The concept of cryptocurrencies is the most widely-spoken topic in the world for more than a decade. Even at the beginning, when this concept was introduced to the public, people weren’t sure what to think of it, but they certainly talked about the possibility of digital currencies.
Until 2009, this was something that we could see only in Sci-Fi movies. So, nobody should be surprised by the fact that people have perceived it as something interesting to take into consideration. Today, in 2022, we can see that this concept has become some sort of standard, mainly because of wide adoption.
There are many businesses, even countries, that have implemented these as a legal method of payments. However, there are not too many of them thinking about the fees this concept includes. Today, we want to discuss a couple of things you should know about crypto-exchange fees.
1. Deposit Fees
There are crypto exchanges out there that provide users with a lot of ways to deposit money. For instance, it can be done through debit or credit cards or PayPal transfers. It needs to be said that both of these approaches will include some sort of charges.
For example, if you opt for PayPal, then you can expect it to be up to slightly more than 2%. When we’re talking about bank cards, they can amass to two or five percent depending on the bank. What needs to be said is that purchasing digital currencies will require two sorts of charges, and a deposit is one of them.
It can lead to a misunderstanding because the user will not have a clear idea about how much money he or she is charged. The information you can take a look at is possible only when the deal is already concluded. That’s why we believe you should always pay attention to this aspect, when possible.
2. Network Fees
As we all know, this is a concept that doesn’t rely on any authority above it. Instead, it focuses on a wide array of different networks that are hosted by a high number of computers from all over the world. Therefore, the transactions are made peer-to-peer, without any interference in between.
However, that doesn’t mean that there are no fees in this deal. Instead of paying a fee to an exchange, the user pays a fee to the network itself. Meaning, the public blockchain offers users the possibility to use it freely, but not without paying a certain fee.
Another thing we want to point out is that these transactions, even though they are irreversible, they are still recorded. Therefore, anyone who sends a transaction can have an insight into the percentage that was paid in the form of a fee. So, it is possible to take a look at them, for the sake of transparency.
3. Withdrawal Fees
After you obtained some sort of cryptocurrencies, then you can make some further steps. One of these moves is to withdraw them from your e-wallet. There are many ways you can do it. Still, the most obvious one is using a crypto ATM, which can be found all over the world.
Keeping the coins inside your e-wallet is completely free in most cases. However, when you start selling it to withdraw the money, it becomes obvious that you can expect some sort of charge. It is known as withdrawal fees. We believe that the name tells enough about what it does.
There are two reasons why this charge is imposed. The first one is that the network will provide the necessary privacy and security to the transaction. The second one is that you’re using the public blockchain network. Both of these are reasonable if you ask us.
4. Trading Fees
Next, we want to talk about trading charges. As you can presume, this is a charge that comes in many different ways. First, it is crucial to point out that it depends on the amount and what sort of conversion you use as a trading tool. Many exchanges offer an easy way to do it. However, they usually prove as most luxurious ones.
Furthermore, we want to point out that trading fees have a couple of sub-categories, and by understanding all of them, you can presume how much you will be required to pay. The first one is known as a flat charge. The next one is known as the percentage charge.
We’ve mentioned that a lot of it depends on the crypto exchange you have chosen. Some of them will present you with a mixture of all of these. Still, some other ones will not include at least one of them. Therefore, make sure you check these before making a decision.
How to Minimize Them?
Even though cryptocurrencies are present in the public for more than a decade, it needs to be said that trading remains unknown to the highest percentage of people. The reason is quite simple, the industry hasn’t standardized itself to this day completely. So, you cannot know how high there are at all times.
However, it needs to be said that there are a couple of ways you can get them to be as minimal as possible. The first thing you can do is opt for decentralized exchanges. It means that you will have a chance to remove the middle man in a deal, which immediately means that the fees will become low.
Another possibility is to come across centralized exchanges that simply offer minimal fees. Some of them offer lower fees to their customers. Without any doubt, this is a great way to attract a significant number of them over time. If you want to take a look at a couple of these exchanges, visit www.naijaloaded.com.ng
Having a proper understanding of the crypto exchange is an absolute must. In this article of ours, we’ve provided you with the most significant aspects. Plus, we’ve provided a tip on how you can minimize these to the highest possible extent. Be sure to check them out.