Being in crypto is all about taking an intelligent view towards money. We know that Bitcoin (BTC) is the future, both as a store of value and also as a means of payment, as layer 2 solutions such as the Lightning Network begin to flourish. It is, therefore, vital that every cryptocurrency user makes sure that they always obtain the most competitive price for every service. While millions of crypto users convert fiat to crypto using a debit or credit card, this is by no means a low-cost choice.
Paying the overhead: Converting fiat to crypto
According to The Motley Fool, people who are using credit cards to pay for crypto purchases may be subject to at least 7% in extra fees. For example, if you were to purchase $1,000 in Bitcoin using a credit card, you could pay up to $70 in fees if your card issuer was to treat the transaction as a cash advance, on top of the standard processing fees and charges.
While cryptocurrencies are globally accessible, one of the biggest barriers to mainstream adoption of cryptocurrencies is not the acceptance of digital assets but, rather, bridging the gap between the crypto and fiat worlds. The failure to do so has meant that the majority of individuals have lacked the tools required to engage with digital currencies or have been met with exorbitant costs in interacting with the ecosystem.
An investor or user of cryptocurrency can execute a wide variety of cryptocurrency transactions, each of which comes with its own cost structure. The cost of any given crypto transaction can change regularly and on short notice, which means users must be diligent on checking those fees — an action that is time-consuming and less than ideal when moving in and out of positions quickly.
We live in an age where so-called disruptive fintech services and applications, such as the digital banking services app Revolut, are creating a seamless banking experience. Still, when it comes to converting fiat to crypto, users are being stung by expensive clunky solutions more akin to cashing in chips at a casino than purchasing the future form of money.
Related: ‘I’ve never paid with crypto before’: How digital assets make a difference amid a war
Exchanges combatting on-ramp fees
Exchanges such as Bitfinex are integrating innovative solutions into their platforms to make converting fiat into crypto cheap and efficient. In a collaboration with OpenPayd, a digital provider of banking and payment solutions, Bitfinex enables its users to transfer fiat…
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