Connect with us

Blockchain

How Much Does It Cost To Buy Bitcoin At Exchanges?

In the last several years, the process of buying Bitcoin has gone through an evolution of sorts, as exchange platforms …

Read moreHow Much Does It Cost To Buy Bitcoin At Exchanges?

The post How Much Does It Cost To Buy Bitcoin At Exchanges? appeared first on CoinDiligent.

Published

on

In the last several years, the process of buying Bitcoin has gone through an evolution of sorts, as exchange platforms look to make the process both easier and cheaper than ever before.

Now, instead of Bitcoin mining, most investors first get their hands on BTC by purchasing it from an exchange.

With that said, depending on both how you trade, and where you trade, you will need to pay some sort of fee—on top of the price of the Bitcoin itself.

Three things to know about Bitcoin exchange fees

Although a fee is inevitable, exactly how much you pay typically depends on the quantity of Bitcoin you purchase, and the exchange platform you use.

This fee will typically be higher when purchasing Bitcoin with a bank account, debit or credit card, and usually much lower if buying Bitcoin with another cryptocurrency—known simply as exchanging. Buying Bitcoin with another cryptocurrency is usually the preferred method for those that want to avoid forking over their personal information as part of the purchase process.

With that said, there are several things you will want to be aware of when it comes to exchange fees.

Ability to reduce fees

Although you will need to pay a fee regardless of where you buy your Bitcoin, a good fraction of cryptocurrency exchanges offer ways to minimize this amount.

One of the most common ways exchange platforms allow traders to reduce their fees is through volume-based fee discounts. These discounts are provided to what the platform considers to be “high-volume traders,”—those that trade above a particular volume threshold.

For example, Bitfinex begins offering fee discounts to anybody trading in excess of $500,000 worth of digital currency per 30 days. Likewise, Bitstamp provides at least a 50% discount for anybody trading more than $10,000 worth of cryptocurrency per 30 day period.

Beyond this, some platforms also have their own utility token which can be held to reduce fees, including Huobi Global with its Huobi Token (HT). As it stands, HT holders can receive a discount of between 10 to 65% depending on the total number of tokens held.

Similarly, platforms like Binance employ a combination of both methods, providing a fee discount for higher volume traders that hold its native utility token—the Binance Coin (BNB).

Different fees for different order types

As we previously touched on, the fee you are charged when purchasing Bitcoin can differ based on the payment method you use or the order type you use. Typically, the most expensive way to purchase Bitcoin is with a bank account, debit card or credit card, since this often incurs additional fees—potentially including deposit and wire processing fees.

For those looking to purchase Bitcoin using another cryptocurrency on the spot markets, you will be charged a maker fee if you add liquidity to the market, or a taker fee if you take liquidity from the market. In essence, trades that are immediately executed and filled are subject to a taker fee, whereas those that are added to the order book (e.g. limit orders) to be filled later are subject to a maker fee.

The taker fee is higher than the maker fee on most exchange platforms, including Binance and Kraken, whereas Bitstamp charges a flat fee irrespective of the order type. Conversely, a handful of platforms provide a small rebate to market makers to help encourage traders to provide liquidity. For example, both BitMEX and Deribit provide market makers with an up to 0.025% rebate for each trade.

Multiple commission models

Before selecting the platform you will use to buy Bitcoin, you will likely want to familiarize yourself with the different commission models different exchanges use.

In most cases, Bitcoin exchanges will charge a fixed percentage fee, which relates to the current Bitcoin price at the time of purchase. This tends to be in the range of 1 to 5%, but can be more or less depending on the platform. For example, if you are looking to purchase one Bitcoin at a price of $10,000, and the exchange charges a 5% fee, then the transaction will cost $50.

Other exchanges, like Coinbase and many Bitcoin ATMs instead charge a fixed dollar fee, which usually increases with the amount of Bitcoin purchased. This makes calculating your fees a much simpler task, but can also be more expensive—particularly for those buying a small amount of Bitcoin.

Comparison of trading fees on popular Bitcoin exchanges

Binance

binanceLaunched in 2017 following a sell-out ICO, Binance quickly rose to become by far the most dominant Bitcoin spot exchange platform. Owed to its user-friendly interface, extreme liquidity, and low fees, Binance is one of the most popular exchange choices for those looking to buy Bitcoins.

When it comes to trading fees, Binance employs a volume-based fee schedule which starts at a 0.1% maker and 0.1% taker fee, but reduces to as low as 0.02% maker and 0.04% taker fees for the highest volume traders (VIP 9). As it stands, volume-based discounts start for anybody trading more than 50 BTC per 30-day period.

Beyond this, Binance was also among the first platforms to introduce its own utility token that can be held to provide further discounts. BNB holders can receive a further 25% fee discount, but each VIP tier needs to hold more than the previous tier to benefit from a fee reduction.

Coinbase

coinbase logoWidely regarded as one of the simplest Bitcoin exchange platforms, Coinbase has grown to become a prominent name in the cryptocurrency industry since its launch in 2012. The platform is now one of the most popular on-ramps for those buying Bitcoin for the first time, while its mobile Bitcoin wallet is suitable for those first getting to grips with Bitcoin and other cryptocurrencies.

For buy/sell transactions on the Coinbase platform, customers are charged a spread of 0.5% of the order price. In addition to this, customers are charged a ‘Coinbase fee‘ which is either a flat fee or a variable percentage set by region. The flat fee can be as low as $0.99 or as high as $2.99 depending on the order amount.

The variable fee depends on the region and payment method used. For example, credit card and debit card buys in most countries incurs a 3.99% fee, whereas bank transfer buys are mostly free. Customers are charged whichever fee is higher out of the flat fee and variable fees.

If you’re considering to use Coinbase, make sure to check out our list of Coinbase alternatives first.

Bitstamp

bitstamp logoBitstamp is one of the oldest names in the cryptocurrency exchange industry and is also one of the most well-reputed platforms around. The exchange features a highly liquid spot trading platform and allows users to buy cryptocurrencies with several different payment methods.

Part of the reason Bitstamp is so popular is due to its extremely simple fee schedule. Currently, most trades made via the Bitstamp trading platform are subject to a flat 0.50% fee. However, users that trade more than $10,000 worth of Bitcoin or any other cryptocurrency per 30 days will pay a lower fee.

The trading fee reduces to 0.25% for the first discount tier and can go to as low as 0% for traders achieving more than $10 billion in 30-day trade volume. As such, Bitstamp is one of the most attractive exchanges for high volume traders.

However, those looking to buy Bitcoin using a credit card will be subject to a flat 5% fee.

Bitfinex

bitfinex logoAs one of the three largest cryptocurrency exchanges by trade volume, Bitfinex is practically a household name in the industry. This success can be attributed to its extraordinary resilience, clever business model and impressive liquidity.

Bitfinex fees start at a 0.1% maker and 0.2% taker fee for the lowest volume traders. However, those trading more than $500,000 worth of cryptocurrency per 30 days will receive a fee discount. This cuts fees to as low as 0.08% and 0.2% respectively for makers and takers the first discount bracket, down to as little as 0% and 0.055% for those trading more than $30 billion per 30 days.

Beyond this, like Binance, Bitfinex allows traders to further reduce their trading fees by holding its native utility token—Unus Sed LEO (LEO). Currently, anybody holding at least 1 LEO will receive a 15% taker fee discount, but this can be reduced to up to 25% + 0.06% for those holding in excess of 10,000 LEO.

Kraken

kraken reviewCurrently regarded as the second-largest exchange by trading activity and the largest exchange for euro/crypto trading pairs, Kraken is nothing short of a behemoth. The platform features only a restricted range of assets, ensuring excellent liquidity and freedom from market manipulation.

Those looking to trade Bitcoin on Kraken will need to be aware of its volume-based maker/taker fee structure. At the highest end of the scale, those trading between $0 to $50,000 worth of Bitcoin or any other cryptocurrency will be subject to a 0.16% maker and 0.26% taker fee.

For those trading in excess of $50,000 per 30-days, Kraken charges a lower fee, starting at a 0.14% maker and 0.24% taker fee, but reducing to as low as a 0% maker and 0.10% fee for those exceeding $10 million in 30-day trade volume.

pascal thellmann

Pascal Thellmann is an algorithmic trader mostly focused on crypto breakout strategies. He started CoinDiligent to share his learnings and give paid access to some of his automated trading strategies. You can get in touch with Pascal on LinkedIn or Twitter.

Source: https://coindiligent.com/how-much-does-it-cost-to-buy-bitcoin

Blockchain

Bitcoin dominance is an irrelevant metric unless…

Published

on

The volatile cryptocurrency market has given way to multiple metrics for the market observers to analyze and predict what’s coming next. One such metric has been Bitcoin dominance, but as per Su Zhu, it should not be relevant to you unless you are a billionaire.

How so?

The CEO of Three Arrows Capital opined this after noticing the trend of the newcomers avoiding Bitcoin and Ethereum and opting for risky crypto tokens. When the largest digital asset was stuck in a wider correction period, altcoins like Dogecoin [DOGE] grabbed much attention. This was possible due to the hype created by Tesla CEO or, self-proclaimed “doge-father,” Elon Musk and the Doge community.

However, understanding the newcomers’ enthusiasm Zhu opined that if he were to bet on projects now, he would choose Solana and Avalanche.

Despite the popularity of altcoins, the exec remained bullish on Bitcoin and Ethereum as he expected, the former to flip gold’s market cap, and the latter to eventually hit a value above $25,000. Bold predictions, but nothing we haven’t heard before.

However, newcomers were more bothered about the dominance metric but as data suggested, Bitcoin dominance has recently been falling. The dominance was hit earlier but recovered to form a peak at 49.25% on 30th July. But given the correction phase that followed, the dominance of BTC fell and was last noted to be at 40% on 10th September.

It is interesting to note that despite plenty of adoption related news such as that of El Salvador, coming in over the past few weeks, it looks like the dominance has remained unaffected by it.

Source: CoinMarketCap

Twitter user and crypto enthusiast, @HsakaTrades also noted that Bitcoin dominance was not a relevant metric for anyone who has a “sub mid 9fig portfolio]. Agreeing with Hasaka, Zhu added,

“To clarify, if you’re holding for 5+ yrs, you shouldn’t be thinking about btc dominance in the first place. And obv btc and eth have a strong place in that portfolio.

If you’re allocating actively atm, and think debating btc v eth v alts is a good framework, you’re ngmi.”

While this advice could stand true for experiences, long-term trader interested in making money, but not the ones looking out to invest in tech. This was especially highlighted in the comments wherein the crypto users were upset about the CEO’s Solana [SOL] recommendation that recently witnessed an outage.

Nevertheless, the trading advice and strategies differd from trader to trader and Zhu’s opinion to not focus on the BTC dominance, prebably stemmed from a hodlers perspective. While interesting projects were now erupting in the crypto space, it looks like Bitcoin’s dominance, not only in terms of price, but as a crypto project could be challenge.

Where to Invest?

Subscribe to our newsletter

PlatoAi. Web3 Reimagined. Data Intelligence Amplified.

Click here to access.

Source: https://ambcrypto.com/bitcoin-dominance-irrelevant-for-anyone-not-10figs

Continue Reading

Blockchain

Millions of Dollars Raised Through Solana’s DeFi Projects

Millions of Dollars Raised Through Solana's DeFi Projects

PAI, an algorithmic stablecoin, backs Parrot Protocol. Grape Protocol was the primary source of the downtime. Solana has been up

The post has appeared first on thenewscrypto.com

Published

on

  • PAI, an algorithmic stablecoin, backs Parrot Protocol.
  • Grape Protocol was the primary source of the downtime.

Solana has been up nearly 3200% since August. Investors’ interest in Ethereum rival systems featuring DeFi, NFT, and smart contract services has risen dramatically.

The software applications that simulate legal contracts are smart contracts. Once housed on a blockchain network, the software application will run automatically without human intervention.

This month, Solana’s DeFi initiatives raised millions of dollars. This is another proof of Solana’s potential to compete with Ethereum. Currently, Ethereum has the most DeFi and NFT projects.

Bots raced to invest in a token sale for Grape Protocol over flooded the blockchain, causing Solana to collapse for 17 hours on Tuesday. Let us take a look at the few IDO that helped raise millions.

Grape Protocol

Grape Protocol, the primary source of the downtime, managed to raise just $600,000 on Raydium’s “Acceleraytor.”

Tokenized communities may use Grape Network to connect to platforms like Discord, Telegram, and soon twitter to collaborate over Solana and reward members with crypto.

Parrot Protocol

Parrot Protocol is based on Solana. Investors in the Initial DEX offering included Sino Global Capital, Alameda Research, and QTUM VC. Moreover, to put it simply, Parrot is a non-custodial lending platform and decentralized exchange.

PAI, an algorithmic stablecoin, backs Parrot. Furthermore, Parrot offered a governance token called PRT in its IDO. Thus, allowing investors to vote on the protocol’s operation and farm yields on Solana without affecting other Layer 1 blockchains.

Solana’s failure impacted Parrot’s IDO, but it was resolved by Sept. 16. Moreover, the team said it would start working on PRT staking, NFTs, and adjustable interest rates in “Letter from the Parrot.”

Several Solana initiatives will be launched in the next day’s/weeks. Examples include Solanium, Boca Chica, and Solstarter. On Solanium, whitelisted users may buy MatrixETF.

PlatoAi. Web3 Reimagined. Data Inteligence Amplifed.
Click here for Free Trial.

Source: https://thenewscrypto.com/millions-of-dollars-raised-through-solanas-defi-projects/

Continue Reading

Blockchain

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos’ creators call it an “internet of blockchains.” ATOM also launched a bridge to Ethereum at the end of August.

The post has appeared first on thenewscrypto.com

Published

on

  • Cosmos’ creators call it an “internet of blockchains.”
  • ATOM also launched a bridge to Ethereum at the end of August.

Cosmos (ATOM) blew up 10.74 percent overnight to establish a new price of $39.58, according to CoinMarketCap. It surpassed $40 yesterday, reaching $40.76. Despite today’s minor decline, Cosmos’ price was still ten dollars more than seven days ago, and twenty dollars higher than this time last month.

Its creators call it an “internet of blockchains.” It’s an interoperability network that allows various blockchains to connect, exchange data, and interact with one another.

In short, Cosmos claims to address some of the “hardest problems” in the blockchain sector. It seeks to provide an alternative to “slow, costly, unscalable, and ecologically harmful” proof-of-work protocols like Bitcoin by connecting blockchains. On August 18, Cosmos rose 25% from $15 to $20 after the introduction of Emeris, a cross-chain DeFi interface.

It also launched a bridge to Ethereum at the end of August. The inter-blockchain communication protocol (IBC) allowed trade across the Cosmos and Ethereum networks for the first time, along with the integration of Sifchain.

Cosmos Might Soon Over Take FTX Token

Cosmos is “Blockchain 3.0” — thus, as previously said, ease of usage is a significant objective. To this aim, the Cosmos SDK emphasizes modularity. This enables a network to be created quickly using existing code. Long term, it is anticipated that sophisticated applications would be simple to build.

Cosmos now has the twenty-first largest market value, but at this pace, it would only take $0.8 billion to flip FTX Token and make a bold entry into the top twenty.

Some in the crypto sector, much worried about the amount of fragmentation in blockchain networks. There are hundreds, yet few can converse. Cosmos wants to change this by making it feasible.

PlatoAi. Web3 Reimagined. Data Inteligence Amplifed.
Click here for Free Trial.

Source: https://thenewscrypto.com/cosmos-atom-lead-market-wide-rally/

Continue Reading
Uncategorized4 days ago

Wicked Craniums are now Nifty Gateway!

Blockchain3 days ago

Massive NFT and Token Giveaway from Polker as Staking is Announced!

Uncategorized4 days ago

Acorns Hires Former Amazon Executive as President, Hints at Crypto Options

Uncategorized4 days ago

Swissquote Confirms European Expansion Plan, Focusing on Crypto

Blockchain4 days ago

Biggest Crypto Adoption Rumours: Apple, Amazon, and Walmart

Uncategorized4 days ago

Investor: Coinbase’s $2 billion junk bond deal shows crypto ‘supercycle’ is in place

Blockchain4 days ago

Gate.io Introduces OpenPunks, A Community-Based NFT Collection

Blockchain4 days ago

The Signal and the Noise

Uncategorized4 days ago

Head of Australian Crypto Exchange Says Regulations Are Beneficial

News4 days ago

Evaluating Credit Card Debt Relief Options

Uncategorized5 days ago

How to fix the Party Member Preloading error in Apex Legends

Uncategorized4 days ago

Nickelodeon All-Star Brawl will include DLC fighters post-launch

Uncategorized4 days ago

Bingbon Launches its Carbon Free and Afforestation Project

News3 days ago

Gods Unchained and Guild of Guardians Layer 2 Solution Immutable Raises $60 Million

Blockchain4 days ago

Public.com Inks Deal with NFL Star to Advise on Financial Literacy Programs

Blockchain1 day ago

Over 40 days after Ethereum’s EIP-1559, here’s where it stands

Blockchain4 days ago

What’s Behind Elrond (EGLD) Daily Surges?

Blockchain4 days ago

Ethereum’s Infura Launches Tool To Prevent Over-payment Of Fees

Uncategorized4 days ago

This needs to happen before Peter Schiff will buy Bitcoin (BTC)

Blockchain4 days ago

xtingles To Drop Its First ASMR NFT “Free Like A Butterfly” On September 16

Trending