Fiat transactions often carry fees. If you buy a product online or receive revenue from e-commerce the fees are around 2-5% + 50 cents.
Crypto is probably not going to beat domestic interbank dollar transfers for small amounts, these transactions can be regulated down to zero fees like we see in the EU and UK.
Most of the fees are at the fiat conversion step. Usually they are higher(i.e 10%) than credit card fees. Not to mention the loss due volatility. Cryptocurrencies are not good for payments unless they are pegged to a fiat currency(i.e euro).
+1. That ~1% fee is for merchants who want to accept btc but don't want to deal with the ecosystem. They just provide their bank info to the processor and get fiat deposited there.
Fees vary but your probably looking to pay minimum around ~0.25% to convert to fiat. But then you've also got other fees like withdrawing from a wallet if it's not in an exchange, and of course bank transfer fees so hard to say with certainty.
Huh, I totally thought transaction fees were set in Ether and that’s why the costs are so high (in fiat of course). If that’s not it, what makes the transactions so expensive? Lot of competition for limited throughout?
I keep hearing about these high transaction fees but I've never seen them. When I send the equivalent of tens/hundreds of thousands of USD I pay a few cents of a dollar. It does take a few hours, sure. But what would it take in a fiat currency: walk to the bank, explain why you are sending so much money, set-up the order, wait a few days. No doubt with fees in the hundreds of dollars.
So as far as I can tell fees are still ridiculously small. Large transactions are usually not that urgent.
Crypto cheaper? Seriously? I pay $0 in fees for doing an EFT (or ACH) from my bank account to another bank account. Wire transfers via a currency trading platform I use don't charge a percentage either. If I tried to do that via crypto, I'd be paying a few points in exchange fees to go from fiat to crypto then back again in another country. It isn't cheaper if you're using the right banking platform.
The problem isn't just the transaction fees but markups by exchanges (BTC -> XMR, XMR -> BTC) that each take a cut. Last time I calculated this, even after shopping around for cheaper exchanges it was well over 1% in total fees and probably something closer to 3%, but I'll have to double-check.
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