#CryptoFees101
Let's break down crypto fees and how to save on them.
*Main Fee Types:*
- *Trading Fees*:
- *Maker Fees*: Cheaper fees for limit orders, where you set the price and wait for a match.
- *Taker Fees*: More expensive fees for market orders, where you buy or sell at the current market price.
- *Network (Gas) Fees*: Paid to blockchain miners or validators for processing transactions. These fees can be high on Ethereum but lower on Layer 2 networks like Arbitrum.
- *Withdrawal Fees*: Charged by exchanges when moving crypto out of the platform.
- *Swap Fees (DeFi)*: Charged by decentralized exchanges (DEXs) like Uniswap, typically around 0.3%.
- *Spread Cost*: The difference between the buy and sell price.
*How to Save on Fees:*
- *Use Limit Orders*: Become a maker to reduce fees.
- *Trade on Low-Fee Exchanges*: Choose exchanges with competitive fee structures.
- *Hold Exchange Tokens*: Many exchanges offer discounts for holding their tokens, like BNB or KCS.
- *Use Layer 2 Networks*: Reduce gas fees by using Layer 2 networks.
- *Trade During Low Congestion Times*: Fees can be lower when the network is less congested.
- *Use DEX Aggregators*: Platforms like 1inch can help you find the best rates ¹.