The financial industry is filled with various types of fees—whether you're exchanging funds, opening a new position, maintaining an account, or withdrawing assets. Cryptocurrency trading is no exception. However, since the crypto market operates differently from traditional finance (TradFi), understanding these fees can be confusing.
This guide explores common crypto trading fees, their types, and how they vary across popular exchanges. We'll break down maker/taker fees, funding fees, gas fees, and more. But first, let’s start with the basics.
How Crypto Trading Fees Work
Crypto exchanges charge fees to sustain their operations and improve services. Every time you trade, open a position, or use financial tools, a small fee is applied. These fees help exchanges:
- Maintain platform infrastructure
- Introduce new features
- Compete for liquidity
Fee structures vary between exchanges, often detailed in a fee schedule. Some exchanges offer zero-fee trading on select pairs (e.g., Binance’s BTC/BUSD spot trading) to attract users and boost liquidity.
Exchanges also incentivize high-volume traders with fee tiers—lower fees for those trading larger amounts monthly. This encourages loyalty and increased activity on the platform.
Types of Crypto Trading Fees
1. Maker and Taker Fees
These are the two primary fees in crypto trading, tied to order book liquidity:
- Maker Fees: Charged when you add liquidity by placing limit orders away from the current market price (e.g., a buy order below the market rate).
- Taker Fees: Applied when you remove liquidity by executing market orders (e.g., selling ETH instantly at the best available price).
👉 Why Maker Fees Are Lower Than Taker Fees
Some exchanges even offer negative maker fees, paying traders for adding liquidity.
2. Funding Fees
Common in perpetual futures markets, funding fees balance long/short positions and occur every 8 hours.
- Positive Rate: Long positions pay shorts (perpetual price > spot price).
- Negative Rate: Shorts pay longs (perpetual price < spot price).
High funding rates can signal overcrowded trades, impacting profitability.
3. Withdrawal and Deposit Fees
Blockchain networks charge fees for moving assets on/off exchanges. Costs depend on:
- Network congestion (e.g., Ethereum during high traffic).
- Network type (e.g., USDT withdrawals via TRON are cheaper than Ethereum).
Always verify fees using blockchain explorers like Etherscan or Bitcoiner Live.
4. Gas Fees
Paid for on-chain transactions, including:
- Trading on decentralized exchanges (DEXs).
- Interacting with dApps or smart contracts.
Gas fees spike during network congestion but can be minimized by timing transactions.
5. Spot Margin Trading Fees
Borrowing funds for leveraged trading incurs:
- Opening fees (e.g., 0.02% for altcoins).
- Rollover fees (e.g., 0.005% daily for BTC/ETH).
Margin fees vary by asset and exchange (e.g., Kraken vs. Binance).
6. NFT Trading Fees
NFT transactions involve:
- Minting fees (one-time blockchain cost).
- Royalties (2%–15% paid to creators per sale).
Marketplaces may also charge listing/delisting fees.
Crypto Exchange Fee Comparison (2024)
| Exchange | Spot Trading | Futures Trading | Margin Trading | Notes |
|---|---|---|---|---|
| Binance | 0.1%/0.1% | 0.02%/0.04% | 0.005%/day | Discounts for BNB holders. |
| Coinbase | 0.4%/0.6% | 0.4%/0.6% | N/A | High fees for retail traders. |
| Kraken | 0.16%/0.26% | 0.02%/0.05% | 0.01%/day | Lower fees for stablecoins. |
| KuCoin | 0.1%–0.3% | 0.02%/0.06% | 0.02%/day | Tiered by asset liquidity. |
👉 Best Low-Fee Crypto Exchanges in 2024
FAQ
Q: How can I reduce crypto trading fees?
A: Use limit orders (maker fees), trade high-volume pairs, or hold exchange tokens (e.g., BNB for discounts).
Q: Are gas fees avoidable?
A: No, but you can minimize them by transacting during low-traffic periods or using Layer 2 networks.
Q: Why do funding fees exist?
A: They prevent perpetual futures from deviating too far from spot prices by incentivizing balance.
Q: Which exchange has the lowest fees?
A: Binance and KuCoin generally offer the most competitive rates, especially for high-volume traders.
Final Thoughts
Crypto fees are unavoidable but manageable. Understanding maker/taker dynamics, funding rates, and gas costs helps optimize your trades. Always review an exchange’s fee structure before committing to high-frequency trading.
For deeper insights, explore our guides on:
By mastering fees, you’ll preserve capital and maximize returns in volatile markets. Happy trading!