What Are Cryptocurrency Trading Fees?

Experienced traders and investors know that low crypto trading fees are one of the most important factors for success. You can trade profitably for a day, a week, or a month, but end up noticing that the return is much lower than expected.

Are there any crypto coin trading sites that don't charge commissions? No! Any exchange has to provide website and application functionality, pay developers and support team, keep servers running, and spend money to protect users' personal information. Therefore, the commission is the price for the opportunity to receive high-quality service.

High fees do not always mean quality service. Reliable, focused on quality customer service exchange can offer low commissions because it serves a large number of users. An exchanger is not an exchanger, but a service that focuses on long-term work with each user. You can find an exchange that charges little crypto trading fees while offering a decent service and great opportunities for both traders and investors.

Users choose a company to work with depending on individual preferences. What's good for a day trader can be bad for a user who makes 1-2 trades a month or a long-term investor.

What is a Trade Fee?

Fees for crypto trading differ a lot between services. They are divided into several types:

•   Deposit fees. If you top up your account in cryptocurrency, the fee is very low or none at all. But this is not always possible, because most users start trading with their credit card and to cryptos. The problem is that topping up your account with fiat money often takes a few days, which can lead to missing out on a good deal.
•  Withdrawal fee. This is one of the most important commissions, which usually remain out of sight of users because they are primarily concerned about trading conditions. The amount of money you have on your balance is one thing, but how much you get after withdrawal – quite another. On some exchanges, the withdrawal fee can be more than 1%.
•  Trading fees are the main way any exchange earns money. Traders make a large number of trades, and a small fee is charged for each of them. The more trades, the more important is the trading fee. Especially, active traders should pay attention to this fee. When calculating the fees, the amount of money being traded matters, as the fee is not a fixed amount but a percentage.
•   Inactivity fee is charged in case the user has money on his balance but is not engaged in trading. This way of inducement to trade is used by many well-known companies, in particular, the stock market broker called Interactive Brokers. For this reason, keeping money on the exchange as a long-term investment is not the best choice. Quan2um has solved this problem: there is no inactivity fee at all. You can keep money on your balance as long as you want without any trading operations, and there will be no fee for that.

It is important to keep in mind that fees for day trading crypto can eat up most of your profits. That's why experienced users always evaluate the perspective of placing an order, considering the fees. On the other hand, fees do not matter much if you want to buy cryptocurrency with the expectation of long-term growth in value. In this case, more important issues are account security, protecting your logins, passwords, your device security, email security, SIM card security, etc.

How to Pay Little Fees Trading Crypto?

There is no way to avoid fees, but you can find an exchange that is suitable for you. For some people, a low deposit fee is extremely important, the others are looking for cheap crypto trading fees to open a lot of trades every day. If someone says that an exchange has a low deposit fee, it doesn't mean anything at all. After all, that particular fee may be the value for them. But for you, it is the amount of money you pay for executing an order that matters a lot.

So first of all, consider your trading strategy. And if you don't have one, have a general idea of how you will use your funds. A pretty smart choice is to buy digital money for fiat money and keep it until the price goes up.

•   If you are an active trader, choose an exchange with the lowest fees for crypto trading. Inactivity fees, deposit and withdrawals fees are not that important in that case. Day traders and other users who place orders every day should analyze the total amount of money spent as commission. One of the reasons for unsuccessful trading is simply an excessive number of trades. Sometimes, even in the case of intraday trading, it is better to refuse to place an order if the possible profit is small because the commission will have to be paid in any case.
•   If you prefer low trading activity, it is the commission for depositing and withdrawing funds that becomes important. Earning 15% a month is a good result, but if you have to pay 1% for deposit and the same amount for withdrawal, then the resulting profit will be much more modest, considering the commission for trading. So, a smart strategy is to withdraw fiat money when you really need it. Depositing and withdrawing the same funds is a waste of time and money.
•   Terms like “Investing’ and the ‘exchanges” usually do not go well together. It is not profitable for an exchange to service a client's account that does not bring them profit. Therefore, be sure to choose an exchange that does not charge any commission for inactivity, not even a hundredth of a percent.
•   Until recently, users had to choose between online wallets and storing cryptocurrencies on a computer or laptop, using special devices. All these ways have advantages and disadvantages, but the dream of any user including both trader and investor is to have easy access to money and the ability to quickly place an order. Even someone who never intended to become a trader may have such a need.
•   If you are looking for crypto currency exchanges with the lowest trade fees, note that the deposit fee depends on what kind of assets you deposit, trade, and withdraw. It is most advantageous to top up your balance using cryptocurrencies, rather than fiat money. But not all services provide such an opportunity. At Quan2um there is no commission for topping up your account in cryptocurrencies at all. You can also fund your account with a bank card in your local currency, regardless of which bank or online service it is issued by.
•   To pay fewer fees, make sure it does make sense to place an order. Even a successful trade can be turned down if the potential income will be diminished by the fee. This does not apply to opening long-term positions, where it does not matter as much at what price an asset is purchased and how much you have to pay as commission.
•   Fees for exchanging cryptocurrency into fiat and vice versa are often overlooked. In total, users can lose 3-4% or even more. 
•   Fees to convert crypto to fiat money and vice versa are often overlooked. In total, users can lose 3-4% or even more on this. Exchanges may not report the exact amount of commission, citing that this information should be clarified "in your bank". Searching for feedback from real users will help clarify the situation. Usually, users of each country share such experiences in social networks and forums.