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 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 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 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!