Ethereum (ETH) buying using credit cards, simple but not cheap!
Ethereum (ETH) fans can now rejoice as buying your favourite coin is a lot easier now. MyEtherWallet.com (MEW), a popular website to access Ethereum wallets has eased the process of buying Ethers. The website announced in a tweet that they’ve partnered with Simplex, which allows users to buy ETH token with their credits. So Ethereum investors don’t have to visit an exchange’s website to buy their cryptocurrency, just whip out your credit card and buy yourself some Ethers.
The cryptocurrency has seen quite an upsurge in the market recently signalling that it’s shed the shackles of the bear market. After a long period, Ethereum has finally managed to cross $500 mark. But despite the sudden surge, the coin’s price is struggling to stay above $500 and is battling a seller storm.
The website’s tweet talks of the uncomplicatedness of purchasing the Ether, but doesn’t mention anything about fees. Their blog post on Medium also talks of the same with no mention of fees. According to the post, this partnership will ensure that the entire cryptocurrency-buying process is simplified while being instant and secure.
Howdy MEWfam! ?
We thought that we’d make using MEW easier for you, so we’ve partnered up with @SimplexCC, which allows you to directly buy ETH without having to go to an Exchange! Once you’re verified, your ETH will show up in your MEW wallet! ?https://t.co/RlNOPR7LgH
— MyEtherWallet.com (@myetherwallet) July 19, 2018
Sky-high, but “reasonable” Fees
According to Coinpublica, the website just has a very basic landing page which claims that it charges a 1% fee. But according to Coinpublica’s calculations, the fee is a hefty 2.8% of the purchase price! And they add that the fee increased to 3% when they tried again after a while!
Here is a screenshot from Coinpublica,
If that isn’t enough, users will have to pay their new partner, Simplex as well. The $6 fees for Simplex and MEW’s fee of 3% amounts to a total of 9%! So an unsuspecting investor will end up shelling out around 9% on top of the lowest exchange rate. But according to MEW, this is a “reasonable” rate!
Verify to buy
The whole process of buying cryptocurrency using credit cards was to simplify the process. People buying Ethereum coins using their credit cards would expect to bypass the verification process found typically in cryptocurrency exchanges. But adding a verification process seems like its missing the point! So the question that needs to be asked is how much you are willing to pay for this “simplified” process? Moreover, is it actually worth the money and effort when it’s similar to the process at exchanges?
Image via Coinpublica, MyEtherWallet
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