Cryptocurrency is gaining traction as more and more investors get invested in the process. These digital currencies can be used for transactions between a customer and a business for any particular product or service. It gives a business a great opportunity to expand on their customer base as well as gives them an edge over their competition.
The biggest disadvantage to a business is the transaction fees included in credit card and bill payments. In comparison to convenience fees with fiat currency, crypto offers a chance to reduce the trading keys to a significant degree. An investor or trader can easily save up on high transaction fees by using the following tips.
Go With Decentralized Exchanges
The type of exchange platform you use decides how much you will be saving on each trade. One way to reduce the charges is by eliminating the use of a middle man. Usually transactions and trades are facilitated by peer to peer swaps that help in avoiding high crypto trading charges along with the transaction commission.
Decentralized exchanges are easy to find online because of a wide range of services. The biggest advantage of this platform is that there is a flat percentage of how much a user will be charged after each transfer. It is significantly less than that of a credit card. The flat see can range from 0.25% or 0.5%, still more beneficial than any other exchange.
Opt for a Point of Sale System
Reducing the fees is possible with the point of sales system which allows any business or individual to accept payments from others. A point of sale platform allows a reduced fee to be charged by the merchant. Generally anyone involved in a cryptocurrency transaction will have to pay market transaction fees along with convenience charges.
There are multiple service providers available in the market that offer different fractions of processing charges. An option can be chosen on the basis of your preference so that the compound fee is not as much. It is great for any business accepting crypto as a means of payment.
They will get to keep more of their sales rather than paying it all as a convenience charge. There are some service providers that will have a specific percentage outline for a payment. So apart from that specified flat percentage, you will not be paying anything extra which can significantly reduce the total money due to the merchant.
Make a Pro Account
Almost all service providers that offer free services also provide the provision of premium accounts to users who pay a little extra. That extra subscription charges can help you save more on high frequency trades. Keep in mind that you still will have to pay a certain level of transaction fees but the fraction will be less than that of a standard rate. Premium or Pro accounts will cost less in the long run because they are a front investment after which the commission is reduced for each trade.
Platforms like BitcoinPrime are made to facilitate easy trades and better trading options for each transaction. One can explore how to approach investing in crypto with helpful online resources. You can easily explore their offered services in order to get an idea of everything offered when you sign up for an account.
Use More Save More
The more a particular platform is used the less the processing fees you will have to pay. When you are business charges for a particular product or service the mode of payment depends on the customer. If they are paying with the help of credit cards the convenience fee is always charged on the higher side.
Card transactions can have a face attached to it from 0.5 to 5% which cannot be avoided. Business also pays 20 to 30% of a flat fee for every transaction made through a merchant platform. One way to save on the trading fees is by making customers choose cryptocurrency. The more you use a particular platform the better the chances of saving up on extra fees.
Find Commision Free Platforms
Trading with crypto means that one has to prepare themselves for high transaction fees. It can be prevented If a user opts for a commission free trading platform. The online broker offers the option of high frequency trading without losing a significant part of the profit to fees. You can find more information on Swyftx.
There are many reliable platforms that ask for minimal commission during exchanges to help you make the most of your digital assets. We have already mentioned that decentralized platforms will offer a lower commission to any traders or investors irrespective of the frequency of their trade. There are centralized exchanges offered with significantly lower fees.
Hold Coins for a Trading Discount
Exchange platforms are built on blockchain technology and also offer their own coins or tokens. The coins when kept in the wallet of a user function as an incentive for the platform to offer you discounts on future trades. There is a provision of getting future discounts if you just hold the coins. Many times, you do not even need to buy those coins because they are given for free when you sign up for the services of a platform. There are platforms that offer upto 25% discount on spot trading if the user has their specific token in their account.
The Takeaway
The amount you pay as commission is a percentage of the total amount which is being transferred to another. It is important to be vigilant about how much you are spending out of your pocket. There are many platforms that offer good services but take a huge chunk out of your profit. It is therefore better to opt for a low trading fee platform even if it is based on a centralized system. Do not hesitate to take up a premium account for an additional fee if the benefits offered reduce the trading commission to a great degree.
