Hello! Hope everyone is staying safe and healthy through this Covid-19 nonsense!
If you are an US citizen or a permanent resident you should be receiving your $1200 stimulus from the IRS soon. I find it funny that they are acting like they are giving us this money when it is money that they they took from us via taxes in the first place but that's a different story.
With pretty much every adult in the US is getting $1200 and Child getting $500, it is hard to predict what the economic effect will be. Could it be hyperinflation? We won't know until later but you can try to protect yourself by buying some cryptocurrency.
In this article, I will explain the cheapest way I found to go from the $1200 direct deposit from the IRS in your checking account to your favorite crypto.
The most convenient fiat on ramp in the US in my opinion is Coinbase Pro. You can attach your bank account and do a ACH(Automated Clearing House) pull from it to fund your account for free. Don't do a wire transfer because they will charge you a $10 fee.
Now here is a problem. Their trading fees are overly expensive. They just raised their fees to 0.5% for both taker and maker last October. That trading fee is 5 times what Binance charges.
Coinbase Trading Fee:
Binance Trading Fee:
Source: https://www.binance.com/en/fee/trading
Now, here is a neat little trick I found. When you convert your USD balance on Coinbase Pro to USDC, Coinbase's own stable coin pegged to the USD, your transaction fee will be waived. Here is a quote from Coinbase themselves.
When converting from USD to USDC only, Coinbase waives the fee for transactions made with a US bank account or USD Wallet. Purchasing USDC with a credit or debit card will incur the standard fee for each transaction.
So, why not move your $1200 to Coinbase Pro, Exchange it for USDC, and then, move it to your favorite exchange (Like Binance) then exchange it to your favorite Crypto there?
One warning though, just make sure you pay attention to the Withdrawal fee on Binance. Depending on how much you are moving, it might be cheaper to just use Coinbase where there are no withdrawal fees. Also, don't use Binance.US that is geared towards US customers because Withdrawal fees are higher on there. Use a VPN and get on the original Binance site to avoid that nonsense. Here is the list of the Withdrawal fees. https://www.binance.com/en/fee/deposit
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