#CryptoFees101
Are you making profits from each trade... but your balance keeps decreasing? Warning!
You may become a victim of the silent killer of profitability: cryptocurrency costs. Although often invisible, these costs can make the difference between a green portfolio... and a red one.
The most common types of costs:
Maker/Taker Fees: When you take or provide liquidity. On Binance, the 'maker' pays less.
Network Fees: Payment to validate transactions. On Ethereum, these costs can be very high during times of congestion.
Exchange Fees: In DEX, every token swap involves liquidity costs.
Withdrawal: Each exchange charges a fee for withdrawing funds to an external wallet.
According to a report from The Block, traders who do not optimize their costs lose up to 12% of their annual returns. A mistake that can be avoided.