Why Fees Matter
Feb 19, 2022
Trading fees can be frustrating for those new to trading, however, they are a necessary part of trading cryptocurrency. All exchanges charge fees, some slightly more than others. That being said, it’s also impossible to interact with a blockchain without paying fees.
Why fees are charged for trading
So, let's start off with the basics. There are two types of trading fees that will be incurred when it comes to crypto trading: Exchange fees and network fees.
Exchange fees are charged by crypto exchanges, like MultiBank io, for the services that they provide on their platform. For every trade that they process, a small fee is charged. This is how crypto exchanges make their money, and without them, it would be a lot more difficult to trade crypto.
Exchanges will, in most cases, charge fees for deposits and withdrawals. They also charge ‘maker and taker fees. A maker is referred to as a trader who creates a new trade on an exchange, whilst a taker is a trader that matches a maker's trade.
Every time you send cryptocurrency from one address to another, you will have to pay a small fee. There has to be some form of even minor cost when doing a transaction, or else the node supporters and network operators would have no incentive to support the network. The work done by miners and validators is essential for maintaining the integrity of the network. Fees are, therefore, essential in order for a network to operate efficiently.
What to look out for in trading fees
Crypto exchanges often provide a wide variety of ways for users to deposit money. From bank transfers, to credit cards, to crypto deposits. What you may not know is that these fees often differ and you could end up paying more on fees, simply because you paid with your credit card instead of doing a transfer from your bank account.
Most exchanges have a variety of different trading fees for different services. Most exchanges offer an easy feature where a user simply converts their fiat to crypto instead of manually executing the trade on the exchange. This feature was designed to simplify the process for new users and the trading fees are often slightly more than if you were to execute the trade yourself. So, if you’re an experienced trader wanting to save on fees, try to avoid using the convert function.
Fees are a standard aspect of crypto trading and transacting, and allow the various infrastructure providers to operate sustainably. MultiBank io has structured our fees in a way to ensure you pay highly competitive fees but still experience the highest standard of crypto trading.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of MultiBank io. No information in this article should be interpreted as investment advice. MultiBank io encourages all users to do their own research before investing in cryptocurrencies.