Where is it better to trade cryptocurrency: commissions, taxes, verification

Trading cryptocurrency has long ceased to be something unusual - now this activity is available to almost everyone.

But choosing the platform where you will buy and sell cryptocurrency is of key importance, so this issue should be approached with the utmost seriousness.

The right choice will determine not only your income, but also your security, the size of the commission, the possibility of withdrawing funds, and even whether you will have questions from the tax authorities later.

Some platforms are convenient but expensive. Others are profitable but require complex verification. At the initial stage, it is important to understand where it is more profitable and easier to trade.

Classic crypto exchanges

There are centralized and decentralized crypto exchanges. Each type has its own characteristics.

Centralized exchanges (CEX) are the most popular ones, such as Binance , Bybit, OKX, MEXC.

Pros:

• Low fees - around 0.1% per trade (may be reduced when using an exchange token).
• User-friendly interfaces, mobile applications, support service.
• Possibility of deposit and withdrawal in fiat currency.

Minuses:

• Mandatory verification (passport, selfie, proof of address).
• Reporting to tax authorities (in EU countries and other regulated jurisdictions).
• Storing funds on the exchange carries the risk of being blocked or hacked.

Decentralized exchanges (DEX) - work directly through a crypto wallet without registration, for example Uniswap, PancakeSwap.

Pros:

• Complete anonymity, no verification.
• The wallet is completely under the owner’s control – no one can block funds.
• There is no centralized storage of assets.

Minuses:

• Commissions are higher (from 1% and more + network commission).
• No fiat currency support.
• Limited choice of tokens and weak liquidity in some pairs.
• Lack of technical support and protection in case of an error.

Stock Brokers: MetaTrader and CFD

Brokers allow trading cryptocurrency through platforms like MetaTrader 4/5. This is not a direct purchase of cryptocurrency, but trading contracts for difference (CFD).

Pros:

• Leverage for cryptocurrencies up to 1:100 and higher.
• Very low commissions - from 0.01% (in the form of spreads).
• No verification required with some brokers.
• Lack of reporting to tax authorities (in most jurisdictions).

Minuses:

• When transferring a position overnight, a swap is charged - a commission of about 0.05% per day.
• You do not own cryptocurrency, you only earn on its rate.
• You can't withdraw cryptocurrency to an external wallet - you can only close the transaction and receive fiat.

This format is especially convenient for active traders who open many trades during the day.

Revolut: convenient, but very expensive and controlled

The Revolut platform allows you to buy cryptocurrency directly in the mobile app. This is convenient for beginners and those who already use Revolut as a bank.

Pros:

• All in one: mobile banking and crypto purchase.
• Simple and fast purchase without the need to understand terminals.

Minuses:

• Commissions up to 6% - one of the highest on the market.
• Full transfer of data to tax authorities.
• Does not work in all countries.

Revolut is only suitable for a trial purchase of a small amount; it is not profitable for regular trading.

The choice of a platform for trading cryptocurrency largely depends on your goals and trading style.

If you are planning to invest long-term, it is best to use centralized exchanges like Binance or OKX - they offer stability, user-friendly interfaces and access to a large number of coins.

For those who prefer active trading and want to use leverage, crypto CFD brokers - for example, through the MetaTrader platform.

But if simplicity is important to you and everything should work “out of the box”, then you can consider Revolut, although it is worth remembering its high fees and withdrawal restrictions.

Whichever method you choose, it is important to understand the fees, taxes in your country, and verification conditions in advance. This will help you avoid unpleasant surprises and save your money.