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Dave Miller – Tech Enthusiast & Security Expert – January 3rd, 2022
Cryptocurrency exchanges have been springing up all over the world in recent years. More than 7,000 pairs of crypto and fiat currencies are traded on over 200 exchanges now. Just like the stock exchanges, crypto exchanges also have a way of making profits, and with this in mind, which cryptocurrency exchange charges the lowest fees?
Just like anything else, you most likely get what you pay, and in terms of selecting a cryptocurrency exchange, you shouldn’t pick an exchange solely because it provides the lowest and fewest fees.
However, out of the 200 cryptocurrency exchanges, the majority of transactions take place on just ten. These 10 exchanges account for more than 80% of the daily trading volume in cryptocurrencies. In the cryptocurrency world, there are almost 2,000 different cryptocurrencies, each of which has a unique function. There are two types of tokens: those that give access to specific services on a blockchain, and those that are linked to a company’s assets.
But in today’s topic, we’re going to dive into the best cryptocurrency exchanges and which one provides not only the lowest fees, but also the most value (bang for your buck):
|
Exchange |
Trading Fees (High to Low) |
Funding Fees |
Discounts |
||||
|
Maker |
Taker |
Spread |
Deposits |
With-drawals |
Exchange Token Discount |
Volume Discount |
|
|
0.5% |
No |
No |
Yes |
No |
Yes |
||
|
0.025% |
0.075% |
No |
No |
No |
No |
Yes |
|
|
0.16% |
0.25% |
No |
No |
Yes |
No |
Yes |
|
|
0.5% |
0.5% |
No |
No |
No |
No |
Yes |
|
|
The greater of flat fee ($0.99, $1.49, $1.99 & $2.99) or 1.49% |
No |
No |
No |
No |
Yes |
||
|
0.16% |
0.26% |
No |
No |
No |
No |
Yes |
|
|
0.125% |
0.125% |
No |
No |
Yes |
No |
Yes |
|
|
0.1% |
0.1% |
No |
No |
Yes |
Yes – 25% |
Yes |
|
There are many types of digital assets that can be traded on cryptocurrency exchanges, such as cryptocurrencies, tokens, and more. Investment alternatives for active traders wishing to purchase, sell, or hold digital assets like Bitcoin and Ethereum are available on many of these exchanges for active traders.
Most exchanges also provide safe storage and custody solutions for individuals who want to protect their crypto assets from theft and hacks. However, the majority of exchanges aren’t only wallet providers. With a Bitcoin wallet provider or another storage wallet service, you can keep your crypto exchange account open while you set up an external wallet. Your crypto wallet and exchange account are linked, so you can easily move funds between the two.
Cryptocurrency Exchanges may not be the greatest solution for people who want to profit from the fluctuating bitcoin price because of the increased costs. In order to entice regular trading, trading sites have built their platforms to charge modest costs. Make sure you understand how the trading system works before you begin a trade because lower fees may come with a more complicated trading platform and a variety of order types.
Deposit and withdrawal fees are often low on trading platforms, and in many cases, they are only applicable to crypto. This means that you cannot use a credit card or bank wire transfer to make a deposit on the site. While it is possible to change your account balance into USD and other fiat currencies, you must do so before you may withdraw your funds.
The following fees must be taken into account while trading bitcoin. A maker-taker fee model is commonly used to describe trading fees. As a liquidity provider, you post limit orders to the order book, which remain on the order book until another trader accepts your order on the other side (they are called liquidity takers) with a limit or market order on the other side of your order.
A volume leveled discount schedule is used by many trading platforms to offer considerable savings to traders who frequently use a platform with big volumes on a monthly basis. Additionally, you must consider the bid-ask spread, which is the price the platform quotes for being on either the buyer’s or seller’s side.
However, even if the transaction costs are modest and your trading technique requires a greater movement of the market in order to close your trade with profit, a higher bid-ask spread means more profit for the exchange. Finally, if you’re using leverage, you’ll have to pay the margin fee, which you should be aware of. In order to open and close margin trades, you may have to pay varying fees depending on the platform you select.
European cryptocurrency exchange Bitstamp has roughly 3.0 million active users. Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and other cryptocurrencies are covered. You can use the US dollar or the Euro to deposit and withdraw money.
There are no specific fees for market makers; however Bitstamp specifies that for larger volumes, they can receive tailored costs. Other than that, trading costs range from 0.10 percent to 0.25 percent depends on the volume of trade.
For debit card deposits and withdrawals up to $1,000, Bitstamp charges a $10 fee, while for transactions over this amount, Bitstamp charges 2%. Deposits on credit cards currently stand at 5%. As a result of the Single Euro Payments Area (SEPA), European customers can deposit money for free while only paying 0.90 euros for withdrawals.
Since 2011, Kraken (excellent for bank wire) has been one of the most established cryptocurrency exchanges on the market, making it a wonderful place to buy and sell bitcoins in the USD and EUR. For individuals who want more than just buying and holding bitcoins, they also provide margin trading options. Only USD, CAD and EUR SEPA deposits are free and take 1-2 business days to appear in your account. As far as market value goes, you can’t beat bitcoin. Only in Canada can you pay with a credit or debit card using Kraken.
A total of $120 million has been traded on Kraken in the last 24 hours, making it a leading cryptocurrency exchange. In addition to being one of the earliest Bitcoin exchanges, Kraken was founded in 2011.
Kraken’s price model is similar to that of most of its competitors. If a market maker’s 30-day trading volume exceeds $10 million, they do not pay any fees. A 0.02 percent fee is charged if the volume goes below $50,000, which rises to 0.16 percent if the volume falls below $100,000. There is a 0.26 percent takers fee for volumes below $50,000 and a 0.10 percent takers fee for volumes beyond $10 million.
Bitfinex, with a daily trading volume of $353 million, is one of the biggest cryptocurrency exchanges. In addition, Bitfinex’s 30-day trading volume is over $12.10 billion. Almost every major and minor cryptocurrency is supported.
For both producers and takers, Bitfinex charges different fees. On a 30-day basis, they’re based on that volume. The charge for takers is 0.20 percent if the volume is less than $10 million, but drops to 0.055 percent if the volume is more than $30 billion. Starting at 0.10 percent for volumes up to $500,000, fees drop to nil for volumes over $7.50 million. Bitfinex has launched its fiat deposit mechanism following a brief hiatus.
The Bitfinex trading platform, however, cannot be used by citizens or residents in the United States.
Traders can also use BitMEX to transact in cryptocurrency and blockchain-based applications. Bitcoin and Ethereum futures contracts are only two examples of items that can be traded on the platform. Allows buyers and sellers to agree on a price now, but for it to be delivered and paid for later. If a trader wants to make money on a cryptocurrency’s rise or fall, BitMEX offers upside and downside contracts. Bitcoin, Ethereum, Bitcoin Cash, Cardano, EOS, Litecoin, Ripple, and Tron are some of the cryptocurrencies you may trade on BitMEX (TRX).
There is also margin trading on BitMEX. Trades are made with up to a hundred times more money than the user has available at the time of borrowing from the exchange. Margins can be leveraged to enhance profits, but they may also result in severe losses.
More seasoned bitcoin traders should use BitMEX. A 0.025 percent rebate for Bitcoin Futures and 0.050 percent for other crypto futures are available to market participants. There is a 0.075% charge for Bitcoin Futures holder and 0.0255% for other futures holder on the other hand. According to their website, BitMEX does not charge fees for deposits and withdrawals.
As of 2022, the BitMex trading platform cannot be used by citizens or residents in the United States.
The GDAX platform was renamed Coinbase Pro in May of this year. As compared to Coinbase, Coinbase Pro caters to more advanced bitcoin traders who want a more robust trading platform. Ethereum Classic was added to Coinbase Pro recently (ETC).
Insured by the Federal Deposit Insurance Corporation, Coinbase Pro’s USD Wallet can hold up to $250,000. It is also registered as a Money Services Business with the Financial Crimes Enforcement Network. Coinbase Pro does not charge a maker fee, but it does not offer rebates. A 0.30 percent fee is charged for each transaction. However, the price is decreased to 0.10 percent when trading volume hits $10 million in 30 days and to 0.20 percent when trading volume exceeds $100 million.
Binance has the lowest costs on our list of cryptocurrency exchanges. That makes it the world’s largest exchange in terms of 24-hour trade volume. Over 380 crypto and fiat currency pairs are supported by Binance.
Binance, like the other exchanges on this list, has a maker-taker transaction fee structure. Over the last 30 days, Binance’s multi-tiered strategy is linked to the amount of either Bitcoin or its own Binance Coin (BNB).
If the trading volume is less than 100 Bitcoins or 50 BNB, a 0.10 percent fee is applied to both the makers and the takers. Until the volume hits 500 Bitcoin and 200 BNB, the fees for takers are the same. Prices for takers drop at that point. It costs 0.04 percent of the trade volume above 150,000 Bitcoin and 11,000 BNB to be a taker. Traders that have BNB tokens can also receive discounts from Binance. There are even more reductions available if you pay your fees with Bitcoin.
There are over a million users on CEX.IO, a bitcoin exchange site. Cryptocurrencies supported on the platform include BTC, Dash, BCH, and Ethereum (ETH). Additionally, CEX.IO provides margin trading for some crypto and fiat currency pairs.
Deposits via Visa and MasterCard are charged a 2.99% fee by CEX.IO, but bank and crypto capital transfers are completely free. Visa card withdrawals can incur a cost of up to $3.80, while MasterCard withdrawals incur a fee of $3.80 plus 1.20 percent.
According to their fee schedule, taker fees range from 0.10 percent to 0.25 percent based on the volume of trades in the previous 30 days. Traders who make less than $3,000 worth of Bitcoin a day are also charged a fee (BTC). Maker fees range from 0.04% to 0.16 % of the total cost.
Poloniex is the next crypto exchange on our list. Delaware-based Poloniex provides traders with innovative trading tools and margin trading services. Deposits and withdrawals are free of charge. A cryptocurrency’s blockchain fees are not included in this calculation.
Poloniex implements the maker-taker mechanism in accordance with their fee schedule for transactions. Taker costs begin at 0.20 percent for volumes of up to $10 million, but drop to 0.18 percent for volumes of $10 million to $15 million during the 30-day trading period. Each $5.0 million in trading volume increases the cost by 0.02 percentage points. The 0.10 percent fee kicks in when trade volume exceeds $30 million. When the transaction volume surpasses $7.5 million, there are no fees for manufacturers, and rates range from 0.02% to 0.08% for smaller sums.
Even with US origins, since December 2019, the Poloniex cryptocurrency exchange cannot be used by citizens or residents in the United States.
With its New York City headquarters, the New York State Department of Financial Services oversees the operation of Gemini, which is licensed as both an exchange and a trust business. The Gemini Dollar (GUSD), which is pegged to the US Dollar at a 1:1 ratio, is also available. While the value of another stable coin, Tether (USDT), has fallen, the Gemini Dollar has risen. For makers and takers, Gemini charges a fee ranging from 0.10 percent to 1.00 percent, although the actual amount varies according on the volume of trade.
It’s worth noting that the “taker” cost is 0.10 percent if the 30-day transaction volume is more than $15 million, while the “maker” fee is completely waived. Both “makers” and “takers” are charged a 1% fee for transactions under $25,000 in volume. After conducting a thorough review, I found Nano to be both the fastest cryptocurrency and the most cost-effective. If you want to see for yourself how fast it truly is, go to the site and see how you can get a free trial of it yourself.
As you can see, trading fees are a major factor in determining the quality of an exchange. Inexperienced or infrequent traders may benefit from a lower exchange cost structure than seasoned traders. Others are better suited to those who deal in significant sums of money. According to a general rule of thumb, the more frequently an investor trades, the more aware he or she becomes of fees. So which cryptocurrency exchange charges the lowest fees? The answer is Binance, since their maker and taker fees are 0.10 percent!
Before determining where or how much to trade in cryptocurrencies, take into account your own financial situation and your knowledge of the industry. Also, when selecting an exchange, keep in mind factors such as security, liquidity, and fees.
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Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.
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