Detailed Explanation of Cryptocurrency Trading Fees: Why Are They So High? How to Save Money?

Cryptocurrency trading fees can be exorbitant, often causing headaches for investors. The reasons behind this are complex and not solely dependent on the amount of capital. This article will delve into the causes of high fees and provide money-saving strategies.

First, fees are directly related to the position market value. The larger the position, the higher the market value, and the fees paid will also be higher. This is related to the billing methods of many exchanges, which do not charge fees purely based on capital.

Second, the trading method also affects the fees. 'Market orders' (i.e., buying or selling directly) usually incur higher fees than 'limit orders' (setting a price and waiting for a trade). This is because 'market orders' consume market liquidity, and exchanges typically encourage 'limit orders' to maintain market depth, resulting in lower fees for 'limit orders.' Among ordinary users, the fee for 'market orders' can be as high as 0.05%, while 'limit orders' are only 0.02%.

Finally, utilizing the rebate mechanism of exchanges can effectively reduce fees. Some exchanges offer fee reductions to users, and this portion of the fee is returned to the user's account. This is unrelated to trading volume and profit or loss; as long as a trade is executed, a reduction can be obtained. Applying for a reduction usually requires registration through an invitation link. Before opting for a reduction plan, it is essential to carefully understand details such as the reduction rate, duration, and cycles, and to conduct verification work.

In summary, the fee calculation formula is: Position Size × Fee Rate = Fee; the rebate calculation formula is: Generated Fees × Reduction Rate. The rebate mechanism is applicable not only to spot trading but also to contract trading, providing investors with opportunities to reduce costs and increase profits. To save on trading costs, it is recommended that investors try to use limit orders and actively participate in the exchange's rebate programs.