10 Crypto Fees That Beginners Don’t Realise They’re Paying

Entering the world of cryptocurrency can be thrilling, but it’s also littered with unexpected costs. Many beginners immerse expecting low fees and high returns, only to discover that small charges pop up at nearly every turn. From depositing funds to withdrawing profits, each step can quietly chip away at gains, and most newcomers don’t even realise they’re paying them.

Understanding these hidden fees is crucial. Whilst individual charges may seem trivial, a few pence here, a small percentage there, they compound rapidly for active traders or those making frequent transactions. Over time, these costs can seriously erode profits and turn what looked like a smart investment into a less appealing venture.

This article unpacks 10 crypto fees that beginners don’t realise they’re paying, breaking down where they come from, why they exist, and how they add up. Armed with this knowledge, newcomers can make smarter decisions, choose platforms wisely, and keep more of their hard-earned money in their wallets.

1. Network Transaction Fees (Gas Fees)

Network transaction fees, commonly known as gas fees, are one of the most fundamental, yet least understood, costs in crypto. Every time a user sends Bitcoin, Ethereum, or most other cryptocurrencies, the blockchain charges a fee to process and validate that transaction. These fees don’t go to the exchange or wallet provider: they’re paid directly to the network’s miners or validators who secure the blockchain.

The amount varies dramatically depending on the blockchain. Ethereum, for instance, has become infamous for high gas fees during periods of heavy use, sometimes costing £20 or more for a single transaction. Bitcoin’s fees also fluctuate, though they’re generally lower than Ethereum’s unless the network is congested. Newer blockchains like Solana or Polygon often boast much lower fees, sometimes just fractions of a penny, making them attractive for beginners.

What catches most newcomers off guard is that gas fees are non-negotiable and unpredictable. You can’t avoid them, and you often won’t know the exact cost until the moment you confirm a transaction.

Why Gas Fees Fluctuate

Gas fees aren’t fixed, they rise and fall based on network congestion and the complexity of the transaction. Think of it like road traffic: when everyone’s trying to use the blockchain at once (perhaps during a popular NFT drop or market panic), fees spike as users compete to get their transactions processed first.

On Ethereum, gas fees are calculated in “gwei” (a tiny fraction of ETH) and depend on how much computational work the network must perform. Simple transfers cost less than complex smart contract interactions, such as swapping tokens on a decentralised exchange. During peak times, fees can multiply tenfold or more within hours.

Timing matters. Beginners can reduce gas fees by transacting during quieter periods, typically weekends or late evenings (UTC), when fewer people are using the network. Tools like Etherscan’s gas tracker can help users monitor current rates and choose optimal times to send funds.

2. Exchange Trading Fees

When buying or selling crypto on an exchange, users pay trading fees, a percentage of the transaction value. These fees are how platforms make their money, and they’re charged on nearly every trade. For beginners using popular exchanges, trading fees typically range from 0.1% to 0.6% per transaction, though exact rates vary by platform and user activity level.

These fees might seem small at first glance. A 0.2% fee on a £100 purchase is just 20 pence. But they add up quickly for active traders or anyone making frequent buys and sells. Execute ten trades in a week, and you’ve paid £2. Do that monthly, and it’s £24 annually, just on basic trading activity.

What beginners often miss is that most exchanges use a two-tier fee structure: maker fees and taker fees. Understanding this distinction can save significant money over time.

Maker vs Taker Fee Structures

Maker fees apply when a user adds liquidity to the market by placing a limit order that doesn’t execute immediately. Essentially, makers “make” the market by listing an order on the order book, waiting for someone else to match it. Because this helps the exchange maintain liquidity, maker fees are usually lower, often between 0.05% and 0.4%.

Taker fees, on the other hand, are charged when a user removes liquidity by placing an order that executes instantly against an existing order. Takers “take” from the market. These fees are higher, typically 0.1% to 0.6%, because the exchange prioritises rewarding liquidity providers.

For beginners, the default behaviour is often to use market orders (which incur taker fees) because they’re fast and simple. But, switching to limit orders can reduce costs considerably. By placing a limit order and waiting for it to fill, traders pay the lower maker fee instead. Over time, especially for those making regular purchases, this small change can lead to meaningful savings.

3. Withdrawal Fees to External Wallets

Once beginners have bought crypto on an exchange, many choose to withdraw their funds to an external wallet for added security. This is a smart move, keeping large amounts on an exchange exposes users to hacking risks and platform failures. But there’s a catch: withdrawal fees.

Exchanges charge a fee every time a user transfers crypto to an external wallet. These fees vary widely depending on the cryptocurrency and the platform. Some tokens have fixed withdrawal fees (e.g., 0.0005 BTC or 0.01 ETH), whilst others charge based on current network conditions. During periods of high blockchain congestion, withdrawal fees can spike significantly.

For example, withdrawing Ethereum during a busy period might cost £15–£30, whilst withdrawing a stablecoin on a cheaper blockchain like Polygon could cost less than 50 pence. The fee often includes the network transaction fee (gas fee) plus a small markup by the exchange for processing.

Beginners often don’t realise they’re paying this fee because it’s deducted automatically from the withdrawn amount. If someone tries to withdraw 1 ETH, they might receive only 0.98 ETH in their wallet, with the difference swallowed by the withdrawal fee.

To minimise these costs, users should:

• Consolidate withdrawals: Rather than making multiple small withdrawals, batch them into fewer, larger transfers.
• Choose low-fee networks: Some exchanges offer the same token on multiple blockchains (e.g., USDT on Ethereum vs Tron). Opting for the cheaper network can save substantially.
• Check fee schedules: Each exchange publishes its withdrawal fees. Comparing platforms before signing up can reveal significant differences.

4. Spread Markups on Instant Buys

Many crypto platforms offer an “instant buy” or “quick buy” feature that lets beginners purchase crypto with a single click. It’s convenient and beginner-friendly, but it comes at a steep cost: the spread markup.

The spread is the difference between the buy price and the sell price of a cryptocurrency at any given moment. On instant-buy services, exchanges widen this spread significantly, often by 1% to 4%, and pocket the difference. This markup is baked directly into the quoted price, so beginners often don’t even see it as a separate fee.

For example, if Bitcoin’s market price is £30,000, an instant-buy service might sell it to you for £30,900 (a 3% markup). If you immediately tried to sell it back, you’d get only £29,700 (a 1% markdown on the other side). The exchange has earned £1,200 on a £30,000 transaction, far more than a typical trading fee.

This can be painful for newcomers who don’t realise they’re being charged. They see “0% commission” advertised and assume the purchase is fee-free, unaware that the spread is silently eating into their investment.

How Spreads Differ from Trading Fees

Trading fees and spreads are both costs, but they work differently. Trading fees are transparent percentages charged on the transaction value and clearly listed on the platform. They’re deducted separately, so users can see exactly what they’re paying.

Spreads, but, are hidden within the price itself. The exchange adjusts the buy and sell prices, and the user simply sees a final number. There’s no line item saying “spread: £900”, it’s invisible unless the user compares the quoted price to the live market rate on a different platform.

For small, one-off purchases, the spread might not matter much. But for larger investments or frequent buying, it adds up fast. A £5,000 purchase with a 3% spread costs an extra £150 compared to using the exchange’s standard trading interface with a 0.2% fee (£10).

Beginners should avoid instant-buy features for any significant purchase. Instead, they should use the exchange’s “pro” or “advanced” trading interface, place a limit order, and pay only the much smaller maker or taker fee.

5. Deposit Fees for Fiat Currency

Before buying crypto, users must first deposit fiat currency, pounds, euros, dollars, into their exchange account. Whilst many platforms offer free bank transfers, others charge deposit fees, especially for certain payment methods.

Credit and debit card deposits are the most common culprits. They’re fast and convenient, but exchanges often charge 3% to 5% for card payments, passing on the fees they incur from payment processors. If a beginner deposits £500 via card, they might lose £15–£25 immediately, before they’ve even bought any crypto.

Bank transfers (such as UK Faster Payments or SEPA in Europe) are usually free or low-cost, but they can take longer to process. Some platforms also charge for international wire transfers or deposits in unsupported currencies, adding further friction.

Crypto deposits, by contrast, are generally free. If a user already owns cryptocurrency elsewhere, they can transfer it to a new exchange without paying the platform a deposit fee (though they’ll still pay the blockchain’s network fee on the sending side).

To avoid deposit fees, beginners should:

• Use bank transfers instead of cards whenever possible.
• Check the fee schedule before depositing, different payment methods have vastly different costs.
• Avoid depositing small amounts frequently, as fixed fees hurt small deposits disproportionately.

By choosing the right deposit method, users can keep more of their money available for actual investment.

6. Conversion Fees Between Cryptocurrencies

Many beginners start with Bitcoin or Ethereum, then want to diversify into smaller altcoins. To do this, they need to convert one cryptocurrency into another, and that conversion almost always incurs a fee.

On most exchanges, swapping one crypto for another is treated like a trade, so the standard maker or taker fees apply (typically 0.1%–0.6%). But the real cost often lies in hidden spread markups within swap services, especially on simplified “instant swap” features or third-party exchange aggregators.

These swap services quote a single price for the conversion, but behind the scenes, they’re widening the spread and pocketing the difference, similar to instant-buy markups. The result is that users pay more than they would by manually trading one crypto for a stablecoin, then using that stablecoin to buy the target coin.

For example, converting 1 ETH directly to Solana via an instant swap might give you 50 SOL, but if you traded ETH for USDT and then USDT for SOL using limit orders, you might end up with 51.5 SOL after paying only the smaller trading fees.

Hidden Costs in Swap Services

Swap services are convenient because they handle the conversion in one step, but that convenience comes at a price. The quoted rate often includes:

• A widened spread (1%–3% or more)
• Network fees for executing the swap on-chain (especially on decentralised exchanges)
• Routing fees if the swap goes through multiple liquidity pools

Beginners don’t see a breakdown of these costs, they just see “1 ETH = 50 SOL” and click confirm. Only by comparing the quoted rate to market prices elsewhere can they uncover the hidden markup.

Decentralised swaps (on platforms like Uniswap or PancakeSwap) add another layer: liquidity provider fees (often 0.25%–0.3%) and slippage (covered later). These can make decentralised swaps more expensive than centralised exchange trades, especially for less liquid pairs.

For the best rates, beginners should use a centralised exchange’s standard trading interface and manually execute two trades (crypto A → stablecoin → crypto B) rather than relying on instant swap features. It takes a few extra clicks, but the savings are worth it.

7. Staking and Unstaking Fees

Staking has become a popular way for crypto holders to earn passive income. By locking up their coins in a proof-of-stake network, users can receive rewards, often 5%–15% annually. It sounds like free money, but there’s a catch: staking and unstaking fees.

Some platforms charge a fee to stake assets, deducting a small percentage upfront. Others take a cut of the staking rewards, whilst some charge when users unstake (unlock) their assets. These fees vary widely depending on the platform and the cryptocurrency.

For example, staking Ethereum 2.0 on certain exchanges might incur a 10%–25% commission on rewards. If a user earns £100 in staking rewards over a year, the platform keeps £10–£25. That’s a significant haircut, especially compared to staking directly on the blockchain (which may have no fees, only network gas costs).

Unstaking fees can be even more frustrating. Some protocols or platforms charge a flat fee or percentage when users withdraw their staked assets, and there may be a mandatory waiting period (sometimes weeks) before funds become available. During this time, the user can’t trade or move their assets, potentially missing market opportunities.

Beginners should carefully review staking terms before committing funds. Key questions include:

• What’s the fee to stake?
• Does the platform take a commission on rewards?
• Is there a fee or lock-up period for unstaking?
• Can staked assets be slashed (penalised) for network issues?

For those serious about staking, running a validator node or using a non-custodial staking service can reduce fees, though it requires more technical knowledge. For casual users, choosing a platform with transparent, low staking fees is the best approach.

8. Inactivity or Account Maintenance Fees

Most people assume that once they’ve set up a crypto account, they can leave it alone without consequence. Unfortunately, some platforms charge inactivity fees or account maintenance fees if an account sits dormant for too long.

These fees are less common than they used to be, but they still exist on certain exchanges and wallet services. Typically, a platform will define “inactivity” as no trading, deposits, or withdrawals for a set period, often six months to a year. After that, they begin charging a monthly fee, sometimes £5–£15, deducted directly from the account balance.

For beginners who buy crypto as a long-term investment and then forget about it, this can be a nasty surprise. They log in months or years later expecting to see their holdings intact, only to discover that a chunk has been eaten away by inactivity fees.

Some platforms also charge ongoing account maintenance fees, particularly for premium accounts or those offering advanced features. These are usually disclosed upfront, but beginners don’t always read the fine print.

To avoid inactivity fees:

• Read the terms and conditions before signing up. Look specifically for any mention of inactivity or maintenance fees.
• Set a calendar reminder to log in and make a small trade or transfer every few months, resetting the inactivity clock.
• Withdraw funds to a personal wallet if planning to hold long-term without trading. Self-custody wallets never charge inactivity fees.

Whilst inactivity fees aren’t universal, they’re common enough that beginners should be aware of the risk and choose platforms that don’t penalise dormant accounts.

9. Slippage Costs on Large Orders

Slippage is one of the sneakiest costs in crypto trading, and beginners often don’t understand it until they’ve been stung. Slippage occurs when the price of a cryptocurrency changes between the moment an order is placed and the moment it’s executed. The result is that the user ends up paying more (or receiving less) than they expected.

This happens most often with market orders, orders that execute immediately at the best available price. If someone places a large market order to buy a coin, and there isn’t enough liquidity at the current price, the order will start “eating into” higher-priced orders on the order book. The user ends up paying a range of prices, with the average being higher than the initial quote.

Slippage is worst for:

• Large orders relative to the available liquidity
• Illiquid or low-volume coins where the order book is thin
• Volatile markets where prices are moving rapidly

For example, a beginner might see a small-cap altcoin trading at £1.00 and place a £5,000 market buy order. But if the order book only has £2,000 worth of sell orders at £1.00, the rest of the order will fill at £1.05, £1.10, and so on. The user ends up paying an average of £1.08 per coin, 8% more than expected. That’s slippage.

On decentralised exchanges (DEXs), slippage is even more common because liquidity is often lower and spread across multiple pools. DEXs typically show a “slippage tolerance” setting (e.g., 1%–3%) that limits how much worse the price can be before the transaction fails. But setting this too high can result in significant losses.

Minimising Slippage Impact

Beginners can reduce slippage by:

• Using limit orders instead of market orders. A limit order specifies the exact price at which the user is willing to buy or sell. It won’t execute if the price isn’t met, eliminating slippage entirely.
• Breaking large orders into smaller chunks and executing them gradually, giving the market time to absorb each trade.
• Trading during high liquidity periods, such as when major markets are open and trading volume is high.
• Avoiding low-volume coins for large purchases. Stick to highly liquid assets like Bitcoin, Ethereum, or major stablecoins if making significant trades.
• Checking the order book before placing an order. This shows how much liquidity exists at each price level, helping users anticipate potential slippage.

By understanding and managing slippage, beginners can avoid one of the most frustrating hidden costs in crypto trading.

10. Foreign Exchange and Cross-Border Fees

Cryptocurrency is global, but fiat currency isn’t. When a beginner deposits or withdraws money in a currency not supported by their exchange, they’ll encounter foreign exchange (FX) fees and cross-border charges.

For example, if a UK user signs up for an exchange that only supports euro deposits, depositing pounds will trigger a currency conversion. Banks and payment processors typically charge 2%–5% for FX conversions, and the exchange may add its own markup on top. A £1,000 deposit could lose £20–£50 simply in conversion fees.

Similarly, withdrawing profits in a different currency than the account’s base currency incurs the same costs. If the exchange’s bank account is in the US and the user is in the UK, international wire transfer fees (often £10–£40) and FX fees will apply.

Even when the exchange supports multiple currencies, hidden FX markups can appear. Some platforms use unfavourable exchange rates, several percentage points worse than the mid-market rate, and don’t disclose the markup clearly.

Cross-border fees can also hit users when moving money between countries. International wire transfers are slow and expensive, and correspondent banks (intermediaries in the transfer chain) sometimes take additional cuts without warning.

To minimise FX and cross-border fees:

• Choose an exchange that supports the user’s local currency. UK beginners should look for platforms offering GBP deposits and withdrawals.
• Use payment services with transparent FX rates, such as Wise (formerly TransferWise) or Revolut, which offer near-market rates with minimal markup.
• Avoid credit cards for international deposits, as they often charge cash advance fees and poor FX rates.
• Consider stablecoins for cross-border transfers. Converting fiat to USDT or USDC, sending it on-chain, and converting back can sometimes be cheaper than traditional wire transfers, though network fees and exchange spreads still apply.

FX and cross-border fees are easy to overlook, but they can add up to hundreds of pounds for users making frequent international transfers. Paying attention to currency support and fee structures can save significant money over time.

Conclusion

Crypto’s promise of decentralisation and financial freedom is real, but beginners need to understand that freedom isn’t free, at least not in the literal sense. The ten fees outlined here can quietly drain profits, turning promising investments into mediocre returns if left unchecked.

From network gas fees and exchange trading costs to hidden spreads, slippage, and cross-border charges, each fee exists for a reason, but that doesn’t mean users should pay them blindly. Knowledge is power, and understanding where costs arise is the first step towards minimising them.

Beginners can protect their investments by:

• Choosing platforms carefully, comparing fee schedules and reading the fine print
• Using limit orders instead of instant-buy features or market orders
• Timing transactions to avoid peak network congestion
• Consolidating withdrawals and deposits to reduce per-transaction costs
• Staying active to avoid inactivity fees
• Paying attention to currency support and avoiding unnecessary FX conversions

No one can eliminate crypto fees entirely, they’re part of the infrastructure that keeps blockchains running and exchanges operating. But with a bit of planning and awareness, beginners can keep far more of their money working for them instead of disappearing into the pockets of platforms and payment processors. The key is to treat fees as seriously as the investments themselves, because in the long run, even small savings compound into significant gains.

Frequently Asked Questions

What are gas fees in cryptocurrency and why do they fluctuate so much?

Gas fees are network transaction costs paid to miners or validators who process and secure blockchain transactions. They fluctuate based on network congestion and transaction complexity—when many users are active simultaneously, fees spike as people compete to have their transactions processed first.

How can beginners avoid paying high crypto fees when buying cryptocurrency?

Beginners can minimise crypto fees by using limit orders instead of instant-buy features, choosing bank transfers over card deposits, timing transactions during low-congestion periods, and consolidating withdrawals. Using exchanges that support your local currency also helps avoid foreign exchange markups.

What is the difference between maker and taker fees on crypto exchanges?

Maker fees apply when you place a limit order that adds liquidity to the market, typically costing 0.05%–0.4%. Taker fees are charged when your order executes immediately and removes liquidity, usually 0.1%–0.6%. Using limit orders can significantly reduce trading costs.

Why do instant crypto purchases cost more than regular trading?

Instant-buy features include hidden spread markups of 1%–4% built directly into the quoted price. Whilst convenient, these spreads are far more expensive than standard trading fees (0.1%–0.6%), making them costly for larger purchases or frequent transactions.

Can crypto exchanges charge fees for inactive accounts?

Yes, some exchanges charge inactivity or account maintenance fees, typically £5–£15 monthly, if accounts remain dormant for six months to a year. To avoid these charges, log in periodically, make occasional transactions, or withdraw funds to a personal wallet for long-term storage.

What is slippage and how does it affect my crypto trades?

Slippage occurs when the execution price differs from the expected price, typically with market orders or illiquid coins. Large orders may fill at progressively worse prices due to limited liquidity. Using limit orders and trading high-volume cryptocurrencies helps minimise slippage costs.