crytocurrency

Be Aware Of Fees Charged By Bitcoin Exchanges

Personally, I think Coinsquare is a great bitcoin exchange because there is no hidden fees in regards to deposit and withdraw funds and to buy and sell crytocurrencies.  In addition, Coinsquare’s customer service, I think, is way more superior than some of the bitcoin exchanges out there.  However, Coinsquare has a limited selection of crytocurrencies available.  Thus, I realized I have to sign up an account with another bitcoin exchange in order to invest in other crytocurrencies such as Ripple and Bitcoin Cash.

Pursing this further, I have signed up for accounts on Kraken and CEX.IO before the holidays.  Both bitcoin exchanges allow Canadians to buy crytocurrencies, but I have to wire transfer (it is the only method and I have to go to my bank to do so) my money to Kraken whereas I could use my credit card to fund my account on CEX.IO.  Since both Kraken and CEX.IO allow me to buy Ripple and Bitcoin Cash, therefore I chose CEX.IO because it is easier and faster.

So I did two deposits using my credit card and all I know was CEX.IO would charge me a commission fee of 3.5% + $ 0.25.  Moreover, my credit card company would have to convert the value from American dollars (that’s the currency CEX.IO uses) to Canadian dollars.  That were where problems began.

I checked my credit card balance online yesterday and these two transactions showed up:

Screen Shot 2017-12-29 at 12.56.16 PM

I was like, “What the f***?” So I called the credit card company and asked what is going on.

So apparently when I did my first deposit, the merchant marked the transaction type as purchase (as you can see below).  That was why I was charged the cash advance fee on December 27.  

Screen Shot 2017-12-29 at 8.55.28 PM

Note: I do not get why I was charged for this fee since I deposit money into a bitcoin exchange site not a gambling site.  Maybe they think investing in crytocurrency is gambling?

Pursuing this further, the merchant marked my second deposit as cash advance (WTF RIGHT?!?!?!?!?!)

 

Screen Shot 2017-12-29 at 8.54.44 PM

As a result, I had to pay my credit card immediately so I will not be paying interests just because of this stupid transaction.

I wanted to contact CEX.IO to ask why the first and second deposits were dealt differently, however I have decided not to as I figure their ticket time would be a few days long.  In addition, these charges are pretty minute if you think about the returns you would get from just trading for a few days.

Ultimately, my message is…

Please be aware of any additional fees that bitcoin exchanges would charge you.  Make sure you manage your deposits properly to minimize the amount of extra fees you have to pay.

 

So did you have the same problem when you deposit your money into your bitcoin exchange account?  Please leave your comments below! Catch you on the flip side!

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