#CryptoFees101
#CryptoFees101 Cryptocurrency trading in a nutshell:
It is the amount you pay to the platform or the blockchain network for executing a trading or transfer transaction.
Its main types:
* Trading Fees:
* Paid by the trader to the platform (such as Binance) when buying or selling currencies.
* Usually a percentage of the transaction value (e.g. 0.1%).
* Varies depending on the type of trading (spot, futures), your trading volume (the higher, the lower the fees may be), and the type of currency you pay the fees with.
* Withdrawal/Deposit Fees:
* Withdrawal: Paid by the trader to the platform when withdrawing currencies from the platform to an external wallet.
* Deposit: There are rarely fees for depositing into major platforms.
* These fees cover the cost of transferring the currency on the blockchain network (network fees) in addition to the platform's own fees.
* Network Fees/Gas Fees:
* Paid to cryptocurrency miners or validators to confirm and complete transactions on the blockchain network (such as "gas" fees in Ethereum).
* Varies depending on network congestion and currency type.
* These fees exist whether you trade on a centralized or decentralized platform, or send currencies from one wallet to another.
Conclusion:
Fees are an essential part of trading. Pay close attention to them because they affect your net profits, especially if you are making many small transactions.