ABRA FEES| EN
The rates that are not visible.
Successful investing is common sense, simple arithmetic.
Since the appearance of cryptocurrencies the ease of buying them blinds us and we do not see the panorama believing that we are generating money, when we are really losing; situation that occurs most commonly in people who are intermittent traders.
I will explain what the fees are and calculate the growth that a crypto must have so that there is real profit in each operation.
¿What is ABRA?
Abra is an application that is available in more than 150 countries, allows the user to buy, sell, interest earning, lend and market crypto assets and cryptocurrencies.
ABRA Fees
The method by which the money is deposited into the ABRA account (colloquially referred to as “Fund the Wallet”) and the local taxes of each country determine the total cost of the transfer.
For Guatemala, users must transfer through an intermediary whose company is called InBestGo. This company makes it easy for the local bucket to be uploaded to the application based on the following table:
By way of contrast, note the tariffs applied by other countries such as the United States.
In this step of the process, as users in Guatemala, we have already lost at least 2.29% if it is online bank transfer, up to 2.97% if we use a credit card.
After having funds in the Wallet the next step is to buy the cryptocurrencies of interest, the purchase process is explained in the tutorial of the application.
When we acquire a certain amount of cryptocurrency the ABRA application wins with the spread (percentage change between real price and purchase price in the application), based on the following table we exemplify those of some cryptocurrencies.
So far, since we are in a rising and speculative market, we can assume that the price of cryptocurrencies will rise over time.
At the time of selling in order to make a profit, some selling spread rates vary slightly from those of buying (at least at the time of publication).
Note that Bitcoin’s buy spread is 1.67% while the sell spread is 1.84%, which means it is bought more expensive and sold cheaper. Same pattern observable with CRO, USDT among others.
Then if we want to pass the profit obtained to our bank account to be able to use the money in everyday life (especially in Guatemala that still does not implement the open use of cryptocurrencies in the market) the exit fee is 4% either for Quetzales or dollars.
This represents the reverse operation of the Wallet Fund, since it is via InBestGo.
For reference, the withdrawal rate for the United States is shown.
When it comes to returns, time is your friend. But when it comes to costs, time is your enemy.
Bogle, John C.
¿What is the growth that the purchased cryptocurrency should have in order to have a profit?
After the above we will make a vertical analysis, assuming a deposit of 1000 USD considering the fees of: funding, buy spread, sell spread and withdrawal. We will use Bitcoin because it is the first and with the highest market capital.
The following table shows the percentage of growth that Bitcoin must have in order not to lose money by investing 1000 dollars, in blue cell, which is 10.5%; all minor growth represents loss, likewise, all higher growth represents real gain.
“arithmetic is the first of the sciences and the mother of security.”
Bogle, John C.
Note
Being a trader using this application is a terrible idea, unless the growth rates are very high; being a holder could have interesting benefits to our investment from this perspective.
If you found this little analysis interesting, feel free to make a donation in bitcoin.
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