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If you are new to the blockchain space, knowing which crypto exchange to use is one of the first practical decisions you will need to make. Cryptocurrency exchange fees vary, so choosing the most efficient trading platform can provide you with great value.
Of course, there is much more to cryptocurrency trading than fees alone. Trading and market volume Liquidity Much deeper on higher level exchanges like Binance than you might find on lesser known exchanges.
In this article, we will briefly review the basic fees beginners can expect in the cryptocurrency market and compare fee schedules from top cryptocurrency exchanges.
What are the cryptocurrency exchange fees?
Cryptocurrency exchange fees come in different shapes and sizes. For new crypto traders who are buying Bitcoin (BTC) or Ethereum (ETH) For the first time, the most important fees to beware of are spot trading and deposit or withdrawal fees.
Advanced trading options such as the futures and leveraged markets charge more complex fees such as interest rates and financing. For now, let’s stick to the basics and learn what you can expect to pay as a beginner.
Maker fees and taker fees
The most common fee structure you will encounter in cryptocurrency trading is the maker and taker fee. Every time you buy or sell a cryptocurrency on an exchange, the trading platform takes a small percentage of the trade. This helps cryptocurrency exchanges pay their operating costs and grow their businesses.
A “maker” is anyone who creates a market by setting specific orders and adding liquidity to a trading pair. On the other hand, ‘taker’ is the person who carries out these commands. This is usually done by placing market orders that instantly “take” assets and liquidity from the market. In most cases, manufacturers pay a slightly lower fee than recipients.
Cryptocurrency exchanges incentivize high volume traders by lowering manufacturer and acceptor fees depending on the value you place in the market. It can be said that this is a win-win situation; Market makers Pay low fees to provide deep liquidity and high volume, while exchanges earn revenue from high trading activity.
Some exchanges offer fee discounts to holders of their original utility token. For example, holding a qualifying amount of BNB gives traders discounts when trading cryptocurrencies on Binance or Binance.us.
Deposit/Withdrawal Fee
Most cryptocurrency exchanges support a variety of deposit and withdrawal methods. In most cases, you can fund your profile with fiat currency payments from a bank account, credit card, or Credit card. In the United StateBank transfers and ACH payments are also accepted.
When depositing funds on a cryptocurrency exchange, there is a possibility that you may need to pay a deposit fee. Normally, there are no fees when you fund your account via a crypto wallet.
You can also expect to pay a small withdrawal fee when you withdraw funds from a cryptocurrency exchange. Withdrawal fees when withdrawing cryptocurrencies can fluctuate depending on network transaction fees.
Compare the best cryptocurrency exchange fees
To uncover which cryptocurrency exchange offers the best base fee schedule, let’s take a look at the maker, take, and deposit/withdrawal fees we can expect to pay on the top exchanges.
It is worth noting that having lower fees does not necessarily mean that one exchange is better than another. Having strict security practices, high quality customer support and value added features such as NFT markets and Staking solutions They are also essential to offer cryptocurrency exchanges.
Without further ado, let’s dive in and see which trading platform offers the best cryptocurrency exchange fees.
6. Gemini
Gemini’s fee structure is consulted a bit more heavily than its competitors. Winklevoss Twins cryptocurrency exchange fees are broken down depending on whether you use a websiteAnd mobile app, or the Gemini ActiveTrader platform. Using the website or mobile app is a no-brainer, and they charge a minimum fee of 1.49% on the value of the order.
Their ActiveTrader fees are more reasonable. Starting at 0.4% for buyers and 0.2% for makers, Gemini trading fees decrease progressively as trading volume goes up.
One of the big disadvantages of using Gemini is that exchange fee custody fees. If you are storing crypto on Gemini, expect to pay up to $30 for each asset in your account each month. The fiat deposit fee is free if depositing from a bank account, but charges 3.49% if depositing from a debit card and 2.5% from PayPal.
Cryptocurrency deposits are free, cryptocurrency withdrawals are subject to a dynamic network fee and a fixed withdrawal fee.
5. Coinbase
Coinbase It is the second largest crypto exchange by trading volume and is known for its beginner-friendly interface. founded it Brian ArmstrongCoinbase has a solid reputation among crypto enthusiasts.
The main Coinbase website only gives vague information about their trading fees, estimating manufacturer fees between 0%-0.4% and patron fees between 0.05%-0.6%. If you dig deeper and check the prices on Coinbase Pro, a clearer picture emerges.
There is no sugar coating, and Coinbase trading fees are high. Taker fees start at 0.6%, and even if you’re a market maker, you’ll need to trade more than $100,000 worth of cryptocurrency before qualifying for entry rates elsewhere.
Deposit and withdrawal fees are also ambiguous. According to CryptoFeeSaver, Coinbase charges $10 for USD deposits and $25 for USD withdrawals. Withdrawing cryptocurrencies requires a flat fee, with additional fees dependent on blockchain crowding.
4. Kraken
Jesse Powell founded Kraken, the first popular crypto exchange for beginners. Kraken has a simple and accessible user interface but recently shut down staking offers after facing regulatory pressure from Gary Gensler and SEC.
Kraken is somewhere in the middle of the road when it comes to trading fees. Maker and operator fees start from 0.16%-0.26%, and gradually decrease to 0-0.1% depending on the user’s trading volume.
All crypto deposits are free, with fiat deposits varying depending on the currency and method chosen. Cryptocurrency withdrawals follow the trend, including flat and supplementary network fees.
3. Binance
Binance is easily the largest crypto exchange in the blockchain industry. Changpeng ‘CZ’ Zhao Exchange has the largest trading volume of all trading platforms and a decent selection of digital assets in the world books.
On Binance, manufacturer and operator fees start at 0.1%. Traders unlock progressive VIP tiers to access reduced trading fees by transferring enough value through the exchange or holding more than 25 BNB coins. Trading fees can also be paid in BNB, giving traders an additional 25% discount.
In addition, Binance does not charge any fees for trading BTC, which is the largest market in the cryptocurrency space.
The platform charges no deposit fees for cryptocurrencies, but cryptocurrency withdrawals are taxed at a flat fee, with an additional rate charged due to network congestion. Fiat deposit and withdrawal fees vary depending on your region and local currency.
2. KuCoin
KuCoin is a popular choice among the experienced Crypto Dealers. Not only does the cryptocurrency exchange have a generous fee structure, but it also offers a wide range of altcoins. In fact, KuCoin supports more than 800 crypto assets, with a variety of currencies that go beyond classic coins like Litecoin and XRP.
It has a fee structure familiar to Binance, using its native currency KCS to provide trading discounts.
the alternative currency Gem Haven features trading fees starting from 0.1% for makers and buyers, which gives an additional option to pay fees using KCS tokens.
Deposit fees for both fiat and cryptocurrency are free, with a flat fee of €5 applicable for fiat withdrawals. Cryptocurrency withdrawals are subject to a fixed fee and the blockchain network fee.
1. Crypto.com
Crypto.com breaks the mold among exchanges, charging some of the lowest fees on the market. The Singapore-based exchange boasts trading fees starting at 0.075% for both makers and subscribers and offers generous VIP programs to reduce it further.
Like Binance, Crypto.com has its own token. Locking out the CRO for certain periods unlocks reduced fee levels and, in some cases, eliminates trading fees altogether.
There are no deposit fees when using Crypto.com; However, all cash withdrawals are subject to a flat fee of $25. Cryptocurrency withdrawals require a small withdrawal fee and network transaction fee, depending on the crypto asset in question.
on the flip side
- When it comes to choosing a crypto exchange, trading fees aren’t everything. Additional features such as staking and lending provide an attractive APY that helps you grow your portfolio without the need for trading.
- Security is also a priority. As we saw during the FTX debacle, even “safe” exchanges can go bust, making you lose access to all your coins.
Why should you bother
A difference of a few decimal places in a percentage may seem insignificant. But, if you plan to trade cryptocurrencies for a long time, reducing your trading fees helps you get better value for your investment.
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