Cryptocurrency trading can be an exciting and lucrative way to make money online. But if you’re not careful, the fees associated with crypto trading can cost you a lot of hard-earned cash. Some exchanges charge as much as $20 in fees per transaction! Thankfully, minimizing your fees is a way to keep your costs down while still profiting from cryptocurrency trading. Here are some top tips for reducing your costs when buying and selling cryptocurrency:
The first thing to remember is that diversification is overrated. The idea that the more trades you make, the less risk you have sounds intuitively appealing, but it’s counterproductive in crypto trading.
If you are trading a large number of different crypto, you will be spreading your capital around and making it impossible for any trade to make up for any losses elsewhere.
What you want to do is limit yourself to a small number of different crypto. If you are trading in five or fewer different crypto, your trades will be more focused and potentially more profitable.
If you want to avoid high fees while trading crypto, consider using a bank transfer or buying with another crypto. You can also use a service that allows you to buy with a bank transfer, but the fees will still be higher than if you were to use your own money. If you have a credit card and want to use it for buying cryptocurrency, keep in mind that many exchanges charge additional fees for using credit cards.
A platform that pays you to use it? Sounds like a pretty good deal. That’s precisely what FTX is all about.
FTX can pay you for using their platform in one of two ways: staking or joining their affiliate program. Staking allows you to deposit your crypto into the FTX platform and receive rewards based on how long your crypto remains on the exchange. This can be an excellent way to generate passive income while waiting for price fluctuations in cryptocurrencies or tokens that interest you. Joining their affiliate program is also a great way to earn money because every time someone signs up through your link, they’ll receive FTX token rewards, and you will also receive rewards based on their trade volume within the first month of their use of the exchange. There are also other perks for holding FTT, including token and NFT airdrops.
FTX has the lowest fees in the exchange space. Small amounts of Bitcoin or ETH withdrawal fees on FTX are low; however, there are no withdrawal or deposit fees for all other cryptocurrencies on the platform.
Also, unlike most other exchanges, FTX does not have platform fees which are often hidden charges that you will only find out about when you try to withdraw your funds from another exchange.
In addition to having no withdrawal and platform fees, FTX has the lowest trading fees on the market, with a tiered fee structure based on how much volume you’re trading. All users receive market maker rebates for making trades, which is one of many reasons FTX has the lowest fees in the exchange space.
These are just a few simple steps that you can take to avoid paying unnecessary fees while trading crypto. The most important thing to remember is that when it comes to trading cryptocurrencies, there’s no single best approach. Compare your exchange options and find the one more affordable for your goals.