The cryptocurrency market is T+0 trading, and high fees can easily eat up profits. In the long run, it is common for fees to be higher than profits or even higher than the principal. Therefore, before starting to trade, you must make sure that your account transaction cost is the lowest, so as not to lose at the starting line.
Cryptocurrency exchanges that hold custody of assets
It is very similar to a bank. To open an account (register an account), personal information will be verified. With an account and password, you can log in to the exchange. A person can only open one account at an exchange, but can open accounts at multiple exchanges at the same time; you can deposit coins in the exchange account for trading, or participate in fixed-interest financial products. Just like depositing money in a bank, the assets in the exchange are equivalent to being entrusted to the exchange, and if something happens to the exchange, you may not be able to get them back.
Exchanges are simpler and more convenient to operate. As long as safety measures are taken, they are also safe. For newcomers who are not familiar with cryptocurrency, it is a better entry channel.
Is it difficult to open an account in the cryptocurrency circle? Account opening process description
It is super easy to open an account in the cryptocurrency circle. Even if it is your first time, you can usually open an account within half an hour. If you are skilled, you can complete it within a few minutes.
Cryptocurrency account opening process: Register > Provide personal information verification > Wait for verification to pass
The first step to open a cryptocurrency account: registration
You can register using your email or mobile phone number. If you register using your email, there will be a few more steps, including receiving a verification code in your mailbox, binding your mobile phone number, receiving a verification SMS, etc. It can also be completed within a few minutes.
You can log in after registration, but the account opening is not yet complete.
Fill in the invitation code when registering to get a fee reduction~
The second step of opening a cryptocurrency account: providing personal information verification (commonly known as KYC)
Some exchanges allow you to start trading and use as long as you complete registration, while others will restrict certain functions. But no matter which one, you must complete KYC to enjoy the most complete functions.
The so-called KYC = Know Your Customer is a common procedure for financial institutions. Institutions must know who their customers are and understand the true identity of their customers, which helps prevent fraud or illegal use.
The KYC process of cryptocurrency exchanges is also very simple and can be completed in a few minutes as long as the relevant information is prepared.
The third step of opening a currency account: waiting for verification
Just make sure that all the information is provided and wait. If it is not a special situation, such as the market is too hot and too many people are applying, it will usually be approved within a few minutes to a few hours.
Common reasons for verification failure: the photo is blurry, the photo does not match the ID, please re-edit the photo and verify again
How are the handling fees and rebates calculated?
The handling fee rate of each exchange is different, and the refund ratio will also be different
Of course, the higher the return ratio, the higher the corresponding handling fee rate will be. The exchange will explain in detail how much the handling fee rate is.
Binance Spot Fee Rate
Binance Futures Fee Rates
As can be seen above, the unilateral handling fee rate of Wei'an spot is 0.1%, and the unilateral handling fee rate of contract is 0.02% (order placing) and 0.05% (order taking).
The price of Bitcoin is 65000u, and the transaction fee for spot trading is 130u.
It can be seen that the contract fee rate is divided into Maker (order, limit order) and Taker (order, market order)
Different transaction modes have different handling fee rates. The unilateral handling fee rates are 0.02%-0.05% respectively.
Assuming a principal of 1000u and a leverage of 50 times, the position value is 50000u, and the opening and closing of the position together require a handling fee of 20-50u.
This is just the handling fee for one order. If you trade three times a day, that’s 90 times a month. The accumulated handling fee is 1800-4500u.
Many users feel that their trading volume is not large, but trading is a long-term process. The longer the time, the more expenses. Therefore, rebates are particularly important.
All rebates are calculated based on the actual handling fees incurred, rather than calculating rebates in rebates.
When registering and filling in the invitation code, be sure to consult the ratio, time, cycle, etc.
Opening an account is simple, but it is only the beginning
Cryptocurrency is a brand new field. New currencies, new technologies, and new models continue to emerge. You will not start making money automatically after opening an account. Continuous learning and communication are required.
