January 19, 2019 – 3:47 pm | by Steve
When choosing a crypto
currency, many beginner traders want an all-in-one package. However, two things
that many seem to value the most at the beginning of their crypto journey are
fees and liquidity.
In other words, nobody wants
to pay high fees as these can really affect the budget of some traders,
especially if they’re new to this type of activity. Moreover, nobody likes to
wait for a long time when exchanging crypto currencies, since they are still
very much unstable price-wise.
In order to achieve liquidity,
a lot of transactions need to take place on the bitcoin exchange, so it is only natural to
guess that the highest liquidity is achieved in the most popular online crypto
exchanges.
However, this is not the case
with fees. Some of the most popular exchanges have pretty high fees, which are
even higher for low-volume traders.
Therefore, what everyone
needs are exchanges that offer both fees and high liquidity. Let’s take a look
at some of such platforms. Read on!
CEX.IO
CEX.IO has a very detailed
overview of their fees on their Fee Schedule
page. Its transaction fees are rather low and start at 0.25% for the
taker, while the maker is charged 0.16%. However, if you trade more than 5 BTC
per month, the fees get lower, meaning that the taker is charged 0.23% and
maker 0.15%.
As the amount you trade gets
higher, your fees become lower. That way, if you manage to trade more than 6000
BTC per month, your fees will be only 0.10% if you’re a taker and 0.00% if you
are a maker.
The other type of fee is the
one that is charged for deposits and withdrawals. Since CEX.IO accepts four
different fiat currencies, make sure to pay attention to the fees that may
apply to your payment method and your currency.
In order to ensure maximum
safety, CEX.IO has different levels of account verification. Users who achieve
the “verified account” status by proving their identity will have overall
better limits, and, thus, access to better liquidity. Moreover, the platform
offers a chance to open an individual business and corporate accounts that do
not have any kind of limit imposed on them.
What makes this platform
stand out from the crowd is that its primary focus is extremely
beginner-friendly. It is very easy to open an account and buy Bitcoin
via CEX.IO. On top of that, it has received numerous positive reviews for being very convenient and
facilitating crypto trading for its users.
Binance
Binance is undoubtedly a very
popular crypto site for exchanging this type of currencies. It stands out over
the crowd as it offers a huge selection of cryptos you can trade. The main
downside of it, however, is that it mainly focuses on crypto-to-crypto trades,
and is not particularly intended for users who like to trade fiat for crypto
currencies, although it is possible to do it on the site.
When it comes to liquidity,
there’s no need to make any comments about it – it’s flawless as it has
thousands of active users who trade on a daily basis.
According to the official Fee
Schedule, the overall fees are pretty low, starting at 0.1% for makers and
takers who trade less than 50 BTC a month. The platform also offers a referral
program that can further decrease the amount you have to pay. The lowest fees
you can pay as a maker is 0.012% for a maker who trades more than 150,000 BTC a
month and has all the promotions activated. The taker fee, in that case, is
only 0.0240%.
Although their fees are
pretty low, the platform itself is not intended for complete beginners, as its
interface can be somewhat confusing. On the other hand, if you are an
experienced trader, you will not have a lot of trouble getting around Binance.
Binance comes in two formats
– Binance CEX and Binance DEX. In other words, it offers both a centralized and
a decentralized exchange. If you are new to crypto trading, you might want to
stick to the CEX one. On the other hand, an experienced trader might find
Binance DEX pretty interesting as it offers some great trading options.
Coinbase
Coinbase is a true US-based
crypto exchange that is focused on trading BTC, although several more cryptos
were added recently. The best thing about this exchange is that it features fixed fees for those who trade less than $200
per one time.
In other words, if you are
either buying or selling cryptos and their total amount does not surpass
$10.99, you will have to pay a fixed price of $0.99 per transaction. This
increases a bit as your transaction amount increases but remains fixed until
you reach $200. After that, a variable fee that is set to 1.49% is applied.
Therefore, the overall conclusion for Coinbase is that it is excellent as long
as you want to trade small amounts. Once your numbers become big, you perhaps
need to do the math and see whether the fee system works for you.
When it comes to liquidity,
Coinbase is definitely doing a great job, as many active users trade daily
using this platform. Most of its users are from the US since the platform has a
lot of geographical restrictions. In other words, you might not be able to
access Coinbase from every part of the world. Ideally, you need to be a
beginner trader who is based in the US in order to get the most out of this
platform.
Conclusion: Choose your
crypto exchange wisely
Although high liquidity and
fees play an important role when choosing a platform for trading cryptos, they
are definitely not the only two aspects you need to take into account. In fact,
you need to pay attention to many other elements that make a good crypto exchange
such as the underlying technology, safety, security, support, accepted crypto
and fiat currencies, geo-restrictions, and more. Once an exchange checks all
the boxes, you need to focus on liquidity and fees!
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