#CryptoFees101 - Understanding the Types of Fees When Trading Cryptocurrency

When you buy, sell, or transfer cryptocurrency, you will have to pay certain types of fees. Understanding them will help you save and optimize your transactions.

1. Trading Fees

These are the fees you pay to the exchange (Binance, Coinbase, Bybit, etc.).

There are two main types:

Maker fee: when you create a limit order.

Taker fee: when you match an existing order.

Fees range from 0.1% to 0.5%, depending on the exchange and trading volume.

2. Network Fees

Paid to miners or validators to process transactions on the blockchain.

Each blockchain has different fee levels:

Bitcoin and Ethereum often have high fees when the network is congested.

Solana and Polygon have very low fees (almost $0.01/transaction).

3. Withdrawal Fees

When withdrawing money from the exchange to your personal wallet, you have to pay a fixed fee, depending on the type of coin.

For example: withdrawing USDT via ERC-20 usually costs more than TRC-20.

4. Other Hidden Fees

Some exchanges have a large bid-ask spread.

Cold wallets/DeFi sometimes charge for smart contract fees.

👉 Tips to Save on Fees:

Use limit orders to reduce fees.

Trade when the network is not congested.

Prioritize cheaper networks like TRON and Polygon when withdrawing coins.