When entering the world of cryptocurrency a common question that someone will ask themselves is “which exchange should I use?” This question can provoke many different answers based on the type of operability or aesthetic value someone wants from their exchange. However, at the end of the day that new investor wants to get their crypto for the cheapest price possible and probably doesn’t care much about the exchange it they are trading on if the process it involves is simple.
I figured that I would take a look at fees across different exchanges and see what my personal recommendation would be. I took a look at the top 10 exchanges according to CoinMarketCap and decided that though I personally use a few exchanges that are not in that range, it would be a sufficient set of exchanges to dive into in this post. In order from #1 - #10 here are the top exchanges and their fees for purchasers.
Though some are not available in specific countries, for the purposes of this research I will allow the assumption that everyone has access to each exchange. Each data set is sourced from the website of the corresponding exchange. Fees also range depending on how much your account is worth on many sites, so we will assume someone is trying to buy 0.5 BTC using their linked bank account to illustrate this (we will assume a $50,000 USD Bitcoin, so a $25,000 USD deposit)
Binance: Maker/Taker fee 0.1000%/0.1000% ~~ $50 USD
Coinbase: “variable percentage fee” of 1.49% ~~ $372.5 USD
Huobi Global: Maker/Taker fee 0.2000%/0.2000% ~~$100 USD
Kraken: 1.5% fee ~~ $375 USD
Bitfinex: Maker/Taker 0.1000%/0.2000% ~~~ $75 USD
Kucoin: Maker/Taker 0.1000%/0.1000% ~~ $50 USD
Bitstamp: Flat fee of 0.25% (actually 0.50% under $10,000 traded) ~~ $62.50 USD
Binance.us: 0.5% fee ~~ $125 USD
Bittrex: Maker/Taker 0.25%/0.25% ~~ $125 USD
Poloniex: Maker/Taker 0.125% / 0.125% ~~ $62.50 USD
My recommendation: Though I don’t know how many friends we all have that have $25,000 burning a hole in their pockets, I think that this example gives a good idea of what fees are like around the crypto ecosystem. I personally use Binance and Kucoin, so I am happy to know that those exchanges have been giving me a fair shake in my purchases. Between the two of them, Binance has the name recognition that could help ease the mind of a new investor, but Kucoin is blossoming and is becoming more diversified in the altcoin market. So right now, I would say to use Binance if possible, but keep an eye on Kucoin and invest in an exchange that will give you peace of mind as a buyer.
Remember to ALWAYS stay away from Coinbase (unless you are playing their IPO on the stock exchange) and make sure you are aware of what you are getting into before you buy. Fees are incredibly important to factor in as purchases get lower in amount and each dollar has more meaning. Hope this was helpful for you!
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I would chose Binance as well