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For example, I created a wallet on one trade platform. My friend has some money in some cryptocurrencies (BTC, ETH ...) for example. So here is my flow:

friend's cryptocurrencies --(1)--> my wallet on trade platform --(2)--> convert to BTC if needed --(3)--> trading here

Base on above flow, my friend can give me by 2 ways:

  • send me BTC directly. So I don't need to trade again to BTC on trade platform.
  • send me other cryptocurrencies (i.e: Etherium). Then I convert back to BTC on trade platform with some fee. (normally small)

At step (1), As I see, the fee for bitcoin transaction is too high comparing to other cryptocurrencies. So my question is: is the second way is better. That means receive from my friend's wallet on different cryptocurrencies and then converting back to BTC later on trade platform. (This is doable because he own amount of money on different cryptocurrency)

Thanks

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Yes, it is probably cheaper to have your friend send you an altcoin, but if your end goal is to own BTC, then just have him send you BTC. I say this because:

  • The exchange you're going to send to will have its own fees (trades/withdrawal fees are common)
  • Storing coins on an exchange is not a good idea, if that exchange closes or gets hacked, then your coins might be gone forever. So you'll want to remove them from the exchange (which will probably incur fees)
  • Altcoins can be volatile (even more than bitcoin), what happens if while waiting for them to transfer to the exchange the price in btc drops 30%?

Right now the network is congested, so tx fees are higher than normal. Last week I sent a few transactions for less than a dollar, if you can afford to wait a few days btc fees may drop.

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