Understanding crypto exchange fees

Understanding crypto exchange fees

Crypto exchanges charge several fees, and it’s not always clear what exactly you’ll be charged for.

There are two main types of fees to look out for: exchange fees and network fees.

Exchange fees are how crypto exchanges make money. In other words, they’re service fees that include:

  • Trading fees, charged when making transactions and are also called “maker/taker” fees. Trading fees indicate whether a crypto order provides liquidity to the market or not. These also apply when converting currencies.

  • Deposit fees, charged when users add money to their account, usually via debit card, credit card, or PayPal instead of through a direct bank transfer.

  • Withdrawal fees, charged when withdrawing regular currency or cryptocurrencies from your account.

  • Account fees, charged on a regular basis, usually monthly.

Network fees are paid to cryptocurrency miners, who process and secure crypto transactions on the blockchain. Many centralized crypto exchanges incur this cost, though some may allow their users to pay more in miner fees to speed up transaction speeds. Users on decentralized exchanges generally have to pay this themselves, since there is no third party between them and the crypto miners.