#CryptoFees101 ๐
What are crypto fees and how to reduce them?
๐ธ Fees are a part of every crypto transaction โ understanding them can save you money!
๐ 1. Types of Fees:
๐ Trading Fee โ charged when buying/selling crypto on an exchange (e.g., Binance: from 0.1%, lower with BNB).
๐ Network Fees โ payments to miners/validators (varies by network: Ethereum, BNB Chain, etc.).
๐ Withdrawal Fee โ a fixed fee for transferring assets to an external wallet.
๐ 2. Maker vs Taker:
โ Maker โ adds liquidity (lower fee).
โ Taker โ executes an existing order (often higher fee).
๐ก 3. How to reduce costs?
๐ป Pay fees in BNB = -25% discount
๐ Trade during low-activity hours = lower network fees.
๐ Use Layer 2 solutions (e.g., #Arbitrum, #Optimism) for withdrawals.
โ ๏ธ Bonus tip:
Watch out for futures contracts funding rates โ they can eat up your entire deposit if youโre not careful!