The manager of the list of globally leading crypto trading and exchange platform, Cryptowisser, issues end 2020 quarterly report. In the report, Cryptowisser claims that the fee being charged on crypto transactions by leading crypto trading platforms is still on the higher side. Detailed insight about leading crypto exchanges and their charging of fees have been taken into consideration while compiling the report.
In its 3rd Quarterly Report for 2020, Cryptowisser suggested that the crypto transaction fee charged by leading exchanges was higher than expected. It was pointed out in the 3rd Quarterly Report that normally the fee rate declines if the crypto industry is flourishing. However, in its 4th Quarterly Report, again Cryptowisser found the average fee rate on the higher side. It noted that while the industry was on the Bull-Run, many exchanges were able to extract higher fees from customers.
It was pointed out by Cryptowisser that fee relating to spot trading has increased by about 0.004%. While on the other hand, the fee for contracts trading too saw a significant increase upto 0.0007%.
As regards the fee being charged for Bitcoin withdrawals, Cryptowisser noted that at least 324 leading exchanges charge 0.000643 as a fee. It was suggested in the report that at least 16 crypto exchanges do not charge any fee upon BTC withdrawals. However, there is one exchange whose fee upon BTC withdrawal is capped at 0.005 BTC which means equivalent to US$ 218 approximately.
Cryptowisser also pointed out that the majority of exchanges claim that they do not charge any sort of fee nor is there any hidden fee. However, the customer has been found paying fees under the garb of network share i.e. miner’s fee. Usually, this type of fee is kept intentionally hidden from the customer and disclosed to them at the time of transaction.
Industry-leading crypto exchanges, such as Binance too have been taken into account for Q4 Cryptowisser’s report. It was pointed out in the report that Binance is one of those exchanges whose entire focus is customer-oriented and towards competitive rates.
To the contrary, other notable exchanges are fond of utilizing the brand’s popularity for bringing in more clients. For example, exchanges such as Coinbasefee charge for customers opting for pro-trading accounts are 0.50%. This clearly shows that in contrast with Binance, Coinbase’s rates are apparently on the higher side. The report further indicated that firms such as Bitz and Kraken too have been charging higher fee considerably.
As regards the comparison between free market and customer orientation, the report also dilated upon in great detail. The discussed that due to higher fee, small exchanges have been thriving significantly because they are offering cheaper rates. In turn, industry is witnessing fair competition environment where, small and big, are all exploring equal opportunities in terms of consumers.
As regards crypto future, the report observed that currently the industry is undergoing the longest surge throughout its history. Though the fees are relatively higher in these times, but in the future they would be reduced.