You may have heard of the crazy new headlines that Bitcoin has surpassed and reached all-time highs of $33,000 per Bitcoin and maybe curious as to which is the best cryptocurrency exchange to purchase crypto with the lowest fees to hold for future investment growth.
There have been hundreds if not dozens of cryptocurrency exchanges that have popped up over the years in the cryptocurrency industry, however, none has surpassed the level of trust and reputation in the crypto community than these four cryptocurrency exchanges: Kraken, Coinbase, Crypto.com, and Binance.
The question of which is the best cryptocurrency exchange with the lowest transaction fees may be lingering in your mind because joining any exchange is a commitment in itself and requires some very critical personal information like personal identification documentation and trust. Gone are the days when you can get by with no identification and purchase cryptocurrency. The industry is becoming much more regulated with better industry security practices, which is better for everyone involved in crypto in the long run.
- What is the difference between maker and taker fees?
- Which cryptocurrency exchange has the lowest fees to buy crypto?
What is the difference between maker and taker fees?
A TAKER is when you place an order at the market price that gets filled immediately, you are considered a taker and you will pay a fee for books.
A MAKER is when you place an order which is not immediately matched by an existing order, that order is placed on the order book. If another customer places an order that matches yours, your fee will be 0% and you are considered the maker.
You will pay a taker fee when you place an order that gets partially matched immediately. The remainder of the order is placed on the order book and, when matched, is considered a maker order. The fee is 0% for that part of the total order.
Let’s look at the following example:
- Peter sell 1 BTC at $100
- Claire sell 1 BTC at $90
- Dave buy 1 BTC at $95
- Helen buy 1 BTC at $85
If we add a buy order at $100, it will immediately match the order No. 1 and No. 2. We are a taker and we will pay a taker fee.
If we add a sell order at $95 or less, it will match right away the order No. 3, and we are the taker.
If we add a buy order at $91 it will not match any order at the moment, and we will be a maker and we will pay a maker fee, whether there is any (it will probably be 0).
If we add a sell order at $99 for a BTC, it will not match any order at the moment, and we will be a maker (it will probably be 0).
Kraken was founded in 2011 and mainly serves Europe because of its origin, but still serves a sizable amount of the US market. Kraken provides support to over 200 trading pairs and over 50 unique cryptocurrencies on its cryptocurrency exchange. Kraken prides itself on security and to date has never been hacked, which is extremely impressive considering the sheer size of Kraken and how many other cryptocurrency exchanges have experienced security flaws.
What are the lowest fees for Kraken? – 0.16%
The starting fees that Kraken takes on the smallest deposit is 0.16%. Compared to other popular exchanges like Coinbase where the smallest deposit has a 0.50% fee, Kraken is very reasonable in its fee structures compared to other cryptocurrency exchanges.
Coinbase was founded in San Francisco, California and is the most popular cryptocurrency exchange on the market with sheer volume. Coinbase serves over 32 countries. The company was founded by Brian Armstrong and Fred Ehrsam.
What are the lowest fees for Coinbase? – 0.50%
The lowest minimum fee for trading on Coinbase Pro is 0.50%, which is much higher than the 0.16% that Kraken takes. However, due to Coinbase being the most popular exchange and with the most volume, if you ever decide to sell cryptocurrency, you may be able to take advantage and leverage the volume for a potentially higher price point upon a selling transaction.
Binance is one of the more popular cryptocurrency exchanges that originated and was developed in China. Due to the increasing regulations in China, Binance has since moved out of the country to resume operations. In 2018, Binance was the largest cryptocurrency exchange on the web in terms of volume.
What are the lowest fees for Binance? – 0.10%
The lowest minimum deposit at Binance will only undergo a small service fee of 0.10%, which is an extremely competitive fee schedule.
Crypto.com was founded in 2016 on a simple belief: it’s a basic human right for everyone to control their money, data and identity. Serving 5+ million customers globally, Crypto.com offers a powerful alternative to traditional financial services. The founders are: Bobby Bao, Gary Or, Kris Marszalek, Rafael Melo.
What are the lowest fees for Crypto.com? – 0.10%
Which cryptocurrency exchange has the lowest fees to buy crypto?
Binance and Crypto.com are among the largest and secure cryptocurrency exchanges on the market currently in 2021 with the most volume with the lowest fees to buy popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.
Advertiser Disclaimer: This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.