Fees can silently drain your profits if you don't know how they work. Let's clarify the most common types of fees you might encounter in the world of cryptocurrencies.
1 trading fees
Applied on every purchase or sale
Usually a percentage of the trade value
Two main types
Host fees when adding liquidity and are lower
Fees for taking liquidity are usually higher
The average ranges from 0.1% to 0.25% per trade
2 withdrawal fees
Applied when transferring cryptocurrencies out of the platform
Fees can be fixed or depend on the network like Bitcoin or Ethereum
Tip: Use low-fee networks like TRON or BNB Chain
3 network or gas fees
Paid to miners or network validators to process transactions
Ethereum fees can rise significantly during network congestion
Tip: Use layer two networks like Arbitrum or Optimism to reduce fees
4 slippage cost
The difference between the expected price and the actual executed price
Occurs in highly volatile or low liquidity pairs
Tip: Use limit orders to reduce slippage
Professional tips to reduce fees
Use platforms that offer low fee levels
Trade in high liquidity pairs
Choose a suitable timing to avoid network congestion
Keep platform tokens like BNB on Binance for discounts
Saving small fees means bigger profits in the long run
Don't just trade, trade smart
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