Trading crypto can be intimidating. The trading fees are high and can eat away at your profits. Luckily, there are ways to avoid paying exorbitant fees when buying and selling cryptocurrencies. Here are some tips:
Trade the right pair
- When trading crypto, it’s essential to consider the exchange fee in addition to the price of your
- cryptocurrency. Choosing a particular pair can make a big difference in how much you can earn or lose.
Here are some things you can do to minimize exchange fees:
- Trade less volatile pairs with higher volume and lower spreads
- Trade coins with low maker fees
Avoid unnecessary trading
Avoid unnecessary trading. The fees will add up quickly if you’re constantly trading your crypto and not just holding it. You can avoid this by using limit orders instead of market orders when you want to buy or sell. Limit orders allow you to set a price at which your transaction will execute, so if the market goes up or down since when you put in the order, it won’t affect the outcome of what price gets executed.
Limit orders are also helpful in avoiding unnecessary volatility in volatile markets (which is almost always).
Use rebates to your advantage
The third step is to use rebates to your advantage. You can take advantage of several types of crypto rebates when trading on an exchange, including referral and reward programs.
The first type of rebate is a referral program, where you receive a portion of the fee charged to anyone who signs up via your link. These programs are most common among exchanges that charge high fees to encourage more people to sign up. The second type is a reward program, which gives back small amounts of cryptocurrency every so often (usually daily) based on how much volume has been traded on the platform during that period as well as other factors such as time spent using it etc., which encourages users not only stick around but also trade more frequently instead just holding onto their coins for long periods at once.
Leverage the FTX Token
The FTX exchange is one of the fastest-growing crypto exchanges in the world. FTX is backed by Alameda Research, the largest liquidity provider in the crypto space. Because of this, they have created a highly functional and advantageous crypto exchange along with several other blockchain projects that benefit traders. When it comes to reducing your fee costs, FTX has some of the lowest exchange fees out there. The FTX maker fee is one of the lowest at .02%, and there are no withdrawal or deposit fees on the over 320 crypto options on the platform, except small fees for ETH and some Bitcoin.
Further, you can invest in the FTX Token (FTT) to earn even greater discounts on fees across the platform. Being an FTT stakeholder will give you other benefits, including token and NFT airdrops and the opportunity to join the FTX DAO.
Find an Exchange with Low Fees
The first thing you should do when looking for an exchange is determined how much you’re willing to pay in fees. You can’t avoid paying fees, but you can choose a platform with lower costs and fewer restrictions on your trading activity. As a general rule of thumb, it’s best to look for exchanges with low or no maker fees.
There are several different ways in which exchanges charge trading fees:
- Maker fees are charged when you place an order that does not immediately fill; the fee is paid by the person who placed the order (the “maker”)
- Taker fees are charged when you place an order that immediately fills; this time, your money goes straight from your account into someone else’s (the “taker”)
- Trading Fees are charged when you place orders that cannot be executed instantly; these include limit orders and stop limit orders
Trading crypto can be a great way to make money, but it’s important to remember that fees eat into your profits. The key is to avoid high fees as much as possible. You can compare different exchanges and choose the one best suited for your financial goals.