CryptoFees101: Understanding and Reducing Trading Costs
When trading crypto, fees can quickly eat into your profits if you're not careful. The most common types are maker and taker fees. Maker fees are lower and apply when you add liquidity to the order book, while taker fees are higher and charged when you remove liquidity. Some platforms also include network fees, especially for blockchain transfers.
To reduce costs, consider using limit orders instead of market orders to benefit from lower maker fees. Additionally, many exchanges offer fee discounts for holding their native tokens or reaching higher trading volume tiers.
Timing your trades during periods of lower network congestion and comparing platform rates can also lead to savings. Smart fee management isn't just about saving money—it's a strategy that adds up over time, especially for active traders.
