According to a report by Chainalysis, Nigeria comes second in cryptocurrency adoption, behind India, with 33% of the population investing in it. This adoption is due to inflation, unemployment, lack of access to traditional banking services, and lack of trust in government and banks. Despite government restrictions and regulations, these efforts have not stopped people from turning to cryptocurrency.
You can trade your cryptocurrency assets on low-fee exchanges to get the most out of your profits. These platforms will not take much of your gains by minimizing their trading costs.
In today’s article, we will see some of the cheapest crypto exchanges in Nigeria in terms of trading fees. We will also look at tips on choosing a crypto exchange, why low trading fees matter, and ways to reduce them.
Crypto Exchanges – What Are They?
A crypto exchange can be an app or a website where you can buy, sell, store, and stake digital currencies like Bitcoin, Ethereum, Litecoin, Ripple, USDT, etc., for profit over time.
An exchange can be centralized or decentralized. When it is centralized, the exchange is controlled by an individual or company that oversees the transactions on its platform. Examples are Binance, Kraken, KuCoin, Quidax, etc.
However, when the exchange is decentralized, it relies on blockchain technology for peer-to-peer transactions, removing the need for a central authority. Examples are Trust Wallet, MetaMask, Uniswap, dYdX, etc.
Types of Crypto Trading Fees
These are the fees you will encounter while trading
- Maker Fee: Fees you pay for setting a limit order
- Taker Fee: Fees you pay for using a market order
- Withdrawal Fees: Charged when moving crypto from the exchange to an external wallet.
- Deposit Fees: These are less common, but some platforms charge for depositing fiat or crypto.
- Network/Blockchain Fees: Charged by the blockchain for processing transactions.
- Spread Fee: The difference between the buy and sell price.
- Inactivity Fees: Fees for dormant accounts after a certain period.
- Funding/Overnight Fees: Charges for holding positions overnight for margin trading or perpetual contracts.
- Conversion Fees: Applied when converting one crypto to another within the exchange.
Top Five Cheapest Crypto Exchanges in Nigeria
These are five crypto platforms that do not charge much when you trade them:
- Quidax
Quidax is a Nigerian cryptocurrency exchange created in 2018. It provides a user-friendly platform for purchasing, selling, and storing cryptocurrencies. Quidax secures assets by using two-factor authentication and secure wallet storage. You can access it through its website or app. Quidax charges a 0.10% maker and 0.30% taker fee for trades, with instant buy/sell transactions at 1%. Deposit and withdrawal fees depend on method and network conditions.
- Luno
Luno is Nigeria’s foremost cryptocurrency exchange, where you can buy, sell, and store digital assets such as Bitcoin, USDT, and Ethereum. It is a user-friendly platform with fast buy/sell, recurring purchases, and a secure wallet. Luno offers security through two-factor authentication, deep freeze storage, and multi-signature wallets. Its app provides real-time market data and analytics. Luno’s trading fees are very low and transparent, making it a popular choice for traders.
- Binance
Binance is the biggest cryptocurrency exchange in the world. It supports over 350 tokens/coins, has low fees, and has advanced features. It supports spot, margin, futures, and option trading. Its blockchain, Binance Smart Chain (BSC), ensures efficient transactions. It uses strong security measures such as two-factor authentication and regular audits. Binance charges a 0.10% trading fee for both makers and takers, which can be reduced by using its native token (BNB) and offers fee discounts for higher volumes.
- BingX
With BingX, you can trade spots, futures, and copy trading services. It supports over 100 cryptocurrencies and charges reasonable costs, usually 0.1% for spot trades. With BingX’s copy trading tool, you can follow skilled traders and imitate their techniques. It provides up to 150x leverage for futures trading, two-factor verification, and a mobile app.
- Bitget
Bitget is a cryptocurrency exchange where you can trade spot, futures, and copy trading and leverage positions of up to 125x on futures contracts. It supports a variety of cryptocurrencies, including Bitcoin, Ethereum, and altcoins. Bitget charges 0.1% for spot trading, with discounts for BGB, its native token, and 0.02% for futures trading, with P2P trading fees. Bitget uses two-factor authentication, cold storage, advanced charting tools, a mobile app, and regular promotions for new users.
Why Do Low Trading Fees Matter?
Low transaction fees are important, and here is why:
- The lower your trading fees, the more profit you get to keep. This is very significant in multiple trades.
- Low fees make you a frequent and active trader as you do not have to worry about the cost of trading.
- Low fees allow you to trade with small amounts of money.
- Low fees allow you to reinvest as they do not take much from your portfolio.
- You can diversify your portfolio without worrying about the cost of transactions.
- Exchanges that charge low trading fees get more users and money.
- High fees discourage new traders, while low fees lower barriers, promote market growth, and encourage more trading.
Lower Crypto Trading Fees: Best Tips and Tricks
These are some of the best ways to reduce the cost of your transactions on crypto exchanges;
- Use Crypto Exchanges With Low Fees: Some crypto exchanges are cheaper than others. So do your research to find out which one suits you. Also, go for decentralized exchanges as they have low trading fees.
- Use a Limit Order: It costs less to set a limit order than a taker order to trade, so put it and wait.
- Consolidate Your Trades: Instead of splitting your trades into bits, merge them and trade as a single unit to avoid too many transaction charges.
- Timing: Target odd times to place your trades, as network congestion during busy hours of the day will lead to high gas fees.
- Use Low-Fee Networks: Use networks that charge little for crypto transfers, such as Solana, BSC, Bep20, Polygon, etc.
- Avoid Fiat Conversion Fees: To avoid fiat conversion fees, use peer-to-peer (P2P) platforms for deposit and withdrawal.
Best Tips for Choosing the Right Crypto Exchange
Use these tips when selecting a suitable crypto exchange to trade with.
- Security: Look for exchanges with security measures like 2FA, cold storage, etc.
- Reputation: Read reviews and user feedback before you decide.
- Fee Structure: Compare trading, deposit, and withdrawal fees of different platforms.
- Exchange Support: Your exchange of choice should support various coins/tokens.
- Liquidity and Trading Volume: Check 24-hour trading volume on platforms like CoinMarketCap.
- Choose Platforms: If you are a newbie, use platforms with simple interfaces; otherwise, use more advanced platforms with charting tools.
- Compliance: Exchanges must comply with your country’s regulatory standards.
- Payment Methods: Check deposit and withdrawal methods for fiat on-ramp support.
- Customer Support: your platform of choice must have reliable and 24/7 customer support.
Conclusion
As earlier stated, a crypto exchange lets you buy and sell digital currencies. Our selections of the cheapest crypto exchanges in Nigeria end here, but this does not exhaust it all. With all the tips and steps given, you should find a cryptocurrency platform that can serve your needs. Always go for security, user experience, and regulatory compliance when selecting an exchange.
