How to avoid Bitmart fees?

Trading on cryptocurrency exchanges like Bitmart can get expensive, especially if you don’t understand the fee structure. While Bitmart fees are lower than some competitors, there are still ways to reduce your trading, deposit, withdrawal and network fees. This guide will explain Bitmart’s fee schedule and provide tips to legally minimize fees.

Understand Bitmart’s Fee Structure

To avoid fees on Bitmart, you first need to understand how their fee schedule works. Bitmart uses a maker-taker model to calculate trading fees.

How the Maker-Taker Model Works

In the maker-taker model, market makers (who provide liquidity) get paid a rebate on trades, while market takers (who take liquidity) are charged a fee.

• Maker fee: Payable when adding liquidity to the order book with a limit order. Makers are paid a rebate on trades for providing liquidity.
• Taker fee: Payable when removing liquidity by filling an order on the book. Takers pay a fee for taking liquidity.

The maker-taker system incentivizes placing limit orders which benefits market liquidity. The more active you are providing liquidity, the more you can reduce your trading fees.

Bitmart Trading Fees

Bitmart’s standard trading fees are 0.2% for makers and 0.2% for takers. The maker rebate and taker fee applies to all spot trading pairs. Margin trading pairs have a 0.1% rebate for makers and a 0.1% fee for takers.

There are no deposit fees on Bitmart. Withdrawal fees vary by cryptocurrency, ranging from 1-5 Bitmart tokens.

Now that you understand Bitmart’s basic fee structure, here are some tips to reduce your trading, deposit and withdrawal fees.

Use Bitmart Token (BMX) to Pay Fees

Holding and using BMX for fees can significantly reduce costs.

• BMX holders receive a 25% discount on trading fees when fees are paid in BMX.
• Holding a minimum 500 BMX also unlocks reduced maker and taker fees based on your 30-day trading volume. With 50 BTC or more in volume, fees can be as low as 0%.

Buying and holding BMX is one of the best ways to lower your Bitmart trading fees in the long run.

Take Advantage of Promotions and Discounts

Bitmart runs frequent promotions, contests and fee waivers to incentivize trading activity.

• Check for discounted and free trading promotions, especially when new assets are listed.
• Participate in referral and affiliate programs to earn BMX rewards and trading fee waivers.
• Take advantage of occasional promotions that reimburse deposit/withdrawal fees.

Actively look for promotional discounts before depositing or trading to minimize fees.

Choose the Right Trading Pair

All trading pairs on Bitmart are not made equal when it comes to fees.

Class A, B and C Trading Pairs

Trading pairs fall into three classes based on liquidity:

Class A) High liquidity pairs like BTC/USDT with the lowest fees.

Class B) Medium liquidity pairs like ETH/USDT with mid-level fees.

Class C) Low liquidity pairs like LOOM/ETH with the highest fees.

Choose Class A pairs whenever possible to benefit from the lowest maker and taker fee rates.

Look at Rebates and Discounts

Certain trading pairs have special rebates or discounted fees. For example:

• BMX pairs have a 0.08% rebate for market makers.
• Newly listed pairs often have heavily discounted or zero fees for a limited period.

Consider fee discounts and maker rebates when selecting a trading pair.

Optimize Your Trading Strategy

How you execute trades also impacts fees. Use these tips to optimize your trading strategy:

Use Limit Orders Over Market Orders

Market orders fill immediately at the best available ask, resulting in taker fees. Limit orders rest in the order book until filled by a taker order, earning the maker rebate.

Whenever possible, use limit orders over market orders to earn maker rebates and pay fewer fees per trade. The only exception is when you need an immediate fill during periods of high volatility.

Avoid Unnecessary Trades

Every single trade costs fees. Avoid excessive speculative trades and overtrading. Plan your positions in advance, and only trade when you have a high-probability setup or are rebalancing your portfolio.

Reducing the quantity of trades is an easy way to minimize your overall trading expenses.

Avoid High Network Fees

Cryptocurrency network fees are separate from Bitmart’s trading fees, charged by miners for processing blockchain transactions. They vary based on the digital asset.

Choose Low Fee Cryptocurrencies

Certain cryptocurrencies have significantly higher network fees, like Bitcoin and Ethereum due to their blockspace being in high demand.

Opt for low network fee coins like Litecoin, Bitcoin Cash, Dash or Nano when depositing or withdrawing. This saves substantially on blockchain transfer fees.

Time it Right

Network fees fluctuate based on congestion and traffic. Avoid moving Bitcoin when the mempool is full, usually on weekends. For optimal timing, check fee estimators like BTC.com.

Making on-chain transfers when activity is lower reduces the bitcoin fees paid to miners.

Withdraw During Off-Peak Hours

Bitmart charges a fixed withdrawal fee depending on the digital asset being transferred out. This fee is lowest when the exchange is less active.

How Withdrawal Fees are Calculated

Withdrawal fees are adjusted dynamically based on the current load on the exchange’s reserves. They tend to be lowest during off-peak trading hours when fewer users are making withdrawals.

Minimize Fees by Withdrawing Later

The daily peak period on Bitmart is normally between 04:00 UTC and 12:00 UTC.

By making withdrawals outside peak hours, you can save substantially on withdrawal fees. The savings will depend on the asset, but avoiding peak periods is an easy way to lower withdrawal costs.

Consider Other Exchanges

While Bitmart offers low trading fees, it may not be the most cost-effective exchange for your specific trades.

Compare Fees

Every exchange has a different fee schedule. Compare Bitmart’s fees to competitors like Binance, KuCoin and Crypto.com before funding your account.

For large volume traders, Centralized Exchanges (CEX) offer lower fees while Decentralized Exchanges (DEX) are better for privacy. Evaluate both CEX and DEX platforms to find where you can maximize your savings.

Factor in Other Costs

Don’t look just at trading fees. Consider deposit/withdrawal charges, currency conversion rates and other expenses. An exchange with higher trading fees could still be cheaper overall.

Finding the right balance of fees, liquidity, security and features takes research. Don’t just assume Bitmart has the lowest fees for all traders.

Deposit and Withdrawal Fees Table

For quick reference, here are Bitmart’s general deposit and withdrawal fees as of October 2022:

Crypto	Deposit Fee	Withdrawal Fee
Bitcoin (BTC)	0%	0.0005 BTC
Ethereum (ETH)	0%	0.01 ETH
Tether (USDT)	0%	10 USDT
Litecoin (LTC)	0%	0.001 LTC
Ripple (XRP)	0%	0.25 XRP
Bitcoin Cash (BCH)	0%	0.0001 BCH

These can change occasionally so always verify the latest charges before depositing or withdrawing.

Conclusion

By fully understanding Bitmart’s fee structure, trading strategically, optimizing transfers, and shopping around, cryptocurrency users can significantly reduce expenses. While Bitmart already offers competitive fees compared to many other popular exchanges, these tips can help you save even more on trading, deposits and withdrawals.

Monitoring your trading activity, finding fee discounts, selecting the right coins and timing transfers during low congestion are some of the top ways to legally minimize your costs on Bitmart and maximize your profitability.

FAQ

How can I avoid paying high fees on Bitmart?

The main ways to avoid high fees on Bitmart are to use BMX tokens for discounted trading fees, use limit orders instead of market orders, withdraw during off-peak hours, and compare Bitmart’s fees to other exchanges before trading.

What are some fee discounts available on Bitmart?

Bitmart offers occasional free trading promotions, opportunities to earn BMX tokens for lower fees, referral bonuses, and maker rebates up to 0.1% by providing liquidity.

What are the cheapest trading pairs on Bitmart?

The Class A pairs like BTC/USDT tend to have the lowest maker and taker fee rates on Bitmart. Pairs with promotional discounts can also have zero or minimal trading fees.

How can I save money on cryptocurrency withdrawal fees?

Withdrawing during off-peak hours is the easiest way to reduce Bitmart withdrawal fees. Also, choose coins with lower network fees like Litecoin when moving assets off the exchange.

Why is it important to understand the maker-taker fee model on Bitmart?

Understanding maker and taker fees lets you optimize your trades to earn rebates as a market maker, lowering your overall trading expenses on Bitmart.

How often does Bitmart change their fees?

Bitmart periodically adjusts their fee schedule, so it’s important to regularly check for updates. However, trading, deposit and withdrawal fees are not known to fluctuate frequently.

Can I get around Bitmart withdrawal fees?

No, the blockchain withdrawal fees cannot be avoided as they are intrinsic to moving assets on-chain. However, you can minimize withdrawal costs by timing transfers properly and selecting cheaper cryptocurrencies.

What fee information should I compare between exchanges?

When comparing fees, look at trading, deposit and withdrawal charges along with other costs like currency conversion rates. Consider the overall expense for your usage pattern.

How can I maximize my profit when trading on Bitmart?

Using limit orders, minimizing trades, holding BMX, participating in promotions, selecting low fee pairs, and withdrawing during off-peak times will all maximize your profitability when trading on Bitmart.