Sending coins quickly and with low transaction fees can be an issue. At this point, most people involved in cryptocurrency have experienced high fees and long delays in transferring assets to and from wallets as well as exchanges. Although rising fees are never pleasant, the larger issue for many investors are the long delays due to congested networks.
There are times when the rapid transfer of coins is critically important. If you hold your coins in a private wallet or in cold storage, you may need to use those assets to take part in a promising ICO .With the frothy and competitive ICO market time can be of the essence. If you transfer your funds via a backlogged Ethereum or Bitcoin network, the funds may take many blocks to process which could cost you your ability to participate in the ICO.
If you hold your funds on an exchange and your confidence in the exchange’s ability to keep your coins secure has dropped, then getting your coins off of the exchange as fast as possible is important. Or perhaps you see an entry for a position in an altcoin that is not listed on your current exchange. In this example moving your coins to fund that trade on a different exchange is critical, and the amount of time it takes to transfer your funds could hurt your entry position or eliminate the opportunity to take advantage of the trade all together.
With Bitcoin and Ethereum as the dominant coins in today’s market both experiencing long transfer times and high fees, what can you do? The good news is that you have a few options.
1) Set Your Own Fees
The majority of private wallets allow you to set your own fees when sending coins. If you increase the fee you are willing to pay you can have your transaction ‘prioritized’ by miners. You can pay more to be included in the next block or an earlier block. If time is on your side you can do the opposite, and reduce your fee. If you set the fee too low you may wait for a very long time and appear to be a part of the ‘spam’ attacks which have been hurting the Bitcoin network since November. The middle ground of a fair fee should result in your transaction processing within 2-10 blocks, depending on traffic.
2) Use an Alternative Coin
Currently there are over 1,000 altcoins. Some boast large differences to Bitcoin. With the current state of Bitcoin and Ethereum, some of these coins currently offer far faster transactions and many are far cheaper. A great alternative to Bitcoin and Ethereum is NEO. NEO currently requires no fee to send the coin, and the coins arrive very quickly at whatever address you send them to. NEO is a major coin and is supported on a vast majority of exchanges. Therefore it fills the role as a coin useful for exchange rather well. Additionally many ICO’s are now accepting funding via NEO and so you may be able to avoid exchanging the NEO for Bitcoin or Ethereum when delivering your commitment to an ICO.
These are two things to consider when looking to reduce or eliminate transaction fees, and also increase the delivery speed if your coins. If you primarily use Coinbase as your on ramp from fiat to cryptocurrency, your best option may be to convert your US dollars into Litecoin or and send Litecoin off of Coinbase instead of Bitcoin or Ethereum. This will be the fastest and most trustworthy way for Coinbase users to convert from US dollars to cryptocurrency and then transfer those funds off of Coinbase using Litecoin.
Whenever you are making a trade or shifting funds around to take advantage of a market opportunity, be sure to evaluate the trade thoroughly and do your own research. To manage your emotions as a trader, check out our article on the topic here.
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