The beginning of bitcoin was to make the payment system decentralized so everyone could use their funds easily without taking any consent from other people. These centralized authorities bound us with the formalities to withdraw or deposit funds, and we need their consent to use our funds, but bitcoin gets initiated to remove these hurdles.
People are not using it as a payment system for transactions like fiat currency, but they are using it to make money from it. Yes, you heard it right; now everyone wants to make money through these cryptocurrencies because it gives more options to make money with a single currency. Bitcoin trading is becoming popular because it is a short-term way of making money. Still, people need to learn about the fee structure system of these trading exchanges so they can earn a decent amount from bitcoin trading. If you also want to know how to invest or trade in cryptos learn the Benefits of Bitcoin Lending.
Understanding the bitcoin trading
In the fast world, no one has patience because technology makes it easy for people. People also want to make money fast, and trading is the only digital method that will give you a decent amount if you have the right trading skills and experience. Bitcoin trading is the strategy to understand the market, predict that the price will increase or decrease in some time, and buy or sell the bitcoin at the right time to make a profit. For instance, if the price of a bitcoin is 20,000 and you predict that it can touch 20,050 dollars, then you will buy one bitcoin, and when it touches this amount, you will sell and make a 50-dollar profit. It looks pretty straightforward, but the amount can also go down, and you only have time until the market closes.
What are bitcoin exchanges?
The third person who creates the platform for the buyer and seller so they can do bitcoin transactions with additional services is known as bitcoin exchanges. The main motive of these platforms is to match the bitcoin buyer and seller and make money by charging the fees because these companies are legally registered to make money. Bitcoin miners are also on the decentralized platform because they generate a decent amount and not just helping the people for free.
Understanding the Fees structure of the exchange
There are the following charges or fees apply in bitcoin exchanges that you can compare at the time of choosing the exchange:-
- Joining fees:- Some bitcoin exchanges will charge joining fees for creating an account on the exchange, but some exchanges will give you some reward as cryptocurrencies because they are new in the market, and no one knows them. In most cases, all the exchanges are free to join. Ivey is charging the fees; then, you can research the feature they provide for joining fees because it may differentiate the exchange from other exchanges security-wise and other features-wise.
- Annual maintenance fees:- Some bitcoin exchanges charge annual maintenance fees, and some give you all the features without any fees. So you can compare the bitcoin exchange, and if their features are the same and some exchange charges high and some low, then you can go with low fees, and you can also go with the free charge exchange that will not charge a single cent as a maintenance charge.
- Deposit Fees:- The disadvantage of the decentralized wallets are not getting the option of depositing by fiat currency. The exchanges give you the different fiat payment options to deposit the money on your exchange wallet so you can buy the crypto or bitcoin. Deposit fees vary according to the exchange, but some exchanges do not charge fees on payment options like direct bank transfer, but you have to check that before choosing the bitcoin exchange.
- Withdrawing fees:- It also depends upon the exchange because the different exchange has different fee structures, and the more old or trusty the exchange will be, the more fees they will charge. Withdrawing fees means when you sell your crypto, your dollars will appear in your exchange wallet that you have to withdraw to your bank account to use in the real world.
- Transaction fees:- The maker and taker make the bitcoin exchange popular, and the more the maker and taker will be on the exchange, the more popular the exchange will be on the network. The transaction fees are the fees paid by the seller at the time of selling bitcoin or crypto and paid by the buyer or taker at the time of purchasing bitcoin or crypto. The sellers have to pay fewer fees than the taker because they are creating the marketing, and the taker is taking the crypto from the network.
