If you have ever tried your hand at any currency trading, you will have paid some fees as part of the deal. Buying and selling bitcoins is no different. Most crypto trading platforms will charge certain fees for executing the transactions on your behalf. However, there are a few exceptions. So, if you want to sell or buy Bitcoin without being landed with excessive charges, you have come to the right place to find out how.
Fees Associated with Bitcoin Trading
There are a few different fees associated with trading crypto. These include;
- Exchange fees
- Network fees
- Trading fees
If you are an investor determined to find a way of buying or selling Bitcoin for free, you will likely be disappointed. The best you can get is an exchange that charges lower fees than some competitors. But anything else that claims to be free of charge could well be a scam.
The chances are that you will see a lot of exchanges purporting to offer a free-of-charge trading platform. However, upon further investigation, you realize it is only a promotional ploy to entice potential traders.
When buying or selling Bitcoin, you will come across a network fee. These are charges that every trader pays to execute transactions. The best way to ensure you pay a low fee is to work with a great exchange such as NakitCoins. This is one of the crypto exchanges, and it is known to charge the most competitive fees. As a result, most of your margins on the transaction will remain intact.
Trading fees are other charges that traders must contend with when selling or buying Bitcoin. Most exchanges charge 0.5% to 2% of your transaction’s value. For a one-time transaction, this might seem like a low fee. The fees can be significant if you buy or sell Bitcoin frequently.
Some cryptocurrency exchanges will deduct charges when you deposit or withdraw Bitcoin. Some impose a flat fee, while others charge according to your deposit or withdrawal value. Whichever the case, you want to work with the platform with the lowest exchange fees.
Be wary of platforms that charge a flat fee. For instance, if their fee is between 2$ to $5, you will incur relatively high charges for small transactions. Paying $5 for a $20 worth of Bitcoin transaction does not make any sense.
Also, exchange fees vary. For example, you will pay more using credit and debit cards, but your transactions will go through quicker. On the other hand, you will pay lower fees when using a bank transfer, but the transactions may take days.
Other exchanges allow you to buy Bitcoin without any transaction charges. But there is a catch. They will charge a high fee when you are selling Bitcoin. Usually, these exchanges entice traders with offers below the market price when buying Bitcoin. That is how they make their money.
In your quest to buy and sell Bitcoin, always look for partners who do not charge exorbitant fees. There are plenty of them, but you must scrutinize their service delivery. So long as the exchange in question seems solid.