What are the Tariffs in the world of cryptocurrencies? And how do they affect traders?
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Introduction:
In the world of cryptocurrencies, the conversation is not limited to prices and technologies alone; there is an important element that directly affects your profits and losses: the fees or Tariffs. Whether you are a day trader or a long-term investor, you need to understand how these fees work.
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What are Tariffs in cryptocurrencies?
In the traditional context, they mean customs duties, while in the crypto market, they refer to:
Trading Fees
Withdrawal and Deposit Fees
Network Fees
In-platform Transfer Fees
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Common Types of Fees on Binance:
1. Maker and Taker Fees:
Maker: one who adds orders to the market
Taker: one who executes existing orders
The rates vary depending on trading volume and holding BNB.
2. Network Fees:
Paid when transferring currencies from one wallet to another outside Binance.
They vary depending on the network (Ethereum is more expensive than BSC, for example).
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How to reduce fees?
Use BNB to pay for fees and get a discount.
Choose cheaper networks like BEP-20 instead of ERC-20 when withdrawing.
Watch out for promotional campaigns that offer free trading for certain pairs.
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Are fees really important?
Yes, significantly!
Fees can eat up a large part of your profits if you trade frequently or in small amounts. Therefore, reducing them helps you maximize profit.
