Deciding which change to purchase BTC from (and promote at a future date) I puzzled if I might select one with the very best charges for getting and a separate one with the very best charges for promoting and if that is even allowed.
Certain, however you will have to make use of the blockchain to switch the bitcoin from one change to the opposite.
It’s as I learn in different threads however there appeared to be a price for this sort of operation. I believed whenever you purchased BTC from an change it could be precisely the identical BTC (not a wrapper instrument) as for those who purchased it from another change. How might there be additional charges if the exchanges themselves cannot inform the place the BTC in your pockets got here from?
There is a price for executing a transaction on the blockchain. Exchanges usually impose this as a “withdrawal” price. They do not care the place you are withdrawing from or the place your deposits come from. However these transactions do have a price related to them.
I additionally wrestle to grasp why there could be charges to switch BTC from one pockets to a different. A pockets AFAIK simply shops personal keys, anybody in possession of these keys (like your self) might simply register in one other pockets and use that personal key to switch the BTC to your second pockets. I am positive there is a gap in my reasoning someplace.
Proper, so to switch the bitcoin from one pockets to a different pockets, the personal key that authorizes their switch must be modified from one custodied by one pockets to 1 custodied by the opposite pockets. Solely the blockchain can try this.
It’s inconceivable for an change to assign separate personal keys to each person to attenuate charges. Actually, such a setup would maximize charges as a result of each switch of bitcoin balances between customers on the identical change would lead to a blockchain switch.
For instance, say I deposit one bitcoin, then promote it to Alice who sells it to Bob who then sells it to Charlie. If the personal key securing that bitcoin needed to change every time, then every of those exchanges would require processing a transaction on the bitcoin blockchain. That may be far more costly than executing blockchain transactions solely on withdrawals.
