#CryptoFees101

Exchange Fees

Exchange fees represent all of the money you pay an exchange like Coinbase, Gemini, Kraken, etc. for holding, trading, and transferring your coins. We’ve split it up into fees incurred from trading and general maintenance fees.

Trading Fees

Trading fees represent the bulk of revenue for the exchanges and are drastically inflated for crypto vs traditional investments. Compared to that 0.57% fee rate, a traditional financial exchange like the NYSE only charges around 0.01%.

Order Fees/Transactions Fees

Order fees are pretty straight forward, they are a fixed or variable fee charged for each trade. Above you can see how Coinbase has fixed thresholds up to $200 and 1.49% of the total beyond that. This is assessed on every trade, buy or sell.

Spread(hidden fee)

Spreads are a bit more complex and harder to evaluate. Every exchange has a price they’ll pay to buy a coin from you when you sell coins (called the bid), and a price they will sell you a coin at when you buy coins (called the ask). The spread is the difference between the two quoted prices and is normally small for frequently traded assets, as of writing the bid ask spread on AAPL was 0.007%

Maintenance Fees

In addition, most exchanges charge fees when you transfer money. Either into, off-of, or even internally in their exchange. Here are a few of the main fees:

1.Deposit/Withdrawal Fees

2.Wallet/Transfer Fees

3.Staking Fees

Blockchain Fees

In addition to exchange fees, you generally incur fees whenever you transfer funds between wallets and that transaction is validated and recorded in the blockchain ledger.

a.Ledger Transactions fees b.Off-chain Fees