Commissions on cryptocurrencies and the importance of the client agreement

Cryptoexchange trading has now attracted the vast majority of participants in the cryptocurrency community, becoming interesting not only for novice traders, but also for those who have traded in the stock, currency and commodity markets for many years.

Today, cryptocurrency trading is already a full-fledged multibillion-dollar market with its own laws, rules, fundamental features and principles.

Cryptocurrency exchanges play an important role in this market, organizing trading for everyone who wants to earn from fluctuations in the rate of cryptocurrencies.

EXCHANGES MUST NOT TRADE AGAINST TRADERS
The main principle of an exchange is impartiality. Therefore, involving the exchange in the trading process not as an arbitrator, but as a counterparty, can be dangerous for traders.

After all, traders see the exchange as a guarantor of obligations in the relationship between the buyer and seller of cryptocurrency.

That is why the exchange does not trade, but organizes trading, being responsible for the work of the trading terminal, the order book, the safety of traders’ funds and other administrative issues.

And for this work, the exchange gets its reward in the form of generous commissions charged from traders, which is fair enough.

Commissions of cryptocurrency exchanges:

• Deposit fee. Charged by the organizers of trades for depositing funds into a trading account. As a rule, it is set by the organizers of trades and depends on the amount deposited. Accordingly, the more is the deposit, the lower is the commission percentage.
• Withdrawal commission. By analogy with the first commission, set by the exchange and depends on the client’s status, which is determined by the size of the deposit and the sum of withdrawal.
• Commission for a trading operation. From each transaction organizers of trades receive the commission for service of trading operation. It may vary from 0.00 to 0.25 percent of the transaction, and may also depend on the client’s status.
• Commission for absence of trading activity. Not charged by all exchanges. Assumes the removal of a certain percentage of your deposit, if during the time set by the agreement with the exchange you have not performed any trading operations.

How cryptocurrency exchanges charge fees
The principle of charging and forming commissions on all cryptocurrency exchanges in general is the same, but the size largely depends on the will of the administration of each individual exchange.

Therefore, if you do not want to overpay, be sure to read the client agreement before making a deposit on the selected cryptocurrency exchange.