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

[Mttewndew]

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?

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[BlacksmithCorporation]

I often buy cryptocurrencies in the form of OTC, because the OTC fee is very cheap, only from 0 -1%. OTC is a form of Fiat - Crypto exchange between sellers and buyers, an intermediary platform only plays a role in ensuring transactions. Currently, I have many OTC support exchanges with almost negligible fees like Houbi and OKex.

[CjMapope]

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?

its because FIAT is not for this scene, most people hate it in crypto. Its super complicated to register as a money transmitter and the gov takes taxes
So they have to change that high, its sux, but its the same everywhere for fiat
Just dont use FIAT in this scene man, buy/sell with coinbase, fees are like nonexistant that way

[Kahoy01]

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?

I'm not sure about this but I guess they were trying to give a certain fees on range? like 0-5 or 6- 10 it varies on the amount to convert. Obviously it includes all the thing you need to convert like taxes. That's why I also include the fee on computation every time I convert from crypto to fiat, vice versa.

[Mttewndew]

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?

its because FIAT is not for this scene, most people hate it in crypto. Its super complicated to register as a money transmitter and the gov takes taxes
So they have to change that high, its sux, but its the same everywhere for fiat
Just dont use FIAT in this scene man, buy/sell with coinbase, fees are like nonexistant that way

Why coinbase exactly? They also charge a lot, just using a different scheme. The same rules apply for binance and other platforms.
I mean - specific locations, amount of transaction, presence of precise coin, etc. This all looks like a big field of opportunities to mess up with the customer's expectations about the price.

[ajiz138]

I don't buy crypto too often using FIAT, but I get crypto from the Bounty token that I sell. Most trading capital from bounties. Only a few times to buy Fiat with crypto, but the fee is indeed around% 0.25.

To choose the right platform is to look at security and speed of service. If the speed and security are good and the fee is a little expensive, it is reasonable, because the transaction fee is expensive, it will be faster. If you want a cheap fee, usually the transaction will be slower.

[Kunotcoin]

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?

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.

[DaMut]

I only do it once or two in a week, I am using a platform to make or redeem the voucher and I do not use the platform directly to make a transaction. I made the transaction OTC, I prefer to buy it from someone I know because it is fast, friendly and cheap because we know each other.
I rarely do the transaction on the platform because it is slow and complicated, the majority of people that I know prefer to do it OTC too.

[desticy]

I don’t buy Bitcoin too often for fiat money, but sometimes it happens, about a couple of times a month.
As a rule, I use dollars or euros received from my main activity, they are on my credit cards.

Previously, I used the site https://localbitcoins.com to buy bitcoin, however, after entering the verification procedure, I refused it.
Now I use the Binance exchange, or Cucoin, I buy bitcoin there using a credit card, it suits me perfectly.

[josephdd1]

The fee is usually only particularly high when you are buying low amounts, most platforms don't actually charge a percentage based fee, but rather a fixed deposit fee.

Similarly, if you use P2P platforms then you'll have contend with the platform fee on-top, which can be substantial.

That's why you should buy in bulk, or face to face, since you can avoid most of the fees this way.

[InwardContour]

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?

I usually exchange FIAT to crypto by direct P2P purchase from my pals, but the very first time I exchanged FIAT to crypto using an online service  was on LUNO and the fees was outrageous. The fees too on KUCOIN and other similar exchanges doesn't really make sense to me hence I don't even try that. Most of these exchanges use SIMPLEX, I think something need to be done about this very high conversion fees. If there is a trusted exchange that gives lower rate, I will like to know so that when I introduce people to crypto, they can easily convert FIAT to CRYPTO with credit card. Well, the goodnews is that there are a few projects promising to provide a lasting solution to this.

[batang_bitcoin]

Question #1 - how often do you buy crypto with fiat?

Not that much this time because as we can see, the market starts to shape up and I don't think buying at this time is an ease for me. I always think before buying and that would be during the greatest dips comes.

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?

Exchanges that I always use. I don't change the exchange that I use if I'm already comfortable to it. I think about the fees but if the support is great I think of it as an incentive.

Aren't you afraid that your personal data may be stolen or sell somehow?

Everyone is afraid about this situation that's why as much as possible, we're avoiding KYC exchanges but if you really trust that exchange and you think that they can keep the record well that's not an issue for you and you make them as an exception.

[adzino]

High fees because "banks" are involved. Most of the fee goes to the bank. The rest is kept by the exchange as a  form of profit. Some sites truly does have insane/unreasonable amount of fee. Only few trusted sites are out there which provides fiat to crypto and crypto to fiat transactions. Thus they are in an advantage and is able to charge high amount of fee (and people have no other option but to use them). I guess as crypto currencies become more mainstream, the fee will gradually drop.
I use coinbase for fiat to crypto. Easy for me to use.

[Eildosa]

I usually buy crypto in exchangers, or through a bot in a telegram. Sometimes I make transfers on the stock exchange, but I don't particularly like this method. I prefer to buy a crypt without intermediaries.

[tenakha]

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?

Why do not you look at the localbitcoin sites instead of paying high fee. Or if you know such a group of locals, you can trade with them without paying a fee. When I need BTC in a hurry and can not find it anywhere, I use exchange. I use CEX at this time, for that they charge 2.99% fee. When the interest of the banks is added, a bigger numbers emerges.

[Obito]

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?

Fees are for maintenance and taxes I guess. Exchanges varies depending on the function itself it could be either crypto to crypto, crypto to fiat and fiat to crypto. Usually the exchanger with low commission fees was designed for traders. Similary to stock exchange  fees, traders used to buy shares or derivatives, so, the profit from it was in the continuously changing of rates.

[biddicoin]

Question #1 - how often do you buy crypto with fiat?

i rarely to do this, especially when this bearish market coming.

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?

The important one is security, i dont wanna lose my money. the others one is "bonuses"

Aren't you afraid that your personal data may be stolen or sell somehow?

of course we are affraid of it. that's why i just give my data to trusted exchange
although there is a chance to abuse, but it is a bit.

[setialovers]

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?

I am thankful that in my country there are local exchangers who can deposit using fiat money and are not charged. The fee will be charged only when we will buy crypto at the exchanger and this can be called a transaction fee and the rate is the same as the other exchanger

[Aabcde]

I once bought crypto with fiat, only once or twice not too often. In my country, to buy bitcoin is quite easy and the cost is not too expensive.
I did not really choose many criteria for the exchange, the important thing is safe and is a local exchange. Because it's definitely easier in the transaction and complaining and we are better able to understand according to our own language.

[hello_good_sir]

Crypto to crypto is fairly easy, your comparing 2 coins/items in the same market which makes things pretty easy.

Crypto to fist is a different story, and I have no idea why you are being charged such fees, I've never paid 7 percent to cash out ever. Use localbitcoins - they only charge you 3 percent spreads for transactions, or try set up your own fees and pay nothing in fees, and possibly even make some money.