Not a day goes by that we don’t hear or read some news about cryptocurrencies. Even though when it all began, back in 2009, there were only a few dozen people who really invested their time, money, and passion into digital money, today, even the skeptics are more and more becoming a part of the crypto community. There are many benefits of this new, decentralized currency, and one doesn’t need to be an expert to trade and follow the latest crypto trends. Of course, some basic knowledge is a must in order to make profits, but knowing everything about blockchain technology is not something that should occupy your mind unless you already have some experience or have a deep interest in learning about all that. On the other side, knowing how things work, what and how exchange platforms operate, and how carefully or risky, depending on your preferences, you should invest your money should be a part of your daily routine. Like in any other type of investment, research is everything, and if properly done, the future will look bright. Even with all that, there are always some things that are changing or that you may not be aware of, like crypto exchange fees, and how come they are much lower in comparison to other charges. That is why we will now take a closer look at the top 5 things to know about exchange fees, as it is something that everyone who wants to be a part of the crypto world should know about. For those who require even more info on this topic or want to start trading right away, of course, anonymously, check Godex.io, one of the most reputable cryptocurrency exchange services currently on the market.
1. The way it is calculated
Let’s start with exchange platforms and how they operate, as there are two basic types, and one of the main differences is how they calculate the exchange fees. While some of them have a strict policy of charging a certain amount for every single transaction you make, other platforms charge fees on a monthly basis. For those wondering how that works, after the thirty-day period, some predetermined percentage is being calculated, depending on the number of your transactions and on the spent amount. Although it may sound complicated, it is actually pretty easy, and as many experienced crypto traders state, it is a much easier way to trade. Of course, this is up to every single individual and what suits their purposes the most. As for how high the fees are, it all depends on the platform itself, and there is no real difference between these two types of charging them.
2. Exchanges are not regulated everywhere
It is necessary to keep in mind that the exchange of cryptocurrencies is not regulated in every country. Actually, many jurisdictions do not have laws when coming to those types of transactions. For many governors around the globe, the hands-off strategy to those transactions is the best way to keep using them. In that way, there are still cryptocurrencies in many significant trading markets. A patchwork of laws in the US is obliged for most of the transfers and for the biggest markets for crypto trading. It is good to know that some countries are completely banned all cryptocurrency trading and inform yourself well before you decide to finish any trade. Anyway, many dealers from those countries are finding other ways to continue trading, and one of them is moving the base to a country with better conditions.
3. Trading with fiat money
Using real money for crypto exchange is something that can make transactions much easier. Regarding the payment mode, the deposit and fees can be incurred by the fiat currencies. The best thing about using the coins is that the purchase is free, and that means that there are no expensive fees and unpredicted costs. It is sometimes possible that you need to pay some small amount of money in case that the wallet needs to be set up for the new currency, but the fact is that it is not something that will give you a huge bill. Because of that, one of the best solutions is to use coins and avoid losing more money than you need to.
4. There is no access to all coins
The majority of the most famous cryptocurrencies are not offering a possibility to use all the coins that you have in your wallet. Therefore there is the possibility of transferring the funds to the other wallet and use them for the next transfers. The other alternative is to use fiat money and buy the currency you need at that moment. There are many cryptocurrencies that you can buy only by using fiat money, and getting them using the other crypto is not possible for now. Luckily, many of them are offering the possibility of importing the coins from other wallets. In that way, it is possible to finish the desired transaction, and charges for shifting between various wallets are not that high. But, you should know that those fees will be charged at each end.
5. Encouraging frequent trading
Trading cryptocurrencies means big transactions that can be worth more than thousands of dollars. Because of that, fees are created in a way that will encourage more frequent exchanges. That means that if the amount of the trade money and the frequency of trading is increasing, the fees will often decrease to encourage people to trade more. Small and trades that are not frequent will bring you a lot of extra costs, and it is best to avoid them. On the other side, some big exchanges may be done without any fees, and it will save you a lot of money.
The bottom line
Although the crypto world is constantly changing and advancing, and in order to always be in the loop, proper research on a day-to-day basis is required. That is why research along with these top 5 things that everyone considering dealing with cryptocurrency exchange platforms should know about before they start trading should be on every crypto enthusiast’s list.