Cryptocurrency is potentially the future of currencies, and it is already here. Over the last few years, many crypto exchanges have come up around the world. More than 50 exchanges are transacting in cryptocurrencies. Though there are so many exchanges, most of the trades take place on about 10 exchanges. About 80% of the daily traded volume takes place on these exchanges. There are several cryptocurrencies in the world, and they all have different purposes and fulfill specific needs. They all work differently. Some are used as tokens while some have their values tied to some assets within the company which issued them.
How to Choose the Right Crypto Exchange?
It is challenging to choose the best exchange, but here are a few categories that may help you decide.
- Trading Volume: It is essential because it indicates the exchange liquidity. That will determine how fast you will be able to buy or sell.
- Security: There are wallets that you can use to trade. These wallets store your crypto, so they have to be very secure. The site or exchange should be prioritizing security as a top priority.
- Price: The fees of any exchange charges are significant. Exchanges calculate the trading fees on a very different basis, and you should look at the costs carefully.
Based on these criteria, you can choose the right exchange to trade on. In this article, we will give you a list of exchanges that charge the lowest fees. According to Crypto Head those are:
- Binance
It is the largest crypto exchange in the world in terms of volumes. It supports almost 400 types of cryptocurrencies. It uses a maker-taker system when it comes to the transaction fee. Its model is tied to the number of Bitcoins or its Binance coin traded over 30 days. Both the makers and takers are charged a small fee, between 0.04% and 0.10% depending on the trade volume. Binance offers discounts to traders who hold BNB tokens.
- HitBTC
It is also a vast exchange and supports almost 300 cryptocurrencies. It also has a large trading volume going up to 180 million dollars. It charges takers a fee of 0.1%. This is not one of the lowest, but this charge remains the same irrespective of the value of the transaction. It also gives a rebate to the makers of 0.1%.
- Bitfinex
It supports all major and some small cryptocurrencies. It has very high trading volumes, and in terms of trade values, it is among the first exchanges. Takers and makers are charged differently. The rates are based on the 30-day trading volume. For takers, the fees can vary from 0.055% to 0.20%. For makers, fees start at 0.10% but can go down to zero if the volume is more than $7.5 million.
- Bitstamp
This is a European crypto exchange and has a large number of traders. It trades most of the well-known cryptos like Bitcoin, Ethereum, Ripple, etc. it does not offer separate fees for takers and makers. For higher volumes, they give a customized fee. Otherwise, the usual trading fees range from 0.10% to 0.25% based on the trading volume.
- Coinbase
It is a crypto exchange and a crypto wallet. It has more than 20 million users. It operates in more than 30 countries. It trades in all the major cryptocurrencies. It charges 0.50% for each crypto traded. It also charges a Coinbase fee which could be a flat or variable fee depending on the region and the type of payment.
- Gemini
This is a licensed crypto exchange and is regulated by the New York State Department of Financial Services. It charges a fee between 0.10% and 1.00% for both makers and takers. The actual fee will depend on the value of the trade.
- Poloniex
It does not charge any fees for withdrawals and deposits. For transactions, it charges according to the maker-system. The fees for takers start at 0.20% and then depending on the trade value, it can go down. For makers, the charges are between 0.02% and 0.10%. There is no fee if the transaction volume is more than $7.5 million.
- Bitmex
This is a very versatile crypto trading exchange with a lot of options for the users. Users can buy and sell cryptos and also indulge in futures trading. It also offers upside and downside trading, which allows a trader to benefit from the increase or decrease in the value of the cryptocurrency. It also gives the option of margin trading. It is a platform for more experienced traders. It offers a rebate of 0.025% to 0.050% to takers. For Bitcoin Futures, it charges a 0.075% fee.
These are some of the best crypto exchanges in terms of fees. If you are planning to start trading in cryptocurrencies, then it is good to research first and understand the whole process. There are many sites which promise very less or no fees and high returns. These could be scam sites, and learning and gathering as much information as possible is the key to success.
