Whenever you trade crypto, you need to pay a fee. This fee depends on the network and platform you use and the type of trade you want to do.
Every time you transact with a crypto exchange, such as buying or selling crypto from a crypto exchange or moving funds to another wallet, you need to pay a fee. These fees can be fixed, percentage-based, or vary depending on the network or the type of trade you're making.
Some exchanges offer discounts or even zero-fee trading for specific pairs or if you hold their token. Others, especially ones with more features or fiat support, might charge more. Crypto exchanges charge these fees to keep their platforms running, protect your assets, and continue improving the trading experience.
When trading crypto, you’ll encounter several different types of fees. These cover everything from placing trades to moving your crypto from one account to another. Some of the most common fees include:
Most crypto exchanges use a maker-taker fee model to decide how much you’re charged when you make a trade. These terms refer to your role in the exchange’s order book, which is the list of all buy and sell offers waiting to be matched.
If you place a limit order that doesn’t get filled right away and instead waits in the order book for someone to match it, you’re acting as a maker. You’re “making” liquidity by adding your order to the market, which helps other traders find someone to buy from or sell to. Because makers help keep the exchange liquid and functioning smoothly, they are usually rewarded with lower trading fees.
On the other hand, if you place a market order, it gets filled instantly by matching with the best available limit order in the book. This means you’re taking liquidity away from the market since you’re removing an order that someone else placed. In this case, you’re considered a taker. Since takers use up the exchange’s liquidity, they typically pay a higher fee for the convenience of immediate execution.
To put it simply:
These fee differences can matter a lot when you trade in high volumes. On many platforms, the difference between maker and taker fees could be the difference between making a profit or not.
If you’re looking for a platform with low trading fees, MEXC offers low maker-taker fees with huge discounts for platform token holders.
Some platforms keep it simple and charge a flat percentage on every trade. This rate usually ranges from 0.1% to 1% per transaction, regardless of whether you’re a maker or taker. Although it’s easy to calculate, it’s not always the cheapest option, especially if you trade often or in large amounts.
Spread fees are a type of hidden cost that some crypto exchanges use instead of or in addition to charging direct trading fees. Instead of showing you an upfront fee for each trade, these platforms make their money through the buy-sell price difference, known as the spread.
Here’s how it works: when you open a trading platform, you might notice that the price to buy a cryptocurrency is slightly higher than the price to sell it. For example, a token might be listed at P100,000 if you’re buying, but only P99,800 if you’re selling. That P200 difference is the spread. The platform sets both prices, and it earns the difference between what you pay to buy and what you get when you sell. So even though you don’t see a trading fee listed, you’re still paying a cost.
The size of the spread can vary depending on several factors. Popular coins usually have smaller spreads since there are many traders in the marketplace to provide liquidity, while low-volume or newer tokens often have wider spreads. Market conditions and the type of exchange being used can also affect the size of the spread.
If you’re trading with leverage, meaning you borrow funds to open a bigger position, you’ll pay an extra fee. This cost depends on how much you borrow and how long you hold the position. In addition, if the market moves in the wrong direction and your trade gets liquidated, you may be charged an additional liquidation fee.
If you’re moving crypto on-chain, especially through decentralized exchanges, you’ll pay network fees for processing your transaction. The cost depends on the blockchain and how busy it is.
Exchanges charge a withdrawal fee when you move crypto out of your account. This fee covers the network cost of sending your assets.
If you trade often, it’s wise to compare the fees across different platforms to save money. It also helps to choose a crypto exchange that offers low fees without compromising on security and reliability, such as MEXC. MEXC keeps fees transparent, so you can confidently trade knowing you’re keeping more of your earnings.
While fees might seem small on each transaction, they can affect your long-term gains. That’s why it’s important to understand where your money is going every time you trade. Choose platforms that are upfront about their fee structure, and always watch for hidden costs. From spread charges to network costs, knowing what to expect helps you make better choices and become a better crypto trader in the future.
