Many users ignore the existence of transaction fees, thinking that a few thousandths of a few ten-thousandths of a transaction fee is very small, and it is better to make a profitable order quickly.

No matter what kind of transaction is carried out in the cryptocurrency world, there will be a handling fee. The handling fee rate will also be different for different transaction modes.

Different exchanges have different transaction fees.

Spot trading (coin-to-coin trading)

Spot trading is just like buying things normally, where you pay for the goods. If I spend 63,000 USDT to buy a Bitcoin, then I actually own the Bitcoin, and I can transfer it to my own wallet or give it to others.

The advantage of spot trading is that the coins you buy belong to you, and the number of coins in your hands will not change regardless of price fluctuations. The disadvantage is that you can only make a profit if the coin price rises. If the coin price falls, you can only sell to stop loss or hold on to the coin.

Key point: Spot can only be bought up, buy low and sell high to make a profit

The one-way transaction fee rate for spot transactions is 0.1%. To buy 10,000 USDT coins, you need to spend 10U in fees. The fee for one buy and one sell is 20U.

However, there are many transactions on Wei’an that do not require transaction fees, which makes it more friendly than other exchanges.

Leveraged Trading

Margin trading is a spot trading that requires holding a certain amount of coins or USDT and trading through mortgage lending.

For example, if you go long with leverage, you judge that the coin will rise, so you borrow more USDT by mortgaging your own coins or USDT, and buy more coins at the current price. When it rises higher than the purchase price, you sell the coin and return the borrowed part. The rest is your profit.

Leveraged short selling: if you judge that a certain coin is going to fall, you can borrow coins through collateral, sell them at the current price, and get USDT. When the price falls, you can use the USDT in your hand to buy more coins at a low price. The extra coins are your profit. You can return the borrowed amount and take the profit.

For example, in a BTC/USDT leveraged transaction, if you go long, you need to borrow USDT, and if you go short, you need to borrow BTC.

There is an upper limit on leveraged trading. For example, Bitcoin supports up to 10 times, while other currencies may only support up to 5 times.

The maximum leverage ratio in perpetual contracts is 125 times, but it is also limited by the currency type.

The rate of leveraged trading is the same as that of spot trading, which is 0.1% per side. However, leveraged trading has an additional interest fee compared to spot trading.

Contract Trading

Contracts are an upgrade of leverage, which is more user-friendly than leverage. You don’t need to borrow or repay coins, and the operation is simple. You can operate if you have coins or USDT in your position.

Contracts are divided into two categories in terms of time:

One type is a perpetual contract, which means you can hold it for a long time as long as you don’t get liquidated.

The other type is time-limited, which is divided into: current week, next week, and quarter. This means that the position will be automatically closed when the time is up.

Contracts and leverage, there are two types of currency and USDT trading pairs. The former is settled in currency, which is what we call currency standard. Profits depend on the increase in the number of coins, while USDT trading pairs are settled in u

Going long on the coin standard will bring more profit than going long on the U standard.

Example:

The price of Bitcoin is $60,000. Take out $600 of principal and use 100x leverage.

The position value at this time is $60,000.

The order handling fee rate is 0.02%, and the handling fee required for opening and closing a position is 24 USD

The taker fee rate is 0.05%, and the fee required for opening and closing a position is $60 (the fee accounts for 10% of the principal)

Trading twice a day means 60 times a month, and the maximum transaction fee can be $3,600

The above examples are just to illustrate that the handling fees cannot be ignored, and they will accumulate to a considerable amount over a long period of time.

In response to this, the exchange will come up with a rebate mechanism, filling in an invitation code to reduce handling fees. When registering, just fill in the invitation code at the referral section, and you can do whatever you need a rebate.