The decentralization nature of cryptocurrency is both a cursing and a blessing. Since it has been such a wild wild west, there has been no regulation on what kind of fees to charge or when they are charged. Each exchange, blockchain, and wallet could charge the fee they desire with no regulation on it. There are fees along every step of the way since everyone in the company that serves the coin has to make money along the way. Here is a list of basic fees you should expect from a cryptocurrency transaction.
Exchanges usually charge fees as a commission of a trade. There are currently 207 cryptocurrency exchanges at the time of writing with a total of $3.19 billion in 24 hours trade volume. Most of them operate from a maker-taker model which means that they give transaction rebate to market makers who provide the liquidity and charge a transaction fee to customers who take liquidity out of the market. The fees could range up to 1.49%. The most pricey of these fees is from Coinbase. Below is a list on the fees:
- $0.99 for buying and selling at $10.99 and below
- $1.49 for buying and selling from $11.00 up to $26.49
- $1.99 for buying and selling from $26.50 up to $51.99
- $2.99 for buying and selling from $52.00 up to $78.05
This Coinbase fee is a lot compared to Zeus Exchange, which charges .1% for trading commission!
Every coin has a network fee to incentivize cryptocurrency miners. Cryptocurrency miners are people with high powered computers who charge network fees for verifying and validating transactions added to the blockchain. Not every cryptocurrency is created the same. Each coin has a different fee depending on the complication of the blockchain. The network fee between Bitcoin and XEM is very different as the mining difficulty level is different. As one could see from the chart, the network fees increased as the market cap increased as it took more computing power to verify the transactions in the blockchain as the coin market cap increase.
For a more accurate picture of transaction fees, check out this link: https://bitinfocharts.com/comparison/bitcoin-transactionfees.html
Some exchanges charge a fee to deposit into the exchange. Coinbase being the most user friendly of all charges a 3% fee when you deposit money from a credit or debit card as another fee. Zeus Exchange will charge a 0% fee for deposit of fiat, crypto, and other assets!
Each wallet is different in terms of fees. Since developers do not work for free, there are often fees associated with cloud wallets. Check the settings or the terms of the wallet to find out the fees for the wallet you are using. Make sure it is not a dynamic fee where the company that provides the wallet could change the price anytime.
Not only is Zeus Exchange the first cryptocurrency exchange to convert assets into cryptocurrency, but it also charges 1% for the convenience of the users. It is also only 1% for exchanging currency and cryptocurrency! Zeus is perhaps the first exchange that clearly lists out the fees it charges before its customers begin trading to help avoid confusion. Try it out today to see how liquid your assets could be in the crypto world!