Why Fee Discounts Matter in Today’s Crypto Market

Cryptocurrencies have introduced a new path to wealth creation. By participating in crypto-based activities like simple buying and holding, trading, decentralized finance (DeFi), and many more, a user stands in line to net profits. Still, many struggle to maintain profitability due to the exorbitant fees that crypto platforms charge. Unlike its peers, BYDFi trading fee discounts open the way for users to maintain profitability while accessing their desired crypto service.

BYDFi is a one-stop shop for on-chain crypto activities. From memecoins to crypto trading to hardware wallet services, and more, BYDFi aims to give individual investors access to their desired crypto products while benefiting from discounted fees. This article discusses how the crypto exchange achieves this.

Understanding Fee Structures in Crypto

Today, most people access cryptocurrencies through centralized exchanges like Binance, Coinbase, Kraken, KuCoin, and others. These platforms charge a fee whenever users deposit, withdraw, or trade crypto-assets. But, aside from these fees, there are also network fees spent within the crypto ecosystem. Oftentimes, these fees are capped at a specific percentage of the transacted amount. Here is a breakdown of each of them:

Deposit/Withdrawal Fees

Although not common, some crypto exchanges charge a fee when users deposit crypto into their accounts. On the other hand, crypto exchanges charge zero fees when users withdraw crypto from one account to another within the same platform. However, when withdrawing to an external wallet, users are often mandated to pay a specified amount for the platform fee and another amount for the network fee.

Trading Fees

Most crypto exchanges charge a maker/taker fee on trades. Some trading platforms charge lower maker fees because users are adding liquidity to the exchange. Conversely, traders pay more as a taker fee since they are removing liquidity from the market. In some cases, crypto exchanges adopt a tiered fee structure where traders’ fees decrease as they trade more frequently within a specified period. Others, on the other hand, implement a fixed fee structure regardless of the user’s trading frequency.

Network Fees

Unlike the trading and deposit/withdrawal fees, which are paid to the exchange, network fees (also called gas fees) are paid to the blockchain’s miners or validators. Users pay network fees when they send crypto from their account to an external wallet. The fee varies based on the blockchain used, the urgency of the transaction, and the state of the network (blockchain) at the time of trading. Users often have the opportunity to choose the cheapest option. However, they may opt for a more expensive option if they want their trade completed faster.

How do users enjoy discounted fees in crypto?

While users are required to pay these fees, it is worth noting that there are measures in place to enable them to reduce their expenses while using crypto.

One such measure is joining VIP programs. Most crypto exchanges offer a VIP program where users enjoy discounted trading fees based on various criteria. For some exchanges, users are awarded VIP-tiered benefits when their trading volume or account balance exceeds a particular threshold for a specific duration. For others, users are required to apply for a request to join the VIP program.

Another way one can enjoy discounted fees in crypto exchanges is by participating in marketing campaigns hosted by the exchange. Most platforms offer crypto sign-up bonuses, such as welcome rewards, deposit rewards, cashbacks, trading rebates, and others. At other times, these crypto exchanges offer rewards to participants in campaigns held on social media platforms like X or Reddit.

What is BYDFi?

BYDFi is a centralized crypto exchange that allows users to buy, sell, trade, and hold their crypto-assets. Its services are accessible via mobile or desktop devices. At the time of its inception in 2020, the crypto platform was known as BitYard. However, in January 2023, the firm evolved into BYDFi, an acronym for “BUIDL Your Dream Finance.”

The crypto exchange’s goal is to bring the best features of centralized exchanges (CEXs) and decentralized exchanges (DEXs) to its users. One way it does this is by offering a no-KYC account creation process for users. This means that users do not need to undergo the Know Your Customer (KYC) procedure common among CEXs; hence, protecting their privacy and maintaining anonymity. However, users must undergo the KYC procedure if they are to access some of BYDFi’s sophisticated features.

BYDFi offers over 1,000 cryptocurrencies in its spot trading market. It also introduces 500+ perpetual futures trading pairs with a maximum leverage of up to 200x, a feat not common among major CEXs. These features, among others, have enabled the exchange to earn the trust of over one million users across more than 190 countries.

How Does BYDFi Offer Fee Discounts?

BYDFi has a detailed fee structure, ensuring that there are no hidden fees. Here is a breakdown of its fees:

• Spot trading: BYDFi charges a Maker/Taker fee of 0.1%. Notably, this is significantly lower than mainstream crypto exchanges like Coinbase and Kraken, charging 0.5% and 0.4%, respectively.
  
  
• Leveraged Token Fees: Users incur a 0.2% fee on leveraged tokens. They also pay a 0.03% fee to cover daily management for their leveraged position.

• Perpetual contracts: BYDFi charges a maker fee of 0.02% and a taker fee of 0.06%. The same fee structure applies to BYDFi’s Futures Grid Trading. This is less than those of the likes of Kraken and BitMEX, which charge 0.26% and 0.05%, respectively.

• Spot trading bots fees: The crypto exchange also charges a fee when traders use its automated trading bots. However, the amount to pay varies based on factors such as the trade type and order type.

Like other crypto exchanges, BYDFi offers a VIP program where users enjoy discounted fees when they meet the requirements. The crypto exchange also offers various rewards, such as welcome bonuses, to users. Tapping into these discounts helps traders to maximize their crypto returns while paying discounted fees for services.

Other Key Features of BYDFi

Aside from its fee structure, BYDFi also has other features that have enabled it to stamp its digital footprint across many countries. They include:

• MoonX: BYDFi’s dedicated memecoin trading platform providing access to meme tokens on BNB Chain and Solana.
  
  
• Demo trading: BYDFi offers 50k USDT to traders to sharpen their trading skills in a simulated environment.

• Copy trading: Beginner traders can replicate the trading patterns of pro traders.

• BYDFi Card: This allows cardholders to spend crypto with ease on everyday items.

• Hardware Wallet: BYDFi partnered with Ledger to offer crypto storage offline to bolster security.

Conclusion

Often disregarded, fees play a major role in determining whether crypto users are making money or gradually approaching losses. Since some platforms offer high fees and even hide some of their fees, it is vital to choose a cheap and transparent alternative. BYDFi has shown itself to be the man for the job. This article highlighted its fee structure and top features. With the information provided in this review, you will be able to make a well-informed financial decision.