Cryptocurrency Exchange Fees Explained

It is somewhat confusing for me to understand the different exchanges fees in the cryptocurrency market when I first started trading them. It took me sometime to understand what fees are which. Hopefully they can help you too.

Offer Fee/Place Order Fee/Advertisement Fee/Maker Fee

Buying Fee/Taker Fee

Trading Fee/Transaction Fee

Exchanges make the most amount of money from these fees. This fee is essentially the commission the exchanges charge for facilitating this trade. These fees are usually a percentage of the trade fee. The bigger the trade is, the more trading/transaction fee they charge. Some exchanges charges both makers and takers and others charge only the makers for this fee.

Cancel Fee

Some exchange do charge a cancel fee when you cancel an advertisement or a listed order. This fee is usually present when the offer fee/advertisement fee is free. You do not see this fee often.

Network Fee/Withdrawal Fee

This fee is pretty common in most exchanges. It is usually charged when you withdraw your digital assets from the exchange and transfer them out to another wallet. The network fee is paid to ensure that it is processed on the destination blockchain. For example the fee to withdraw BTC might vary or be adjusted to ensure that the transaction is confirmed when sent and not stuck in an unconfirmed state.

These are probably most of the commonly used fees. Do let me know if there are some other fees out there that needs to be added.

Thank you!

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