Cryptocurrency trading fees can add up quickly. In addition to trading fees, which are incurred for each and every individual crypto trade, cryptocurrency exchanges also often charge fees for deposits or withdrawals.
How to Trade Cryptocurrency Without Paying Fees
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There are many different fee models for cryptocurrency exchanges. Most exchanges will allow users to deposit cryptocurrency without charging fees, but will charge fees for depositing fiat currency via bank transfer.
Credit card purchases, where available, typically incur the highest fees, so if you’re planning on depositing fiat currency on to your exchange, it’s best to use a bank deposit – although it may take a little longer.
Trading fees are where cryptocurrency exchange fees get complicated. Some exchanges charge a simple flat percentage fee for all trades, while others use a “maker/taker” model.
Maker/taker fee models are designed to provide a discount to traders that add liquidity to the order book. Order makers benefit from lower fees than traders that remove liquidity.
Moreover, various different order types can often incur higher fees. Market orders, for example, are typically charged a higher fee than limit orders. There are a number of exchanges, however, that allow traders to trade cryptocurrency without fees.
We’ll proceed to break down the three best cryptocurrency exchanges without fees.
Rubix
Rubix is one of the only exchange platforms that allow users to deposit or withdraw cryptocurrency without paying any fees at all. The Rubix wallet is a unique decentralized cryptocurrency storage solution that allows users to hold their crypto in a decentralized wallet and retain full control of their private keys.
It’s possible to purchase cryptocurrency via Rubix via Mastercard or Visa cards, or via bank transfer, but the swap feature is the most interesting element of the Rubix platform. Using Rubix, traders are able to exchange cryptocurrency directly with other traders – without worrying about centralized wallets and the threat of exchange hacks.
Coinbase
Coinbase has remained a driving force in the cryptocurrency marketplace since launch, and offers very competitive trading fees for their exchange platform, Coinbase Pro. Using a credit or debit card to purchase cryptocurrency on Coinbase can be expensive, so it’s best to deposit via bank transfer.
Coinbase Pro uses a maker/taker model for most traders. If you make an order on Coinbase Pro at market price and the order is filled immediately, you’re a “taker” – which means you pay a fee between 0.05 percent and 0.25 percent.
If you make an order on Coinbase Pro that is not matched immediately, however, you’re adding liquidity to the order book – you’re a “maker”. In most cases, depending on the volume of cryptocurrency you’re trading, you’ll pay no fee at all.
Depositing cryptocurrency to Coinbase Pro is free. Interestingly, Coinbase Pro also provides free Swift bank transfer deposits for free, with no fees — although most withdrawal methods incur a flat fee.
It’s possible to use Coinbase Pro to trade crypto without fees if you’re careful with the order types you make and the method you use to deposit and withdraw crypto currency.
Cobinhood
Cobinhood is ranked as one of the top three most secure exchanges, and has rapidly become a highly popular crypto exchange due to their “zero fee trading” motto. The Cobinhood platform, founded in 2017, promises 0 percent trading fees, with no conditions.
When using Cobinhood to trade cryptocurrency, you’ll only be charged fees when depositing or withdrawing. Withdrawal fees are charged by Cobinhood in the tokens that are being withdrawn, but in most cases are around $3 USD.
If you’re looking for an exchange that offers zero fee trading, Cobinhood is a good choice. It is, however, a centralized exchange and is thus susceptible to hacks and security flaws, so it’s important not to store any cryptocurrency on Cobinhood for an extended period of time.
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