How to Exchange Cryptocurrencies With Low Fees
The cryptocurrency world is a wide space — even a wild one — and can get pretty overwhelming for newbie traders just starting out. Picking out the right platform for exchange can be equally tricky, especially considering the possibility of scams and outrageous fees.
How do you know you are paying the right fee? How do you know you are on the right platform and are not getting scammed? Trading cryptocurrencies, whether from one crypto to another or from crypto to fiat, always involves fees of some kind. However, that does not prevent enthusiasts from looking for a way to trade crypto without high fees.
In this article, we will look at top online cryptocurrency exchanges, with equally secure and low crypto trading fees, and try to understand how to exchange currencies like Bitcoin for USD with the minimal cost.
Firstly, let’s check why trading cryptocurrencies involves fees and how you can find the right places to exchange your crypto.
Why Do Crypto Exchanges Charge Fees?
When you buy something in a shop, the shop usually incurs a fee for the card payment. The same is true for online payments: transferring money (in any currency) incurs a cost. Behind every transaction, there is a massive technical infrastructure ensuring its security and simplicity. Without it, it wouldn’t be possible to buy or sell anything, move money, or take them out.
Since cryptocurrency isn’t centuries old (it emerged into existence in 2008), a complete financial infrastructure had to be developed in a relatively short period of time. The crypto exchange is one of such entities that was introduced. A crypto exchange is simply a digital marketplace where you can exchange, buy and sell cryptocurrencies for other assets like fiat money, or even other digital currencies. There are peculiarities only the world of crypto has that differ from the ones that can be found within the fiat realm. Whether you are exchanging crypto or buying crypto with fiat currency, there are always price fluctuations. This fact impacts the cost of every transaction pretty seriously.
Whether you are buying or exchanging Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), or any other cryptocurrency, there are always fees — but finding the best crypto purchase site comes down to other considerations as well. Apart from prioritizing customer service and security, finding the perfect platform with the fairest charges is also important.
What Fees Are Usually Charged?
Most of the top online crypto exchanges charge either a fixed fee for every transaction, or some part of the overall transfer. These fees cover network and transfer costs as well as the very risk of the crypto rate fluctuating during the transfer. Further details may vary pretty greatly depending on the type of the particular exchange and the technology behind it: for example, fees are normally lower and the speed is greater if you are using a non-custodial exchange.
Generally, operations involving cryptocurrencies with longer transfer time tend to cost more (please keep in mind that this period is equal to an hour in some cases, whereas the vast majority of currencies do not require more than a couple of minutes).
Dozens of crypto exchanges compete to win customers every year, and tweaking fee policies is one way to impact the audience behaviour. It also explains why different exchanges have different transaction fees.
Top cryptocurrency exchanges with low fees
What are the cheapest exchanges to use? The cheapest exchanges of course should be secure and fast and should have the strengths and perks of every excellent exchange. Below are three exchanges which offer more perks than their low trading fees.
ChangeNOW is a non-custodial limitless cryptocurrency exchange service with over 200 crypto tokens available at your disposal for exchange. ChangeNOW is not only known for its incredibly low fees, it is also one of the safest exchanges to use. Unlike other crypto exchanges, ChangeNOW does not require registration and hence does not store user funds, thus eliminating the risk of hacks and frauds. Setting up on ChangeNOW is easy, and saves you the hassle of creating profiles and verifying identity as is the case of several other exchanges.
Binance offers its users a chance to lower transaction charges by giving out discounts for purchases made with the native BNB token. Users can pay transaction fees with BNB tokens and receive a 25 percent discount. Binance also offers a certain percentage of discount on trading fees to users who refer other friends to the Binance platform.
Unlike the exchanges on this list, Coinbase’s trading fees are a little on the higher side. However, what Coinbase lacks in low costs, it makes up for it with its intuitive UI and large user base, which is a positive for beginners.
How to Find the Best Crypto Exchanges with Low Fees?
When looking for a reliable crypto exchange with suitable fee options, make sure it does not set too many swap limits. In this respect, ChangeNOW is always ready to come in handy: with us, you can make exchanges starting from $2 worth of any crypto of your choice while having absolutely no upper limit! This is one of the ways to guarantee we won’t take any extra money from you.
Usually, exchanges can also be done using the fixed or the classic rate. The classic rate offers good fee options, however you must keep in mind that the final received amount can differ from the initially estimated one due to price fluctuations (Oftentimes, ChangeNOW is deliberate about minimizing the impact of fluctuations, but in rarer times, even crypto exchanges are not spared from the wildness of the crypto market).
With a fixed rate fee, the actual fee may be just a little bit higher than in the previous case. Regardless, with fixed rates, you are guaranteed that the estimated and final amounting fee will always be equal without any changes.
Alongside your incurred fees, transaction speed is also an important factor to consider in choosing the right platform of exchange. Here is another field ChangeNOW is pretty great at: the majority of exchanges initiated via our service are finished in two minutes or even less. Why is speed important, and why is it integral to your transaction fee? It is quite simple. In most cases, the faster the transaction, the lower your fee. If there is no fixed rate variant or if you prefer to stick to the classic rate option, every second matters. Tick. Tock.
Now you know where the crypto exchange fees come from and how to get the best offers and their combination for yourself. We do hope this article will be useful for you. Happy gains and trading!
You can start to buy and exchange your preferred cryptocurrencies on ChangeNOW right away without any registration.