Using #Crypto Assets As A Value Transfer Mechanism When #Investing - (Chris Coney) WCSS:040

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This was inspired by a true story.
A few nights ago I was sat with a friend of mine who wanted to invest $3,000 into the Bumper Finance token since it was close to it's all time low.
This can be considered an Undiscovered Crypto since the only place you can buy it is Uniswap.
Now he had a bunch of USDT on Binance and wanted to use $3,000 of that to buy BUMP tokens.
The first problem was that the average fee on the Ethereum network at the time was around $35 and he only had $26 worth of Ethereum in his MetaMask wallet.
So we were faced with the possibility of having to buy some ETH with his Tether, withdraw that to the wallet to pay fees…
And then withdraw the Tether to the wallet so we could trade it on Uniswap.
That plan quickly fell apart when we realised that if we bought $100 worth of Ethereum and withdrew it to the wallet to pay fees, the exchange was going to charge us a $35 Ethereum transaction fee to withdraw it.
That would turn that $100 worth of Ethereum into $65 before we’d even done the swap.
Then we’d be looking at another $35 Ethereum transaction fee to withdraw the $3,000 worth of Tether.
That would have been $70 in Ethereum transaction fees before we’d even done the trade (which would incur another hefty Ethereum transaction fee).
So we went back to first principles.
We asked, what is the end result we are going for here?
BUMP was trading around 8 cents at the time so we were looking to buy about 37,000 tokens.
The next question we asked was “what is the fewest number of steps to achieve that?”
Because of course, the fewer the steps, the less we’ll spend on fees.
Now, like with every problem, if you invest the time to precisely craft the question, the answer becomes obvious.
So what we ended up doing was taking $3,100 worth of Tether and buying Ethereum with it on the centralised exchange.
Then we withdrew all that Ethereum in one transaction to the wall..