No Fee Cryptocurrency Exchange: Reality or Fantasy

WhiteBIT
Published 26 April 2022
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Content

Exchanges are perfect places for buying and selling assets. They allow analyzing the market using different instruments, offers many trading pairs and ways to trade. However, it is important to find an affordable yet reliable option, as conditions on various platforms can vary significantly.

In this article, we will tell you about the pitfalls of cryptocurrency exchange with the lowest fees, discuss methods to save money, and make a crypto exchange fees comparison. Let’s dive in!

Is it possible to find a zero exchange crypto?

Unfortunately, the short answer to the question is no. Trading involves certain costs. But you can take a closer look at commissions at one of the cheapest crypto exchanges. Thus, you could trade assets flexibly.

Why is there no free cryptocurrency exchange? The answer is simple: any service is a business. Although crypto platforms are often created by enthusiasts, their goal (as well as any business) is to earn money. In addition, they simply cannot sustain work without funds receipt.

Why do even the cheapest cryptocurrency exchange charge fees?

The fee’ size lies on the asset, state currency, and transaction value. Crypto platforms can charge a flat fee that does not rely on the trade size

Commissions support the life of the platforms, allow hiring specialists, and provide customer service. Besides, thanks to the fees, the management can invest in infrastructure, making them safer and adding new trading pairs.

Commissions you will meet even at cheap crypto exchange

Some exchanges charge more for deposit money but offer cheap withdrawals. In contrast, another provides you with a lower fee for trading yet gives an unprofitable exchange rate.

Let’s review the main types of charges you’ll meet.

No Fee Cryptocurrency Exchange: Reality or Fantasy

Trading Fees

It comes in many forms and depends on the spending size. Several platforms also offer newbies an easy “convert” option, but they are often the most expensive to buy assets.

Deposit Fees

It is less widespread than withdrawal commission, as the lowest fee crypto exchange wants to encourage clients to replenish their accounts.

Withdrawal Fee

Storing assets on the platform where they were bought is free. But if you decide to withdraw the state currency to a bank account, you will have to pay. Assets movement to another platform or wallet is also charged.

Fees for margin trading funds using

Some platforms offer margin trading. It is a leveraged asset trading method. The exchange charges a fee for their use. For example, on WhiteBIT it is 0.098% per day.

How to decrease crypto trading fees?

Finding a reliable no fee crypto exchange is an impossible task. But there are several strategies to reduce expenses.

Keep Track of Transaction Size

Many crypto exchanges with the lowest fee charge 0,9-1,5% of the transaction amount. If you make a trade for $10 000, the fee will be $900-1500. Sometimes you can pay a fixed amount, but the larger the transaction, the more you pay.

Be Strategic About the Transactions

Perhaps you’ve decided to stop investing in a particular cryptocurrency, but consider whether you need national currency? If not, exchange it for another assets with a minimum fee. It’s a profitable option as you will lose more if you exchange crypto for national currency.

Take Advantage of Promotions

Some platforms such as Huobi and Bibox discount fees for clients who buy the exchange’s own token to encourage investment. However, the discount amount will be gradually reduced until eliminated in four to five years.

The Top 5 cryptocurrency exchange fees comparison

Let us the most popular platforms.

Changelly

Changelly is famous for one of the cheapest crypto exchange fees. It charges 0.25% from each trade.

Kraken

The commission varies from 0 to 1,5%. It depends on the number of trades and whether you chose Kraken or Kraken Pro.

CEX.io

While most platforms charge 0,25%, the lowest fees cryptocurrency exchange offers 0,20% per trade.

Gemini

Its charges start at 0,5%. But they can be up to 1,49% if you exchange one asset for another.

WhiteBIT

The trading fee at the platform never exceeds 0,1%. As we mentioned above, the daily fee for the use of margin trades is 0.098%.

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Conclusion

Charges play a key role in crypto exchange with the lowest fee. This is the main source of income for platform owners, they allow you to develop software for payment processing, ensure security and hire professionals.

So if a platform offers conditions that are too favorable to be true, make sure it can be trusted. Traders who care about the security of their funds and aim for profit at the same time prefer reliable platforms with low rates.

Some crypto exchange fees are profitable for newbies, others, on the contrary, are aimed at experts who trade large sums. Think about your financial capabilities and carefully analyze the market before making a decision on the lowest fees crypto exchange to trade. Most importantly – take care of your assets’ safety.

FAQ

Which platform is the best?
It is impossible to choose one option for everybody. Analyze the market and select the one that fits your requirements.
What factors should I take into account during crypto exchange fee comparison?
Start with making sure of the exchange’s reliability. Then compare charges. Remember that the fees vary from one trading pair to another.
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