#CryptoFees101

In crypto trading, different types of fees can have a significant impact on your overall profits. The most common ones include trading fees, withdrawal fees, deposit fees, network (or gas) fees, and inactivity or account maintenance charges. Trading fees are generally divided into two types: maker and taker fees. Makers provide liquidity to the market and usually pay lower fees, while takers remove liquidity and are charged higher fees. Withdrawal fees are applicable when you move your crypto to an external wallet and can differ based on the specific coin and exchange. Network or gas fees, particularly on blockchains like Ethereum, can vary greatly depending on how busy the network is.

To reduce these costs and trade more efficiently, I follow a few key strategies. I prefer exchanges that offer low and transparent fees, and I mostly use limit orders to take advantage of lower maker fees. I try to combine transactions to reduce the number of withdrawals and avoid trading during times of high network congestion to save on gas fees. Additionally, I hold native exchange tokens like BNB (on Binance), which helps me get discounts on trading fees. I also make it a point to regularly check the exchange’s fee structure and take advantage of any zero-fee promotions. By being mindful of these aspects, I am able to save costs and maximise my returns in the long run.