3 Crypto Exchange Fees to Watch Out For – Motley Fool

3 Crypto Exchange Fees to Watch Out For – Motley Fool

Cryptocurrency exchange fees can creep up on you. It may seem like you’re only paying a couple of dollars here and there, but those dollars add up — and they can seriously eat into your profits.

If you’re shopping around for the best cryptocurrency app or exchange, it’s difficult to make direct fee comparisons as there’s very little standardization across the platforms. One exchange might charge more to deposit money but offer cheap withdrawals. Another might seem to offer free trading but give you poor exchange rates.

Here are some fees that can surprise you.

1. Deposit fees

Some crypto exchanges promote a wide mix of ways you can deposit money — from a bank transfer to credit or debit card deposits and PayPal transfers. But be aware that it’s often free to transfer money directly from your bank, whereas credit or debit cards can incur a 2% to 5% fee. You can pay 2.5% or more to deposit money via PayPal.

Sometimes, rather than depositing money to use to trade later, you’ll have to buy cryptocurrency directly. This combines a deposit fee and a trading fee, and it’s not always clear how much you’re being charged.

For example, I tried to buy around $250 worth of Bitcoin (BTC) by debit card with a platform that uses a third party to process the payment. It says there is no fee, but when I use the converter tool on sites like CoinMarketCap to check