I have been trading cryptocurrencies since early 2017. And for a good while, Australians had limited options for reputable and secure exchanges to trade on.
The first exchange I joined was Coinspot, which seemed like a decent option at the time in 2017. This was when Binance didn’t have an Australian version of its exchange either.
Look, Coinspot has proven itself to be a well-run platform, but how they structure their fees is a whole other ballgame. The buy and sell order functionality is pushed front and centre, which just so happens to have fees of 1%, which is exorbitant for a cryptocurrency exchange. If you want lower fees on Coinspot, you have to use the market orders functionality, which many people don’t use or don’t know is there.
I don’t think Coinspot is intentionally misleading people here, they are trying to offer a platform which rivals Coinbase for ease of use. Making it as frictionless as possible to buy and sell cryptocurrencies, people intimidated by charts and real time order books.
But, look at this UI. Can you tell me where the market functionality is to get the 0.1% fees?
The buy, sell and swap buttons will result in 1% fees. If you’re frequently making buys, sells and swaps, that can add up to a few per cent. And then you have the spreads, on some cryptocurrencies like StormX the spread rate (the difference between buy and sells) recently was exorbitant.
The best exchange around fees wise is Binance. Not only do they have more markets and pairings you can trade, but if you hold BNB (Binance’s native token) you can use it to lower your fees, so the fees go below 0.1%. Seriously, look at how low my trading fees on Binance are.
If you join Binance using my referral link here, you’ll get back 5% on every trade you make. I also make some money for the referral, but getting back money on trading (which you were already going to do) can add up. On $1000, that’s $50 you get back, so technical $950.