With an overwhelming number of cryptocurrency exchanges floating
around online, selecting the ideal one can feel like a chore.
Depending on what you're looking to achieve with an exchange,
there might be specific platforms that suit you better than
others.
Many traders prioritize cost-effectiveness when it comes to
cryptocurrency exchanges. Frequent transactions can swiftly
increase expenses. This guide will direct you to the most
cost-efficient cryptocurrency exchange options available. We'll
reveal some of the most budget-friendly exchanges and highlight
what to keep an eye out for when selecting a platform.
This advertisement endorses cryptocurrency trading within the European
Union (powered by eToro Europe Ltd. and eToro UK Ltd.) and the United
States (via eToro USA LLC). Please note, cryptocurrencies are highly
volatile, fall outside the regulation scope in some EU regions and the
UK, and lack EU consumer safeguards. Investment involves market risks,
including potential principal loss.
This advertisement endorses cryptocurrency trading within the European
Union (powered by eToro Europe Ltd. and eToro UK Ltd.) and the United
States (via eToro USA LLC). Please note, cryptocurrencies are highly
volatile, fall outside the regulation scope in some EU regions and the
UK, and lack EU consumer safeguards. Investment involves market risks,
including potential principal loss.
Snapshot of Affordable Cryptocurrency Trading Venues
This depiction features 10 economically viable cryptocurrency
exchanges assessed by trading and additional fees. While not
exhaustive, it gives a peek into platforms where Bitcoin can be traded
at reduced costs. Note that exchanges are displayed alphabetically,
not by fee size.
Crypto Exchange
Maker fee
Taker fee
Spread fee
Deposit fee
Withdrawal fee
Discount token
Discount Volume
Binance
0.1%
0.1%
No
No
Yes
25%
Yes
Bitfinex
0.1%
0.2%
No
No
Yes
No
Yes
BitMEX
0.025%
0.075%
No
No
Yes
No
Yes
BitPanda (PRO)
0.1%
0.15%
No
No
No
Yes
Yes
ByBit
-0.025%
0.075%
No
No
No
No
No
CEX.io
0.16%
0.25%
No
Yes
Yes
No
Yes
ChangeNOW
No
No
Starting at 0.5%
No
No
No
No
Coinbase Pro
0.5%
0.5%
No
Yes
Yes
No
Yes
eToro
No
No
Starting at 0.75%
No
No
No
No
Kraken
0.16%
0.26%
No
No
Yes
No
Yes
* Fees directly imposed by the exchange are listed. Possible
additional fees by payment providers may apply.
Whether you're a high-frequency trader or just starting, there are
compelling reasons to opt for exchanges with minimal fees. However,
it's wise not to get lured just by low costs without considering other
factors.
Benefits of Economical Cryptocurrency Exchanges
Key Benefits of Choosing Low-Fee Exchanges Include:
Reduced Expenses – Undoubtedly one of the main
advantages, lower costs can generate substantial savings, especially
if you're executing numerous trades weekly.
Enhanced Liquidity – Platforms offering low fees
yet maintaining robust security often attract more traders,
resulting in higher liquidity. Quick access to funds with minimal
delays is assured.
Diverse Tools – Those exchanges not solely relying
on trading fees tend to provide a variety of features. Consider
eToro's platform for an example, with features like CopyPortfolio
aimed at facilitating entry-level investors.
CopyTradeWider Cryptocurrency Selection – Continuing from
the prior advantage, low-fee exchanges often expand their coin
selections to attract an extensive user base. Though, this isn’t
universal for all.
Drawbacks of Low-Cost Cryptocurrency Exchanges
While lucrative, inexpensive exchanges come with certain pitfalls you
must be aware of. These include:
Weakened Security – An exchange generating
insufficient revenue might compromise on security expenses,
potentially jeopardizing your funds through hacks or theft.
Operating Without Regulatory Oversight –
Cost-saving measures might lead some exchanges to forego regulation.
While not inherently risky, a license offers more credibility and
trustworthiness.
Profit-Making Mechanisms of Cryptocurrency Exchanges
Cryptocurrency exchanges use various strategies to generate revenue.
The four primary methods include:
Transaction Fees – These refer to fees tied to
transactions, often termed commissions or spreads.
Listing Fees – Companies or individuals pay these
fees to an exchange to list their offerings.
Market Making – Fees stemming from market-making or
market-taking activities.
Processing Fees – Generally involving
administrative fees, though often pertaining to deposit or
withdrawal charges.
Cryptocurrency platforms are
autonomous regarding their security, listings, and service
fees
. Consequently, exchanges select fees as per their discretion.
Pricey exchanges are usually overlooked for budget-friendly ones,
making a balanced pricing approach vital.
Traditional costs on exchanges are typically commissions, although
many platforms bypass this. Commissions are standard percentages of
the transaction value and as low as 0.1%. Nowadays, the
spread dominates trading costs , signifying the
buy-sell price differential of a coin, often assessed in pips.
Trading Fees
Cryptocurrencies are rapidly gaining interest, notably in coin and
security offerings.
Listing Fees
Initiating a token offering, like a Initial Exchange Offering (IEO) or
Security Token Offering (STO), provides exchanges a financial cut
while bolstering the project's credibility .
Initial Coin Offerings (ICOs) Market creation remains a prime
revenue method for affordable crypto exchanges. Engaging in this
involves
trading coins at a slightly elevated price compared
to another exchange. This model might detract day traders, yet offers
a margin at the exchange.
Market Making
AI now plays a more significant role in
executing concurrent trades across different exchanges
, exemplifying how market creation has grown sophisticated.
This revenue model is unusual among the lowest-priced exchanges due to
discouraging day traders. The focus of payment fees lies in
transactional deposits and withdrawals . Although
deposit fees are almost obsolete due to competition, withdrawal fees
still cover processing costs in many instances.
Payment Fees
Cryptocurrency Exchange Discount Strategies
Exchanges, to capture a slice of an intense market,
leverage discounts to sway potential clients . These
come in varied forms such as sign-up bonuses and periodic offerings.
The most common discount strategies entail:
Internal Token Discounts – Given for choosing an
exchange’s proprietary coin.
High Trade Volume Discount – Offered to traders
surpassing specific trade volumes over a set timeframe.
Many cryptocurrency exchanges have minted their exclusive tokens,
luring investments by providing transaction fee reductions.
Native Token Discount
A prime use-case of tokens for user motivation is Binance, where
enjoying a 25% fee discount is possible via BNB
ownership. Other exchanges have similar inducements.
Binance Coin (BNB)
Active traders in cryptocurrencies receive volume-based discounts.
Volume calculations are customarily made using a
14, 21, or 30-day trading window . For instance,
Bitfinex measures the last 30 days' trading volume in USD to apply
equivalent discounts. Traders hitting $7.5m in transactions benefit
with null maker fees and taker fees trimmed to as low as 0.2%. Larger
volumes may reduce taker fees to just 0.055%.
Volume Trading Discount
Finding Your Ideal Cost-Effective Cryptocurrency Exchange
Below is a curated compilation of cost-efficient ,
yet trustworthy and secure , digital
currency exchanges.
Binance ranks as one of the largest cryptocurrency exchange platforms
globally with operations spanning various regions via specific
entities like Binance.us and Binance Jersey.
Binance
Known worldwide as Binance.com, it offers traders access to
over 100 diversified coins and ICO tokens. Supporting
transactions from both fiat to crypto and inter-cryptocurrency, the
functionality spreads across devices, including mobile tech.
The main Binance exchange
Initial fees on Binance commence at
0.1% both for Maker and Taker , with further
deductions possible up to 25% when transacting via its native Binance
Coin (BNB). No deposit fees apply, while withdrawal costs vary with
type. Bitcoin withdrawals, for instance, incur 0.0005 BTC charges.
Being amongst the least costly exchanges globally, Binance proposes
additional fee reductions for 30-day high transaction conductors,
going as low as 0.012% Maker and 0.024% Taker as standard in these
cases.
Favored by traders, Bitfinex delivers a cryptocurrency exchange
tailored to active traders . Providing a choice of
over 45 coins and tokens, it equips users with an extensive toolkit
for market analysis and charting. Furthermore,
Bitfinex
Top Affordable Crypto Trading Platforms [2021] - Insights by Cryptimi
Bitfinex is highly secure
, yet functional and convenient.
All the insights you need to make an informed choice on the best value
cryptocurrency exchanges – comprehensive data, insights, and key
considerations.
BitMEX
This advertisement endorses cryptocurrency investments within the EU
(facilitated by eToro Europe Ltd. and eToro UK Ltd.) & USA
(facilitated by eToro USA LLC); cryptocurrencies are extremely
volatile, unregulated in some EU nations and the UK., lacking EU
consumer safeguards. All investments carry market risks, including the
potential loss of invested capital.
BitMEX
Chapter 2: Navigating the Crypto Market Dynamics
Chapter 6: Mastering Crypto Investments Like a Pro
BitPanda
Identifying the Top Trading Platforms in the Market
With a sea of cryptocurrency exchanges flooding the internet, picking
the right one might feel overwhelming. Your reasons for using an
exchange could vary, and based on these, some platforms may serve your
needs better than others.
ByBit
A frequent query among traders is about finding the most
cost-efficient exchanges for cryptocurrencies. This is mainly because
the expenses from frequent trading can add up quickly. This guide aims
to direct you towards the most economical cryptocurrency exchanges. We
will outline several inexpensive platforms you can choose from, as
well as important factors to consider when selecting an exchange.
cold storage wallets
A Snapshot of Cost-Efficient Crypto Exchanges
The table below illustrates ten economical cryptocurrency exchanges,
evaluated on their trading charges and associated fees. It doesn't
cover every option out there, but it offers a solid understanding of
where you can transact Bitcoin more affordably. Note: Exchanges are
presented alphabetically, not ranked by fee structure.
The ByBit platform
* Direct charges from the exchange are reflected here. There might be
extra charges from payment service providers.
CEX.io
Why Choose Cost-Efficient Crypto Exchanges
CEX.io exchange
There are numerous reasons why frequent traders—or anyone else—might
prefer exchanges with lower fees. However, some key considerations
should be kept in mind before opting solely for the least expensive
choice.
Benefits of Choosing Low-Fee Crypto Exchanges
ChangeNOW
ChangeNOW
Here are some prominent benefits of opting for exchanges that charge
minimal fees:
Cost savings – It's quite straightforward, yet crucial; lower costs
can tangibly enhance your capital, especially if you're executing a
plethora of trades weekly.
Coinbase Pro
Enhanced market fluidity – Exchanges that offer reasonable costs
without compromising on security tend to gain a large trading
clientele, which boosts liquidity. This ensures quick fund
transactions, circumventing delays due to insufficient funds from the
exchange.
original Coinbase platform
.
Comprehensive tools – Exchanges that don't depend solely on trading
and payment fees for profit are more likely to offer a suite of tools
and features. The eToro platform exemplifies this by providing
While the appeal of low-cost exchanges is undeniable, potential risks
are involved, which include:
Kraken
Compromised security – If a platform isn't generating adequate
revenue, it might be forced to downscale or halt spending on security
measures, increasing the risk of fund theft or hacking.
Kraken exchange
Unregulated Platforms – To cut costs, cheaper exchanges might dodge
regulation. While not automatically perilous, having an operating
license lends additional trustworthiness and prestige.
Crypto Exchange Revenue Models
There are several revenue streams that cryptocurrency exchanges tap
into to function smoothly. The primary avenues include:
Transaction fees – Directly tied to individual trades, these can be
categorized as commissions or spreads.
Fees related to transactions – Covering general administrative
expenses, predominantly revolving around deposits or withdrawals.
Support
Cryptocurrency exchanges prioritize their own security, offering
listings and services. Likewise, they freely set fees and billing
structures. While pricier exchanges are often sidestepped for cheaper
choices, every platform aims for a harmonious balance.
Mobile
Typically, exchanges charge a commission fee, though many skip this
for crypto trades. Commissions are often a fixed percentage relative
to the trade's worth, at times as low as 0.1%. Nowadays, spreads are
the prevalent trading cost, denoting the variance between a coin's
buying and selling price, typically measured in pips.
