A lot of traders are complaining about the outraged fees exchanges are charging. Once you start trading, five dollars here and five dollars there begin to add up after some time. Even though this may seem like a ridiculous amount, but if you spend the entire year trading and making transactions, then you will realize how much money you are visiting on fees. Of course, the exchange you choose plays an essential role in this process because each of them charges the different amount. Considering that some coins have increased in price, the transaction fees can be significant. So, we are going to show you how to avoid costs using the two U.S. most popular exchanges, Coinbase and GDAX.
To start, you will need to open an account and Coinbase and GDAX are linked. So, when you have funds in American dollars, you can transfer money from one platform to the other without paying fees. Next, head over to GDAX website and click the withdraw button and choose the amount you want to withdraw. This should be easy, right? Your next step would be when to buy and which currency you wish to purchase. In this case, you can also use the Market order, the limit order, or a Stop order.
Market order – this will provide you to buy cryptocurrencies at the given value, and this type of transaction will cost you 0.3%, and in this case, you are considered a taker for the order.
Limit order – this type of trading allows you to make the order. It’s a simple procedure; you just put the number of coins you want to buy, as well as the price. When you are using a limit order, you will want to offer the price that is lower than what the current market value is. Also, in this type of order, you are considered a maker and your fee will be zero.
Stop order – stop order is similar to limit order, but in this case, you are selling your cryptocurrencies. So, if you don’t want to risk your money, or you think that market will crash, you just start the stop order which triggers the exchange to sell as many coins as you place, at whatever price you put it at. Again, you are a maker, and you don’t pay fees.
Recently, many traders reported losses from fake websites that look like exchanges. So, when you are trading cryptocurrencies, with any exchange, you need to be very careful and make sure you are signing on to the right website. Even if they provide a secure system, you need to know that you aren’t entirely safe. So, when you are looking for an exchange to invest your money, make sure to read the online reviews and compare the experience of other traders. On the other hand, Coinbase is a very reputable exchange in the U.S., but they might not be accepting the traders from all over the world.