Author: Eduardo Montero
Last Updated on January 15, 2024
Do you love cryptocurrencies and hate expensive transaction fees? so do we! So, here are the best cryptocurrency exchanges with the lowest fees.
If you are looking to buy or sell any cryptocurrency, exchanges are invaluable platforms that provide key statistics, trading pairs, storage options and much more. While you can buy or sell cryptoassets through a software wallet, having an account with a trusted exchange can open many doors in terms of building your wallet. But using an exchange can be expensive, so it’s crucial to find the most affordable but reputable options.
Which crypto exchanges offer the lowest fees?
Founded in March 2018 by Ben Zhou, Bybit is a Singapore-based cryptocurrency exchange that has become one of the fastest growing global marketplaces. In the space of just four years, Bybit has become a very popular platform, exchanging large volumes of cryptocurrencies on a daily basis. So what makes Bybit an excellent choice in terms of fees?
Well, Bybit’s overall fees are fantastic. With no maker fee and a receiver fee of just 0.075%, Bybit guarantees that you’ll avoid all sorts of nasty fees, regardless of whether you’re buying or selling cryptocurrencies. In addition, withdrawals and deposits are free at Bybit. So, if you are looking for a crypto exchange with super low fees across the board, Bybit is the one for you.
Founded in 2014 by Tristan D’Agosta, Poloniex is an American exchange that has risen through the ranks to become one of the twenty most popular crypto exchanges worldwide with a daily trading volume of over $160 million. Based in San Francisco, California, Poloniex is not available to those residing in the US, but can be used in a variety of other locations including the UK, France, Japan and Canada.
There are many great things about Poloniex. Its variety of supported currencies, participation options and rewards center accompany one of the platform’s best attributes: its low fees. Currently, Poloniex only charges a 0.125% maker or taker fee and does not charge for deposits. This means you can buy and sell cryptocurrencies on the platform without losing a large portion of your profits or paying considerable fees for purchases.
Ranked fourth in trading volume worldwide, Kraken began as a U.S. exchange for Bitcoin and Litecoin (as well as a platform for trading euros). Today, it supports a large list of different cryptocurrencies, from Ethereum to Aave. There are many trading pairs, betting currencies and funding options available on Kraken, and its buy and sell rates make it a top exchange of choice.
At the moment, Kraken only charges a maker’s fee of 0.16% and a taker’s fee of 0.26%. The taker fees are often higher than the maker fees, since a taker will remove liquidity from an exchange, which is the opposite of what the exchange wants to obtain. However, this taker fee is still reasonable compared to other exchange platforms.
Sitting comfortably as the world’s most popular exchange, Binance is a favorite of thousands of cryptocurrency buyers and sellers, and for good reason. Not only is Binance available in over 180 countries worldwide, but its fees are more than friendly.
With a maker and taker fee of just 0.1%, Binance makes buying and selling cryptocurrencies affordable for anyone who wants it – on top of that, Binance doesn’t charge a participation fee and doesn’t charge for deposits or withdrawals! Overall, it’s a solid option for all things crypto and won’t leave you dealing with frustrating fees on your earnings or rewards.
Currently, KuCoin ranks as the fifth most popular cryptocurrency exchange in the world, with a daily trading volume of over $4200 million and a list of over 500 supported coins. In addition, KuCoin offers several features you can use to build your cryptocurrency portfolio, such as betting, margin trading, lending and more. And, on top of all this, KuCoin’s fees are also quite low.
Currently, KuCoin’s maker and taker fees are the same, at a good 0.1% respectively. In addition to this, KuCoin does not charge for deposits of any kind, but it does charge for withdrawals. The fee you will incur for withdrawing funds varies depending on the type of cryptocurrency you are moving. For example, withdrawing Bitcoin will cost you 0.0005 BTC, while withdrawing Polkadot will cost you 0.1 DOT. It’s best to check KuCoin’s fees beforehand to know what kind of charges you will incur.
Pionex is a relatively young cryptocurrency exchange, having been founded in 2019. However, its infancy on the market has by no means hindered its growth as an international exchange. One of Pionex’s most unique features is its range of useful trading bots, which allow users to trade assets, invest in tokens automatically and more. But Pionex’s bots are not the only attractive feature it presents.
Another great thing about Pionex is its incredibly low creator and taker fees. Currently, both fees are only 0.05%, considerably lower than many other popular cryptocurrency exchanges out there. In addition to this, Pionex does not charge for deposits, although there is a flat fee for withdrawals that differs by currency.
Founded in 2007, eToro is an Israeli brokerage company that offers, among other things, a diverse and reliable crypto exchange for residents of 44 U.S. states (residents of New York, Delaware, Hawaii, Minnesota, Nevada and Tennessee are currently unable to use the service). eToro allows users to buy and sell a variety of cryptocurrencies, including Bitcoin, Ethereum and Stellar. It also has excellent participation options for those who wish to earn passive income using their cryptocurrency.
So what does eToro look like in terms of fees? In terms of creator and taker fees, eToro does not charge any. However, this does not mean that trading on eToro is entirely free. The platform charges a spread fee of 0.75%, which is essentially another way for exchanges to charge for transactions. In addition, eToro does not charge any deposit or withdrawal fees, which makes moving your money to or from the platform much more pleasant.
CEX.io is another widely used cryptocurrency exchange platform with a range of amazing features, including margin trading, betting and its own official debit card. Users from most countries around the world can access this exchange and it currently has more than four million users. But do the exchange’s fees match its accessibility and other useful features?
Fortunately, yes! CEX.io charges a maker’s fee of 0.16% and a taker’s fee of 0.25%. In addition, the platform charges a 2.99% fee for deposits from VISA or Mastercard accounts and charges a variable fee for withdrawals depending on the destination of the funds.
What is the cheapest Crypto Exchange?
When buying, selling, transferring or performing any other type of action on cryptocurrency exchanges, unexpected fees can sometimes make the whole process exhausting and frustrating. So, if you want to keep your fees to a minimum when using a crypto exchange, try one of the above platforms to keep those nasty charges at bay.
What are the most common fees when buying or selling cryptocurrencies?
To understand cryptocurrency fees in depth, it is necessary to know a little about blockchain technology and its consensus mechanism, since all transactions go through a validation process in a network of nodes or computers that are scattered around the world.
In the case of Bitcoin transactions, they have a cost known as a “mining fee” or network fee. This fee is a donation made to the network to incentivise miners to validate and process each transaction, which ensures the functioning of the blockchain.
These fees are inherent to every transaction on the blockchain, in the case of Ethereum it is known as “gas” or the gasoline that runs your virtual machine.
A mechanism called Proof of Work (PoW) operates on the Bitcoin blockchain that makes the efficiency and security of the network possible. Part of Bitcoin’s value and price is based on the fact that transactions are completely secure and cannot be censored or reversed.
The miners are responsible for securing the network and validating each transaction. This generates a fee or commission that is calculated according to various elements such as the size of the transaction measured in bytes, the state of co-management of the network and the speed of confirmation. The faster the validation, the higher the fee.
Currently the average cost of a Bitcoin transaction is $1.68. In times of high congestion a Bitcoin transaction has become much more expensive.
In the case of Ether its blockchain is much more complex and dynamic since it functions as a decentralised virtual machine, this makes possible the development of other tokens, smart contracts and dApps (decentralised applications). Each of these developments within the Ethereum blockchain has a network fee known as a gas.
In the case of Ether transactions, it is also necessary to pay a gas fee just like ERC20 tokens.
However, the widespread use of the Ethereum network has caused gas fees to increase, which hurts many ETH users and holders who are forced to pay high fees for their transactions.
Although gas fees also depend on variables such as network congestion and validation speed, in December 2021 the average value of a transaction was between $20 and $30.
Cryptocurrencies with lower fees:
In contrast to the high fees of the Ethereum network there are countless cryptocurrencies and blockchains with very low fees. An example of this is the Litecoin network, a fork of Bitcoin, whose transactions are especially cheap and fast.
We can also mention super reliable projects such as Ripple (XRP) or Stelllar Lumens.
Currently the average transaction cost for Litecoin is $0.016, while the minimum transaction cost for XRP is $0.0000060.