Avoid paying huge fees while doing Crypto transactions
This is something most of the investors and traders would already know. But I still wanted to write an article on this topic. The main reason is that recently one of my friends told me about how much fees he paid to move his crypto assets from one exchange to another exchange. It was not even a small transaction but it was huge and he lost so much in transaction fees.
The sad part in that was that he was not even aware of how to mitigate the fees during that transfer. I thought I should definitely write an article even though it is a very common topic that everyone would be already aware of.
Never transact with big coins
Some people don't know anything about crypto apart from Bitcoin and Ethereum. Especially people who are pretty new to the crypto world find it hard to understand the other coins and they always do their trading only in big coins. There is nothing wrong with trading Bitcoin or Ether but it is important that we should also know about some of the small coins that we can use to transact with very minimal fees. That is also one of the reasons why we have some good altcoins.
Sometimes the fees can be reduced to cents from several dollars if we plan it well. I always transact with small coins. For example, if I have to move my crypto assets from one exchange to another exchange, I will first convert them to a small currency. For example, if I'm moving Bitcoins from one exchange to another exchange. I would first purchase Tron with the Bitcoin holds that I have. Then move the Tron from one exchange to another and then I will sell the Tron in the other exchange and convert it back to BTC.
During this whole process, I will be able to save lots of money by not paying a heavy transaction fee. There are two reasons why I hate transacting using bigger coins. First is the time taken for the transfer and second is the transaction fee that is involved. It takes several hours for block confirmation if it is BTC or ETH. But in the case of Tron or other smaller cryptocurrencies, the transaction is almost instant and we get our tokens immediately in the other exchange. Also, if it is a small cryptocurrency the exchange charges only a little in the form of a transaction fee.
It is not necessary that we have to use only Tron for this activity. I just took Tron as one handy example. I know many people hate Tron so there are so many other cheap coins that would make our transactions cheap. XLM can be one good example of the same. I recently used XLM for one of my transactions to move my crypto assets from one exchange to another.
Unavoidable transaction fees
There are also situations where we will not be able to avoid transaction fees. One such transaction is moving the funds from the wallet to exchange and from exchange to the wallet. This is a type of transaction that has to happen with the same crypto so we cannot avoid the transaction fees.
I have also heard some good stories from my friends where they made some quick profit while moving the funds from one exchange to another. It is purely based on luck. When we move the funds from one exchange to another using a small cryptocurrency, there is a high possibility where we end up in both losses as well as profit. If the market is highly favorable towards us in the destination crypto exchange, we might get some extra coins while selling the transferred cryptocurrency. This is one of the reasons why people play this swap game.
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