The Bitcoin and Ethereum transaction costs are relatively expensive. So if you send your BTC, ETH or Fiat from one exchange to another, you may be paying money that you could actually save yourself. I’ll show you how to do it!
The Ripple (XRP) and Zcash (ZEC) transaction costs are significantly lower compared to the Bitcoin and Ethereum transaction costs. While a Bitcoin or Ethereum transaction costs several USD, you only pay a few cents for an XRP or Zcash transaction. So if you convert your ETH or BTC into another crypto currency on one exchange and use the other crypto currency for the transaction on the other exchange, you can save a lot of money in the long term!
Use XRP (Ripple) or Zcash instead of Bitcoin or Ethereum
According to the chart above, a Bitcoin transaction currently costs around USD 2.50. However, many exchanges charge high fees for a Bitcoin transaction. Binance or Kraken, for example, charge 0.0005 BTC (23 USD at the current rate) for a Bitcoin transaction.
However, the withdrawal fees for Zcash or Ripple (XRP) are significantly lower.
- On Kraken it is just 0.02 XRP (2 cents at the current XRP rate) for Ripple and only 0.001 ZEC (14 cents!) For Zcash.
- On Binance, the fees are almost identical if you are not using the Binance Smart Chain.
For example, if you want to send 100 euros from one exchange to the other, you pay 10-20 USD for a Bitcoin transaction! With an XRP or Zcash transaction, on the other hand, only a few cents.
However, the conversion into another crypto currency usually costs something. As a rule, most exchanges charge between 0.1% and 0.3% for this. So if you swap Bitcoin or Ethereum worth 100 USD for XRP or Zcash, then you pay between 0.10 USD and 0.30 USD again. However, twice because you have to convert the coins on every exchange. In spite of all this, the transaction will still cost you less than 50 cents together!
So even if you only want to send Fiat between the exchanges, it’s worth it! However, if the conversion fee (e.g. 0.2%) is more expensive than the transaction fee, then it is not worth it. In this example, however, you would have to send Bitcoin worth USD 10,000.
Not only save money but also time
But not only the transaction costs are significantly lower with XRP and Zcash, but also the transaction time. While with a Bitcoin transaction you sometimes have to wait hours until the money is in the wallet, with XRP or Zcash it only takes a few seconds to a maximum of a few minutes. So you can save not money, but also a lot of time.
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