Checkout this before you buy Cryptocurrency

This year we saw there is lot of buzz around cryptocurrency and that has created FOMO . So it is important to consider this before you go and buy whether for the first time or you want to take advantage of the slide where bitcoin and other crypto are going down .

Transaction fee

It is the fee which you pay when you buy some coins or cryptocurrency. Why it is important because if you are new and trying to invest small amount just to get some exposure or ride your luck , it might bite a portion of your invested amount.

Every new investor at least in US is using coinbase in order to buy cryptocurrency because it is very easy to use , but did you ever look at the fees that is charged . My husband recently bought polkadot (dot) and for $40 investment he was charged $1.99 fee so just think amount invested is only $38.

Credit Card Fees

Make sure you don’t try to buy using credit card otherwise you will pay hefty fee on that as well. Some charge $3.99 if you try to use credit card to add fund.

Now let’s look at solution .

Look at these option if you want to reduce fee.

Use BinanceUS or Coinbase Pro

BinanceUS fee starts at .1% and for CoinbasePro it starts at .5% . So it is really good when compared to some of the other apps and these are also not too difficult to use as well when compared to coinbase .

Some data from Coinbase pro:

Exchange fee

Up to $10k it is 0.50%

Each exchange offers its lowest fees to users who invest millions of dollars, but general investors may be able to take advantage of discounts.

Binance also gives you option to reduce your fee if you buy any cryptocurrency using BNB (binance coin) , you can save 25% on your fee.

Trading Limits

Exchanges with high liquidity generally offer high trading limits. This is certainly the case with Coinbase Pro, which offers unlimited trading. Binance.US does impose limits on trading, but most users will find those limits sufficient – BTC/USD orders, for example, cannot be larger than 3200 BTC ($20 million), though these limits vary.

Each exchange limits bank transfers. Coinbase Pro allows users to make unlimited deposits and withdraw up to $10,000 per day (or request higher limits). Binance.US allows investors to withdraw or deposit up to $1 million via bank wire, and it also allows users to deposit up to $30,000 via ACH bank transfers.

Always add your bank account instead of opting for credit card to fund your account , so you don’t pay additional fee.

We are still skeptical about crypto as long term investment option ,so it is very important for us to be aware of these fees so that we can take max advantage of our investment and get max profit out of it.

Not only you can reduce your fee but also earn interest on your cryptocurrency holding. Some platform like BlockFi offers interest on holding crypto in your account . Now even Binance and Coinbase are offering interest on some coins .

There is some free crypto offered in Coinbase as part of learn and earn .So if you use Coinbase app they will ask you to go through some video and once you answer simple questions you will be able to earn as well which is really good for new and experience users .

I will try to cover in detail passive income option in upcoming story.

Hope this article helps in minimizing your fee and you are able to take full advantage of your investment.