Order

Maker

Bitcoin SV

Pepe

Uniswap

<a href="https://bitcoinworld.co.in/how-to-prevent-transaction-fees-from-eating-into-your-crypto-trading-profits/" title="How To Prevent Transaction Fees From Eating Into Your Crypto Trading Profits" rel="noopener noreferrer nofollow"></a>
Transaction fees can be the death of a profitable trading strategy, and unfortunately, trading crypto can be an exercise in encountering hidden charges that eat into hard-won profits.
However, using tactics such as seeking out fee discounts offered by exchanges such as MultiBank.io and optimizing trading activities for fees can help carve out a wider profit margin.&nbsp;
Trading fees, often listed at a fraction of a percent, may not look like much to those who only trade infrequently.&nbsp;
Indeed, if you only make a trade when you need to rebalance a portfolio or for a monthly dollar-cost-averaging investment, you aren’t likely to pay much attention to the fees involved.&nbsp;
However, the more frequent your trading activity, the more you will care about fees since the likelihood is that fees are eating into your trading profits.&nbsp;
Moreover, depending on the venue and type of transaction, crypto trading can involve many different types of costs that may not always be apparent upfront.&nbsp;
See Also: <a class="row-title" href="https://bitcoinworld.co.in/bitcoin-sv-bsv-price-soars-63-in-24-hours-hits-ytd-high/" aria-label="“Bitcoin SV (BSV) Price Soars 63% In 24 hours, Hits YTD High” (Edit)" rel="noopener noreferrer nofollow">Bitcoin SV (BSV) Price Soars 63% In 24 hours, Hits YTD High</a>
<h3 id="span-style-font-weight-400-types-of-fees-in-crypto-trading-span">Types Of Fees In Crypto Trading</h3>
Order book exchanges typically operate a maker-and-taker fee system. Maker fees are applied to limit trades, which add liquidity to the order book since they don’t need to be filled immediately.&nbsp;
Taker fees apply to market trades, which are filled immediately. Many exchanges charge a lower rate of maker fees to incentivize traders to place limit orders.&nbsp;
Trading crypto perpetual futures also involves paying a funding fee.&nbsp;
Since perpetual futures contracts have no expiration date, the funding rate is a mechanism that helps to anchor the futures price to the spot markets through periodic rebalancing.&nbsp;
This means that while one side of a trade (e.g., the long side) pays the fee, the other (short) benefits.&nbsp;
Centralized exchanges also levy withdrawal and deposit fees for moving cryptocurrencies between wallets, which can often vary significantly between companies.&nbsp;
In DeFi, DEX traders benefit from a more straightforward fee structure since DEXs tend to levy a flat percentage per trade.&nbsp;
In Uniswap V3, this can vary from 0.01% to 1%. However, the underlying blockchain transaction charges may vary depending on which platform is used.&nbsp;
Bearing in mind the various types of fees involved, there are several ways that traders can reduce their fee burden.&nbsp;
See Also: <a class="row-title" href="https://bitcoinworld.co.in/pepe-falls-out-of-top-100-cryptocurrencies-is-pepe-in-pepper/" aria-label="“Pepe Falls Out Of Top 100 Cryptocurrencies, Is Pepe In Pepper?” (Edit)" rel="noopener noreferrer nofollow">Pepe Falls Out Of Top 100 Cryptocurrencies, Is Pepe In Pepper?</a>
<h3 id="span-style-font-weight-400-use-crypto-exchanges-with-favorable-fee-structures-span">Use Crypto Exchanges With Favorable Fee Structures</h3>
While the basic maker and taker fee rates apply to everyday users trading low volume, many exchanges operate tiered systems or fee-based incentives for traders who trade in high amounts or are active traders of high volume.&nbsp;
Now, established TradFi institutions are taking a leaf from the crypto-native book.&nbsp;
<a href="https://multibank.io/" rel="noopener noreferrer nofollow">MultiBank.io</a>, one of the largest financial derivatives institutions, offers an attractive sliding tiered fee system where traders can achieve discounts of up to 80% of the standard trading fees by meeting a minimum 30-day trading volume and holding the bank’s native MBG token.&nbsp;&nbsp;
MultiBank Group has established a reputation as the world’s most regulated derivatives broker, overseen by 14 regulators on five continents.&nbsp;
The company is carrying this reputation forward into its digital asset offering, with pre-approval from the Dubai Virtual Asset Regulatory Authority (VARA).&nbsp;
With a global presence and over 90 trading pairs, MultiBank.io is well-placed to offer deep liquidity and tight spreads to crypto traders.&nbsp;
<h3 id="span-style-font-weight-400-optimize-your-trading-strategy-for-fees-span">Optimize Your Trading Strategy For Fees</h3>
Exchanges typically charge less for maker orders than for taker orders, so developing a trading strategy that makes use of limit orders rather than market orders can help to reduce the overall fee burden. 
The post <a href="https://bitcoinworld.co.in/how-to-prevent-transaction-fees-from-eating-into-your-crypto-trading-profits/" rel="noopener noreferrer nofollow">How To Prevent Transaction Fees From Eating Into Your Crypto Trading Profits</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

How To Prevent Transaction Fees From Eating Into Your Crypto Trading Profits

Table of Contents

ItsBitcoinWorld

Other articles published on Dec 29, 2023

Dozens of South Korean Lawmakers Active Traders- Report

Coinbase appoints new head of custody amid Bitcoin ETF preparations

Shiba Inu (SHIB) Price History Signals Crazy January: Here's What to Expect

A New Crypto Frontier: Enthusiasts Turn Their Attention to a Rival Outshining XRP and THORChain

Cybercriminal group “Pink Drainer” strikes again: $4.4 million theft in Chainlink

Avalanche Foundation Embraces Meme Coins with Culture Catalyst Program

Join our free newsletter for daily crypto updates!