PRESS RELEASE. Cryptowisser, who operates the world’s largest crypto exchange list, has published the second installment of its quarterly empirical report on trading fees among cryptocurrency exchanges. The 2020 Q4 report analyzes 350 different exchanges and is the biggest of its kind, giving an insight into trading fees development.
According to Cryptowisser’s previous installment from Q3 2020, fees were set to generally decrease on trend with the impressive 17% decrease over the last 3 years. However, with the recent surge in Cryptocurrency, it seems some exchanges have had enough demand to actually increase their trading fees (Albeit marginally). For example, it is reported that the average spot trading taker and maker fees both increased by (0.004%) and the average contracts trading fees also saw a 0.0007% increase.
Average BTC Withdrawal Fees
Cryptowisser was also able to retrieve fixed BTC- withdrawal fees from 324 of their listed exchanges and reported an average withdrawal fee of 0.000643. The report also shows quite the range with 16 exchanges having 0 withdrawal fees all the way to one exchange reporting a 0.005 BTC withdrawal fee ($218 in today’s market!). While many exchanges don’t charge any fees at all, you still end up paying network fees to the miners. These “network” fees are also included in Cryptowissers database.
Crypto Exchange Giants still Taking Advantage of Their Power Position?
In the first study Cryptowisser highlighted some of the higher fees prevalent among big industry players. The report shows some big industry players are in line with industry averages – Binance and Poloniex for instance, show a customer focus and competitive rates. However, many other reputable big brand competitors seem to be using their brand awareness to their advantage. For instance, Coinbase Pro charges both takers and makers a 0.50%, pushing their taker fees 135% (130.41% in Q4) above the industry average. Kraken and BitZ also came up high on fees as seen in the report
Consumer Friendliness vs. The Free Market
With the financial freedom that cryptocurrency offers, a spectrum of fees and methods are to be expected. While the report shows higher fees with the more recognizable company names, the report also shows hundreds of other exchanges coming up through the ranks. With higher fees with the titans, it opens up the market for the smaller exchanges to flourish, giving a healthy future to the Cryptocurrency landscape.
What does the report show for the Future?
While the Q3 report predicted trade fees to generally decrease, the biggest surge in cryptocurrency showed that anything can happen in a bull run. Fees marginally increased, however over a long enough time line, fees are still expected to decrease.
As for some of the leading exchanges charging trading fees substantially above the industry average, once the market becomes more mature and transparent, traders will find that it’s fairly uncomplicated to switch between trading platforms. As a result, exchanges will need to improve their fee offerings in order to retain existing customers and attract new ones. If not, it seems reasonable to believe that they will lose both existing and new customers to other alternatives, such as decentralized exchanges or more customer-oriented centralized exchanges.
About Cryptowisser
Cryptowisser is a cryptocurrency services comparison site with the world’s largest, most frequently updated and most trusted lists of cryptocurrency exchanges, wallets, debit cards and merchants. With more than 1,000 reviews of the various exchanges, debit cards, wallets and merchants, they help you make all of your purchasing decisions and service choices in the crypto world.
Media Contact: press@cryptowisser.com
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Powered by WPeMatico