You’re losing money on every crypto trade you make. Most people don’t even notice this.
The good news is that you can reduce your crypto trading fees right away without changing how you trade.
First, let’s see the fees you pay when trading crypto.
Types of Crypto Trading Fees
When it comes to crypto trading fees, the two main ones you need to know about are maker fees and taker fees. A maker fee is charged when you place a limit order that sits in the order book and waits to be matched. You’re adding liquidity to the market, so exchanges usually give lower fees in return.
A taker fee is charged when you place a market order that fills instantly by taking an order that’s already waiting. The fee is higher because this removes liquidity from the market.
Now, let’s look at how to reduce these crypto trading fees easily.
Easy Ways to Reduce Crypto Trading Fees Fast
These 5 tips will help you avoid high crypto trading fees.
1. Switch to a Lower Fee Crypto Exchange
One of the easiest ways to pay less in crypto trading fees is to use an exchange with lower fees. Crypto exchanges charge different fees, and some are much lower than others.
Lower fees mean you keep more money from every crypto trade. For example, if one exchange charges 0.2% and another 0.1%, a $10,000 trade costs $20 on the first exchange. On the second, it only costs $10. If you trade 30 times, you’ll save $300.
I learned this the hard way. I used to pay around 0.15% per trade on Coinbase, but after moving to Bybit, the fee was only 0.1%. That tiny difference might not seem like much, but over many trades, it added up and saved me over $1,000 in crypto trading fees.
When you think about it, paying 0.2% per trade doesn’t make much sense when there are exchanges that charge a lot less.
2. Use Limit Orders Instead of Market Orders
Another way to reduce crypto trading fees is to use limit orders. As explained earlier, market orders usually have a higher fee called the taker fee. Limit orders, on the other hand, have a lower fee called the maker fee.
But many platforms now charge the same maker and taker fees at the lower tiers. As traders move up the tiers, makers get extra discounts, so limit orders end up being cheaper.
Taker fees can be surprisingly expensive. For example, Coinbase charges 0.60% for takers and 0.40% for makers. On a $9,000 trade, fees would be $54 versus $36. That’s $18 saved on a single trade by using a limit order instead of a market order. If you trade 30 times, you save $540.
I’ve written a guide on how to place a limit order on Bybit. Even if you trade on another exchange, the process is almost the same, and it shows you how limit orders actually work.
3. Use Exchange Tokens for Fee Discounts
Another easy way to reduce crypto trading fees is to hold the exchange’s own token.
Many crypto exchanges have their own tokens. When you choose to pay trading fees with them, you get a discount. This is one of the simplest ways traders lower their crypto trading costs.
You can do this right away by turning on the option to pay fees with the platform’s token in your account settings.
For example, using BNB on Binance or GT on Gate.io gives you a discount on trading fees. On Binance, the discount is 25% if you pay fees with BNB.
That means a 0.1% trading fee drops to about 0.075%. On a $10,000 trade, your fee falls from $10 to $7.50. If you trade 30 times, you save $75.
4. Use Referral Links to Reduce Trading Fees
You can also lower your crypto trading fees using referral discounts. Lots of exchanges give new users special signup links that make trading cheaper. That way, you pay less on every trade from the start.
The easiest way to take advantage of this is to sign up using a referral link that already has the discount. For example, I got a special Gate.io link for my audience. If you sign up through my link, you get 20% off your crypto trading fees.
This means that if the usual trading fee on an exchange is 0.1%, a 20% referral discount will bring it down to 0.08%. If you make 30 trades of $10,000 each, that’s $60 saved in fees.
5. Increase Trading Volume to Unlock Lower Fees
Another way to reduce crypto trading fees is to increase your trading volume. Most exchanges use VIP trading tiers where higher trading volume means lower fees.
These tiers usually start with Non-VIP and then go to VIP 1, VIP 2, and higher. As your monthly trading volume goes up, you move up the tiers and your fees go down.
For example, on Bybit, the Non-VIP maker fee is 0.1%, while VIP 1 drops to 0.0675%. On a $10,000 trade, your fee drops from $10 to $6.75. If you trade 30 times, you save $97. Fees keep dropping as you move up to higher tiers.
One simple way to reach these higher tiers faster is to do all your crypto trading on one exchange.
But this strategy works best for serious traders who already trade a lot. It is not meant for beginners making extra trades just to hit volume targets.
Conclusion
Reducing crypto trading fees is one of the easiest ways to boost your profits without extra risk. Smart traders follow the strategies in this post to keep more of what they earn.
Start today and use at least two or three of these strategies to get the best results.
Want to make money trading? My beginner crypto coaching program is here to help. The best traders never stop learning.
Additional Resources:
- The Exact Method I Used to Save $1,200+ in Crypto Trading Fees
- 7 Common Mistakes Crypto Investors and Traders Make
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DISCLAIMER:
The information provided here is intended for informational purposes only and should not be solely relied upon for making investment decisions. It does not constitute financial, tax, legal, or accounting advice. Additionally, I strongly recommend that you only invest in cryptocurrency an amount you are comfortable with potentially losing temporarily.