Which crypto wallet has the lowest fees?
Crypto wallets are an essential tool for buying, trading and selling NFTs. But how much do they cost? And which crypto wallet out here has the lowest gas fees? Lets' find out!
- April 22, 2022
Knowing how to buy cryptocurrencies came to an unambiguous and obvious conclusion: the absolute leaders among them are exchangers and exchanges. And if the former have always been the easiest and most convenient way, then exchanges are the most profitable. But is it so? Spoiler: not really.
Today we offer to talk more substantively. We will identify the fundamental differences in the work of exchangers and cryptocurrency exchanges, compare prices, compare fees. And most importantly, let’s dispel a widespread myth that you can make a cryptocurrency transaction only on an exchange with maximum profit and minimum commission.
Working Principle: Exchanger VS Exchange
To understand the difference between exchanging on a cryptocurrency exchange and through an exchanger, first of all, it is necessary to highlight the fundamental differences between these two platforms.
Exchanger
The trading operation looks as follows: you send funds to the company’s account and receive the desired digital currency in return. That is, the cryptocurrency exchanger here acts as intermediary service. Exchange rates are formed on the basis of quotes on the world’s leading exchanges.
Exchange
The exchange of cryptocurrencies takes place in a very different way: all trading operations are carried out directly between the bidders, with individuals. A participant who wants to buy a particular currency places a sell order for another bidder. Whoever is satisfied with the terms, buys the currency at the posted price.
Prices, Exchange Rates, Commissions
Cryptocurrency exchangers offer really good rates for cryptocurrencies when they buy them from people. This is due to the fact that in this situation there is a strong competition between online services. And this leads to the fact that popular currencies through exchangers can be bought at a better rate (compared to exchanges).
When buying cryptocurrency on an exchange or through a cryptocurrency exchanger, every buyer faces the need to pay three types of fees:
Payment service commission to transfer hryvnias to the account of the exchanger / exchange.
Exchange commission for hryvnia exchange to cryptocurrency (platform commission).
Commission on the withdrawal of cryptocurrency to the purse of the buyer.
Despite the widespread belief, the total commission on exchanges is not always lower than in exchangers. Yes, there are indeed exchangers that charge a very high percentage for their services. We can’t vouch for everyone, but one thing we know for sure: there are online exchangers that are definitely worth your attention.
Not only in terms of simplicity, speed, convenience, but most importantly – benefits. And we are ready to prove it on the example of real research.
Coinbase Wallet is part of the ecosystem of Coinbase UK, Ltd, which also includes the cryptocurrency exchange GDAX. The service provides the ability to exchange cryptocurrency for fiat money in 32 countries around the world. Cryptocurrency purchases are available by bank transfer, credit or debit card, and PayPal (US only). In Europe, payments are processed through the Estonian bank AS LHV Pank.
Coinbase was launched in 2012, based in San Francisco and registered in the UK. The founders of the service are Brian Armstrong, formerly a software developer at AirBNB, and Fred Ehrsam, formerly a Goldman Sachs e-market-making platform manager.
Closed source code. Private keys are stored centrally. HD is not supported. Centralized validation technology is used for transaction validation.
Two-factor authentication required.
Coinbase is available as a website, as well as a mobile app for Android and iOS. Bitcoin purchase for fiat money is available. Multi-Signature support.
$0.99 to $2.99 plus 0.50% spread per trade, 3.99% for credit card purchases
MetaMask is a web wallet designed to manage, receive and transfer Ethereum and ERC-20 tokens. It works as a browser extension, compatible with Chrome, Firefox and Brave browsers. MetaMask currently has over a million active users. This really shows how widespread it is.
MetaMask was created by Aaron Davis and Dan Finley in 2016. The main goal of creating MetaMask was to make Ethereum easier to use. Since the launch, the development team has included very experienced developers, including Christian Heria, Frankie Pangilinan, Kevin Serrano, Thomas Huang, and James Moreau. The company is headquartered in the United States.
This wallet has no access to your personal information. However, the same cannot be said for the browser you are using. So because you need a browser to use the wallet, and the browser collects data, MetaMask is in some sense implicitly not anonymous.
As with other (hot) web wallets, there have been concerns about the security of this wallet. However, the wallet has not yet been seriously hacked since its release in 2016.
The wallet’s security is based on Hierarchical Deterministic (or HD for short) settings. This provides a good backup of user accounts. To recover lost accounts, users can use the initial 12-word passphrase created during installation. In addition, if you use a secure password, you can use this initial number for encryption.
A service fee of 0.875% is automatically factored into each quote, which supports ongoing development to make MetaMask even better.
Trust Wallet was launched in 2017, the founder Victor Radchenko, previously co-founder of TruckerPath, previously worked on Symphony, Seedbiz. The second project member is Mikola Radchenko, Full Stack JavaScript Software Engineer.
Open source code. Private keys are controlled by the user and don’t leave the device with the installed wallet. No HD. Authentication in the app does not allow access to the wallet through a locked device.
There is no identification of any kind, anonymous wallet.
Trust Wallet is available for Android, iOS users. ERC20, ERRC223, ETH, ETC, Callisto tokens are available for use. ShapeShift is integrated to exchange cryptocurrencies within the wallet. Exchange operations with fiat money are not supported. No Multi-Signature support.
Trust Wallet stands out among its peers because of its zero-fee model . Still transactions fees can be as high as $5 to $10, especially for small transactions. Fees vary greatly from blockchain to blockchain.
Coinomi was launched in 2015, based in London. George Kimionis is the CEO of the project, founder and manager of IT startups Certoid and BetKernel, and previously worked at Schlumberger and Royal Bank of Scotland. John Yegutanis – Chief developer, previously held similar positions at NuBits and map2app.com.
Open source. Private keys are controlled by the user and do not leave the device with the installed wallet. HD supported. SPV technology is used to verify transactions.
No identification of any kind, IP addresses are hidden, providing enhanced anonymity.
Coinomi is available for Android, iOS users. Several dozen cryptocurrencies are available for use. ShapeShift is integrated to exchange cryptocurrencies inside the wallet. Exchange operations with fiat money are not supported. There is no support for Multi-Signature.
The default price of 1 gas in Coinomi is currently at 0.00000002 ETH (20 “Gwei”) so a normal send transaction will cost approximately 0.00042000 ETH.
The service, based in Toronto, Canada, was launched by Anthony Di Iorio in 2016. Anthony Di Iorio, manager and founder of Kryptokit (a bitcoin wallet launched in 2013) and Decentral, digital director of the Toronto Stock Exchange and co-founder of Ethereum, is a significant figure in the cryptocurrency community.
Jaxx was hacked in June 2017, over $400,000 in various cryptocurrencies was stolen. However, Jaxx & Decentral CTO Nilang Vayas said in a company blog post that, unlike hardware wallets, Jaxx is not designed for long-term storage of crypto assets. Vayas recommended that users only store small amounts of funds in the Jaxx wallet . Jaxx’s source code is open source except for the user interface. Private keys are controlled by the user and do not leave the device with the wallet installed. HD is supported. Centralized validation technology is used to verify transactions.
The philosophy of the service implies absence of any identity and interaction with banks.
Jaxx is available on most popular platforms: Microsoft Windows, Linux, Mac OS, Android, IOS and as an extension in Google Chrome browser. Several cryptocurrencies from the top 20 by capitalization (Bitcoin, Ethereum, Litecoin, Dash, Ethereum Classic, Zcash) and a set of other coins are available for use. The platform for easy exchange of all major blockchain assets ShapeShift is integrated into the wallet. Exchange operations with fiat money are not supported. There is no Multi-Signature support.
On Jaxx, there are a lot of hidden fees. We are aware of application and transaction costs, but the website is enigmatic about the fees themselves. There’s no need to be concerned about this with eToro because, as a licensed platform, it has no hidden costs and what you see is what you get.
The service was launched in 2016 by JP Richardson (CTO) and Daniel Castagnoli (Creative Director) and is based in Nebraska, USA. JP Richardson is a Blockchain developer and has 196 publicly published libraries since 2012. Daniel Castagnoli is a design professional who has previously done work for Apple, BMW, Disney, Louis Vuitton and Nike.
The wallet is a fairly new player on the market, the code is partially open. Private keys are controlled by the user and do not leave the device with the installed wallet. HD is supported. SPV technology is used to verify transactions, which is the most secure method after the Full Node is installed. It is worth noting that Full Node technology is usually not used in multi-currency wallets, as this would make it much more difficult to use, especially on mobile devices.
The service philosophy implies the absence of any personal identification and interaction with banks.
At the moment Exodus is only available as a desktop application on Microsoft Windows, Linux and Mac OS, a mobile version for IOS and Android is in development. About three dozen popular cryptocurrencies are available for use. Exodus has implemented an instant exchange of cryptocurrencies within the wallet using ShapeShift. Exchange operations with fiat money are not supported. There is no Multi-Signature support.
Variable spread and network fees.
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