Each one of us has a desire to make an enormous amount of money. One way to make your dream true is by investing in cryptocurrencies. It is a piece of cake.
The only thing that you have to do is to buy Bitcoin when it is at the low and sell it when it reaches its peak. Many people prefer to stay away from these decentralized and virtual coins because of their volatile nature as the price of Bitcoin is highly variable every minute.
Bitcoin trading investors are obliged to pay several types of charges or fees such as exchange fees, network fees, conversion fees, even when the broker charges them. If you have a vision of not to confront losses then you need to be fully aware of the below-discussed hidden charges.
1. Platform Or Network Fees
Platform fee is not a new concept in the crypto market. Traders of cryptocurrency who deal with businesses and pay for the assistance they agree to. As we all know the cryptocurrency is not controlled by any one person or one group, thus you are expected to pay the standard network fee as a blockchain usage tax which is also known as the transaction fee that is a payback to the miners.
All blockchains have a different network for transaction fees. There is no official fee as a transaction fee, it is decided by the customer who wants to transfer the coin. This means that the lower the transaction fees you will pay, the more time it will take for the validation of the transaction.
Validation of your transaction is decided by the amount of transaction fees you are willing to pay, this transaction fee becomes the point of attraction and motivation for the miners to decipher the puzzles with the biggest transaction fees first. So it is up to your situation, if you have an emergency to transfer the crypto fast you need to pay more. If there is no such kind of urgency you can pay less.
Every legit trading software would perform in depth market research to determine a profitable trading opportunity for its users. To know one such platform, click here.
2. Wallet Fees (Where The Coins Are Stored)
Owning a crypto wallet is equivalent to having a valid blockchain address. Black chain is in decentralized form, controlled and managed by people. Miners working with full capacity are empowering the system and they are rewarded for the hard work they do in the form of payback. Blockchain is responsible for sending or receiving a token from one address to another.
There are some small taxes charged on your second deposit or while transferring the crypto, and these accused taxes or fees go directly into the company’s account that created them. Only 0.001% is charged on transfers that are usually very small. But there are some ways discovered by cryptocurrency supporters to save these types of fees and taxes.
Two of them are
- MyEtherWallet for Ethereum
- Bitcoin Core for Bitcoin
One thing to always keep in mind is that it is to choose these types of wallets which reduces these fees to absolute zero.
3. Fees For Premium Services
If you are not a regular investor or trader then it is recommended that you should go for simple platforms which offer you all the features in a very easy manner. These facilities won’t be free as these come at a price.
And some other solutions developed by the companies who are working hard to make it easy for you to trade your tokens on their platform but with a minimum charge for it. In the process of buying the token, it is the negotiators who have these tokens in advance so that they can make this process fast.
For fast trade, you are going to need a premium service that offers both services of instant buying with high transaction fees and the lowest transaction fees but only if you trade at their market exchange.
4. Exchange Charges
Many platforms not only charge on every trade you make, they even take a percentage on each deposit or withdrawal you make. Exchanges are known as profitable businesses, in history, the largest profitable exchange by day-to-day trading volume was raked in $446 million which was in 2018.
Investors become fascinated by these types of data and they start investing in crypto, but usually, these companies are running the popularity rush and between these popularity waves you miss the best you can get.
There is some technical advice for newcomers that is to keep your eye open while reading the terms and conditions of different platforms. For example:-
- Some claim zero deposit fees which they balance with bigger withdrawal fees.
- No withdrawal fees are balanced with higher trading fees.
- Small trading fees are compensated by the increasing deposit and withdrawal charges.
5. Currency Conversion Fees
The question is, whether there are other hidden charges while acquiring crypto? The Conversion fee is another hidden fee you might take care of. In the process of converting the currency from US dollars into an exchange that only deals in euros, you are obliged to pay a price for it. How high can the price go? Some applications charge 0 to 2 per cent on such a type of conversion.
If you are having a plan to square off in the account, you are not going to face a huge loss in your money on your first exchange. But you will lose money if you do it twice (exchange of currency). And it is over the top of the requested prices for exchange. Besides, this service charge can’t be avoided.
There are numerous different types of hidden charges or fees. And the fact is that you can avoid some of them but not all, all the above-discussed taxes are common one other might also be there, to save your money focus on buying Bitcoin with the same currency, try not to exchange it, try to work with premium versions, etc.