What should I do if the transaction fees for Bitcoin and other currencies are too high?
Recently, many people want to learn about the cryptocurrency. After trading for a while, all feel that the transaction fees for Bitcoin and other cryptocurrencies are too high.
Many veteran players also feel this way. Especially leveraged contract trading
First, we need to know the specific algorithm for the transaction fee. The transaction fee rate of each exchange platform is different. You should first understand the transaction fee rate before choosing the exchange.
Transaction fee = transaction volume × transaction fee rate.
Take the biggest cryptocurrency platform Binance as an example. The unilateral transaction fee rate for spot transactions is 0.1%.
The transaction fee required for a 1000u transaction is 2u，1000×0.1%×2=2u.
The unilateral transaction fee rate for leveraged contract transactions is 0.02% (order placing) and 0.05% (order taking).
The calculation method of margin trading fees is slightly different. The transaction volume is calculated based on the opening principal × leverage multiple. The transaction fee charged is calculated based on the transaction after leverage, not the principal. For example,
1000u uses 100 times leverage, and the position value is 100,000u.
100,000×0.02%×2=40usd,
100,000×0.05%×2=100usd
The principal is 1000u, and one transaction costs 100u in fees. After 10 transactions, all the money is spent on fees alone.
The above calculation is the transaction fee expenditure required for buying and selling a transaction. This is just the transaction fee expenditure for one order. The transaction is long-term, and the accumulated transaction fee is not small.
In addition to transaction fees, many platforms also charge additional fees such as funding fees. Transaction delays will increase transaction costs. K-line pins will also increase losses.
The transaction fee of Bitcoin and other currencies is too high. How to reduce the transaction fee expenditure?
The first way is to fill in the relevant invitation code when registering an exchange account and get a commission on the transaction fee.
The second way is to choose a professional leverage trading platform that provides lower leverage trading fees, such as 0.01%. Binance's is 0.05%, which is five times the difference.
The money you save from the transaction fee is your net profit. If you save 1000u in transaction fee, it is equivalent to earning 1000u.
