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