Are you on the hunt to save fees and buy cryptocurrencies the cheapest way? With the adoption of the Polygon (MATIC) network, now various cryptos are available at fees under a dollar. This is quite a revelation when Ethereum fees can be in the tens or hundreds of dollars.
Certain tokens exist on multiple blockchains. The challenge is that they are not automatically interchangeable. There needs to be a mechanism to bridge from one blockchain to the other. Some exchanges and wallets provide this feature by allowing you to select which underlying blockchain you want to send your tokens to. The question is, does a DEX have such a feature? Also, does the receiving wallet have the capability to accept the same token coming from different blockchains? Spoiler alert (The Celsius Network wallet has such a capability for certain tokens).
Sure, we could do things the easy way and purchase the token we want on a centralized exchange. Follow this with a transfer to our destination wallet.
But this process has some inherent issues. Issues = costs!
- Some exchanges allow for limit or market orders. So, even though one might obtain the desired price, there are underlying maker/taker fees. You are paying for the right to get a certain price and to use their order book.
- Other exchanges get you with an ease of use feature referred to as a swap. Just enter the 'from' and 'to' cryptocurrencies, press a button and voila, you have exchanged to your desired token. The spread is not displayed in this scenario. With ease of use comes a loss of a desired or good price. One is unaware of where between the ‘bid’ and ‘ask’ price the swap feature is set. Is it exactly at the mid-point or skewed to the higher ‘ask’ price? For most exchanges that are build to make money, guess what, they are skewed to the ‘ask’ price. Here again you are missing out on the ‘best’ price which would have been the mid-point.
- DEXs follow the above use case. Easy to use, but you lose on the spread and there is also an underlying fee given to the liquidity provider.
We want to circumvent spreads and maker/taker fees along with any other fee given to the service provider. In the least, we want to minimize these fees.
Without stealing the thunder of the attached video, the way to do this is by utilizing the Polygon network. Interacting with it can be done at a much reduced fee structure.
In the attached video, we will go through a step by step process for the following use case. Start with funds in a wallet (crypto.com) and eventually buy some CEL tokens and send them to the Celsius Network app. Of course we will do this the cheapest way.
The video outlines how to buy CEL token via the Polygon Network.
Demo takes you through: - Cash in crypto.com
- Buying MATIC
- Transferring to Metamask
- Buying CEL on Polygon Network using QuickSwap
- Transferring CEL from Metamask across Polygon Network to Celsius Network account
Celsius Referral Code: 11349539ab (Deposit more than $400 USD worth of any crypto for 30 days and get $50 bonus in BTC)
https://celsiusnetwork.app.link/11349539ab
I am not a financial advisor and this is not financial advise. No direct affiliation with Celsius.