Is swapping of crypto truly free on crypto exchanges? Why does my dollar value reduce after swap?

[King Belieal]

Most of the popular crypto exchanges like BINANCE, Bybit and others claim that swapping from one crypto to the other is free. But I observe that the dollar value of the token always reduce after the swap operation. Is crypto swap on crypto exchanges truly free?

 

[magnus2022]

Honestly, i have equally experienced such scenario where i swap and there is slight difference in my dollar value. Though, the difference is negligible therefore i do ignore it.

 

[Fidelia]

I really don't understand to expand my what happens that the dollar value of the crypto always reduces after the swap.

 

[Suba]

As far as I know, the only free fee is the exchange's admin fee. Even if you swap crypto, you'll be charged a blockchain fee and a spread fee. So, even though we often encounter some major crypto exchanges claiming no swap fees.

 

[Stardom22]

I think that service is not free of charge among the centralised exchanges for that matter. It's like there are some hidden costs being charged on that transactions

 

[Trush Jodie]

As far as I know, the only free fee is the exchange's admin fee. Even if you swap crypto, you'll be charged a blockchain fee and a spread fee. So, even though we often encounter some major crypto exchanges claiming no swap fees.

That particular admin fees? Is it charged by the exchange or by the blockchain? I would want to understand that. Why would an exchange claim no fees when it actually charges fees?

 

[Stardom22]

For me l have done the crypto swap thing for pretty sometimes but l never experienced things like transactions free or something 7

 

[Suba]

That particular admin fees? Is it charged by the exchange or by the blockchain? I would want to understand that. Why would an exchange claim no fees when it actually charges fees?

Blockchain fees, or gas fees, are payable by every crypto transaction, and vary depending on the blockchain. Centralized exchanges charge admin or platform fees, which vary by exchange. Crypto exchanges are not at fault, as they can only waive platform fees; they have no control over blockchain fees.

 

[Nomad]

Some exchanges offer free swap, but their prices differ. For instance, price on one exchange is not always same as in another exchange

 

[kit_hung]

You touched on an important point! Although token exchanges appear to be fee-free, there is often a price difference due to “spreads” or market fluctuations. This affects the final value. It is a good idea to research the terms and conditions of each platform before making an exchange. This understanding helps you make better financial decisions.

 

[Webster]

Blockchain fees, or gas fees, are payable by every crypto transaction, and vary depending on the blockchain. Centralized exchanges charge admin or platform fees, which vary by exchange. Crypto exchanges are not at fault, as they can only waive platform fees; they have no control over blockchain fees.

Suba's right; every major exchange - Coinbase, Crypto,com, Kraken, Robinhood, EToro, etc. - all charge some form of gas fees for every crypto transaction. I can't speak about the others offhand but I know Coinbase charges a gas fee whenever you swap one crpyto for another (I think its' 1% last I remember) and its' only when you swap cryptos'; there's no charge for buying/selling crypto (the only worry on the latter is whether you get short/long-term capital gains taxes on your sales).

 

[kit_hung]

You explained it very well! It’s true, blockchain fees are a part of every crypto transaction and are unavoidable. Platforms like Coinbase set their own internal fees, but they have no control over network fees. Knowing these differences helps you make better financial decisions. Keep learning and exploring!

 

[Trush Jodie]

Suba's right; every major exchange - Coinbase, Crypto,com, Kraken, Robinhood, EToro, etc. - all charge some form of gas fees for every crypto transaction. I can't speak about the others offhand but I know Coinbase charges a gas fee whenever you swap one crpyto for another (I think its' 1% last I remember) and its' only when you swap cryptos'; there's no charge for buying/selling crypto (the only worry on the latter is whether you get short/long-term capital gains taxes on your sales).

They should have let us know that there is some fee attached to crypto sway for instead of making us feel that crypto swap is completely free.

 

[Webster]

They should have let us know that there is some fee attached to crypto sway for instead of making us feel that crypto swap is completely free.

Far as I know, most of them (I know Coinbase says this) make it clear in their ToS that when you swap one crypto for another, there is a blockchain or gas fee for switching one crypto for another.

Its' akin to taking money out of one mutual fund in the TradFi world and putting it into another mutual fund; there's always a small fee associated with it.

 

[King Belieal]

Binance doesn't say anything about gas fees. They only say something about liquidity that might affect the final cost after the swap. For me, the difference is not always more than 4 cents or so to swap.