The Lowest Crypto Exchange Fees
Cryptocoins are the talk of the moment. The public interest in the market of digital currencies has exploded trough 2017. That interest made the value of those currencies rise to incredible prices.
That rise on the prices made the search for Crypto Exchanges to rise also. People are looking more and more to exchanging their physical money for digital currency. The Crypto Exchanges all offer similar services, with differences on interface, payment method, time for completing the exchange and especially, fees.
Every time you use an Exchange for something, you have to pay a fee that varies based on the service and on the Exchange. Given that making money is the main interest of those who search for Exchanges, finding the best fees is very important.
Types of fees
The fees may vary depending on a series of factors. They may be different depending on your location (country), payment method, the type of currency (Dollar, Euro), and on what kind of trading you intend to do.
These are the basic fees you will most commonly find:
- Exchange: The fee that the Exchange platform charges for its services. It is different for different coins and currencies.
- Maker fee: When you make an offer to sell, you pay a fee. For instance, you make an offer to sell Dollar for Ethereum. There is a fee for making that offer, and it varies depending on the currency.
- Taker fee: When someone takes an offer that was made by another user. Following the example above, if you take the offer and buy the Dollar for Ethereum, you have to pay a fee to the Exchange. It is usually more expensive than the Maker fee.
- Deposit fee: When you deposit funds on the exchange you pay a fee depending on the payment method. Usually, the Exchanges accept credit card and bank transfer, but not all accept both.
- Withdrawal fee: You also have to pay a fee when making a withdrawal. Most Exchanges charge cheaper for depositing.
The trading fees (Maker and Taker) are payed by a percentage of the trade. It is paid on each transaction and percentages vary from 0,1% to 0,25% on most cases. It can go up to 1%, though, depending on the transaction.
See the fees that the main Exchanges charge:
- CEX.io: Has one of the cheapest fees: 0.20%. That fee is charged on every trade. CEX.io is a big and trusted digital exchange, which is another important thing to care when looking for exchanges. Not only the fees matter.
- Bittrex: One of the biggest exchanges, with a huge volume, the US based company charges a 0.25% fee.
- Bitfinex: They claim to be the best exchange. That may be an overstatement, but there is no doubt they’re one the biggest. They offer a large variety of cryptocurrencies, but not many fiat currencies. Their Maker fee varies from 0 to 1%, depending on the volume of the user during the month. The taker fee also varies depending on that volume and goes from 0,10% to 0,20%.
- Kraken: One of the early exchanges, it is very solid. Kraken has a big volume and a great variety of currencies, both crypto and fiat. It is said to have a complicated interface. Although experienced users like the platform, it is difficult to be used by beginners.. It has a 0,26% Taker fee and a 0,16% Maker fee.
- Bitstamp: It is in the market for even longer than Kraken. It was the first company to have an exchange license from EU. Bitstamp does not offer many currency options and it is best for high volume traders. The fees vary based on the total volume. It goes from 0,10% to 0,25%.
- GDAX: It specializes on the main three coins: Bitcoin, Ethereum and Litecoin. The Taker fee goes from 0,10% to 0,25% and the Maker fee is 0. GDAX is linked to Coinbase, the biggest Bitcoin exchange in the world.
- Poloniex: It offers a very large variety of coins and is considered to be one of the safest, most technological exchanges. The fees are average: 0,25% Taker fee and 0,15% Maker fee.
Investing on Cryptocurrency
A great part of new cryptocurrency investors don’t really know much about that market. It is a tricky and complex market, and it is good to be careful when dealing in it. Even people with experience in finance and exchange markets have trouble when doing the switch to investing on cryptocurrency. Beware not to be overconfident or emotionally invested on your deals.
The best way to go is to always look for more information. Have a little patience and go look deeper into what kind of investments you want to make. Also be thorough when looking for the right Exchange.
The fees are very important and can make a difference on your money income, but they’re not all that you need to know. You have to check every information to be able to make a solid decision. See what kinds of currencies the exchange offers. Look for the payment options. Check if the exchange offers its full services in your country.
After all of that, you can finally focus on the fees.