Crypto App Fees Explained

Any time we are discussing financial services and consumer-facing apps, understanding the potential fees is critical. While crypto trading is similar to traditional brokerage accounts, these apps also have distinct features and characteristics and the fees do not always match 1-to-1 with what you might be used to. This guide aims to demystify fees involved with crypto investing.

The Two Ways Crypto Apps Charge You

Most crypto apps make money in two ways: fees and spreads.

An explicit fee is a line‑item cost that you can see, usually shown as a percentage or flat fee when you place a trade.

A spread is the difference between the price you see and the actual market price, and it’s built into the quote. Spreads can be harder to notice because they aren’t always labeled as a fee.

Both methods are common, and many apps use a mix of the two depending on the order type. The key takeaway is that the “price” you see is not always the true market price, and the difference is a cost you’re paying.

To fully vet a crypto trading app, you need to understand both the fees and the potential spread you’re encountering. Both cost you and can affect the overall value of a transaction or trade.

Types of Fees You Can Encounter

Crypto apps use several fee types depending on the product or transaction type. Here are some you can expect to encounter:

• The most common fee is a trading fee, which is a percentage of the transaction (or a flat fee).
• Some platforms use maker/taker fees, where the cost changes depending on whether your order adds or removes liquidity.
• Other apps charge higher fees for instant buys, where you get a guaranteed price for an asset or coin immediately.
• Conversion fees can occur when swapping one asset for another (e.g. swap Ethereum for Bitcoin).
• Funding and withdrawal fees can show up as well, especially for card purchases or crypto withdrawals.

Understanding Spreads

A spread is the difference between the market price of an asset and the price you’re offered in the app. It’s a common way crypto apps make money, especially on instant buys and swaps. Spreads are not always obvious, which is why many beginners underestimate their costs. For example, if Bitcoin is trading at 40,000, but the app quotes you 40,400… that $400 difference is the spread. You’re effectively paying extra for the convenience of a fast, simple transaction.

Spreads are normal in financial markets, but they vary widely between apps and order types. If you want to reduce costs, compare the quoted price to a real‑time market price before buying.

Funding and Withdrawal Costs

Fees don’t only happen when you trade. Funding methods can also create costs. For example, buying crypto with a debit or credit card often includes higher fees than using a bank transfer. Some apps charge withdrawal fees when you move crypto off the platform, and these can depend on the blockchain network’s current congestion.

Even cashing out to a bank account can have different costs depending on the method. These fees may seem small at first, but they add up over time — especially if you move funds frequently. The best approach is to review the app’s funding and withdrawal policies before you commit to a specific platform, so you can avoid unexpected costs later.

Fee‑Saving Tips for Beginners

You don’t need to be a pro trader to reduce costs. Start by avoiding instant buys when possible, since they often include higher spreads. Use limit orders once you understand them, because they give you more control over price. Compare quoted prices with a market price source so you can spot hidden costs. Trade less frequently if you’re unsure, because frequent trades multiply fees. And keep your funding method in mind — bank transfers are often cheaper than card purchases. The goal isn’t to avoid all fees; it’s to know where they come from so you can make informed choices and keep your costs reasonable.