A Note on Crypto Exchange Fees Comparison!

According to the data acquired by Forbes, there are more than 600 crypto exchanges at the time of writing. Yet, according to a survey conducted by The Ascent, 44.5 million Americans, or 14% of the American population, say that they are likely to buy crypto for the first time next year.

In deciding on cryptocurrency exchange platforms traders must consider some basic criteria. The first is the security measures followed by the exchange, as it is important to know that your investments are safe. It is also vital to discover the trading fees they charge. Besides these, ease of use, customer support, and the coins supported by the exchange are integral to the decision-making process.

Various Trading fees:

Some of the most commonly used trading fee models followed by cryptocurrency exchanges are maker and taker fees, spread fee structure, withdrawal fees, deposit fees, and staking fee structure. Some cryptocurrency exchanges do not charge withdrawal fees on prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Bitcoin cash (BCH).

Find below the spot trading fees levied by the best cryptocurrency exchanges. Let's get an idea about the difference between maker and taker fees structure.

Maker fees:

Makers are traders who place an order that adds liquidity to the market or on a crypto exchange. A limit order is usually not immediately filled until the price of the particular coin rises or falls below a certain limit. For an order to be considered as a maker order, a sell order placed by the trader has to be higher in price than the highest buy order. Maker fees are always lower because cryptocurrency exchanges want liquidity to attract more traders. In other words, lower maker fees incentivize traders to create a market.

1. Marker orders:
3. Add liquidity to order books
4. Are not filled immediately
5. Focus on contributing orders

Taker fees:

"Takers" are those traders who place orders that need to be filled immediately. A taker places a buy order or a sell order available in the order book and pays the taker fees when the order is executed. Taker takes liquidity from the order books or from the crypto exchanges. Taker fees are always higher than the maker fees because takers pay the amount for the convenience and fast execution.

Taker orders:

1. Are filled immediately like market orders
2. Focus on filling orders
3. Take liquidity from order books
4. Comparing four cryptocurrency exchanges and the levied trading fees:

Coinbase:

Coinbase is among the most prominent crypto exchanges in the United States. It has an active user base of 13.3 million and offers more than 100 tradable cryptocurrencies.

The platform is known to be robust and for its easy-to-use interface. However, Coinbase Pro is less user-friendly for beginners.

If you are thinking of entering the crypto market space, then Coinbase is one of the first crypto exchanges which pops up in your Google Search and the trading platform you might be most familiar with.

Let's note the various trading fees and charges levied by Coinbase:

1. Withdrawal fee up to 3%
2. Trading fees up to 3.99%
3. The Maker/Taker fee is 1.99%/1.99% (according to Forbes Advisor)

Pros of Coinbase Crypto exchange:

The educational learning platform on Coinbase rewards users and traders with cryptocurrencies.

Strong user and security rating since the year 2021.

Easy-to-purchase process and beginner-friendly interface.

The daily trading volume or liquidity is very high, which allows traders to easily find their trades.

Cons of Coinbase Crypto exchange:

High convenience fees

If a trader wants to access a lower pricing structure, they must use a separate and complex platform.

Binance:

Binance ranks first in the cryptocurrency exchange rankings according to trading volume. It is available in more than 180 countries, has an active worldwide user base of 13.5 million and supports more than 500 cryptocurrencies.

While the platform is not the most beginner-friendly, it offers multiple trading features, including peer-to-peer trading, margin trading, and spot trading.

On the Forbes Advisor platform, Binance has a rating of 4.9.

Let's list down the various fees levied by Binance.

The Taker/Maker fee is 0.1%/0.1%

The withdrawal fee is 3.50% for a minimum of $10.00

A trading fee of 0.10%

Pros of Binance crypto exchange:

More than 500 cryptocurrencies are available for trading

Two-factor authentication

Peer-to-peer trading option

Supports fiat and crypto acquisitions

More emphasis on security measures and KYC

Low cost for spot and general trading

Cons of Binance crypto exchange:

Not beginner-friendly

Currently not available in all U.S. states, including Texas

Kraken:

One of the oldest cryptocurrency exchanges in the United States. It has been in operation since 2011 and has a presence in more than 176 countries, including 48 states in the U.S.. Kraken has an active user base of 4 million and is the 10th largest cryptocurrency exchange as per the daily trading volumes. It supports 100+ cryptocurrencies, including prominent cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). Kraken is considered to be the safest cryptocurrency exchange as it has never been hacked, unlike Coinbase and Binance.

The Kraken fee structure is as follows:

Maker/Taker fee of 0.16%/0.26%

Charges a withdrawal fee of up to $60

The trading fee is up to 0.26%

PROS OF KRAKEN CRYPTO EXCHANGE:

It is one of the safest cryptocurrency platforms to trade on.

Users can pay for trades via MasterCard, wire transfers, and Bank cards

High cyber security rating

Sophisticated trading options, like margin trading.

CONS OF KRAKEN CRYPTO EXCHANGE:

Too complex for crypto beginners

Customer service is not helpful

Bottom Line:

It is important for investors and traders to inform themselves regarding trading fees charged by the cryptocurrency exchange they use before they start their trading journey. However, security, user interface, and payment methods are equally significant. B itbns Review is next to be read