Moving money between exchanges: It is easier and cheaper than you think

/u/ChaosCouncilCryptocurrency News & Discussion https://ift.tt/eA8V8J

Have you only ever held crypto on an exchange? Scared to transfer coins? Never figured out how to cheaply move money from one exchange to another? What better time to learn than today. And by learn, I mean actually do. Let's transfer some coins.

If you are coming from Robinhood or Coinbase Pro (you are using Pro right?) you may never have seen the need to transfer coins. But at some point you will get a hot tip on some alt coin on only Kucoin, and have to figure out how to buy it asap. Don't wait until that day, learn now.

Lets say you have $100 USDC on Coinbase Pro, and want to get it to Kucoin. You could just transfer that USDC, but that will cost gas, and you will end up with just $95 when it shows up at Kucoin. Instead, convert that USDC to XLM (0.5% fee)

The transfer fee on XLM is just 0.00001 XLM. So 1 XLM which is currently $0.59 will pay for 100,000 transactions. Basically it is a free transaction. So once it shows up at Kucoin you pay at most 0.1% to convert to BTC, and then another 0.1% to purchase your alt. So after all fees we have $99.3 of our alt using XLM instead of $94.8 using USDC. Obviously this is more beneficial the smaller the amount you are transferring.

Now that you have actually done a transfer you know how long it will take. No more frantic posting on r/CryptoCurrency about where your money is. You now know it is going to take X amount of time to get there, and can relax when real money is on the line. And you don't actually have to move anything to Kucoin, it is just as easy to use one of the suggested XLM wallets (https://www.stellar.org/lumens/wallets?locale=e) But I would suggest testing out exchanges you expect to use in the future.

All of the above can be done with LTC, just at slightly higher costs, though still way less than BTC or ETH. I have no vested interest in shilling these two coins besides their excellent use in transfers.

So give it a try. Buy a cheap transaction coin, move it to another exchange or just your own wallet, and see how crypto actually works. At most it might cost you $1 in fees, but you will learn a ton in the process, and be ready for when you need to do this in the future.

Words of warning - Always check the withdraw fee, and minimum withdraw amount at both ends of the transaction when moving coins around.

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