Whenever you’ve tried to sell Bitcoin, convert it into dollars, and then deposit those dollars back into your bank account to lock in, you’ve noticed that Coinbase takes $20, $50, and $100 depending on the transaction size. Are Crypto Trading Fees this high?
Related Post: Why are fees so high buying crypto?
You can never be sure of the exact amount until you lock and load.
It’s not only an issue with Coinbase.
Gemini and Kraken also have complicated fee structures.
The transaction fee isn’t as high as it was earlier. (Now it’s free). It was expensive, but at least you knew what it was immediately.
Why Crypto Trading Fees Are So High?
Several factors affect blockchain fees, such as network congestion, transaction confirmation times, the size of the transaction, etc.
Regular cryptocurrency traders, such as me, who like to cash out and book gains into fiat to spend on hard assets or reload their IRAs, are certain to be irritated by these exchange fees.
When will there be more clarity on exchange fees?
It is unclear when this will happen. Maybe soon. Or we may have to wait a few more years before certain trades and withdrawals are permitted.
Competition is the only thing that will bring rates lower.
Why are fees so complex and difficult to determine?
Due to the fact that each exchange operates differently and each transaction is processed differently on the blockchain, things like Ethereum “gas fees” and multi-chain transaction costs may arise.
A single exchange will not settle each trade on the blockchain. Transferring assets from off-exchange to on-chain incurs a cost.
Related Post: What can I do to reduce the blockchain fee in the meantime?
Conclusion:
- Several factors affect blockchain fees, such as network congestion, transaction confirmation times, the size of the transaction, etc.
- Competition is the only thing that will bring rates lower.
