Cryptocurrencies have experienced a surge in popularity over the past few years. What was once previously regarded as a niche asset used by shady individuals on the internet has now become a mainstream investment of sorts. But with gas fees rising and slower response times, crypto enthusiasts are looking for more attractive alternatives.
For example, demand for the best crypto wallet with lowest fees by Tezro is steadily rising. Such wallets allow individuals to send/receive cryptocurrencies but frees them up from the pain of exorbitant fees. And because of this, one question we’re hearing more is: do all crypto exchanges charge fees?
The answer is a resounding yes. All crypto exchanges do require you to pay a fee of some sort to use their services. This is because most have to pay upkeep for their infrastructure, staffing requirements, and other expenses.
Keep in mind that running a crypto exchange is not free. And if you happen to come across an exchange that charges zero frees, then you should be suspicious indeed. Such exchanges are scams and may disappear overnight with your money and cryptos.
So, before you get into the crypto game, keep the following in mind:
Some Considerations
Cryptocurrencies are highly volatile and risky assets. As they exist in a decentralized environment, Bitcoin and other cryptos are traded on a 24 hour basis, all-year round. Because of this, they are liable to suddenly appreciate or depreciate in value without any warning. So only invest what you’re prepared to lose.
Some countries do not recognize cryptocurrencies. The lack of regulation in the crypto sector has made some governments uncomfortable with the state of affairs. Examples include countries like China, Bangladesh, and Kuwait which outlaw the use of cryptocurrencies as legal tender.
Crypto theft is a major problem. Unless you’ve been living under a rock, then you’ll probably know that cryptocurrency is a highly sought-after commodity. And because crypto transfers are nearly impossible to trace, crypto wallets have become a favorite target for hackers and cybercriminals.
For this reason, I recommend that you instead invest in a cold storage solution. Also known as cold wallets, these methods store your portfolio offline which makes it impossible for hackers to access them. As an added plus, you can also create backups of your cold wallet and physically secure it.
Crypto Exchanges With The Lowest Fees
Besides using a crypto wallet with low fees, you can also explore the various crypto exchanges that have generous fee policies. In this section, I’ve shortlisted 3 different crypto exchanges that won’t break your wallet.
1. Binance
Binance is a top choice for users outside of the U.S. It is known for charging some of the lowest fees in the industry. For example, maker and taker fees are 0.1% and withdrawal fees are just 3.5%. More importantly, Binance does not charge any deposit fees.
Besides that, it also features a large selection of cryptocurrencies, boasting more than most mainstream crypto exchanges. The platform’s user-friendly nature is also another reason why you should use Binance. Navigation is quick and easy with an excellent information hierarchy.
2. Coinbase
Run by one of the most reputable names in the sector, Coinbase is a great choice if you’re looking for a low fee crypto exchange. While it charges 0.4% and 0.6% for maker and taker fees respectively, there are no F&O and deposit and withdrawal fees.
Like Binance, it offers a top tier UX and gives you access to a large collection of crypto tokens. You can also stake coins with it and earn some passive income. So, if you’re an active user, Coinbase is definitely the right choice for you.
3. Kraken
Another top wallet, Kraken charges the lowest maker and taker fees compared to Binance and Coinbase. It also has 0% deposit fees and does not utilize a volume-based pricing model, which is nice to see. All of these, including the excellent security features make Kraken a great choice for investors.
There are also trading options available for more advanced users. These include futures and crypto spot trading tools which allow you to customize your trades. And given how fast-moving the world of crypto is, it’s good to see that trades are made instantly.
Closing Thoughts
There are many ways to beat the high fees currently being charged by the various blockchains. Some include making use of low fee crypto wallets and making use of the exchanges listed here which have generous fee policies. But as with all things crypto, always remember to practice caution when you are investing.
