Osmo Wallet

4 min readMay 5, 2023

An efficient alternative to buy Bitcoin in Guatemala.

When we talk about buying cryptocurrencies the first thing that comes to mind is Bitcoin and then all the fees incurred in the purchase. In this analysis of Osmo, an efficient option to buy Bitcoin, we will describe the fees it proposes; Later we will make a comparison with another popular form of purchase available in Guatemala.

¿What is Osmo?

It is a platform that allows the exchange (Exchange) of currencies (Quetzales and dollars) to Bitcoin.

Osmo provides an application for iOS and Android cell phones, which creates a custodian wallet (this means that there is a third party that manages the private keys on your behalf), so that the monetary deposit is reflected in the wallet to be later changed to Bitcoin through purchase.

The wallet has two ways of sending to other wallets and exchange platforms, such as Abra, Binance, Coinbase, among others; shipments can be via On-chain (chain of blocks) or Lightning (layer 2 of Bitcoin).

Rates

Table 1 shows all the fees incurred and we note that Osmo has no funding fees (0% on bank deposits), but Bitcoin buying and selling fees are 2% and bank account withdrawal fees are 2%. 1%.

Source: Own creation based on information from the Osmo application

The rates (as it is known) will impact the returns, if we want to have some profit, we must always consider them, then we analyze them.

¿Are these rates good or bad?

We will compare the Osmo rates with the Abra rates (another popular wallet and exchange in Guatemala) and we will do a vertical analysis to compare what percentage we would have a profit with each of the respective platforms.

To add funds to Abra in Guatemala, users must transfer through an intermediary whose company is called InBestGo. This company makes it easy for the local deposit to be uploaded to the app.

Source: Own elaboration based on information available in both applications.

¿What is the growth that Bitcoin should have to be able to make a profit with each wallet?

Assuming a deposit of 1000 USD and taking into consideration the fees of funding, purchase spread, sale spread and withdrawal.

Table №3. It shows that the percentage of growth that Bitcoin must have in order not to lose money when investing 1000 dollars, in the blue cell, is 5.175% funded with Osmo and 8.386% funded with Abra; all minor growth represents loss, likewise, all major growth represents real gain.

John Bogle argued that: “low fees are essential to help investors achieve their long-term financial objectives.”

Note:

We have previously written and analyzed aspects related to Cryptocurrencies in the context of Guatemala. And we are pleased to note that following the Whitepaper “Bitcoin: A Peer-to-Peer Electronic Cash System” in which the intention to generate a transaction system that does not depend on third parties is described, we have another viable option, with lower rates and with a decrease in the intermediary to enter the Bitcoin market.

Certainly, Abra has been in the Guatemalan market for longer (2018 versus 2022 for Osmo), it was a disruptor and has other services available (such as access to other cryptos, savings accounts, loans, among others); however, in a local/traditional market with a tendency to monopoly and mercantilism, it is welcome to have new and better options that promote the improvement and availability of services.

If you found this little analysis interesting, feel free to make a bitcoin donation.