50 break-even trades on Bittrex = down 22.14%, 50 break-even trades on Binance = down 4.88%

Most crypto trading sites have a 0.25% fee on trades. This seems reasonable, especially when you compare it to traditional stock trading.

However, Binance made a splash a few months back when they first launched, and undoubtedly, the low fee structure has helped propel them to a user base well over 2 million.

This lower fee structure, when compounded through multiple trades, allows for substantially more profits for the trader. Simply because the 'tax' on trading has decreased.

But let us look just how much of a difference 0.05% and 0.25% can have.

For these examples I will be using $100 to start and assume every trade uses the full balance and is a break even trade, selling for the same price as we bought. This will allow for an easier visual for the compounding %.

In the 1st example, we will make 10 buys and 10 sells on Bittrex at a 0.25% trading fee. #'s shown are the remaining account balance after the trade.
B = Buy, S = Sell

Start with $100
B1 = $99.75
S1 = $99.50
B2 = $99.25
S2 = $99.00
B3 = $98.76
S3 = $98.51
B4 = $98.26
S4 = $98.02
B5 = $97.77
S5 = $97.53
B6 = $97.28
S6 = $97.04
B7 = $96.80
S7 = $96.56
B8 = $96.31
S8 = $96.07
B9 = $95.83
S9 = $95.59
B10 = $95.36
S10 = $95.12

In the 2nd example, we will make 10 buys and 10 sells on Binance at a 0.05% trading fee. #'s shown are the remaining account balance after the trade.
B1 = $99.95
S1 = $99.90
B2 = $99.85
S2 = $99.80
B3 = $99.75
S3 = $99.70
B4 = $99.65
S4 = $99.60
B5 = $99.55
S5 = $99.50
B6 = $99.45
S6 = $99.40
B7 = $99.35
S7 = $99.30
B8 = $99.25
S8 = $99.20
B9 = $99.15
S9 = $99.10
B10 = $99.05
S10 = $99.00

In the first example on Bittrex, after starting with $100 and making 10 break even trades, you have $95.12 remaining

In the 2nd example on Binance, after starting with $100 and making 10 break even trades, you have $99.00 remaining.

10 trades is not a lot, and you already can start to see just how much more $ Bittrex makes off the trader when compared to Binance.

But, if we take it a few steps further, it becomes even more apparent the mistake we could be making by not thinking about trading fees.

Below are the totals after 20, 30, 40 and 50 break even trades for both examples.

For Bittrex:
S20 = $90.48
S30 = $86.06
S40 = $81.86
S50 = $77.86

For Binance:
S20 = $98.02
S30 = $97.04
S40 = $96.08
S50 = $95.12

It starts to become painfully obvious that the more active you trade, the more important it is to focus on trading fees and how they will effect you long term.

I hope this helps some of you make a lot more money!

Here is my Binance referral link, much appreciated if you use it to sign up!
https://www.binance.com/?ref=10201898

Feel free to ask any questions!