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What Are Trading Fees and How Do They Work?

Learn what crypto trading fees are, how they’re calculated, and how to minimize them. Discover how Token Metrics’ AI tools can help you trade smarter and reduce costs.
Token Metrics Team
8 min
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If you’ve ever bought or sold cryptocurrency, you’ve likely noticed that exchanges charge trading fees. While these fees may seem small at first glance, they can add up significantly over time, especially for frequent traders.

Understanding how trading fees work is essential for maximizing your profits and choosing the right platform and strategy. In this guide, we’ll explain what trading fees are, how they’re calculated, the different types of fees, and how Token Metrics can help you minimize costs while optimizing your trades.

What Are Trading Fees?

Trading fees are charges imposed by cryptocurrency exchanges whenever you execute a trade—whether you’re buying, selling, or swapping digital assets.

  • Purpose:

    • They compensate exchanges for providing liquidity, security, and order-matching services.
    • They discourage spam orders that could overload the exchange.

Example:
If you buy $1,000 worth of Bitcoin with a 0.1% trading fee, you’ll pay $1 in fees for that transaction.

How Are Trading Fees Calculated?

Most crypto exchanges calculate fees based on:

  1. Trade Value (Percentage):

    • The most common model.
    • Fees are a percentage of the total trade amount (e.g., 0.1% per trade).

  2. Flat Fees:

    • Some platforms charge a fixed fee per trade, regardless of trade size.

  3. Tiered Fee Structures:

    • Frequent traders often benefit from lower fees when they reach certain monthly trading volumes.

Maker vs. Taker Fees

Many exchanges use a maker-taker model to incentivize liquidity:

  • Maker Fees:

    • You pay a lower fee (or sometimes nothing) when you add liquidity by placing a limit order that isn’t immediately matched.

  • Taker Fees:

    • You pay a higher fee when you remove liquidity by placing a market order that is filled instantly.

Example:
On Binance, makers might pay 0.08%, while takers pay 0.1%.

Types of Crypto Trading Fees

When trading crypto, you’ll encounter more than just trading fees:

1. Trading (Transaction) Fees

  • Charged when buying or selling crypto.
  • Often range from 0.05%–0.5% depending on the exchange.

2. Deposit Fees

  • Some exchanges charge when funding accounts via credit card, PayPal, or bank transfers.
  • Crypto deposits are typically free.

3. Withdrawal Fees

  • Charged when moving funds off the exchange.
  • Often fixed per withdrawal (e.g., 0.0005 BTC).

4. Network (Gas) Fees

  • Separate from exchange fees, paid to blockchain validators.
  • Ethereum and other networks can have high gas fees during peak demand.

Why Do Trading Fees Matter?

Even small fees can significantly impact your profits, especially if you trade often.

Example:

  • A day trader making 50 trades/month with a 0.1% fee per trade on $1,000 positions will pay $50/month in fees.
  • Over a year, that’s $600 lost to fees—before considering withdrawal or gas costs.

This is why reducing fees is crucial for active traders.

How to Minimize Trading Fees

1. Use Low-Fee Exchanges

Compare platforms—Binance, Bybit, and Kraken often offer competitive rates for high-volume traders.

2. Increase Your Trading Volume

Many exchanges lower fees as your monthly trading volume increases.

3. Use Limit Orders

Save on fees by acting as a maker instead of a taker whenever possible.

4. Pay with Exchange Tokens

Some exchanges offer discounts when fees are paid with their native token (e.g., BNB on Binance).

5. Optimize Your Trading Strategy with AI

Instead of making dozens of small trades, use data-driven insights from Token Metrics to make high-probability trades—reducing overall fee impact.

How Token Metrics Helps You Save on Fees

Token Metrics isn’t an exchange—it’s an AI-powered crypto research and trading platform designed to maximize your profits.

Here’s how it helps with trading fees:

1. AI-Powered Trade Optimization

Token Metrics provides bullish/bearish trading signals based on 80+ technical indicators, helping you enter fewer but higher-quality trades—minimizing unnecessary fees.

2. Trader & Investor Grades

Our proprietary grading system helps you identify top-performing cryptos, reducing guesswork and avoiding costly trial-and-error trading.

3. AI-Managed Indices

Instead of manually rebalancing portfolios (and paying multiple trading fees), use Token Metrics AI-driven crypto indices, which rebalance intelligently while keeping transaction costs low.

4. Narrative Tracking

Our AI detects emerging crypto narratives early, helping you position yourself before the market gets crowded—reducing the need for excessive short-term trading.

Practical Example: Using Token Metrics to Reduce Fees

Imagine you’re trading altcoins manually and make 20 trades/month.

  • At 0.2% per trade on $1,000 positions, you pay $40/month in fees.
  • With Token Metrics AI signals, you cut this down to 8 high-probability trades per month—reducing your fees by 60% while increasing win rates.

This is how data-driven trading saves both money and stress.

Final Thoughts

So, what are trading fees and how do they work? They’re the charges exchanges take for facilitating trades, withdrawals, and transactions—and while they may seem small, they can eat into your profits quickly.

The good news? You can minimize trading fees with the right strategies—and Token Metrics can help.

By providing AI-powered trading signals, long-term Investor Grades, and automated crypto indices, Token Metrics helps you reduce unnecessary trades, make smarter decisions, and maximize your returns—all while minimizing the impact of trading fees.

Whether you’re a beginner or advanced trader, using Token Metrics means trading smarter, not harder.

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About Token Metrics
Token Metrics: AI-powered crypto research and ratings platform. We help investors make smarter decisions with unbiased Token Metrics Ratings, on-chain analytics, and editor-curated “Top 10” guides. Our platform distills thousands of data points into clear scores, trends, and alerts you can act on.
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Token Metrics Team
Token Metrics Team

Recent Posts

Crypto Basics

Are Moonshots Only Meme Coins?

Token Metrics Team
8 min

Introduction: The Meme Coin Myth

When most people think “moonshot” in crypto, they think of meme coins like Dogecoin, Shiba Inu, or Pepe — volatile, viral, and often with no utility. While it’s true that meme coins have historically delivered explosive returns, they’re just one type of moonshot. In reality, some of the best moonshots are deeply technical projects with innovative real-world use cases.

In this blog, we’ll explore why moonshots go far beyond memes, the other types of high-potential assets you should be watching, and how to distinguish hype from substance in your moonshot hunt.

Why Meme Coins Became the Face of Moonshots

Meme coins dominate headlines and retail attention for good reason:

  • Low entry barriers – Often priced at fractions of a cent
  • Viral marketing – Driven by memes, humor, and community hype
  • Explosive gains – SHIB, DOGE, and PEPE all had 1,000x+ runs
  • Community-driven – Holders often act as evangelists

Because of these qualities, meme coins are often perceived as the only moonshots. But perception doesn’t equal reality.

The Reality: Many Moonshots Are Utility-Driven

Some of the most successful moonshot investments didn’t begin as memes — they were innovative, under-the-radar projects that grew into billion-dollar ecosystems:

None of these were memes — they were tech-focused moonshots.

Categories of Non-Meme Moonshots

Here are several non-meme sectors producing moonshot-level gains:

  1. AI Coins – e.g., Fetch.ai, Render, Akash
  2. DePIN (Decentralized Physical Infrastructure) – e.g., Helium, IoTeX
  3. RWAs (Real-World Assets) – e.g., Centrifuge, Goldfinch
  4. L2 & Interoperability – e.g., Starknet, Hyperlane, Axelar
  5. Privacy Coins – e.g., Namada, Secret Network
  6. Early-stage L1s – e.g., SEI, Monad

These projects combine visionary ideas with real-world applicability — and many began as stealth moonshots before going mainstream.

How to Spot Utility-Based Moonshots Early

Look for:

  • Unique narrative fit – Aligns with hot macro themes (AI, DeFi 2.0, Web3 infra)
  • Underexposed – Not yet listed on major CEXs or hyped by influencers
  • Backed by smart money – VC involvement or known crypto angels
  • Product roadmap – Testnet/Mainnet imminent or newly launched
  • Active GitHub or whitepaper – Real builders, not marketers

Meme coins may be powered by emotion — but utility moonshots are powered by execution.

Token Metrics Helps Spot Both Meme & Utility Moonshots

Token Metrics doesn’t just chase hype — it grades thousands of tokens using 80+ data points including:

  • Momentum and price trends
  • Community sentiment and buzz
  • GitHub commits and developer activity
  • Market cap ranking
  • AI-generated bull/bear signals
  • Smart contract risk analysis

This means you can discover both emerging meme coins and tech-driven moonshots based on real metrics — not just Twitter noise.

Can Meme Coins Still Be Valid Moonshots?

Yes — but they should be treated like short-term plays with proper risk management. When timed right (early launch, CEX rumor, meme trend), meme coins can 10x fast. But unlike utility tokens, meme coins often lack long-term sustainability unless they evolve (like DogeX or SHIB ecosystem).

Use tools like Token Metrics AI Signals to time entries and exits.

⚠️ Avoiding the Meme Coin Traps

Don’t confuse “meme” with “momentum.” Use data.

Conclusion: The Smart Moonshot Portfolio is Diversified

If your moonshot portfolio is 100% meme coins, you're gambling. If it’s 100% early L1s with no traction, you may be stuck waiting years. Smart investors build a balanced basket that includes:

  • Memes with momentum
  • Mid-cap undervalued alts
  • Undiscovered AI, RWA, and DePIN gems
  • Fundamental plays with strong tokenomics

Meme coins are just one path to the moon — don’t miss the others.

Crypto Basics

How Do I Find Moonshot Crypto Projects?

Token Metrics Team
8 min

Introduction: The Alpha is in the Early Entry

Everyone wants to catch the next 100x token before it explodes. The real trick isn’t riding the hype — it’s getting in before the hype begins. That’s where the real alpha is. Early entry into promising crypto moonshots gives you a massive edge, but how do you consistently find these hidden gems before they go viral?

This guide breaks down where early-stage opportunities hide, what tools to use, and how smart investors separate real moonshots from noise.

🧭 What Does “Early” Really Mean?

Being early doesn’t mean buying after it’s on Coinbase or featured by YouTubers. It means:

  • Before centralized exchange listings
  • Before influencers mention it
  • Before 1,000 holders
  • Before mainstream Twitter threads and Reddit buzz

Getting in early usually involves doing the work—but tools and tactics can help.

🔍 Where to Discover Moonshot Projects Early

1. Crypto Twitter (X)

The fastest-moving crypto intelligence hub. Look for:

  • Threads from micro-cap hunters
  • “Low cap gems” lists
  • VCs and founders talking about new trends
2. Token Launch Platforms

These platforms often list early-stage projects before they go mainstream:

  • CoinList
  • DAO Maker
  • Polkastarter
  • Bounce
3. Reddit & Discord Alpha Groups

Subreddits like r/cryptomoonshots and r/AltcoinDiscussion are full of degens sniffing out new coins. Just beware of shills.
Private Discords like Token Metrics or paid alpha communities provide filtered insights from experts.

4. DEX Tools & On-Chain Analytics
  • Use DEXTools to track newly listed pairs.
  • GeckoTerminal and Birdeye are great for Solana and other chains.
  • TokenSniffer can help check smart contracts and detect rugs.
5. Token Metrics Platform

The Token Metrics AI tools analyze thousands of tokens and surfaces early movers based on:

  • Momentum
  • AI grades
  • Social & on-chain trends
    Perfect for filtering low-cap coins based on data, not hype.

🧠 What to Look For in an Early-Stage Moonshot

If it checks 3–5 of these boxes and you’re early? It might be worth a bet.

🔄 Early Signals That a Token May Explode

Watch out for these signals across Twitter, Telegram, and DEX listings:

  • Price up + volume surging + no CEX listing
  • New partnerships or ecosystem integrations
  • Dev activity visible on GitHub
  • Listings on Token Metrics AI indices
  • Whale wallet accumulation on-chain

Example: If you see a project listed on GeckoTerminal, surging in volume, mentioned in a Token Metrics Bullish Signal — that’s a sign to dig deeper.

🧰 Tools Every Moonshot Hunter Should Use

Combine tools to validate your picks from multiple angles.

📈 Case Study: How Early Detection Pays Off

Let’s say you spotted Bonk (BONK) on Solana in December 2022:

  • < $1M market cap
  • Listed on Birdeye first
  • Strong meme narrative (Solana’s Shiba)
  • Picked up by Token Metrics AI scanner
  • Went viral on Solana Twitter before CEX listings

If you got in pre-hype, your 10x to 50x gains were very possible.

⚠️ Red Flags to Avoid

Even if you’re early, avoid traps:

  • Anonymous devs + no roadmap = high risk
  • Too good to be true tokenomics = pump-and-dump
  • Overly hyped on day 1 = exit liquidity trap
  • Telegram full of bots = engagement farming
  • No working product = vaporware

Early doesn’t always mean safe. Do your due diligence.

📊 How Token Metrics Helps You Get In Early

With the Token Metrics platform, you can:

  • Scan coins with low market cap but high AI ratings
  • Filter coins by sector, grade, momentum, volume
  • See bullish and bearish signals before the crowd
  • Get weekly Moonshot reports from analysts
  • Track early-stage index performance for emerging themes

That’s how you go from guessing to investing.

🧠 Final Thoughts: Early Access = Edge

In crypto, timing is everything. If you can consistently find promising moonshots before they hit the mainstream, the upside is massive. But it takes strategy, tools, and a data-first mindset.

By combining on-chain signals, AI analysis, narrative momentum, and community validation, you can sharpen your edge — and maybe catch the next Shiba, Pepe, or Solana before the crowd.

Crypto Basics

What is a Moonshot in Crypto?

Token Metrics Team
6 min

What Does “Moonshot” Mean in Crypto?

In the fast-paced world of cryptocurrency, a “moonshot” refers to a crypto project or token that has the potential to achieve explosive, exponential gains — often 10x, 50x, or even 100x returns. The term originates from the phrase “to the moon,” a popular crypto meme used when the price of a coin skyrockets. Moonshots are speculative plays, typically centered around new, low market-cap projects that haven’t yet caught the mainstream’s attention.

While the rewards can be life-changing, the risks are equally significant. In this guide, we’ll explore what makes a crypto asset a moonshot, how to spot one early, the risk/reward tradeoff, and how you can approach moonshots like a pro.

What Qualifies as a Moonshot?

A moonshot crypto token isn’t just any new coin — it’s one with specific characteristics that make it ripe for explosive growth, including:

  • Low market capitalization – Often under $50 million.
  • Early-stage narrative – Not yet listed on major exchanges or hyped by influencers.
  • Strong tokenomics – Well-designed supply, utility, and incentives.
  • Community momentum – Organic engagement and growing social buzz.
  • Unique value proposition – Solving a real problem or aligning with a hot trend like AI, DePIN, RWA, etc.

In short, moonshots are asymmetric bets. You risk a small amount for the chance of a massive return.

Why Moonshots Attract Attention

Moonshots appeal to both degens and visionary investors alike for one key reason: life-changing upside. A $1,000 investment in a 100x coin could turn into $100,000. That level of ROI is hard to find in any other asset class.

And unlike large-cap coins like Bitcoin or Ethereum, where double-digit gains are celebrated, moonshots are expected to multiply in value several times over — often within months.

The Risk Profile of Moonshots

For all their upside, moonshots come with steep risks:

  • Volatility – Price swings of 30-50% in a day are common.
  • Rug pulls and scams – Many new tokens are launched with malicious intent.
  • Low liquidity – It can be hard to enter or exit large positions.
  • Lack of transparency – Anonymous teams and unverified roadmaps are frequent.

Many moonshot projects don’t have sustainable business models, and some may never deliver a product. That’s why proper research and risk management are essential.

Real-World Examples of Moonshots

Here are a few historical examples of coins that were considered moonshots before they exploded:

  • Shiba Inu (SHIB) – Initially written off as a Dogecoin clone, it reached over $40 billion in market cap at its peak.
  • Axie Infinity (AXS) – From under $1 to $165 in 2021 during the NFT gaming boom.
  • Solana (SOL) – Started under $1 and reached over $250 during the bull run.

Each of these projects had early believers who saw the potential before the crowd caught on.

🛠️ How to Evaluate a Moonshot

Here are key areas to assess when evaluating a potential moonshot:

Pro tip: Use tools like Token Metrics AI Grades to scan hundreds of low-cap tokens and detect promising moonshots early using data-driven metrics.

Moonshots vs. Traditional Crypto Investments

If you’re a long-term investor, moonshots should make up only a small percentage of your portfolio.

🧩 Why Timing Matters

Moonshots are all about timing. Catching a token before it gets listed on major exchanges or gains influencer exposure is key. Once the herd finds it, the 100x opportunity is usually gone.

Best times to enter include:

  • Right after token generation (TGE)
  • During stealth launches or fair launches
  • Post-mainnet or major partnership announcement

💼 Should You Invest in Moonshots?

Only if you’re willing to lose what you invest. Moonshots are not for the faint of heart. They are ideal for small, high-risk allocations in your portfolio — think of them as lottery tickets with better odds, provided you do your homework.

To succeed in moonshot investing:

  • Diversify across 5–10 bets
  • Use stop losses or profit targets
  • Stay updated daily
  • Leverage data tools like Token Metrics

🔎 Final Thoughts: Moonshots are the Wild West of Crypto

Moonshots are where fortunes are made and lost. While they offer some of the most exciting opportunities in crypto, they require discipline, deep research, and a healthy risk appetite. Whether you're looking to turn $500 into $50,000 or simply want to understand what drives explosive gains in the crypto space, moonshots are a critical concept to grasp.

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