How to calculate the true cost of buying crypto
The five cost layers in every crypto purchase, and how to add them up to compare exchanges fairly.
The advertised fee is only one layer
Exchanges advertise their trading fee because it is usually the smallest number. The real cost of a purchase is the difference between the money you send and the market value of the crypto you end up holding.
The five layers
Trading fee: the commission on the trade, usually a percentage. Spread: the gap between the price you pay and the market mid price. Deposit fee: what the card or transfer costs. Conversion: the markup when your money is changed into a currency the exchange accepts. Withdrawal fee: what it costs to move the crypto to your own wallet.
Some layers are percentages and some are fixed amounts, so the cheapest exchange for a small purchase is often not the cheapest for a large one.
A worked example
Say you buy $1,000 of bitcoin with a card and withdraw it. A 0.1% trading fee is $1. A 0.25% spread adds $2.50, a 3% card fee adds $30, a 1.5% conversion adds $15 if your card is in another currency, and a network fee might add $5. The total is $53.50, or 5.35%, not 0.1%.
How to compare fairly
Use the same amount, coin, payment method and withdrawal network for every exchange, and include the layers that apply to you. That is what our calculator does, and it shows the source and check date of each figure.