Avoid paying huge fees while doing Crypto transactions

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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.

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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.

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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.

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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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(Edited)

The "secret" of the DOGE coin is exactly in this what you have described... It is a very cheap coin, and it costs almost the same everywhere... and A LOT of exchanges have it...

Great post, good topic, and good advice!



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Yeah true. I mentioned Tron being a cheap altcoin for transfers but I have used Doge the most. Wondering how forgot mentioning that. Anyways thanks mate. Cheers!

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Almost all my transactions go through LTC or DOGE, and sometimes ETC. With those unavoidable ones I try to strategize a bit and not withdraw every small profit from an exchange, which would amount in lots of fees. Only after it has reached a certain amount.
Good overall advice. 💪

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Yeah accumulating a decent value before transferring is good to avoid fees. I know an idiot who transferred 50 $ worth ETH from one exchange to another and by paying 30 $ transaction fee. Until I told him about this. That idiot is one of my friends.

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Lol, that's like 200 HIVE or 150 LEO gone right there.

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It seems we are all doge fans when it comes to make transactions ;-). I always send Doge around to save fees.

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Ha ha ha. Yeah so true. If we are lucky we can even make some extra doges during the transaction. 🙂

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Buy small coin when it going up and transfer to another exchange. Convert it to BCT and you can earn some thousand sats. My simple BTC transfer rules from one exchange to another.

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Yeah many people use this as a trading strategy and make good returns out of it. But yeah luck is also an important factor. 🙂

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I love the Doge coin because of the very low fee and yes it is almost eerywhere and price is less with less volatility...
Thanks for sharing and highlighting the issue with a good solution point...

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Yeah Doge is a perfect solution for transfers. Maybe that is one reason why all these shit coins still exists. 🙂

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