#CryptoFees101
Do you make profits on every trade... but your balance keeps decreasing? Warning!
You may fall victim to the silent profit killer: cryptocurrency fees. Although they often go unnoticed, these fees can make the difference between a successful wallet... and a losing one.
Most common types of fees:
Receiver/Maker fees: when receiving or providing liquidity. On Binance, "makers" pay less.
Network fees: payments to validate transactions. On Ethereum, these can be very high during congestion periods.
Swap fees: in decentralized exchanges, every token swap involves liquidity fees.
Withdrawals: every exchange charges a fee for withdrawing funds to an external wallet.
According to a report from The Block, traders who do not optimize their fees lose up to 12% of their annual returns. It’s a mistake that can be avoided.