Crypto Fees 101: What Every Trader Should Know Before Clicking “Buy” or “Sell”
When trading with cryptocurrencies, your profits can disappear in an instant if the one component you forget is the fees! No matter where you are on your trading journey, understanding fees is paramount to keeping in mind the bottom line.
Fees come in three major categories:
Trading Fees – Paid at every buy and sell. Binance uses a tiered formula based on your 30-day volume and BNB balance. Market orders (taker fees) generally cost more than limit orders (maker fees).
Withdrawal Fees – Whenever you move your crypto off the exchange, you will incur a network fee. This fee will depend on the coin you are moving and how congested the blockchain is.
Funding Fees – If you are working with perpetual contracts, you will want to pay attention to the funding rates. These rates are used to balance long and short positions, earning you or costing you money.
Don't let fees take a bite out of your profits! Always take fees into your strategy!
