Users who trade in the cryptocurrency circle may not know that there is a handling fee. Today, let’s talk about which transactions will incur handling fees? What are the handling fee rates? And how to save handling fees

Which transactions will incur fees?

There are two main trading modes in the exchange: spot (coin-to-coin) trading and contract trading.

Spot (coin-to-coin) trading

Spot trading is also called currency-to-currency trading. The currencies purchased through spot trading can be freely used by oneself and can be transferred to other exchanges or wallets.

Spot trading also requires a handling fee for buying and selling. A purchase fee of 0.1% is required, and a sale fee of the same rate is required.

For example, if you buy a bitcoin worth $65,000, the required fee is $65, and the total fee for buying and selling is $130.

However, there are other ways to reduce the fee.

Contract Trading

Contract trading is different from spot trading. It has one more buying direction. You can buy not only rising (long) but also falling (short). You can also add leverage. However, there is a margin call mechanism, and the risk is relatively much greater. It is generally not recommended for novices! !

As can be seen in the figure, the transaction fee for contract trading is 0.02% (pending order/limit order) and 0.05% (taking order/market order). Different order placement modes will generate different transaction fees.

For example, Xiaoyu has a capital of 500 USD and uses a leverage of 100 times. The value of the position is 50,000 USD. The handling fee required to open a position is 10-25 USD, and the handling fee required to close a position is the same rate. The total handling fee required for one transaction is 20-50 USD.

Warm reminder: The above leverage ratios are only examples, please do not imitate in actual operations!!!

The principal of 500 US dollars, the handling fee actually accounts for 10% of the principal, which is still very exaggerated. This is just the handling fee for one order. If the transaction time is long, the handling fee will exceed the principal.

You can check your transaction expenses. For example, the transaction fee in the above picture is more than 36,000 US dollars, which is 260,000 RMB.

Myth 1: Fee expenditure has nothing to do with the currency type and is calculated based on the actual holding value

Myth 2: High handling fee expenditures are usually caused by frequent transactions

How to save transaction fees

Many people have heard of the term "handling fee rebate" but do not believe that such a good thing can happen.

Basically, every platform has a fee rebate, which means returning part of the fee generated by the transaction. The fee rate and rebate ratio of each exchange are different. Generally, the higher the rebate ratio of the platform, the higher the corresponding fee rate.

How to save transaction fees?

Just fill in an invitation code at the referral point when registering.

Everyone can quickly check whether they have any handling fee rebates. If not, you can consult