How to Pick Crypto Exchanges?
Over the last couple of years, crypto exchanges have been popping up around the world. Today, there are over exchanges that conduct transactions using more than 7, pairs of crypto and fiat currencies. However, out of these cryptocurrency exchanges, the bulk of transactions is conducted on just Some tokens are used to grant access to certain services on a blockchain , while others have their values tied to some assets within the company that issued them. Nevertheless, all cryptocurrencies are traded on exchanges and provide investors with opportunities to earn profits on value fluctuations.
Of course, make all investment decisions on your own, with regard to your own finances. Even focusing on the largest crypto exchanges in terms of volume, there are many options to choose from. Obviously, trading volume is one of the most important aspects as it determines exchange liquidity. Another important thing to keep in mind is security. Crypto exchanges usually have a wallet through which a user can conduct transactions.
Moreover, there are several other things to pay attention to when it comes to the security of crypto exchanges. In addition, the crypto exchange must provide multi-factor authentication for login. Multi-factor authentication means that the user has to complete a two-step process to confirm their identity.
In addition to the username and password, 2FA requires one more piece of evidence, such as a PIN Code, a fingerprint scan, or a code texted to their smartphone. This is standard on the most secure cryptocurrency exchanges. Aside from trading volume and security, price is one of the most important factors when it comes to choosing a crypto exchange. So how do exchanges calculate trading fees?
Makers are those users that provide liquidity, i. A maker is a user that places an order to buy cryptocurrency at a specific price, which is below the market price, or an order to sell cryptocurrency above the market price.
These orders usually take longer to be completed as there is a smaller chance for a matching order. They include those that place orders that are fulfilled immediately at market prices. Crypto exchanges usually charge makers very small fees, or, in many cases, offer rebates to makers when their orders are fulfilled. In addition, crypto exchanges can charge deposit and withdrawal fees, which vary depending on the source of your funds. For example, how Coinbase makes money depends on a fee structure that varies depending on whether your USD comes via direct deposit or a credit card.
Crypto exchanges and other exchanges, such as for stocks, commodities, etc. Fees usually vary depending on the exchange, crypto and fiat currencies, and the size of the transaction. Usually, crypto exchanges can charge a flat fee, which is the same disregarding the size of the transaction. It can also be a percentage of the value of the transaction or a combination of both.
They allow the exchange to survive, pay salaries to tech support and provide customer services. In addition, fees allow crypto exchanges to invest in infrastructure, which makes them more secure, faster and allows including more cryptocurrency and fiat trading pairs.
Some exchanges like Bithumb even give back some of their fees. By charging lower fees, they win more customers and get more revenue as a result.
Nevertheless, there are several crypto exchanges that charge very low fees, have solid trading volume, and are generally ranked among the best. Coinbase is a crypto exchange and a crypto wallet that claims to have over 20 million users. The California-baed company was founded in and currently covers 33 countries around the world, despite a recent decline in activity. Coinbase includes a spread of 0. For example. In addition, it charges a Coinbase Fee, which can be either a flat fee or a variable fee that depends on the region and type of payment used.
BitMEX is another platform that allows trading crypto and blockchain applications. For example, users can buy and sell a variety of Bitcoin and Ethereum products such as futures contracts. These allow for the buying and selling at prices agreed now, but delivered and paid for at a later date. Additionally, BitMEX offers upside and downside contracts, with which a trader can profit from the increase or decrease in the value of the cryptocurrency.
BitMEX also offers margin trading. This is when the user borrows money from the exchange to conduct trading, with up to times the amount that the trader has at the moment. Margin trading allows users to maximize gains, but can also leave the trader with devastating losses. BitMEX is a platform for more experienced cryptocurrency traders.
It offers a 0. On the other hand, it has a 0. However, withdrawals include a small fee from the network of the cryptocurrency. In addition, Bittrex charges a 0. Coinbase Pro is a platform for more advanced cryptocurrency traders, compared to Coinbase.
IO is a cryptocurrency exchange platform with over 1. Additionally, CEX. IO offers margin trading for certain pairs of crypto and fiat currencies.
IO charges a 2. Trading is charged with a taker fee that ranges between 0. Makers are also charged a fee if their trading volume is lower than 3, Bitcoin BTC. The maker fee is between 0. Next in our list of crypto exchanges is Poloniex. Poloniex is headquartered in Delaware and offers traders advanced trading tools and margin trading services.
Taker fees start at 0. After that, the fees are 0. When it comes to fees, Gemini calculates a fee between 0. Bitstamp is a European crypto exchange with around 3. Other than that, the usual trading fees vary from 0. However, European clients can take advantage of the Single Euro Payments Area system and get free deposits and pay just 0.
Founded in , Kraken is also one of the oldest Bitcoin exchanges. Like most of its peers, Kraken uses a maker-taker pricing model. However, if the volume falls, they have to pay a 0. On the other hand, takers fees start at 0. Launched in , KuCoin is one of the youngest crypto exchanges. It is based in Hong-Kong and supports over cryptocurrencies. KuCoin charge adjustable amounts for withdrawals. For example, withdrawing Bitcoins results in a fee of 0.
These vary depending on the currency. For trading, KuCoin takes a 0. It supports most major and small cryptocurrencies.
For makers, fees start at 0. After recently pausing fiat deposits, Bitfinex is back with an updated system.
It supports over cryptocurrencies. HitBTC charges market takers a 0. Moreover, HitBTC rewards market makers with a 0. Binance supports over cryptocurrency and fiat currency pairs. Similar to other crypto exchanges covered in this list, Binance uses a maker-taker system regarding transaction fees. Its multi-tiered model is tied to the amount of either Bitcoin or its own Binance Coin BNB traded over the previous 30 days.
Both makers and takers are charged 0. For takers, the fees remain the same until the volume reaches Bitcoin and BNB. The lowest fee for takers is 0. For makers decline to 0. Makers fees continue to fall with higher volume until 0.
In addition, Binance offers discounts for traders that hold BNB tokens. It also has additional discounts if fees are paid in BNB. Some exchange fee structures are better-suited for newer or infrequent traders. Others are convenient for professionals that trade larger sums. As a rule of thumb, the more an investor trades, the more he or she is aware of fees. Consider your own finances and understanding of the market before deciding where or how much cryptocurrency to trade. And, above all, keep safety, liquidity and fees in mind when choosing an exchange.
Press ESC to close. How to Pick Crypto Exchanges?
Lowest fee for alternative payment provider deposits and withdrawals
Although fees should be just one of several considerations made when selecting the right cryptocurrency exchange for you, it can be one of the most important — since, the lower your fees, the higher your profits usually are. Generally, the industry standard for cryptocurrency exchanges is around 0. Whether you are a new investor or trading veteran, there is always room for improvement — and reducing your trading fees is often one of the surest ways to maximize your cryptocurrency trading profits. With a plethora of exchanges promising the lowest fees, it is often hard to determine which are genuinely worth using and which are full of empty promises. To help you choose a winning exchange that is best for you, we have scoured the internet to find five of the best low fee exchanges available. Renowned for its legitimate trading volume and the large variety of cryptocurrency trade pairs it offers, Binance has quickly found itself the most popular cryptocurrency exchange platform — despite launching in just