Whilst adding some Crypto to my portfolio this week, I noticed some disparities between the different exchanges. What is more important to you? A good spread or lower fees? What are the factors that make a difference? Let's take a look at 2 of the most popular exchanges, CDC (Crypto.com) and The Kraken.
First I tried to buy €100 on CDC and I got the following offer:
So for my €100, I would get 0,002787 BTC. If we compare that to The Kraken, you would only get 0,00266025 BTC. That is 0,000127 BTC more on Crypto.com than on The Kraken. Here is the screenshot from The Kraken:
Despite having a better spread of €35553 vs €35819 (+0,7%) on The Kraken, because of the fees amounting to 5,42%, you end up with less Bitcoin. The difference is 4,5% of your original €100 investment. Perhaps this is because it is just a small amount of €100. What about if you buy a larger amount? Which is better?
Here is the transaction on CDC:
Here you can see that you would get 0,02774 BTC for €1000 on CDC. However, on the Kraken, you would get only 0,02669069 BTC. That is 0,001049 BTC less on The Kraken! That is approximately €37 less Bitcoin you would receive or 3,7% of your original €1000.
The results surprised me quite a bit.
Key Takeaways:
- CDC has a higher spread ~0,7% on Bitcoin than The Kraken
- The Kraken charges around 5% fees on your purchases
- For smaller purchases, the impact is higher at 4,5% vs 3,7% for larger purchases.
Thanks for reading, where do you buy your Crypto and why?
