Some exchanges try to screw us with hidden fees – be aware of “spread”.
2 min read
This week I spent hours looking for a nice exchange (tl;dr: it’s Kraken, at least in my country). After signing up with a (supposedly) nice exchange called Bison (“no fees”), I saw that the price of BTC didn’t seem right. And would you look at that, they have different prices for buying and selling:
The difference is 666,88€, or 2.4%. By the way: the price was around 26,800€ at the time. It’s not fraud, it’s called “spread” (TIL).
This means that if you buy $1,000 worth of bitcoin, you will be charged (approximately) $12 when you buy and another $12 (if you sell for the same price), which is basically a $24 fee.
Here’s Kraken:
same price for buying and selling
Whether you’re buying or selling, all fees are transparent (0.16% for a limit order, 0.26% for a market order).
Don’t fall for “free” trading, there is no such thing. The other side of the coin: withdrawal and deposit fees. Withdrawals are important, and what’s the point of low fees if Binance takes $18 to withdraw bitcoin? At least that’s what happened to me last year.
update: Some of you pointed out that Crypto.com is even worse, I couldn’t verify that, but there are many comments about it. I’ve also heard that eToro has an insane spread. Always check Trustpilot and others before signing up for any financial service.
submitted by /u/telejoshi
[link] [comments]
