How to save money on cryptocurrency exchange fees

Fees are an inevitable part of cryptocurrency trading, or are they? Charged by cryptocurrency exchanges on every trade or transaction on their platform, these fees can add up to quite a substantial amount, especially during the bull market when people are actively trading. refore, people are eager to find some way to save money on cryptocurrency trading fees, and to stay competitive, many exchanges offer discounts or perks for their loyal customers. In this article, we take a look at some of the ways you can reduce or even have no trading fees, and the discounts that some cryptocurrency exchanges offer.

What are crypto exchange fees?

Cryptocurrency exchanges charge fees to clients for transactions or exchanges made on their exchange. Some types of crypto exchange fees include:

Deposit / withdrawal fees

Exchanges are basically a platform for clients to exchange cryptocurrencies, so they would have to deposit or withdraw cryptocurrencies on the exchange platform in order to use them. Exchanges charge a fee when clients deposit or withdraw cryptocurrencies on or from their platform.

Trading fees

This is charged for exchanges as long as the cryptocurrencies are converted to other cryptocurrencies or fiat, and vice versa.

most popular exchanges like FTX or Binance charge trading fees based on a manufacturer / receiver structure, with receiver fees being higher than manufacturer fees. Takers are when the user places an order that can be traded immediately (either partially or fully) before it enters the order books. y are known as “takers” because they “take” volume from order books. On the other hand, the manufacturer’s fees are charged when the user places an order that is included in the order book (either totally or partially), that is, “making” the market.

Interest / Loans / Settlement Fees

se fees are charged when users participate in margin trading, that is, when they borrow funds to increase their position. amount of these fees generally depends on the amount borrowed as margin along with an interest rate. However, margin trading is very risky, and one of the reasons for this is that if the trade doesn’t go the way you want it to, it will be liquidated. When this happens, exchanges also charge a settlement fee.

Read also Common mistakes to avoid when trading cryptocurrencies

VIP programs

Exchanges generally offer discounts on exchange fees for their frequent users. This is generally based on a VIP tier structure where frequent users (based on their 30 day trading volume) can qualify for higher VIP tiers which entitle them to cheaper rates. requirements for VIP levels and the discounts offered differ between exchanges.

Binance VIP program requires users to have a certain trading volume for 30 days and have a specific balance of their native token known as Binance Coin (BNB). For the first VIP level, users must have a trading volume of 50 BTC or more and have 50 BNB or more. Check here for more details.

FTX Exchange VIP program is aimed at high volume or professional users. To qualify for the first VIP lever, users must trade an amount equal to or greater than 0.5% of all FTX trading volume for 30 days. Check here for more details.

HOWEVER, new users can get a 5% discount on trading rates by clicking on our EXCLUSIVE link below with no trading volume requirement.

Coinbase does not have a VIP program. However, Coinbase charges a fee for withdrawing from its platform and for transactions. Fees are calculated based on various factors, such as payment method, order size, and market conditions, etc. amount of such fees will be disclosed at the time of the transaction. Learn more about Coinbase fees and how you can avoid them.

Kraken does not publish their VIP program, but users can email them to inquire about their Account Management Services.

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Exchange token discounts

Many exchanges have their own native token and holding your token entitles users to discounts.

native token of FTX Exchange is FTT. FTT token holders can enjoy rebates on trading fees and discounts when using their OTC services. more FTT you hold, the greater the rebates and discounts. Larger holders can also be automatically promoted to VIP status on the exchange, giving them even lower trading fees as seen above.

Additionally, FTT holders can also receive airdrops from the Serum ecosystem token (SRM). Users will receive 3 locked SRMs (1-7 years old) for every 500 unlocked FTTs held on the exchange with no upper limit. Check here for more details.

Binance Token (BNB) is Binance’s native token. Binance allows users to pay trading fees using BNB, and by doing so, users can get a 25% discount on trading and margin fees, and a 10% discount on futures trading fees.

Both Coinbase and Kraken do not have their own native token.

Discounts for betting exchange tokens

Some exchanges allow users to stake the native token, that is, lock the token for a specified period in exchange for additional rewards. Some rewards include discounted fees, additional tokens (i.e. returns), higher airdrop rewards, and the ability to participate in the exchange’s Initial Exchange Offerings (IEOs).

At FTX, betting FTT token entitles users to manufacturer fee refunds, additional votes, higher SRM launch, limited free withdrawals, and tickets to participate in their IEOs. benefits offered increase with more FTT wagered.

Binance also allows users to stake their BNB in ​​its vault in exchange for BNB returns. While there are no direct benefits to wagering BNB, as mentioned above, Binance users get a 25% discount on trading fees when paying with BNB.

Neither Coinbase nor Kraken offer participation in their exchange token.

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Cryptocurrency exchange fees can add up, especially when you are a heavy user. With the many exchanges out there, the competition is fierce to attract users as they earn money with every transaction you make. One of the main ways to do this is to offer discounted fees for using the exchange. Most, if not all cryptocurrency exchanges offer discounts simply for frequent or high-volume users with tiered VIP programs. Other exchanges like FTX and Binance are more creative, use their native token, or have share programs that increase user rewards. At the end of the day, the rewards offered are just one aspect to consider when deciding which exchange to choose, other factors include the number of cryptocurrencies supported and security, etc. Exchanges may have features that are not available to US citizens.


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