When investing in cryptocurrencies, special attention should be paid to transaction fees.
When you want to acquire digital assets and more particularly cryptocurrencies, it is often necessary to go through an intermediary, in this case, an exchange platform. There are dozens of them. The best known are Coinbase, Binance, Kraken or KuCoin, but some have more local roots, like the Belgian platform Bit4you.
Regardless of which platform you use, you will have to pay fees on different types of transactions, fees that can sometimes skyrocket depending on which platform you choose. Therefore, it is necessary to be vigilant.
There are mainly two methods to buy cryptocurrencies:
- pay money for wire transfer on the account provided to you by the exchange, usually free of charge but with a waiting period of several days.
- uses his credit card to order immediately. Most of the time, fees apply.
As for bank transfers, only the bit4you platform applies a fee, of the order of 1.5%.
For Mastercard or VISA deposits, fees may vary based on amounts and changes. Binance is the cheapest platform – it only charges a 1.8% fee per transaction. Bit4you and Kraken charge fees of almost 4%.
When you buy or resell Bitcoin, Ethereum or Cardano, the exchange platforms apply transaction fees. Most exchanges charge relatively low fees on cryptocurrency exchanges, in the range of 0.1 to 0.3%. However, some platforms, such as Coinbase, may apply higher costs, up to 1.49% of the transaction amount. In a large sum, you can quickly increase the bill. Therefore, it will be necessary to compare the prices applied by the different platforms to make a choice.
The Belgian platform Bit4you stands out here from the others by the complete absence of fees during exchanges. Coinbase, on the other hand, is clearly the most expensive platform at this level, alongside Kraken.
Without a doubt, this is where we will have to be more attentive. If you decide to transfer funds from an exchange platform to your wallet, fees will apply. These can range from a few cents for a cryptocurrency like Cardano or Fantom to several tens of euros for a cryptocurrency like Ethereum. These fees do not necessarily depend on the amount. So this means that the fees for such a transfer can sometimes be higher than the amount transferred. The fees applied in some blockchains depend on the use of the network. Therefore, they can vary greatly depending on the time and day of the transaction.
However, several sites allow a prior evaluation of the amount of a transfer to a wallet or exchange platform.
When you decide to repatriate your funds to your bank account, you will have to pay commissions again, in the order of a few cents to several hundred euros, depending on the platform.
In this little game, Coinbase is clearly the platform that offers the most advantageous rate. A withdrawal will only cost you 15 cents. Binance only charges 80 cents. The Belgian platform Bit4you does not apply a fixed fee but a 2.5% fee that can quickly hurt a lot when withdrawing a large sum.
As you can see, each platform has its advantages and disadvantages. Bit4you is undoubtedly the most interesting for exchanges, Coinbase the most interesting for withdrawals. Therefore, it will be necessary to find the best shoe for your feet.