Wondering why your crypto exchange fees are so high? You need to read this report from CryptoElate. It explains why you can’t calculate your fees in advance, and why it is likely to change in the future. Read on to find out more!
So, you’ve invested in crypto. You want to trade your coins, but you don’t know how much it will cost you in exchange fees. You are not alone! CryptoElate explains a lack of transparency is an industry-wide problem because of the complex processes involved with exchanges. Read on to find out more!
The newly launched report from CryptoElate states you may be unaware of the fees you will be charged when exchanging cryptocurrencies, including Bitcoin. The systems being used lack transparency. Are you aware competition must increase for transparency to increase?
You can read more at https://cryptoelate.com
Do you know why it is so hard to compare exchange fees? CryptoElate states in its new report that each crypto exchange is different, which makes them hard to compare. In addition, each blockchain uses a unique process to calculate transaction fees, which adds to the complexity. A fee may also be incurred when your coin passes through different systems, such as off exchange or on-chain.
The newly launched report aims to help you better understand why it is so challenging to establish the crypto and blockchain exchange fees you will incur per transaction. For instance, you may not be aware that centralized exchanges (CEX) use different structures compared to decentralized exchanges (DEX).
Those that operate through DEX have unrealized potential for investors. For instance, 1Inch, a Decentralized Finance (DeFi) or DEX aggregator, has announced its API will integrate with the Ethereum wallet Dharma. This will reduce the amount you pay in fees.
These issues are not limited to one exchange. CryptoElate states it is an industry-wise issue affecting Gemini, Coinbase, Kraken, and more. Another element featured in the report is the fact blockchain fees have increased due to demand. Some exchanges operate on a basis whereby those paying the highest fee have their order processed first. While this is beneficial for retail investors, it may push out individual investors.
While challenging now, CryptoElate states transparency around crypto exchange fees will improve. The crypto market is still in its infancy in relative terms. Although it uses advanced technology and processes, overtime, they will improve to increase the speed of exchanges and reduce the costs.
A company spokesperson said: “Crypto exchanges have an edge over traditional trading and financial platforms because they use crypto wallets, while traditional platforms use banks to back the money.”
“The cryptocurrency exchange industry will probably centralize around selected exchanges and wallet providers. This should reduce different fee systems,” they added.
One of the most frequently asked question is "why are my crypto exchange fees so high?". You can learn about the systems behind exchanges and blockchain. Everything you need to know is in this report!
Go to https://cryptoelate.com/cryptocurrency-exchange-fees-are-a-mess-when-will-they-ever-improve-forbes to read the report in full!
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party, and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
