Cheapest crypto exchange in 2023

21 November 2023/inCrypto academy, Trading crypto

In the ever-evolving international of cryptocurrency, wherein virtual belongings maintain advantage prominence as possible funding alternatives, the significance of choosing the right exchange cannot be overstated. As the end of 2023 approaches, both experienced investors and those who are new to the cryptocurrency market are focused on finding the cheapest way to buy and sell cryptocurrencies. The entire cost and success of your investing journey can be significantly impacted by the decisions you make about where and how to purchase the cheapest crypto exchange in 2023.

This guide explores crypto marketplaces, highlighting the importance of strategic cost-minimizing. It delves into the panorama of cryptocurrency exchanges, studying fee determinants, and figuring out the maximum budget-friendly options for getting cryptocurrencies in 2023.

Inhoudsopgave

Where Can You Buy Sell and Trade Crypto?
What Determines the Costs?
Available Crypto Exchanges in the Netherlands
The Cheapest Crypto Exchanges
Conclusion: Which crypto exchange is the cheapest?

Where Can You Buy, Sell and Trade Crypto?

The market for trading cryptocurrencies is huge and varied, and several exchanges are vying for users’ attention. Choosing the best exchange is essential for your investing journey since each exchange has different features, services, and fees that affect the price and ease of investing in crypto. Some of these elements are:

Security: One of the biggest concerns whilst selecting an alternate is security. The alternate must appoint strong security measures to guard your virtual belongings from robbery and cyberattacks.
User-Friendliness: For beginners, in particular, a user-friendly interface and intuitive trading platform may streamline the purchasing process.
Asset Variety: The selection of cryptocurrencies that may be traded differs from exchange to exchange. Make sure the exchange you select gives you access to the exact coins you wish to buy.
Liquidity: Higher liquidity on an exchange means quicker transactions, in addition to more competitive fees.
Fees: Exchanges’ fee structures, including trading, withdrawal, and deposit fees, can significantly influence the cost of investment.
Regulation: Some buyers prefer exchanges that function under sturdy regulatory frameworks to ensure compliance and transparency.
Customer Support: To deal with any troubles or questions you may have while the use of cryptocurrencies, reliable customer support is important.

What Determines the Costs

Understanding fees is crucial when crypto trading, as they directly impact the investment cost. Fees can vary between exchanges and platforms and are typically set by exchange creators and paid by their users. Exchanges normally split their fee structure into Maker and Taker fees, which are explained below.

Maker Fees: These fees are associated with setting orders that upload liquidity to the order ebook. In other words, if you set a limit order that is not immediately filled, you are taken into consideration as a maker. Maker costs are usually lower and are designed to incentivize traders to provide liquidity to the marketplace.

Taker Fees: Taker fees, on the other hand, apply when you place an order that is immediately matched with an existing order on the order book. Takers remove liquidity from the market, and as a result, they typically incur higher fees compared to makers.

To maximize your crypto investment, it is essential to select a strategy around Maker or Taker fees that is in line with your goals.

Maker vs. Taker Fees for Crypto

When it involves fee-efficient cryptocurrency trading like Bitcoin or Altcoins, knowledge of the distinction between maker and taker costs is vital, with a selected attention on taker expenses.

Taker fees are the critical factor in this discussion, as they directly impact the cost of executing market orders. These fees apply when traders match existing orders on the exchange’s order book. In essence, takers “take” liquidity from the order book by executing orders that are immediately filled, paying a fee for the convenience and speed of execution. Most traders have to deal with Taker fees because they want certainty about executing their trades.

Taker prices are specifically relevant due to the fact they can extensively affect your buying and selling expenses. Opting for exchanges with lower taker costs can result in sizeable financial savings, especially for active investors or the ones engaging in frequent marketplace orders.

In the sections that follow, we’ll delve into the details of taker fees on various cryptocurrency exchanges, helping you make informed choices for cost-effective trading in 2023.

Fees for the Spot Market

In the sector of cryptocurrency trading, the spot marketplace is where crypto’s are directly offered and bought for fast transport. Unlike futures or derivatives markets, in which contracts specify destiny transactions, the spot market entails the direct alternate of cryptocurrencies. When it involves fees inside the spot marketplace, here’s how they commonly work:

Trading Fees: These are the charges incurred when you execute a trade. Spot market trading fees can vary widely among exchanges and are often based on your trading volume or the type of order you place. Most exchanges use a maker-taker fee structure:

Maker Fees: If you are an order that adds liquidity to the marketplace (e.g., a limit order that isn’t straight away matched with a present order), you are considered a “maker.” Makers typically experience lower expenses or maybe zero fees as an incentive for supplying liquidity.

Taker Fees: If you place an order that matches an existing one and removes liquidity from the market (e.g., a market order), you’re classified as a “taker.” Takers typically pay higher fees compared to makers.

Additional fees

Withdrawal Fees: When you move your cryptocurrencies from the exchange to your private wallet, you may encounter withdrawal fees. These fees vary depending on the cryptocurrency you’re withdrawing and the exchange’s policies.

Deposit Fees: Some exchanges charge fees for depositing funds or cryptocurrencies into your trading account. These fees also differ among exchanges and can depend on the payment method used.

Tiered Fee Structures: Many exchanges offer tiered fee structures, where the more you trade, the lower your fees become. This can be an incentive to increase your trading volume.

It’s vital to carefully evaluate an exchange’s rate schedule before you start trading in the spot market. Consider your trading strategy, frequency, and quantity to assess which crypto platform gives the most price-powerful options to your particular needs. By understanding how spot market fees work, you can make informed decisions on the cheapest crypto exchange in 2023.

Fees for the Derivatives Market

The derivatives market in cryptocurrency involves financial instruments valued based on an underlying asset, like Ethereum or Bitcoin trading. Examples of instruments in the derivatives market are futures contracts, options contracts, swaps, and other financial products. When it comes to fees in the derivatives market, here’s an overview of how they typically work:

Trading Fees: Similar to the spot market, buying and selling charges inside the derivatives marketplace can vary among exchanges. These prices are incurred when you open or close a derivatives contract. Just like inside the spot market, crypto exchanges use a maker-taker fee shape for derivatives trading.

Maker Fees: If you place a limit order that adds liquidity to the market by not immediately matching with an existing order, you’re classified as a maker. Makers usually enjoy lower fees or even fee rebates as an incentive for providing liquidity.

Taker Fees: When your order fits a present one and removes liquidity from the market (e.g., a market order), you are considered a taker. Takers typically pay higher fees compared to makers.

Additional fees

Funding Rates: In perpetual futures contracts, which don’t have an expiration date, traders often encounter funding rates. These rates are used to ensure that the contract’s price remains in line with the spot market price. Traders either pay or receive funding depending on the contract’s position relative to the spot market price.

Liquidation Fees: If your position in a derivatives settlement is forcibly closed due to insufficient margin, you could incur liquidation costs. These costs are typically a percentage of the position’s cost and cover the change’s expenses for liquidating your position.

Spread Costs: The spread in options trading, the difference between bid and ask prices, can significantly influence costs, with wider spreads potentially increasing expenses during options positions.

Rolling Fees: For futures contracts that expire, there may be prices related to rolling over positions from one agreement to any other. These charges are regularly associated with the investment rate.

Tiered Fee Structures: Like in the spot market, many exchanges offer tiered fee structures for derivatives trading. Higher trading volumes can lead to reduced fees.

Understanding the rate structure of a derivatives exchange is important for buying and selling profitability. Different contracts may additionally have specific fee arrangements, so evaluate the terms and conditions of the contracts. Gaining clarity on fees in the derivatives market will help make informed decisions on the cheapest crypto exchange in 2023.

Available Crypto Exchanges in the Netherlands

This list only includes crypto exchanges that have obtained DNB registration themselves or acquired it through a recognized partner. Please note that the list below is first listed alphabetically:

Bitstamp: Bitstamp provides a platform for steady cryptocurrency trading, and it’s favoured with the aid of many European investors.
Bitvavo: Bitvavo is a user-friendly Dutch cryptocurrency exchange known for its easy UX/UI and compliance with Dutch regulations.
Bybit: Bybit is a reputable exchange that offers both spot and derivatives trading to Dutch residents. It’s known for its competitive fee structure and robust trading API. It also offers a Bybit crypto bot.
Coinbase: Coinbase, a globally recognized platform, is obtainable to Dutch investors. It’s especially nicely ideal for beginners with its easy-to-use interface.
Coinmerce: Coinmerce is a Dutch cryptocurrency exchange that adheres to local regulations. It allows residents of Holland to trade a variety of cryptocurrencies conveniently.
Crypto.com offers both spot and derivatives trading services to Dutch users. It’s a comprehensive platform that aligns with local regulations.
Finst: Finst is every other Dutch exchange that gives cryptocurrency trading offerings. Its objective is to offer a cost-powerful trading experience whilst complying with regulatory requirements.

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Auto investing on an exchange?

Read about smart investing via smart DCA; a strategy that tries to improve DCA (periodic investing).

Read here

The Cheapest Crypto Exchanges

In the world of cryptocurrency trading, selecting the right and cheapest crypto exchange is of great importance. We have identified several exchanges and compared fees for 2023. These are ranked from cheapest to most expensive and specified the costs. We have considered the trading costs for the spot and derivatives market, where Taker and Maker fees apply. These are the costs you encounter by far the most when buying, selling, and trading crypto.

1. Bybit

Bybit is the cheapest crypto exchange and offers spot and derivatives trading. The competitive fee structure ensures the lowest prices. Due to the size of the trade fair, they can charge low fees.

Bybit fee structure

Bybit, a well-known international crypto exchange that offers all spot and derivatives products, has the cheapest fee structure. This is mainly due to their attractive tiers with discount prices.

Spot trading on Bybit

Maker fee: For spot trading, Bybit’s maker fee ranges from 0.1000% to 0.0050%.

Taker fee: For spot trading, Bybit’s taker fee ranges from 0.1000% to 0.0200%.

Derivatives trading on Bybit

Maker fee: Bybit offers discounts on Maker fees, with fees ranging from 0.0200% to 0.0000%.

Taker fee: The Taker fees for trading derivatives on Bybit range from 0.0550% to 0.0250%.

Bybit’s fees provide incentives for liquidity providers through no-maker fees in the derivatives market. In addition, the other fees on both the spot and derivatives markets are very competitive.

2. Crypto.com

Crypto.com is known for its complete services and offers competitive prices for every spot and derivatives product. It is a versatile option for all types of traders.

Crypto.com fee structure

The crypto exchange Crypto.com offers a good fee structure for both spot and futures trading. Especially in the derivatives market

Spot trading on Crypto.com

Maker fee: The Crypto.com spot Maker fee ranges from 0.0750% to 0.0000%.

Taker fee: The Crypto.com spot Taker fee ranges from 0.0750% to 0.0500%.

Derivatives trading on Crypto.com

Maker Fee: For derivatives trading, Crypto.com’s Maker fee varies between 0.0170% and 0.0000% depending on your trading volume.

Taker Fee: For derivatives trading, Crypto.com’s Taker fee varies between 0.0340% and 0.0260%, depending on your trading volume.

Because in the Netherlands trading on the spot market is many times larger and the Taker fee is the most commonly used costs, Bybit profits from Crypto.com. Bybit gives very affordable Taker fees. If one looks at the derivatives market, Crypto.com beats Bybit.

3. Bitvavo

Bitvavo has a user-friendly interface and offers numerous cryptocurrencies. Due to the simplicity of the UI/UX, Bitvavo attracts many novice investors and traders. Because these investors are willing to pay a little more for the ease of use, Bitvavo is not the cheapest crypto exchange. However, the discounts on the fees make them reasonably attractive in the Netherlands.

Bitvavo fee structure

Bitvavo, a Dutch crypto platform, offers a simpler fee structure than the above-mentioned international parties. This is mainly due to the fact that Bitvavo does not offer derivatives to its users.

Spot trading on Bitvavo

Maker fee: Bitvavo’s Maker fee ranges from 0.1500 to 0.0300% depending on trading volume.

Taker Fee: Bitvavo’s Taker fee ranges from 0.2500% to 0.0400% depending on trading volume.

Derivatives trading on Bitvavo

The derivatives market is not available on Bitvavo.

By gaining insight into Bitvavo’s fee structure, you can decide whether the ease of use is worth the extra costs. In addition, this exchange can be the good option if you want to do spot trading. Bitvavo does not offer a platform for derivatives.

4. Finst

Finst is a crypto platform created for price-conscious investors, with a low fee and simple structure for a Dutch party. However, these fees are only low for small volumes. They do not give lower maker and taker fees at higher volumes. Because this comparison is intended for all types of traders, including high-volume traders, Finst comes lower in the comparison for the cheapest crypto exchange of 2023.

Finst fee structure

The Dutch crypto exchange Finst offers a fee structure that can be advantageous at low volumes and less advantageous at large volumes. In addition, only the spot market is accessible, and there is no derivatives market at Finst.

Spot trading on Finst

Maker Fee: Finst charges a fixed Maker fee of 0.1500%.

Taker Fee: Finst charges a fixed Taker fee of 0.1500%.

Derivatives trading on Finst

The derivatives market is not available on Finst.

Finst’s spot trading fees are relatively cheap for a Dutch crypto exchange. However, the lack of tiers makes it less attractive to individuals or parties with a large volume.

5. Bitstamp

Bitstamp is a renowned crypto exchange that is trusted by many. The Bitstamp exchange does not charge trading fees for those who buy and sell less than $1,000 within 30 days. Fees are charged above this limit, but they remain competitive.

Bitstamp fee structure

Bitstamp, an international crypto exchange, offers a fee structure that is suitable for novice investors and experienced traders with high volume. However, derivatives are not yet available at Bitstamp.

Spot trading on Bitstamp

Maker fee: Bitstamp’s Maker fee ranges from 0.3000% to 0.0000% depending on trading volume.

Taker Fee: Bitstamp’s Taker fee normally ranges from 0.4000% to 0.0300% depending on trading volume, except for volume below $1,000. Then a rate of 0.0000% applies.

Derivatives trading on Bitstamp

The derivatives market is not available on Bitstamp.

If you understand Bitstamp’s fee structure and are looking for the cheapest crypto exchange with a small amount, Bitstamp is the cheapest crypto exchange in 2023. However, with volumes above $1,000, the crypto platform becomes more expensive than other exchanges.

6. Coinmerce

Coinmerce, partly due to the acquisition of Binance’s users, has a wide range of cryptocurrencies. In addition, Coinmerce only reports the fee percentage from their lowest rate. Because this fee is already relatively high compared to the other exchanges, Coinmerce ranks low in this comparison of the cheapest crypto exchange in 2023.

Coinmerce fee structure

The Dutch crypto exchange Coinmerce, uses a ‘starting from’ fee structure. The crypto platform does support the spot market, but not the derivatives market.

Spot trading on Coinmerce

Maker Fee: Coinmerce charges a taker fee starting at 0.2000%.

Taker Fee: Coinmerce charges a taker fee starting at 0.2000%.

Derivatives trading on Coinmerce

The derivatives market is not available on Coinmerce.

The ease of use of Coinmerce is good to take into account when considering whether you want to pay the higher transaction costs. However, it is one of the more expensive options as a crypto platform.

7. Coinbase

Coinbase is a user-friendly and large platform, which is good for beginners. Although the exchange offers simplicity and protection, the fees are somewhat higher compared to most other alternatives.

Coinbase fee structure

Coinbase’s standard fees are the highest in this comparison. If you want to go for the cheapest crypto exchange, Coinbase is not the best choice.

Spot trading on Coinbase

Maker fee: Coinbase’s Maker fee ranges from 0.4000% to 0.0000% depending on trading volume.

Taker Fee: Coinbase’s Taker fee ranges from 0.6000% to 0.0500% depending on trading volume.

Derivatives trading on Coinbase

Maker fee: Coinbase’s Maker fee is the same as spot for derivatives and ranges from 0.4000% to 0.0000% depending on trading volume.

Taker Fee: Coinbase’s Taker fee is the same as spot for derivatives and ranges from 0.6000% to 0.0500% depending on trading volume.

Coinbase’s higher fees can be a major expense if you buy, sell or trade crypto. Therefore, check in detail which tier you are in with regard to trading volume before paying too much on this crypto exchange.

Conclusion: Which crypto exchange is the cheapest?

In the quest to buy, sell and trade on the cheapest crypto in 2023, selecting the right crypto exchange is of the utmost importance. The choice you make can have a significant impact on your overall expenses and investment results. After a thorough investigation of various crypto platforms and their fee system, it is clear that Bybit is the most advantageous when looking at spot and derivatives trading. After that, Crypto.com is the best choice.

Bybit offers low fees, making it the number one choice for spot trading, the largest market in the Netherlands. The fees for buying and selling derivatives are also very attractive and can be very low.

For those focused on derivatives trading, Crypto.com emerges as a very cheapest crypto exchange. Although it does not surpass Bybit in the spot market, it offers the cheapest rates for derivatives trading.

When making your decision on the cheapest crypto exchange in 2023, Bybit seems to be the best choice. However, it is essential to take your specific trading needs and preferences into account, as other platforms may better suit individual strategies and goals. By choosing the right exchange, you can optimize your trading experience and undoubtedly improve your profitability with cryptocurrency.