If you have been working in the banking sector for some time, you probably have heard of arbitrary fees. They are generally taken by a financial establishment to process a particular payment. The more popular the bank, the higher the processing expense – in that sense.
There was a time when the issue of paying an arbitrary charge was available in the banking sector. However, now, it has stepped foot in the market of Cryptocurrency as well.
For example, when swapping or buying Bitcoin, you have to pay around USD 1.00 to complete the transaction correctly.
Now, it may not seem too expensive for a seasonal investor. Nonetheless, if you’re dealing with Crypto regularly like us, you probably understand what’s up.
So, what’s the solution?
When it comes to avoiding Crypto swap fees, changing the exchange can be an excellent idea for you. But what if you’re getting other benefits from the platform you’re using? Would you want to change it, then?
Of course not!
That’s why we’ve compiled up a few suggestions in this article to help you out a little in this regard. Nevertheless, before we hop into that, let’s learn about the fees you have to pay while exchanging Cryptocurrency.
Cryptocurrency Trading Fees – An Overview
While working on a Cryptocurrency exchange, like Quantumai, you can execute a wide array of transactions simultaneously. Now, each of them can have its own cost structure, with the amount increasing or decreasing at times.
Thus, if you’re trading Crypto frequently, you have to keep a keen eye out for the correlated fees. Here’s what you need to know about them.
As a type of digital currency, Crypto is (to date) not controlled by any governing authority or a regulatory party. Instead, the transaction procedure of the same is performed on a particular network. Hence, when you’re trading Crypto, you must pay a small amount of fee to be used for its maintenance and management.
A Crypto exchange usually asks for some case to maintain its transactional environment and manage the flow of its financial momentum. In most cases, the fee will be taken for various everyday transactions, such as –
- Liquidation or withdrawal of the currency.
- Trading Cryptocurrency.
- Taking loans.
- Making deposits while moving Cryptocurrency to online storage space.
The exchange fee of a platform may vary on whatever you’re using. Nonetheless, on average, you have to pay somewhere between 1% to 10%. For example, if you have invested around USD 10,000, the amount you have to give might be around USD 100 to USD 1,000.
How To Minimize Or Avoid Crypto Fees?
As mentioned before, the core fee of Crypto trading can be pretty wide-ranging. Hence, aside from following our tips, you’d also have to focus on your timing and Crypto-investment strategy. Hopefully, it’ll work out as you’re expecting it to be.
Tip – 1: Use A Commission-Free Trading Exchange
A commission-free exchange, as the name implies, will not ask for a single penny while you are making a transaction on it. An excellent example of the same is Robinhood. If you are looking for fee-free spot trading, you can also opt for a platform like Phemex.
Tip – 2: Use Coins
You have to provide a small amount of withdrawal fee when you’re liquidating your money into a government-backed currency. Hence, instead of doing that, buy coins from the platform you’re using and invest them into the Crypto market. This way, you can save some money too.
Tip – 3: Keep An Eye On The Transaction Amount
As mentioned before, many Cryptocurrency exchanges tend to charge a small percentage of the amount you’re trading. Sometimes, the fee tends to be 0.1%, while, in other cases, it can get as high as 10%. Make sure to keep an eye on this fee before opting for an exchange.
Summing It All Up!
The Crypto market is quite volatile. Sometimes, you’ll earn loads of money, while, during an unfortunate period, you’ll lose some of your money. Thus, if you have to pay a considerable amount of exchange costs in between, it might affect your long-term financial strategy massively.
Due to this reason, we’ve curated this blog to help you understand how you can avoid Crypto swap fees. But, if you still have any queries or suggestions for us, feel free to jot them down in the comment section below; we’ll answer them as soon as possible.