| Pricing Tier | Taker Fee | Maker Fee |
|---|---|---|
| Under $10,000 | 0.50% | 0.50% |
| $10,000 – $50,000 | 0.35% | 0.35% |
| $50,000 – $100,000 | 0.25% | 0.15% |
| $100,000 — $1 Million | 0.20% | 0.10% |
You also pay less in the higher tiers as a maker because makers increase the market’s liquidity, which allows the exchanges to continue trading.
Some exchanges might still charge a per-transaction fee, but for the most part, they have transitioned to a combination fee schedule similar to the one used by Coinbase. As such, small and infrequent trades are not cost-efficient at cryptocurrency exchanges, unless you’re only looking to buy a cryptocurrency. If that’s the case, most exchanges charge a spot trading fee to buy and take possession of a digital coin.
Location
Cryptocurrency exchanges are unregulated in many countries. Most regulators around the world have taken a hands-off approach to cryptocurrency regulation in some of its biggest trading markets. However, cryptocurrency exchanges in the U.S. must register with the Financial Crimes Enforcement Network. This means that U.S.-based exchanges are regulated and may not offer the same services as exchanges based outside of the U.S.
Availability
Most well-known cryptocurrency exchanges do not offer access to all coins. Some only provide a few dozen, while others might offer hundreds. You might need to use different exchanges to get access to the cryptocurrencies you’re interested in.
Top 3 Cryptocurrency Exchanges
Here is a brief comparison of trading fees for cryptocurrency at three of the more popular exchanges. The CoinMarketCap Spot Exchange Score is used to gauge exchange popularity. This score accounts for each exchange’s web traffic, volume, average liquidity, and confidence.
Binance
Founded in 2017, it only took Binance a few years to get to the top of the list of cryptocurrency exchanges. In 2021, the exchange was out-trading all other cryptocurrency exchanges.
Cryptocurrency fans can choose from hundreds of cryptocurrencies on Binance; however, U.S. fans can only select from a little more than 70 cryptocurrencies on Binance.US due to regulations. Internationally, Binance lets users trade the cryptocurrency futures markets, buy currency, earn cryptocurrency, create non-fungible tokens, and learn about all things cryptocurrency through the Binance Academy.
You can access all of the material on Binance’s website, such as the academy and other resources; the U.S. only restricts buying, selling, and trading on the international platform to protect investors.
Depending on how you use Binance, you’ll be charged fees and have withdrawal limits. Through VIP ratings based on your trading volume, you’ll see a 0.1% spot trading fees and fees based on your 30-day trading volume. Traders with volumes under $50,000 are charged 0.1%/0.1% maker/taker fees—the fees decrease in tiers from there. If you use Binance’s cryptocurrency BNB, you recieve a 25% discount off any fees. There is also a 0.5% fee for buying and selling cryptocurrency.
In the U.S., you can trade cryptocurrencies and tether (USDT) pairs, cryptocurrency pairs, and cryptocurrency to U.S. dollar pairs, but your choices are limited. In addition, you can make advanced trades on the price movements of these pairs or trade them over the counter.
Coinbase
Coinbase was formed in 2012 with the goal of granting everyone access to a cryptocurrency financial system. The exchange became publicly traded after an initial public offering and listing on Nasdaq in April 2021. The exchange offers access to hundreds of cryptocurrencies.
Fees for using Coinbase’s services depend upon the size of your transaction, how you pay, and the market conditions—this includes the maker and taker fees discussed earlier. Coinbase also charges for network transactions fees, such as Ethereum gas, which is the fee for ether transactions.
FTX
FTX is another cryptocurrency exchange only available internationally unless you use U.S.-based exchange services. The U.S. exchange has more than 30 cryptocurrencies available, while the international exchange has access to several dozen more.
FTX uses a tiered fee structure that rewards you for more trading. The higher your trading volume, the less you pay in maker/taker fees. Spot market fees are charged according to whether you’re a maker or taker. You also might pay wire transfer and automated clearing house (ACH) fees for transferring money in and out of the exchange.
Is a Cryptocurrency Exchange Illegal?
Whether cryptocurrency is legal or not depends on the country you live in. There are several countries where all cryptocurrency transactions are forbidden, but many more where there are certain restrictions or no restrictions at all.
Can Cryptocurrency be Converted to Cash?
You can use most cryptocurrency exchanges to convert cryptocurrency to cash, or convert cash to cryptocurrency.
What Is the Best Site to Buy Cryptocurrency?
You can buy cryptocurrency from several exchanges. Which is best for you depends on your preferences for the fees you’ll incur and the country you’re in. Many cryptocurrency fans use Robinhood, Coinbase, Kraken, and Binance.
Investing in cryptocurrencies and other Initial Coin Offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not own cryptocurrency.
Source: https://www.investopedia.com/tech/how-much-does-it-cost-buy-cryptocurrency-exchanges/?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral&yptr=yahoo