TIL, it costs $13 to send $20 to your #coinbase wallet. And if you want to sell, it costs $427 to sell one BTC. That is 1.5%, which is on level with management fees of an expensive mutual fund. Just bear this in mind if you're ever tempted to invest in #crypto
🧵 additionally, when you sell on Coinbase they include something called slippage/spread, which means if you buy #BTC on their exchange, it'll be a little more than market rate, but if you sell it'll be about $300 less than market rate (which presumably they also pocket). So your total cost paid to #Coinbase on the sale of one BTC including fees and "spread" is about 2.5%, exceeding the management fees all but the most expensive managed mutual funds. #crypto#investing
@n0body
These are astute remarks, and correct, but I would argue the comparison doesn't quite fit.
Mutual funds charge an annual management fee, so you're paying that cost every year you hold. By contrast, crypto costs nothing to hold outside of the up front cost of a hardware wallet ( less than $100), and maybe a home node if you're really dedicated.
Further, a 1-3% spread is extremely expensive for an asset class you expect to appreciate or yield at maybe 5-6% a year (less for bond funds). Crypto goes up or down by 80% in a year, at which point that 3% spread you pay up front is pretty diminutive compared to any capital gains or losses.
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