone wants to share any other ways to save transfer fees, please comments below!

And if that wasn't enough to take in here's a picture of Jihan Wu.

Check y'all next post!