How to Buy Tez With a Card
If you want to buy XTZ, do it reasonably. Here are five ways to buy tez with a card, all fees considered.
Find out who offers the best conditions for buying tez, and who is better off without your money.
How we calculated
Exchanges profit from cryptocurrency transaction fees. Those fees are included in exchange rates or buy/sell prices if you’re a trader. As a result, there is a spread, which is the difference between buying and selling prices.
The simplest way to assess the profitability of a cryptocurrency purchase is this:
- Calculate the ‘fair’ exchange rate, i.e. arithmetical mean of buy and sell prices.
- Subtract the price the intermediary offers cryptocurrency at.
- Divide the difference by the ‘fair’ rate and multiply by 100%.
The result is the percentage the buyers lose with the given seller. Then you should add the trading fee in case it’s calculated separately.
Imagine you want to but tez for USD. Let’s check out how much we lose.
Buying tez at Binance
Binance is one of the most popular exchanges with a built-in p2p market and an option to buy crypto with a card. Still, one can only buy tez on the spot market with USDT or BUSD stablecoins.
So, first, you buy USDT with USD at the offered rate of 0.996 USDT for $1. The first loss is therefore 0.4%.
The trading fee at the spot market is 0.1%. The average spread is $0.0015, so this is negligible. So there is only the withdrawal fee that remains, which is 0.1 tez.
Thus, if you buy tez at Binance, you lose 0.5% of the amount + 0.1 tez. That doesn’t include bank fees for the transaction to the seller.
Buying tez at an exchange point
Ukraine’s and Russia’s crypto enthusiasts often use Bestchange, an aggregator of offerings by minor exchange points who can sell tez for USD, rubles, or hryvnias.
This time, an exchange point offers one to buy tez for USD at the price of $3.6. For comparison, Binance offers $3.2.
The best rate we found was $3.01. The spread was 17%.
The fee is 8.5%, excluding the bank commission. As most of those exchange points focus on former Soviet republics, it’s also reasonable to calculate the price for rubles. The buying price is 244 rubles for 1 tez, the selling price is 226.70 rubles.
The exchange spread here is 7.5% for rubles. The buying fee is 3.75% excluding the bank commission.
Buying tez at the atomic swap exchange Atomex
Atomic swap exchanges move assets between blockchains. You can directly exchange BTC for KolibriUSD or USDT for tez. Atomex even offers one to but tez for USD using their bank card. The fee, in this case, would be 5%. You cannot sell tez for fiat, so we cannot calculate the spread.
Say, we have already bought USDT at Binance and paid the 0.4% fee. Now we exchange it for tez via Atomex. The buying price is $3.24.
The selling price is $3.13, so the spread is 3.4% and the service fee is 1.7%. Combined with the USDT buying fee, we eventually have to pay 2.1%.
So where to buy tez?
Here are the ways to buy tez listed from lowest to highest fees.
- At Binance for USD: 0,5% + 0,1 tez.
- At Atomex for USDT: 1,7%.
- At an exchange point for rubles: 3,75%.
- At Atomex for USD: 5%.
- At an exchange point for USD: 8,5%.
Binance offers the lowest fees but requires KYC. If photographing your ID isn’t an option but linking your banking card to crypto is, you can buy tez for USD at Atomex or exchange points (for rubles).
If you have USDT or other popular stablecoins, you can anonymously exchange them for tez at Atomex.
But please don’t you buy tez for USD at exchange points: 8.5% is clearly too much.
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