How do I convert Ethereum to Bitcoin without hidden fees?

Speaking of the reasons for exchanging one currency to another like BTC to ETH — it might be because one currency has more trading possibilities, has any significant features and maybe generally speaking people can exchange currency to expand their wallet portfolio. Taking ETH and BTC as an example — they’re both decentralized (yet not really, regarding Ethereum) cryptocurrencies. They both use blockchain technology, they’re traded using cryptocurrency exchange services and stored in different kinds of cryptocurrency wallets.

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Ethereum to Bitcoin without hidden fees

As it’s been discussed before every platform has its pricing on an exchange, just like their rate. Some platforms might tease newcomers with zero fees, yet if it’s too good to be true, then it’s highly possible that it’s not true. There are several ways to get the math right and to understand whether you will lose money investing with a certain platform and their hidden fees or won’t:

• Wallet fees
• This point is a bit complicated because there’s no necessity in using a specific wallet for transactions and storing crypto. Because creating a wallet and executing transactions with currency can be done on the blockchain. Some people that have enough knowledge in programming can (and almost surely will) access using the blockchain in that way by themselves. Yet it shouldn’t be a restriction for accessing and using the cryptocurrency, so there were developed wallets with way more user-friendly interface. But updating and developing these wallets isn’t free, so there might be really small fees that are charged after making a transaction. However, some open-sourced wallets don’t have such a fee.
• Network fees
• Every platform has the fees that keep it up and running and also, because of the decentralization of the cryptocurrency, a person needs to pay network fees for using the blockchain. That fee is paid to the miners and called transaction fees. It’s possible, however, to choose to pay the lowest possible fee, yet it might be even worse than paying more. First of all, with the lower transaction fee comes the longer waiting time. Second of all, the miners themselves are interested in solving the block with higher fees. Therefore the priority of the transaction is set by the value of the fee that the person would pay. These fees are usually not that big, if, say, a person sends a big amount of money. But the smaller transactions might lead to more significant fees.
• Fees hidden in rates
• Exchange platforms do have one trick that might confuse those who aren’t acquainted with the crypto well enough. Most of the exchange platforms charge for an exchange person because they’re acting as a middle person that has some available currency. They might propose that they have no fees whatsoever, yet here’s a trick — they might not have them, but they sell at a higher rate. Also, platforms can cash out on the need for an instant trade — for example, the transaction fee for an instant one might be up to 28 times more than the exact fee for a usual trade.

Ethereum ETH to Bitcoin BTC price details

Ether value, just like Bitcoin value, is volatile. Therefore, it’s never static and changes quite rapidly, influencing not only the value itself but also exchange rates on different platforms. The latter topic and the topic of choosing the best crypto exchange is tackled in our How-to. However, some points can let a person understand, why does the price of the crypto change:

• Media influence
• The media can do miracle things sometimes — both in a good way and a bad one. Sometimes the right spotlight on a new or uprising crypto can make it possible for the value to skyrocket, because of all the people buying it and investing in it. However, the opposite has the same probability. If there’s some drama or a scam or anything else negative in which the currency is involved, people will desperately try to sell the currency out before its price drops.
• Liquidity
• In terms of crypto, it means the degree to which something can be sold or bought in the shortest time and without affecting the stability of the price. In other words, it means how quickly something can be converted into cash, but from the perspective of cryptocurrency that mostly means how one currency can be converted into another. The higher the liquidity, the quicker the transactions, the stability of the market is higher, and the prices are established fairly. The liquidity itself can become greater of, for example, there’s a higher number of crypto exchanges or it’s traded in higher volumes.
• Other
• It’s also important to mention that different platforms do have different prices regarding exchange pairs. Mainly it’s because every platform has its volume of currency traded. Not every platform might have Bitcoin as their number one traded currency, for example. Therefore, the price depends on the demand and supply of the users of the exchange platform. But it’s mostly relevant to the market with the greater exchange volumes on a platform.