Read the story here. Advertise at Before It's News here.
Profile image
By FalkenBlog (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Median Anonymous Crypto Exchange Costs 1.5%, Sometimes 100%

% of readers think this story is Fact. Add your two cents.

Gemini’s Order GUI

Many of the big exchanges like Gemini or Coinbase do not have lots of alt-coins, and if you don’t have an account the process of creating one can take days if not weeks. They also can make it hard to place orders, as Gemini’s default trade mode is incredibly infantile. Further, these exchanges put up significant hurdles for market makers, and the only thing that prevents collusive tactics is free entry. Regulators are happy to prevent competition if they can make sure they have control over who gets to trade what.  Nonetheless, when you can trade directly the markets are pretty tight for small size, under 0.1% bid-ask spread for trading 1 bitcoin.

Coin shifters can be used anonymously and instantly for most traded crypto coins, which is very convenient. Thus I did not include ShapeShift, which regrettably, though understandably, yielded to regulatory authorities last year and requires a full KYC (regulators gave them no choice).

I sent bitcoin amounts of between 0.3 and 1.0. The costs were around 1.5% for the major shifters. While CoinSwitch does seem significantly better, around 1.05%, there was some significant variability, so this could just be sampling error around an equilibrium cost of 1.5%. Either way, you should expect to pay–all in–much more than the 0.5% often advertised. This really isn’t so bad, because Gemini charges 1%, and it would be nice if one of these shifters actually said that their total cost is 1.5%, because it would signal honesty.

Cost of Trading BTC to ETH
BTC amounts 0.3 to 1.0. Cost here is defined as the difference between the market price at the time I sent coins and the implied price from the actual number of coins I received.
CoinShifter count Hours Cost stdev
CoinSwitch 4 1.5 1.05% 0.40%
Changelly 5 1.1 1.39% 0.17%
MorphToken 4 2.3 1.47% 0.05% 2 0.7 2.22% 0.29% 1 inf 100%

Transactions take about 1-2 hours, and depends on blockchain traffic as expected. was quick, but they cost significantly more than alternatives, and they only allowed up to 0.3 bitcoin per transaction.

Many post explicit fees, usually around 0.5%, but these are really a distraction because most of the money brokers make is not explicit. This often confuses people, as when E-Trade or some other broker tells customers they pay only 10$ a trade (or even zero) because most of the cost of trading is in the bid-ask spread. A broker either has specialists making markets off of their customer flow or has sold their flow to specialists making markets. In equity markets, while I was trading at a large hedge fund and analyzed over a billion USD in trades, I found the explicit fees were about 1/4 the cost of trading on small orders (those without market impact, ie, about the size of the top-of-the-book size).

The only way to see how much an exchange charges is to compare the average execution price to the market price at the time of the order, as this combines the explicit and implicit fees. Once you send a coin to a coin shifter and it appears on the blockchain, the shifter can be confident it is getting that coin because the size of these orders is usually below 2 BTC, which is too small to be worth engineering a malicious double-spend. Thus, at that time the shifter can then make the offsetting market trade certain they are hedged, and so that is the time I use to benchmark my fills. was the only one to simply keep my bitcoin. has acknowledged my trade, and I have checked in every couple of days to inquire on its status, and they keep telling me the servers are undergoing maintenance. It’s been over two weeks, and there’s no message on their main page about this issue. highlights the importance of trust on the blockchain. Though anonymity is an important crypto principle, reputation is still important. It is costly to learn whether someone is trustworthy, as invariably trades on the blockchain are not done via secure atomic swaps, but rather, you send bitcoin (etc), and hope they send something back. The process of learning if they are scammers takes a lot of time, and occasionally you lose all your money.


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Humic & Fulvic Liquid Trace Mineral Complex

HerbAnomic’s Humic and Fulvic Liquid Trace Mineral Complex is a revolutionary New Humic and Fulvic Acid Complex designed to support your body at the cellular level. Our product has been thoroughly tested by an ISO/IEC Certified Lab for toxins and Heavy metals as well as for trace mineral content. We KNOW we have NO lead, arsenic, mercury, aluminum etc. in our Formula. This Humic & Fulvic Liquid Trace Mineral complex has high trace levels of naturally occurring Humic and Fulvic Acids as well as high trace levels of Zinc, Iron, Magnesium, Molybdenum, Potassium and more. There is a wide range of up to 70 trace minerals which occur naturally in our Complex at varying levels. We Choose to list the 8 substances which occur in higher trace levels on our supplement panel. We don’t claim a high number of minerals as other Humic and Fulvic Supplements do and leave you to guess which elements you’ll be getting. Order Your Humic Fulvic for Your Family by Clicking on this Link , or the Banner Below.

Our Formula is an exceptional value compared to other Humic Fulvic Minerals because...


It Always Tests at 9.5+ pH

Preservative and Chemical Free

Allergen Free

Comes From a Pure, Unpolluted, Organic Source

Is an Excellent Source for Trace Minerals

Is From Whole, Prehisoric Plant Based Origin Material With Ionic Minerals and Constituents

Highly Conductive/Full of Extra Electrons

Is a Full Spectrum Complex

Our Humic and Fulvic Liquid Trace Mineral Complex has Minerals, Amino Acids, Poly Electrolytes, Phytochemicals, Polyphenols, Bioflavonoids and Trace Vitamins included with the Humic and Fulvic Acid. Our Source material is high in these constituents, where other manufacturers use inferior materials.

Try Our Humic and Fulvic Liquid Trace Mineral Complex today. Order Yours Today by Following This Link.

Report abuse


    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Load more ...




    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.