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Author: Admin | 2025-04-27
StructureThe most obvious criterion for choosing a platform is fees. In general, and depending on the platform and platform type, there are many fees to consider. Some examples include transaction fees, withdrawal charges, and deposit fees, each varying significantly across different platforms. These examples may include:Transaction feesMaker and taker feesGas/network fees (typically determined by the blockchain, but some platforms may charge a nominal fee to cover their costs)Deposit feesWithdrawal feesDelivery fee (derivatives)Fees explainedChoosing platforms based on fees typically boils down to opportunity costs. Not all businesses will have all of the fees above. But it is best to remain aware of what fees they charge and in what circumstances they charge them. Generally, and in order from lowest fees to highest fees, the order typically goes as follows:Exchanges (lowest) Exchanges provide a marketplace where buyers and sellers can trade with each other, setting their own prices within the platform’s system. Maker/taker fees are usually lower because exchanges earn revenue from the volume of trades rather than the spread on each transaction.BrokersBrokers act as intermediaries between buyers and sellers. Broker fees are typically a percentage of the transaction or a flat fee because they simplify the process, offer more personalized service, and usually incur higher costs to provide on-ramp and off-ramp services.A broker may also include a markup on the cryptocurrency’s price to cover their operational costs and risk, especially if they offer locked-in pricing at the time of purchase.Payment services (highest) Payment services that offer cryptocurrency purchases are often not specialized crypto platforms but are instead adding crypto as an additional service to their existing financial offerings.They typically charge higher fees because their primary business is not cryptocurrency trading. These fees cover the cost of integrating with exchanges or brokers to access the crypto market, as well as additional convenience fees for offering an all-in-one solution for various financial transactions.Is Canada a good location for crypto fans?While a number of big-name crypto trading platforms have exited the Canadian market amid regulatory pressure in 2023, a number of heavyweights still operate in the region, enabling purchases of bitcoin with Canadian dollars. Coinbase in particular has doubled down in this market where others have left. While there now are fewer options for web3 participants in Canada, choosing a platform to trade or buy crypto with should still be a careful consideration. Overall, crypto fans in Canada should remain confident they can access
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