Old investors in the crypto circle should know how frightening the commissions for high-frequency trading in contracts can be. Many who want to understand the crypto market are not clear on how much commission trading will incur.

Cryptocurrency exchanges can be roughly divided into two major trading models: spot (crypto-to-crypto) trading and contract trading.

Spot (crypto-to-crypto) trading

Spot trading is similar to stocks; you can only buy bullish, buying low and selling high. However, both buying and selling require a commission.

Taking Binance, a leading platform, as an example, the spot single-side commission rate is 0.1%.

The current price of Bitcoin is 65000 USDT, and buying and selling requires a commission of 130 USDT.

However, there are many preferential policies at Binance. Holding BNB can deduct 25% of the commission, and some trading pairs do not even require a commission for limit orders, greatly reducing user expenses. If there are rebates, some commissions can be refunded.

Perpetual contract trading

The perpetual contract trading model has one more buying direction than spot trading. Not only can you buy bullish (go long), but you can also buy bearish (go short), and you can leverage, but there is a liquidation mechanism, which poses significantly higher risks. It is not recommended for beginners.

You can see that the contract commission rate is divided into Maker (limit orders) and Taker (market orders).

Different trading models have different commission rates, with single-side commission rates ranging from 0.02% to 0.05%.

Assuming a principal of 1000 USDT, using 50 times leverage, the position value is 50000 USDT, and the total commission for opening and closing the position is 20-50 USDT.

This is just the commission for one transaction. If you trade three times a day, that’s 90 times a month, accumulating to a commission of 1800-4500 USDT.

Many users feel that their trading volume is not large, but trading is long-term; the longer the time, the more expenses there are, so the rebates become particularly important.

Apart from the commission rebates, Binance can also use BNB for deductions, and some trading pairs also have discounts, which can be stacked together. This is much better compared to other exchanges.

As long as you fill in the invitation code during registration, you can receive a corresponding percentage of commission rebates.

Many users are unaware of whether they have rebates when registering or if they filled in an invitation code. Many links now come with an invitation code, meaning the commission rebates that should belong to them are given to others.

Before filling in the invitation code at registration, be sure to inquire about the rebate ratio, rebate time, rebate method, and other details, and verify if they match after trading.