As a cryptocurrency investor, you are looking to maximize as much profit as you can. We, therefore, made a list of the top seven (7) cryptocurrency exchanges with the lowest trading fees.

What is Cryptocurrency Trading Fee?

It is the specific amount of money traders pay for their orders to be executed. It is expedient to mention that the trading fee differs by the volume of the orders and other factors.

Ideally, the cryptocurrency exchange has different trading fee structures for the different types of trading options it offers. For example, the trading fee for Spot trading differs from that of the Futures or Derivatives market.

What is a Cryptocurrency Exchange?

Let us start by understanding what an exchange means, as a term. It means the transaction process where one buys and the other sells. Therefore, the function of the cryptocurrency exchange is to help cryptocurrency buyers and sellers to use the platform for cryptocurrency transactions.

There are two major types of cryptocurrency exchanges – the Centralized Exchange, which is under the control of a few persons and the Decentralized Exchange (DEX), under the control of the entire community.

For the purpose of this article, we will focus on the CEX. Here is a list of the top 7 centralized cryptocurrency exchanges that don’t charge an arm and leg to execute your transactions.

1. Binance

This is the leading cryptocurrency exchange, in terms of volume, number of coins listed on the platform, management process and liquidity. Little wonder it has become the favorite for cryptocurrency investors not just in Asia but also from other parts of the world.

Here is an overview of the trading fee structure on Binance:

Specific Deductions

Binance has a dedicated coin called the Binance Coin (BNB). It is the platform-based coin or native currency of the Binance exchange. Traders can enjoy considerable deductions in the trading fee if they are trading with the BNB pair.

The following are some of the deductions:

• Up to 10% off on the USB-M Futures/Derivates trading fee
• Zero trading fee for specific stablecoin, BTC and fiat pairs on the Spot market
• Up to 25% BNB deduction on the Spot trading fee
• Zero Maker fees on the Binance USD (BUSD) trading pairs.

2. Bybit

Bybit is another cryptocurrency exchange with very low fees. On this exchange, the trading fee is dependent on the users’ VIP status. Users who have attained certain VIP levels would enjoy a significant fee reduction than the others who have not.

The following is an idea of the current trading fee structure of the exchange:

Non-VIP

As a non-VIP, you are required to pay 0.1% for the Maker and Taker fee for Spot trades. For the USDC Options Trading, the Maker and Taker fee rate is 0.03%. However, the Taker fee increases to 0.06% if you are engaging in either the USDT & Inverse Contracts Trading or the USDC Perpetual Trading.

VIP Levels

The following is the fee structure for the VIP 1 to VIP levels on Bybit:

• VIP 1: Pays 0.06% Taker fee and 0.04% Maker fee for Spot Trading; 0.05% Taker fee and 0.006% Maker fee for USDC Perpetual Trading; and 0.05% Taker and 0.006% Maker fee for USDT & Inverse Contracts Trading.
• VIP 2: Pays 0.05%, 0.045% and 0.045% Taker fee rates for the Spot Trading, USDT & Inverse Contracts Trading and USDC Perpetual Trading, respectively. The Maker fee rates for the same are 0.02%, 0.004% and 0.04%.
• VIP 3: Pays 0.04%, 0.0425% and 0.0425% Taker fee rates for Spot, Inverse Trading and Perpetual Trading. The Maker fee rates for the same is 0.01%, 0.002% and 0.002%, respectively.

3. Crypto.com

Crypto.com’s trading fee is analyzed over a certain period, usually in a month. The amount of trading volume within that period can influence the trading fee. For example, traders who executed less than $250,000 of trades in 30 days will pay a Maker and a Taker fee of 0.0750%.

If the trading volume is more than $250,000 within the same time, the traders will pay a Maker fee of 0.0700% and a Taker fee of 0.0720%.

Large-volume orders up to $10 million wouldn’t be charged a Maker fee but will pay a Taker fee of 0.0500%.

4. Kraken

Kraken is a cryptocurrency with another low-fee structure. The trading fees differ by the assets being traded. Below is a breakdown:

• Spot Trading: trades of $50,000 maximum attract a Maker and a Taker fee rate of 0.16% and 0.26%, respectively.
• Futures: if you are trading the Futures or the Derivatives market with a maximum trading volume of $100,000 in 30 days, the Maker and Taker fee rates are 0.0200% and 0.0500%, respectively.
• Stablecoins and Pegged Tokens: if up to $50,000 trading volumes were actualized in a month (30 days), the exchange charges 0.20% both for the Maker and Taker fees.

Also read: What is NFT?

5. eToro

eToro is a “social investment network” that aims to “revolutionise the way people invest, and enhance investors’ financial education.”

eToro is known for charging “overnight” and “weekend” fees on CFDs to keep those positions for the holders over the night and during the weekends.

The exchange also charges the following fees:

• Zero commissions on stocks and ETFs
• No management fees
• 1% fee for buying and selling crypto coins
• $10 inactivity fee to manage the accounts that haven’t been active for a year.

6. Uphold

Uphold assures the users of a “complete crypto trading experience.” The exchange charges between 0.9% and 1.2% spread on Ethereum (ETH) and Bitcoin (BTC) transactions in Europe, the United States and the United Kingdom.

It also charges between 1.4% and 1.95% for Cryptocurrencies, Environmental Assets & Equities, as well as a 2% spread on precious metals.

7. CoinMama

CoinMama is one of the top cryptocurrency trading platforms with users from 120 countries. Customers can trade BTC, ETH, and other top digital currencies. Users can fund their accounts through bank transfers or credit and debit cards whether master or visa.

CoinMama also prides itself as one of the cryptocurrency exchanges with the lowest trading fees. CoinMama is safe and provides fast and personalized transactions. With a Maker fee and Taker fee of 3.9%. To deposit, users pay a 2.93% fee and a 3.9% withdrawal fee.

Final Words

Trading fees are one of the major sources of income for cryptocurrency exchanges. While some exchanges charge higher, others are considerate and charge lower. If you are looking for the cryptocurrency exchanges that charge less, sign up at any of the ones we reviewed in this article.

The post A List of the Top 7 Cryptocurrency Exchanges with Lowest Fees appeared first on SME SCOOP.

NFTs are dominating the crypto market right now and there is no sign of it stopping very soon. A lot of people have made millions of dollars on NFTs and more people are putting their money into it with the hope of cashing out soon or in the future.

Should you invest in NFTs or are they just another bubble poised to pop, like the dot-com rage?

If you are thinking of investing in NFTs but want to first understand what they are, then this post is for you. In this post, you will know what is NFT, why it is so popular, and if you should invest in it.

What is NFT?

A Non-Fungible Token (NFT) is a digital asset just like bitcoin, representing real-world objects like music, video game items, and arts. They can be bought and sold online like any other property with no tangible form of its own.

An NFT stands like a digital receipt that tells that you own a collectible item. That collectible item can be artworks, videos, GIFs, photos, and songs.

Now, NFTs are not traded the same way as bitcoin. Bitcoin is fungible. You can trade 1 bitcoin for another fungible token. But it doesn’t work like that with NFTs. NFTs can’t be exchanged because it is non-fungible. Non-fungible means each NFT is unique and can’t be duplicated or swapped. If you trade it, you are getting something completely different.

For example, if you own a digital Mona Lisa painting registered as an NFT, you can’t trade it for another Mona Lisa painting because you won’t find any. You can only trade it for another different painting entirely or the monetary value in Ethereum or any other token allowed in the marketplace. This is why they are known as non-fungible tokens.

Even though an NFT is photographed or copied, the original remains the original, and the one that is copied doesn’t have the same value as the original.

When you buy an NFT, you own the absolute right as an official owner of the NFT. NFTs allow you to own the original item. Aside from that, the transaction is recorded in a digital ledger (Blockchain) serving as proof of ownership.

How Does NFT Work?

Just as we regard physical artworks as investments, NFTs are also potential investments. You can buy an NFT today and sell it for a much higher price tomorrow if the value of the NFT goes up.

The price of a particular NFT depends on the value placed on it by the public. People are not just buying the token, but the perceived value of what the token represents.

Even Twitter tweets can be sold as NFTs. Remember the story of Jack Dorsey, Co-founder of Twitter who sold his tweet for over $2.9 million? Yes, that was true. The buyer of that tweet owns the digital representation of the tweet which has been registered on the blockchain network. And even though anyone can photograph or copy it, it won’t have the same value as the original.

NFTs are mostly created and uploaded on the Ethereum blockchain. Most NFTs are Ethereum-based tokens. This means you can only buy them with Ethereum. If you already have a crypto wallet, you just need to fund it with Ethereum to buy any NFT of your choice on any NFT marketplace.

Why is it so Popular?

So, how did NFT become so popular that it is now even more trending than Bitcoin? The story will shock you.

Most people didn’t know about NFT until when a graphic designer, Mike Winkelman, also known as Beeple in the online art world created a piece of digital art called “Everydays” which was sold for $69.3m in an auction sale. It was recorded as the most expensive NFT ever sold.

Then in early 2021, Dapper Labs creator of CryptoKitties, a blockchain-based game, launched NBA Top Shot. This exploded the popularity of NFTs and a lot of people including NBA players started developing an interest in it.

Not too long, the news of Jack Dorsey selling his first tweet followed and trended for weeks.

These are just a few stories on how NFTs started making headlines worldwide.

Another reason NFT is also popular is that it also supports digital creators. Artists are now taking advantage of the trend and are creating digital arts. NFTs have given artists a new way to express themselves and make money from it.

A lot of celebrities have joined the buzz and are even creating their own NFTs.

Although NFTs are only limited to arts and entertainment in general, there is a great potential that it will cross to other sectors and industries.

Also read: 10 Reasons Why Most People Fail at Making Money Online

Should You Invest in It?

The purpose of this blog post is not to tell you whether you should invest in NFTs or not. This post is for educational purposes. You need to conduct your research before putting your money in any NFT. Many people have lost millions of dollars in value of their money in NFTs. Chief example is the current worth of Jack Dorsey’s NFT tweet. Bought for $2.9M, the buyer got a top bid of $6,800 when he tried auctioning the NFT.

There are a lot of videos about NFTs on YouTube you can go and watch and educate yourself. You may luckily find a good course on the internet that you can enroll in to fully understand the business of NFTs.

Even with the popularity and millions of dollars in transactions, nobody knows the future of NFTs. And just like any other assets, NFTs come with their risks.

Remember, it is not the token that is selling, but the value and technology the token present. It works like supply and demand.

Conclusion

Does this sound interesting to you? Would you want to consider joining the buzz and give it a try? Just like when everyone was thinking Bitcoin won’t survive for long, that the government will look for ways to kill the idea, bitcoin is still in existence and gaining popularity all over the world.

This maybe the same fate for NFTs but it is not certain. The adoption of NFTs is increasing and may just be the new form of monetization for artists and creators.

The post What is NFT and Why is it so Popular appeared first on SME SCOOP.