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If you’re looking to avoid cryptocurrency fees, there are a few things you can do. First, check out exchanges that don’t charge fees for transactions. Second, look for exchanges that offer fee-free trading periods. Lastly, consider using a cryptocurrency wallet that doesn’t charge fees.
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Introduction
In the world of cryptocurrency, there are a few different kinds of fees that users are typically charged. These fees can be charged for a variety of reasons, but most often they are associated with trading or transactions. In this guide, we will cover the different types of fees that users are typically charged in the crypto world, and how to avoid them.
With that said, let’s get started.
What Are Crypto Fees?
Crypto fees are charges that are associated with various aspects of using cryptocurrencies. These fees can be charged when you trade cryptocurrencies on an exchange, when you send cryptocurrencies to another person or service, or when you interact with certain blockchain-based applications.
In many cases, these fees are charged by the service that you are using in order to cover the cost of running their platform or simply to make a profit. For example, most exchanges charge trading fees in order to make money off of the trades that users make on their platform. Similarly, many wallets and other crypto services will charge transaction fees whenever you use their service to send or receive funds.
It’s also important to note that some cryptocurrencies have built-in fees that go to the miners who confirm transactions on their respective blockchain networks. For example, every Bitcoin transaction is automatically charged a small fee that goes to the miners who help maintain the Bitcoin network. These kinds of network fees cannot be avoided and are simply a cost associated with using certain cryptocurrencies.
Types of Crypto Fees
Now that we know what crypto fees are, let’s take a more detailed look at the different types of fees that users commonly encounter in the world of cryptocurrency.
1) Trading Fees
As we mentioned earlier, most cryptocurrency exchanges charge trading fees whenever users buy or sell digital assets on their platform. These fees are typically a small percentage of the total trade value and they vary from exchange to exchange. For example, popular exchanges like Binance and Coinbase Pro typically charge users 0.1% or less per trade while smaller exchanges may charge higher percentages.
In addition to trading commissions, many exchanges also charge what’s known as a “maker fee” and/or a “taker fee” depending on whether your trade order is adding liquidity to the market (maker) or taking liquidity out of the market (taker). Maker orders usually get charged lower rates than taker orders but this isn’t always the case — it really varies from exchange to exchange. You can usually find out what kind of maker/taker fee structure an exchange has before signing up for an account.
What are Bitcoin & Ethereum Fees?
Bitcoin & Ethereum fees can be avoid by using a variety of methods. The most common method is to use a wallet that doesn’t charge fees, such as the popular Ledger Nano S hardware wallet. Another method is to use an exchange that doesn’t charge fees, such as ShapeShift. Finally, you can also use a Bitcoin or Ethereum fee calculator to estimate the fees for your transaction.
How to Avoid Crypto Fees
Cryptocurrency exchanges have been known to charge exorbitant fees for transactions. In some cases, these fees can be as high as 10 percent! This can obviously eat into any profits you may be hoping to make. In this article, we’ll show you how to avoid these fees.
Use a fee-free exchange
Fees can eat into your profits when you’re trading cryptocurrency. Here’s how to avoid them.
The most obvious way to avoid fees is to use a fee-free exchange. While this might sound too good to be true, there are a few exchanges that don’t charge fees.
Some exchanges that come to mind are Coinbase, Robinhood, and Binance. These exchanges don’t have trading fees, but they might have other fees like withdrawal fees or deposit fees.
Another way to avoid fees is to trade on an exchange with low fees. For example, Kraken has a 0.26% taker fee and a 0.1% maker fee. These are low fees compared to other exchanges like Bittrex which has a 0.25% taker fee and a 0.3% maker fee.
Finally, you can always negotiate with the exchange to get a lower fee. This is especially effective if you’re trading large amounts of cryptocurrency. Most exchanges will be happy to lower your fees if it means you’ll trade more with them.
Use a fee-free wallet
There are a few different ways to avoid cryptocurrency fees. The easiest way is to use a fee-free wallet, like eToro Wallet, which doesn’t charge any fees for sending or receiving cryptocurrency.
If you want to use a different wallet, you can usually avoid fees by sending your cryptocurrency to an exchange that doesn’t charge for withdrawals, like Binance. You can then withdraw your cryptocurrency from the exchange back into your wallet.
Another way to avoid cryptocurrency fees is to use a decentralized exchange (DEX). DEXes don’t have any centralized authority so they can’t charge fees. However, they often have lower liquidity than traditional exchanges, so it might be difficult to find someone willing to trade with you.
Finally, you can use a service that aggregates multiple exchanges and wallets to help you find the best rate. These services usually charge a small fee, but it could be worth it if you’re trying to save money on trading fees.
Conclusion
Cryptocurrency fees can be quite confusing, but if you understand how they work and how to avoid them, they shouldn’t be a problem. In general, you want to avoid situations where you have to pay a fee to move your coins from one wallet to another or to convert them into fiat currency. You also want to be careful about which exchanges you use, as some of them are known for having high fees. Finally, always remember to check the fine print before investing in any cryptocurrency-related product or service.
