Deciding which trade to purchase BTC from (and promote at a future date) I puzzled if I may select one with the very best charges for purchasing and a separate one with the very best charges for promoting and if that is even allowed.
Certain, however you will have to make use of the blockchain to switch the bitcoin from one trade to the opposite.
It’s as I learn in different threads however there appeared to be a payment for this sort of operation. I assumed if you purchased BTC from an trade it might be precisely the identical BTC (not a wrapper instrument) as when you purchased it from every other trade. How may there be further charges if the exchanges themselves cannot inform the place the BTC in your pockets got here from?
There is a payment for executing a transaction on the blockchain. Exchanges sometimes impose this as a “withdrawal” payment. They do not care the place you are withdrawing from or the place your deposits come from. However these transactions do have a payment related to them.
I additionally battle to know why there can be charges to switch BTC from one pockets to a different. A pockets AFAIK simply shops non-public keys, anybody in possession of these keys (like your self) may simply register in one other pockets and use that non-public key to switch the BTC to your second pockets. I am positive there is a gap in my reasoning someplace.
Proper, so to switch the bitcoin from one pockets to a different pockets, the non-public key that authorizes their switch must be modified from one custodied by one pockets to 1 custodied by the opposite pockets. Solely the blockchain can do this.
It’s unimaginable for an trade to assign separate non-public keys to each person to reduce charges. The truth is, such a setup would maximize charges as a result of each switch of bitcoin balances between customers on the identical trade would end in a blockchain switch.
For instance, say I deposit one bitcoin, then promote it to Alice who sells it to Bob who then sells it to Charlie. If the non-public key securing that bitcoin needed to change every time, then every of those exchanges would require processing a transaction on the bitcoin blockchain. That might be way more costly than executing blockchain transactions solely on withdrawals.
