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You're somewhat missing something. Take the Exchange Gemini: I send USD to Gemini and then I purchase BTC on Gemini and am charged a 0.25% fee on my purchase.
by quantdev 9y ago
You're somewhat missing something. Take the Exchange Gemini: I send USD to Gemini and then I purchase BTC on Gemini and am charged a 0.25% fee on my purchase. So far I haven't paid any transaction mining fees and it's because Gemini isn't actually settling these transactions on the blockhain.
Now, if I were to move these coins off Gemini, then I would pay the mining fee of $2. However, I could just wait 5 weeks and only pay that once, since the fee doesn't scale with the transaction amount.
- krrrh 9y agoLeaving the coins on the exchange for that long requires an exchange-hack-or-failure cost averaging analysis to balance things out.
- quantdev 9y agoFair, but I doubt the probability of the exchange getting hacked in 5 weeks is meaningful. I agree that you should never leave your coins long term on any exchange, just to be clear, but there is a reasonable amount of risk you can take.
- jacquesm 9y ago> I doubt the probability of the exchange getting hacked in 5 weeks Depending on the exchange that probability could easily be >> 0.0. Exchanges being hacked or absconding with the coins are all too common, ignoring that possibility is not a recipe for a happy ending.
- rothbardrand 9y agoIf you create liquidity on GDAX (any maybe Gemini too) you don't pay a transaction fee. (Though you still pay mining fees.)