Unfortunately, the short answer for the question mentioned in the title of this article is “no”. Trading cryptocurrency via any service implies some costs. However, you can learn more about fees and exchange options — this will help you buy and sell crypto in a more flexible manner.
Why is there no free cryptocurrency exchange? The answer is simple: any service of this kind is a business. Although crypto exchanges are often created by enthusiasts, their goal (as of any business) is to raise money. Moreover, they simply can’t exist without the money inflow. Running a crypto exchange requires paying for many things, for example:
- Developing software to process payments,
- Ensuring a high security level,
- Keeping a team of professionals.
Fees are the primary source of income for any exchange. This is why any service takes them not only to exist but also to develop itself and get better for the clients.
How to Trade Crypto Without Fees?
As we’ve figured out above, no-fee crypto exchanges simply wouldn’t survive. It’s hard to imagine a non-profit project of this scale. Maintaining an exchange is thousands of dollars daily — who’d be ready to pay as many donations?
Also, it’s not only about the fees charged by the crypto exchanges. When you buy and sell crypto, you have to pay to the coins’ networks: they also need to pay developers and miners.
To make it more clear, let’s take a look at the types of fees that you pay while trading crypto.
Types of Fees
Which cryptocurrency exchange has the lowest fees? What you pay depends on the type of the service you use.
If you’re using a decentralized exchange (DEX) like Uniswap, you have to pay:
- A network fee — the money that the network takes for moving your funds from one address to another. For Ethereum-based DEXs, it’s called a gas fee.
- A liquidity provider fee — a sum that goes to those who make your trade possible.
When using a centralized exchange (CEX) like Binance, you don’t have to pay network fees because trading goes off-chain. What you pay is simply a percentage from each trade. Generally, Binance transaction fees are much lower than network fees.
Trading on DEXs is usually more expensive, they often have a poorer user experience and a narrower choice of assets. However, they have an advantage over CEXs that is crucial to many crypto enthusiasts: trading on DEXs goes between the wallets on-chain, which means that unlike on CEXs, an exchange doesn’t have access to your funds and data.
Which One Is the Best Way to Trade Cryptocurrency?
Both centralized and decentralized exchanges have their perks and drawbacks. In general, CEXs are cheaper, while DEXs are more secure and good at maintaining proper anonymity and security levels.
Exchange services like ChangeNOW combine the pros of both. Here, you can trade crypto anonymously and don’t give anyone access to your private keys. In the meantime, the choice of assets is not limited to Ethereum-based tokens like it is on many DEXs, and you don’t have to bother with a complicated user interface. Everything is absolutely intuitive, and you can exchange crypto in just 4 simple steps.
What about the fees, though? Let’s say, you want to swap BTC to ETH. Here’s what you pay:
- A network fee to send your Bitcoins,
- ChangeNOW’s fee including the network fee — it is used to get you your Ethereum.
When you pick the currencies and set the sum on the ChangeNOW main page, the lower number is the estimated amount you’re supposed to get upon the exchange:
Although there are no hidden fees, the final amount that you’ll get might be slightly different. Why so?
Classic vs. Fixed Rate Options: Fees vs. Risk
The amount displayed in the widget above was counted at the Classic rate. This means that this is a live rate that isn’t fixed. While you initiate the transaction, send the money, and we process the exchange, some time passes. By the time we’re ready to count the final amount and send you the swapped funds, the market rate may have slightly changed. If it went down, you will get a little less than expected. If it goes up, you’ll get more.
An average cryptocurrency swap on ChangeNOW takes 2 minutes, but if the market has gone crazy and we experience a really massive influx, this time may increase (in some cases, up to an hour or so). How can you secure yourself from the potential loss caused by the market decline that might happen in this hour?
This is what the Fixed rate is for. To enable it, click the lock icon in the “You get” line of the widget. The estimated amount will be lower than that for the Classic rate, but you will get this sum 100% — there’s absolutely no risk here. Send your funds within 20 minutes, and you’ll be all set and fine!
Before you choose what service to use, set your priorities. If you value security and anonymity above all, DEXs and ChangeNOW low fee cryptocurrency exchange are for you. If you need instant trading but aren’t obsessed with security, consider using centralized exchanges.
On ChangeNOW, you can choose Classic rate if you’re ready for a little risk (that can get you a little less though) — or more funds after the exchange. Select Fixed rate if predictability is your top priority. Also, try the “Buy crypto” option to see the lowest fees to buy Bitcoin.
As you can see, there’s no absolutely free cryptocurrency trading to date. Buying Bitcoin without fees on a free exchanger remains a dream for many yet. But while there’s no such thing as a “best free crypto exchange”, we’ve presented to you some ways of how to buy altcoins and Bitcoin. We hope it was helpful for you.
Disclaimer: This is not the investment advice. Always do your own research and remember that trading cryptocurrency involves high risk.