Cryptocurrency has marked its territory in almost every region in the world. This has been a great turnout in India as well, as more and more Indians are planning to get into the crypto game. Crypto trading in India is not a difficult investment domain to enter, but it requires a lot of knowledge if you want to start off successfully. It is important to have access to the right Crypto trading platforms in India, for which you need to get in touch with the best Indian broker.
Since the crypto domain is fairly new, more tech-savvy investors are cashing in on it. But while it’s easy to access various exchanges, it’s important to know a few basics before starting crypto trading in India. Most importantly, you should be aware of the different transaction fees in India when trading cryptocurrency. Since these can differ between exchanges, it’s important that you’re aware of how much you’re paying.
The Types of Transaction Fees
Mentioned below are the different types of transaction fees set in India when trading with cryptocurrency:
To trade cryptocurrency, you need to own some. This means purchasing crypto coins, after which you will store them in a digital wallet. This is similar to an online bank account that keeps all your trades safe. This wallet makes trading a lot easier as it allows you to receive cryptocurrency and also store it safely. Using your digital wallet, you can send cryptocurrency to others. The crypto wallet usually doesn’t charge any fee for the crypto storage or on deposits, but it does charge a fee when you withdraw cryptocurrency from the wallet and also when you sent it. This is also known as a network fee.
With the help of crypto wallets, you can engage in systematic crypto buying options. You also get an integrated merchant gateway service, which allows you to recharge your electronic devices. An in-built wallet function comes with most of the exchanges, so you can keep all your cryptocurrency in one place. You don’t have to pay any fees for this.
One of the most important transaction fees and the first one that you should be aware of once you start trading with crypto is the exchange fees. This fee is the amount that the crypto exchange charges in order to complete a sale or buy. When trading Cryptocurrencies in India, just about all Cryptocurrency exchanges come with a fixed fee model. However, the final cost of transactions depends on the type of platform you use to complete the transaction.
This involves proper research and finding out which crypto exchanges come with the lowest transaction fee. The maker-taker fee model also comes with crypto exchanges. In this, the maker is the seller of cryptocurrency, and the taker represents the buyer. This leads to a variable fee charge, but it depends on the amount of your trading activity. You can qualify as a maker for a reduced transaction fee if you are a very active trader or if you have transacted a high amount over a long period of time. This fee structure will vary under this model depending on if it is a centralized or decentralized exchange.
The network fee is the amount you pay for the work of the Cryptocurrency miners. These are individuals who dedicate their time verifying and validating transactions that have to be added to a blockchain. They play an essential role in all crypto transactions by keeping track of tokens and that these weren’t spent more than once.
They also check the accuracy of the tractions. The network fee has no direct control over the network fees, and it is a payable amount to the miners of the network. Your network fee derives from the demand, so the more crowded and the network becomes, the higher the network fees.
If you plan on trading Cryptocurrencies in India, you should be aware of all the transactions fees mentioned above. It would be best if you reached about all of this before you enter the crypto game in India. Learn more about trading Cryptocurrency in India at dailyforex.com