The total value of the cryptocurrency market increased manyfold in less than 6 months. And these are unusual developments.
So it attracts thousands of traders in the US to trade on crypto. When they trade crypto in the exchanges, they leave behind a trail that is worth billions for companies where investors are swapping the digital currency. Now it is a fact that the exchanges are making it high.
- Worried about the extra payment?
- Want to avoid the Swapping Fees?
Here are certain ways through which you could unlock the secret. So read the article in full.
If you are trading crypto, you could also buy dogecoin from a reliable exchange. Interested in dogecoin trading, read more here.
Now let’s start the discussion.
How Much Are The Exchanges Earning?
Well, you already know that Robinhood and Coinbase are established exchanges where you can trade Crypto.
At Robinhood, you are going to get commission-free trading, but the company sells the selling data to high-frequency trading firms for millions of dollars.
Let’s support the fact with data. According to sources, Robinhood generated around $88 million in revenue from the Cryptocurrency business.
While filing its Initial Public Offerings with the US Security and Exchange Commission, the company revealed that 34% of the total revenue came from Dogecoin, one of the top 10 Cryptocurrencies.
Coinbase too generates annual revenue of around $34 to $45 every month from its 6.1 million retail customers. These are really big numbers. The aggregate of these monthly incomes turns out to be $540 per year.
So it could be studied that the exchanges earn around $3 to $5 every year from every $10000 investment.
Other than these two, let’s check what others are chagrin with. FTX. The US charges 0% to 4% on trading crypto in their exchange. That is why they are on the list of best Exchanges.
Gemini changes around 0.5% to 3.99% on the transactions. This depends on the methods of payment and the platforms used for the same. EToro charges 1% on the Crypto transactions. And Kraken charges 0.9% to 2%.
Therefore it could be seen that charges, though seemingly nominal, are making the exchanges rich within less time. The range of charges is between 0% to around 4%.
How To Avoid Crypto Swap Fees?
Now, if you want to avoid the Crypto Swap Fees, you need to follow certain steps to make that happen.
Trading cryptocurrency with no fees means you need to either use a platform like Robinhood, where the selection, as well as the functionality, would be limited, or you need to meet extra requirements with the FT X’s 25 FT requirements.
This means choosing the exchanges that are offering promotions, such as the FTX. However, you could follow certain steps to trade Crypto with 0 fees:
1. Sign Up A Coinbase
Firstly, you need to fund a Coinbase account with the help of a bank deposit. For this, you need to at least attach a bank account.
You will also need to upload your ID there. Verification of your identity card broadens your withdrawal limits.
2. Sign Up For Coinbase ’s Gdax
Simply go to the link and click the link to read the instructions. Read all the instructions there. Go to Coinbase and GDAX and use the same login id.
3. Deposit Money Into The Coinbase
There you could use a bank wire to pay in nominal amounts. Pay, get access and avoid limits or making a deposit.
Wait for about 4 to 8 days and pay no fees. Keep the limits from $200 to $5000. You might not avoid paying extra if you trade with more value. Follow the same procedure for GDAX to get the desired results.
4. More To Follow
If you have deposited a charge into Coinbase, transfer the entire funds from Coinbase into the GDAX account.
Go to the Deposit button and select the coinbase account Tab. Now change the “source” to USD wallet. Finally, hit the withdrawal funds.
Note that all the withdrawals and deposits are free and instant. Though a bit convoluted, that’s the trick you need to follow.
Frequently Asked Questions
Q1. Which Crypto Swap Has The Lowest Fees?
Cryptocurrency trading can be done in two ways: exchanging from one cryptocurrency to another or investing just to make profits out of price volatility.
Crypto traders always want to look at only proven trading platforms and strategies to work with. Of course, this also includes the platform with the lowest fees.
Here are the Crypto Swap platforms with the lowest fees.
Q2. How Much Does It Cost To Swap Crypto?
Cryptocurrency exchange charges vary from platform to platform and the currencies you exchange for. On average, you will find that most crypto trading platforms are charging you somewhere between 0.1% to 1%. The percentage might increase depending on the type of trade you are doing.
That means if you are investing $10,000 in a Cryptocurrency, the fee you will pay for the transaction could be anywhere between $10 to $100.
Q3. Why Are Bitcoin Withdrawal Fees So High?
Unlike withdrawing money from an ATM, withdrawing money from a Bitcoin ATM is quite tricky. It is because there are still many nations that consider Bitcoin or other Cryptocurrencies illegal. This makes it difficult to withdraw Bitcoin in the form of money.
In addition, Bitcoin transactions are immutable. So, to make the transaction more secure and ensure the right people are at the receiving end, organizations offer several layers of security.
The high fee goes into revamping the network and preventing people from spamming the network.
Actually, if you consider the fees that the exchanges are demanding from you, they are not too heavy on your pockets.
The exchanges are trying their level best to lower the charges and offer facilities and reliability that are needed in business, you know.
Yet if you are unwilling to pay the fees…you need to follow the aforementioned way to get your work done FREE.