PRESS RELEASE. Crypto Eraser, which operates the world’s largest crypto exchange list, has published the second installment of its empirical quarterly report on trading costs between cryptocurrency exchanges. The 2020 Q4 report analyzes 350 different stock exchanges and is the largest of its kind, providing insight into the development of trading costs.
According to the previous episode of Cryptowisser from the third quarter of 2020, fees would generally decline with an impressive 17% drop over the past 3 years. However, with the recent surge in Cryptocurrency, it seems that some exchanges have had enough demand to actually increase their trading costs (albeit marginally). For example, it is reported that the average spot market player and maker fees both were up (0.004%) and average trade fees on contracts also increased by 0.0007%.
Average BTC Withdrawal Fees
Cryptowisser was also able to pick up fixed BTC withdrawal fees from 324 of their listed exchanges and reported an average withdrawal fee of 0.000643. The report also shows a decent reach with 16 exchanges 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 have to pay network fees to the miners. These “network” charges are also included in the Cryptowissers database.
Crypto Exchange Giants Still Taking Advantage of Their Dominance?
In the first study, Cryptowisser highlighted some of the higher fees prevalent among major players in the industry. The report shows that some major industry players are in line with industry averages – Binance and Poloniex, for example, show customer focus and competitive rates. However, many other reputable major brand competitors seem to be using their brand awareness to their advantage. For example, Coinbase Pro charges both buyers and creators 0.50%, putting their buyer costs 135% (130.41% in the fourth quarter) above the industry average. Kraken and BitZ also came in high in prices, as can be seen in the report
Customer friendliness versus the free market
With the financial freedom offered by cryptocurrency, a range 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 through the ranks. With higher fees at the titans, it opens 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 that trading costs would generally decline, the largest rise in cryptocurrency showed that anything could happen in a bull run. Fees have increased marginally, but fees are still expected to fall over a sufficient period of time.
As for some of the leading exchanges charging trading fees that are significantly above the industry average, once the market matures and becomes more transparent, traders will find that it is quite easy to switch between trading platforms. As a result, exchanges will have to improve their compensation offerings to retain existing customers and attract new ones. If not, it seems reasonable to assume that they will lose both existing and new customers to other alternatives, such as decentralized exchanges or more customer-centric centralized exchanges.
Cryptowisser is a cryptocurrency services comparison site with the world’s largest, most updated and most trusted lists of cryptocurrency exchanges, wallets, debit cards and merchants. With over 1,000 ratings from the various exchanges, debit cards, wallets and merchants, they help you make all your buying decisions and service choices in the crypto world.
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