Investors in the cryptocurrency space often have this confusion: it seems like there is a profit during trading, but upon final settlement, they find a loss. A significant part of this is caused by fees. Although not prominent, fees are crucial to the impact on trading profits and losses. Below is a detailed explanation of the impact of trading fees in the cryptocurrency space and how to reduce costs.

1. Source of fees

Each exchange has different fee rates, and the specific rate depends on the trading model. The following takes Binance as an example:

Spot trading rates:

• Unilateral fee: 0.1%

• Bilateral fee: a complete transaction requires a fee of 0.2% (buying + selling).

Contract trading rates:

• Maker: 0.02%

• Taker: 0.05%

• Bilateral fee: the fee for a complete transaction is 0.04%-0.1%.

2. How do fees affect profits and losses?

Assuming the trader uses the following model for trading:

Spot trading case:

• Buying Bitcoin worth 10,000 U.

• Single purchase fee: 10 U (0.1%).

• Selling fee: 10 U (0.1%).

• Total fee: 20 U, accounting for 0.2% of the transaction amount.

High leverage contract case (caution advised, for illustration only):

• A trader uses 500 U as capital, employs 100x leverage, holding a position worth 50,000 U.

• Opening fee: 10 U-25 U.

• Closing fee: 10 U-25 U.

• Total fee: 20 U-50 U, accounting for 10% of the principal.

Result:

Even if the trade earns a 10% profit, the fees can consume most of the profit, leading to losses.

3. Fee differences between currencies

Many people wonder, is there a difference in fees between different currencies?

The answer is: fee rates are usually consistent, but the specific amount of fees depends on the transaction amount and position value.

4. How to reduce fees?

1. Register on the exchange using an invitation code

Many exchanges (like Binance) offer fee rebate policies to attract users. By entering an invitation code during registration, users can receive fee discounts.

• Binance invitation code: 856743104, enjoy a 20% fee discount

2. Hold platform tokens

Some exchanges allow users to hold platform tokens (like BNB) and pay fees with platform tokens, which can further reduce rates.

3. Prefer to choose order trading

In contract trading, the fees for orders (Maker) are lower, which can effectively reduce costs.

5. Summary: Why are fees important?

Fees are an easily overlooked cost in cryptocurrency trading, but they can eat into trading profits and even cause losses. By understanding the rates of different trading models and using a referral code or holding platform tokens, costs can be significantly lowered, making each transaction more valuable.

[Welcome to like and comment, if you need analysis on a specific currency, feel free to comment. Remember to use my invitation code to register on Binance for a 30% fee discount. Invitation code 856743104, wishing my brothers and sisters abundant profits every day!]

Welfare link https://www.marketwebb.ac/join?ref=856743104