Fiat-to-crypto - what's with the fees?

[VanDeinsberg12]

In my country i can buy crypto from crypto Atm's or in a multipurpose wallets, and i think buying with fiat to crypto was charge a little bit higher compare to crypto-fiat i dont know how they calculate the fees or just they have there own setting about fees regarding that matter.

Could you also tell how exactly do you buy crypto from ATM?

Im not sure if we can buy crypto through ATM and i never heard about that. what i have been hearing if people can deposit to their exchange site's account or buy bitcoin through bitcoin atm. At this moment it looks like that is not true we can buy crypto through ATM.
i have bought bitcoin so many times through use transfer payment system and crypto debit card.

Im also feeling curious about what kind of service that has already used by him. This is interesting to watch.

[alt-fire]

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?
Aren't you afraid that your personal data may be stolen or sell somehow?

Answer #1 Usely I am not buying crypto with fiat. But I know platform where it can be exchanged easey and fast
Answer #2 Everytimy I used Kuna exchange platform where I can Exchange and withdraw crypto even without comissions thanks telegram Kuna bot. I even can receive more than  I ordered to withdraw because deal happens withoud medium.

[TheClownSong]

Trying to understand how the fee system works and why exchanging from fiat is much more expensive than exchanging crypto.

Ok, cryptocurrency exchange fees are usually very low because it costs little to nothing in fees to exchange them, unlike fiat itself. Banks charge a commission for everything, and there are many regulations and financial bodues to contend with who would ultimately want their own piece of the cake.

That might explain why there's a 0.25% fee when you exchange crypto on changelly, for example, and 7% fees when you want to exchange from fiat.
But at the same time, there are services with a much lower fee. BUT lower payment doesn't guarantee good quality service. And this is where I want to hear your opinion

Question #1 - how often do you buy crypto with fiat?
Question #2 - how do you choose the platform? Are there any other criterions than the amount of fee? Security, speed of transaction, simplicity, friendly service?
Aren't you afraid that your personal data may be stolen or sell somehow?

Yes exchanging fiat into crypto currencies cost more if we are going to compare it in exchaging crypto currencies into crypto currencies only. In my case,we have local exchange that I am using in exchanging fiat to crypto currencies and vice versa.

Of course a platform is very important, first is it available in our country. Do we have options that we can easily cashin and cashout, as it is the most important in every platform that you need to choose. And with fees, as long as it is reasonable then I have no problem with it.

In my country, people can deposit using fiat money and directly transact with cryptocurrency. I don't know whether our local exchangers have been regulated or not, but it seems that bitcoin or crypto have become commodities so we can trade with fiat money more easily and cheaply

[mrdeposit]

Answer #1 Usely I am not buying crypto with fiat. But I know platform where it can be exchanged easey and fast
Answer #2 Everytimy I used Kuna exchange platform where I can Exchange and withdraw crypto even without comissions thanks telegram Kuna bot. I even can receive more than  I ordered to withdraw because deal happens withoud medium.

For a long time, I have been looking for an exchange where I can withdraw money by paying a lower fee. I looked at Kuna and it charges 1% of withdrawal money. How reliable is this exchange? The volume is almost around $300k. Does it work anywhere in the world?

[slaman29]

7% fee will be charged when you buy from credit card but if you are using bank transfer then the fee will be 1% for that you can use coinbase or binance exchange.The fee is high because they are providing service to us so they will ask for money.

No, you completely missed the whole point.

Commissions and fees are what they charge as a payment for their service, fine. But the reason bank transfers are only 1% and credit card is 7% is because of two reasons.

First big reason is bank transfer is cash. Actual money you own. Credit card uses credit, meaning you are borrowing money from the bank to pay the exchange.
Second big reason is it is impossible almost for bank transfer to be fraud or to be reversed. But credit card online is high chance for fraud, and can have reverse transactions. You are paying for the risk the exchange has to bear for that.

[youdacapt]

I mostly use OTC, and for fiat / crypto it doesn't matter because it only requires normal trading fees. For withdrawals to Fiat, I choose an exchange that only charges 1%, and is accustomed to large amounts so the cost doesn't always seem too expensive. KYC obligation for reputable exchanges: No problem, the most important is the smooth transaction.

[Patrix_1]

Sure, because exchanges do need to integrate fiat payments to make it easier for users to purchase crypto, but it costs much more to make a bank transfer instead of exchanging LTC to ETH by paying just a small fee of 0,025 percent (in most cases)

[zhekinsp]

7% fee will be charged when you buy from credit card but if you are using bank transfer then the fee will be 1% for that you can use coinbase or binance exchange.The fee is high because they are providing service to us so they will ask for money.

No, you completely missed the whole point.

Commissions and fees are what they charge as a payment for their service, fine. But the reason bank transfers are only 1% and credit card is 7% is because of two reasons.

First big reason is bank transfer is cash. Actual money you own. Credit card uses credit, meaning you are borrowing money from the bank to pay the exchange.
Second big reason is it is impossible almost for bank transfer to be fraud or to be reversed. But credit card online is high chance for fraud, and can have reverse transactions. You are paying for the risk the exchange has to bear for that.

Yes I forgot to mention about the risk of credit card transactions,but still it considered as somewhat irreversible,even if some hacker used that credit card then bank is responsble for the payback not the exchange,still exchanges taking the advantages of high risk payment method.

I feel localbitcoin will be best for someone who want to convert fiat into crypto and vice versa since it has only 1% fee for the advertisers and no fee for responder.

[tbterryboy]

For the last part of the statement which is your own concern, I believe that everyone is aware of that since we are not running a decentralized exchange, so centralized exchanges may not really be able to guarantee us full security, but at least the reputable ones can try their best to meet up to the standard which is why you see us always talking of using exchange that are listed as the top exchanges in the market.

I buy crypto with fiat virtually every month because that is when I invest in bitcoin, but in doing so, I make sure that I consider using exchanges that has the lowest fees in the market of which the bets exchange that offers that for now is binance, I know that changelly and other exchanges has low fees also, but not as low as binance exchange.

[Darlingtona]

Some really charges lower while some charges more but in general it is fair enough .

[TheGreatPython]

It's normal, they will always charge you higher fees for fiat and lesser fees cryptocurrency exchange. There are some exchanges that would charge you 1.50% for fiat and 0.20% or more for cryptocurrency trading. Exchanges vary, I know some really good exchanges that would charge you less and still offer excellent services like those that are charging more. When there are good exchanges like this, then there is no need to go for the one's charging way too much. Some exchanges will even charge nothing, like the one I know that is in the EU and charges no fees for fiat exchange for those that are living in the EU.

You should just find the right exchange for you and that's the best way. Exchanges in your locality will charge less for every cryptocurrency and fiat exchange you make.