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i'm trying to understand the Stellar technology but i have some doubts about the Anchors.

As i understand it, the "key point" in transfer real money on the network is the Anchor. An Anchor is a trusted entity that can take real money and issue credits on the network, credits that can be transferred from an account to another and than exchanged back to real money from the Anchor.

So far so good... but

i read that you can also exchange your credits for another currency, different from the one that you deposited in exchange for you initial credits, from a different Anchor on the network.

Let's say i deposited 100 USD in Anchor1 and it issues credits for that amount in my account. Now i want to exchange those credits with Anchor2 for the equivalent amount in EUR.

If what i've written is right, how much does this operation cost to me?

I know about the transaction fee which is "a fraction of a fraction of a penny" but beside this, do the Anchor apply a fee as well?

What i'm really trying to understand is the point of view of the anchors, why should them integrate with the system? What are the advantages of being part of the network?

Thank you

Ve9
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Yes, there are different fees using different Anchors. As you stated, there is a small transaction fee in the Stellar network for exchanging assets, and it is well known and easily calculated. Refer to: https://www.stellar.org/developers/guides/concepts/fees.html.

When you trade tokens in the network between anchors, you are bound to the specific terms and fees of the Anchors themselves. Usually, there is a percentage fee in the withdraw operation to fiat currency or crypto wallets.

For example, in the Stronghold anchor you may withdraw in crypto, but there are fees. Most of the fiat anchors (for USD and EUR or other currencies) apply similar fees.

Stellar Anchoring Fees

Anchoring fees apply only to users moving Stronghold-issued assets on the Stellar network. Most users will not incur these fees and they do not apply to regular trading.

  • 0% deposit fee
  • 1.49% withdrawal fee of Stronghold-issued assets to non-Stronghold Stellar addressess

Anchoring fees apply to the following Stronghold-issued assets:

  • Bitcoin (BTC)
  • Ethereum (ETH)

Source: https://stronghold.co/fees/

Luís Brito
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