Investing in crypto doesn’t have to break the bank. Discover how to trade cryptocurrency cheaper with no extra costs or fees by trading with cryptocurrency exchanges without fees!
In 2020, a popular cryptocurrency exchange, Binance, announced that it would no longer charge fees for trading on its platform. This announcement came as a surprise to many in the cryptocurrency industry, as it had long been the norm to pay fees for trading. Despite the announcement, Binance still managed to maintain its spot as the world’s leading cryptocurrency exchange.
Since then, many other exchanges have followed suit and have decided to offer trading without any fees. In 2021, the trend of fee-free trading has grown even more, with exchanges such as Huobi and OKEx also introducing zero-fee trading.
The reasons behind the move are varied but have been largely attributed to the competitive nature of the industry. By removing fees, these exchanges are able to attract more customers and increase their market share. Additionally, by removing fees, these exchanges are able to offer customers better prices for their trades.
Despite some obvious drawbacks, the trend of fee-free trading looks set to stay. With more exchanges joining the fray and existing exchanges continuing to offer zero-fee trading, it looks like fee-free trading is here to stay.
What are Crypto Exchange Fees?
Crypto exchange fees are the fees charged by cryptocurrency exchanges for the services they provide. These services can cover buying, selling, and trading digital assets, as well as providing custodial services for digital assets.
Chart Source: CoinMarket Fees
Cryptocurrency exchange fees can vary depending on the type of service, the exchange, and the asset being traded. Common fees include trading fees, deposit fees, withdrawal fees, and listing fees and they can be a flat fee for each transaction or a percentage of the total amount being traded. These fees are usually much lower than those imposed by traditional financial institutions, allowing users to make more trades at a lower cost.
Do All Crypto Exchanges Charge Fees?
Yes. All crypto exchanges charge fees. Cryptocurrency exchanges will typically charge fees when you buy, sell, or transfer digital assets within their platforms. However, these fees vary from exchange to exchange and can range from a few cents to a few percent of the amount being traded. Some exchanges also charge fees for depositing and withdrawing funds. Exchange fees vary depending on the kind of exchange you use, but they are not the same as the gas or network fees associated with the transaction.
Should I Always Choose the Exchange with the Lowest Fees?
No, you should not always choose the exchange with the lowest fees. The fees may be the most important factor when you are choosing an exchange, but there are other factors to consider as well. When selecting an exchange, it is important to take into account the trading volume, payment methods, the security of the exchange, the range of currencies available, the customer service, and the speed of transactions so that it meets your specific trading needs.
Cryptocurrency Exchange with Less or No Fees
When selecting a cryptocurrency exchange, an important factor to consider is the fee they charge for each transaction. Generally, the industry standard is between 0.25% – 1% fee for takers and makers, but there are some exchanges that offer an array of features with lower or no fees.
If you’re new to the world of cryptocurrency and are looking for ways to maximize your profits by minimizing trading fees, there are plenty of crypto exchanges with zero fees available to help. Here are our top seven picks for cryptocurrency exchanges without fees or minimal fee trading.
- TransferXO
TransferXO is an innovative peer-to-peer (P2P) cryptocurrency exchange that offers users a fast, secure, and fee-free trading experience. Unlike other cryptocurrency exchanges, TransferXO charges only 0.75% for buying and selling digital assets, allowing users to keep more of their profits.
With its proprietary platform, TransferXO offers a secure, fast, and convenient way to trade cryptocurrencies. It supports major altcoins and tokens, including Bitcoin, Ethereum, Litecoin, and many more. And what’s more, its user-friendly interface allows users to easily buy and sell digital assets with other users in a secure and private manner.
TransferXO is built with security and convenience in mind. All transactions are secured with advanced encryption and two-factor authentication (2FA). Additionally, the platform provides users with a secure wallet system to store their funds. TransferXO also offers several unique features, such as a referral program. This allows users to earn rewards when they refer new users to the platform, making it a great way to grow your user base and increase your profits.
- eToro
eToro is a leading online trading platform widely used by traders and investors alike. eToro stands out among cryptocurrency exchanges since it existed before the Bitcoin network went live as it was originally used for trading traditional assets but has more recently joined the cryptocurrency market. More than 27 million people use the website. It is a multi-asset platform that offers a wide range of trading and investing options including trading in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more. eToro is widely known for its user-friendly design, intuitive platform, and reliable customer service.
eToro is a great platform for crypto beginners as it offers a comprehensive trading platform with educational and analytical resources that can help new traders understand the cryptocurrency markets. The platform provides a variety of tools and features that make it easy and convenient to trade on eToro.
In addition, eToro has earned solid trust in the community. It is regulated by the Cyprus Securities and Exchange Commission (CySEC) and is compliant with EU regulations. Furthermore, eToro is registered with the Financial Conduct Authority (FCA) in the UK.
eToro offers a range of funding methods for deposits and withdrawals, including credit cards and e-transfers. The platform also supports wire transfers. It supports 15+ cryptocurrencies and is available in over 70 countries.
Beginner traders can take advantage of eToro’s wealth of trading capabilities, and the platform’s overall user interface is incredibly warm and welcoming. With eToro Crypto, you can really withdraw your cryptocurrency to a personal wallet, unlike some of its rivals.
- KuCoin
KuCoin is a leading international crypto exchange, offering traders access to hundreds of different cryptocurrencies. It has become a go-to choice for traders due to its competitive fees, ease of use, and top-notch security. With headquarters in Hong Kong, Singapore, and Seychelles, Kucoin promotes itself as a genuinely global company. It’s known as “The People’s Exchange” at times and enjoys a superb reputation among cryptocurrency users.
KuCoin’s sign-up process is extremely simple and user-friendly, allowing traders to get up and running quickly. It also offers a variety of funding methods, including cryptocurrencies, and supports over 170 countries.
In addition to being a great way to buy and sell cryptos, KuCoin also gives users the opportunity to invest in the success of the exchange through KuCoin Shares. KuCoin Shares are a form of equity, giving holders access to a percentage of the daily trading fees generated by the exchange. This is a great way for people to benefit from the growth of KuCoin without having to trade directly.
- Crypto.com
Crypto.com is an innovative and comprehensive cryptocurrency exchange, app, and lending platform that gives users a wide variety of benefits. Crypto.com aims to build cryptocurrency adoption worldwide and provide a one-stop shop for users to manage their digital assets.
The exchange offers over 200 different cryptocurrencies, as well as a native CRO token, which provides users with a number of perks such as exclusive access to deals and discounts, exclusive access to the Crypto.com app, and staking rewards of up to 10% APY. Crypto.com also offers its users a high-yield savings account that allows them to earn interest on their digital assets.
Crypto.com is available in more than 80 countries and supports multiple funding methods, including bank transfers, credit cards, and debit cards. The app also offers a secure and easy-to-use platform for users to access their digital portfolio, as well as an intuitive trading interface.
- Phemex
Phemex is a relatively new cryptocurrency exchange platform founded in 2019 and headquartered in Singapore. It was created by eight former Morgan Stanley executives and has quickly become a popular choice for digital asset trading due to its intuitive user interface and zero-trading fee model.
Phemex is currently ranked number 6 based on daily trading volume, indicating its quick rise to prominence in the cryptocurrency trading world. The platform offers a range of features that make it an attractive option for traders, including: premium memberships, hourly withdrawals with no limit and set conditional spot orders.
Premium memberships are available for $9.99/month, $19.99/three months, and 69.99/12 months. In addition to no trading fees, premium members can take advantage of hourly withdrawals with no limit, set conditional spot orders, and endow friends with free trial premium memberships.
Phemex also offers extremely competitive makers/takers fees. Takers are charged 0.075% per order, while makers are paid -0.025% per order, meaning they get paid for each trade. This is much lower than the industry standard, making Phemex a cost-effective option for many traders.
- Digitex
Digitex is a peer-to-peer cryptocurrency futures trading exchange that is revolutionizing the way people trade digital assets. By offering a true zero-fee model, Digitex eliminates the need for clients to pay transaction fees when trading, buying or selling digital assets. Furthermore, the platform also removes the need to pass a lengthy KYC procedure and provides high liquidity.
Digitex has a range of features that makes it stand out from other crypto exchanges. Firstly, the platform offers a slick ladder trading interface that makes short-term trading, placing, and canceling orders quick and easy. Secondly, because Digitex market-making bots are programmed to lose money over time, clients have access to vast amounts of liquidity. Finally, the platform is decentralized and non-custodial, meaning the platform can never be hacked, and clients have complete control over their funds.
- Lykke
Lykke is a Swiss cryptocurrency exchange that provides a wide range of financial services and products to both business-to-business and business-to-consumer customers. The platform offers more than 100 crypto-asset trading pairs and supports several fiat currencies. It also has a downloadable cryptocurrency wallet that is available in both Google Play and Apple App store.
Lykke is committed to providing a secure trading environment. To that end, the platform is compliant with AML and KYC standards. Moreover, the exchange has an outstanding customer support system that is available 24/7 via live chat, email, and direct calling via Skype.
In terms of trading fees, Lykke offers a unique pricing model that reduces the costs of trading. The platform doesn’t charge any trading fees and also doesn’t have withdrawal fees. Instead, it collects revenue from its insurance and consulting services as well as from providing market liquidity.
How Do Crypto Exchanges without Fees Work?
Crypto exchanges without fees work by providing a platform for users to buy, sell, and trade cryptocurrency without charging any fees for the service. Usually, crypto exchanges without fees will make money in other ways, such as by charging withdrawals or listing fees for new projects. They may also offer other services such as margin trading or provide access to advanced trading tools.
These exchanges also tend to offer lower trading limits and less liquidity than larger exchanges, making them more suitable for smaller traders looking to buy or sell digital currencies. Some exchanges use a “spread” model, meaning the listed prices of cryptocurrencies may be slightly higher than on sites like CoinMarket or CoinGecko. Ultimately, it is up to the user to decide what is most important to them when choosing an exchange, such as free deposits or low-cost fees for high-volume trading.
Cryptocurrency Exchange Fees FAQs
How do crypto exchange fees differ?
Crypto exchange fees differ depending on the exchange, the currency being traded, and the payment method used. Generally, crypto exchanges charge a fee for each transaction or trade that is made. This fee is usually a percentage of the total transaction amount and can range from 0.1% to 0.5%. Some exchanges also charge a flat fee for each trade, which can be anywhere from $1 to $10. Additionally, some exchanges charge extra fees for deposits, withdrawals, and other services such as margin trading.
How to convert crypto without fees?
There are a few different ways to convert crypto without fees:
- Use a crypto exchange that doesn’t charge fees for crypto conversions. Many crypto exchanges offer free crypto conversions, so you can shop around to find one that meets your needs.
- Participate in an atomic swap. An atomic swap is a peer-to-peer exchange of cryptocurrencies without the need for a third party. The TransferXO atomic swap caters for your need by helping you to convert crypto without fees.
- Use a decentralized exchange (DEX). Decentralized exchanges are cryptocurrency exchanges that operate without a central authority. They often have low or no fees and provide a more secure trading environment.
- Use a crypto-to-crypto exchange. Some exchanges allow you to convert one cryptocurrency to another without any fees.
- Use a peer-to-peer (P2P) exchange. P2P exchanges allow you to buy and sell cryptocurrencies directly with other users. This can be done without any fees.
How do I avoid fees when selling on crypto?
When selling on crypto, there are a few ways to avoid fees. Among the options available include:
- Use a peer-to-peer marketplace with low fees. Many crypto exchanges and brokers charge fees when you buy or sell cryptocurrency. To avoid these fees, look for peer-to-peer marketplaces like TransferXO that allow you to directly trade with other users.
- Choose the right trading platform. Many crypto exchanges offer different fee structures. Some charge a flat rate, while others may charge a percentage of the total amount traded. Research and compare to find the right platform for your needs.
- Use limit orders. Limit orders allow you to set the price you want to pay for a cryptocurrency, rather than relying on market prices. This can help you avoid paying higher fees when the market is volatile.
Take advantage of discounts. Many crypto exchanges offer discounts for frequent traders or those who hold their coins on the exchange. Take advantage of these discounts to reduce your trading costs.
How do I buy crypto with less fees?
If you want to buy crypto with less fees, the best way to do so is to use an exchange that offers lower trading fees. Many exchanges offer discounted fees for users who pay with a certain cryptocurrency, such as Bitcoin or Ethereum. Additionally, some exchanges offer discounts for higher-volume traders or for those who use their own proprietary tokens. So, you can look for exchanges that offer zero-fee trading, such as Binance, which allows users to trade crypto with no fees.
Do decentralized exchanges charge fees?
Yes, decentralized exchanges do charge fees. The fees that decentralized exchanges charge vary depending on the exchange, the type of transaction, and the type of cryptocurrency being used. In general, fees on decentralized exchanges tend to be lower than those on centralized exchanges, however, they can still be substantial. For example, some decentralized exchanges charge between 0.1% and 0.2% for trades, while others charge a flat fee for each transaction. Transactions on decentralized exchanges can also be subject to network fees, which are typically paid in the cryptocurrency being exchanged.
How can I determine if an exchange’s fees are reasonable?
To determine if an exchange’s fees are reasonable, you should compare its fees to those of other exchanges. Check if the exchange charges any fees for trading, deposits, and withdrawals, and compare those fees to other exchanges. However, you should look into any additional fees such as inactivity fees, margin fees, and platform fees. If the fees charged by the exchange are in line with other exchanges, then the fees are likely reasonable.
Can I use multiple exchanges to reduce my overall fees?
Yes, you can use multiple exchanges to reduce your overall fees. By splitting up your trades across multiple exchanges, you can take advantage of different fee structures and lower your overall cost of trading. For example, if one exchange charges a 0.25% trading fee, but another charges a 0.20% fee, you can reduce your fees by trading on both exchanges and splitting your trades between them. Additionally, some exchanges offer discounts for certain trading activities, such as market making, so it may be beneficial to research different exchanges to find the one that offers the lowest fees.