Bitcoin Prime review

It’s a bit of a jungle to figure out exactly what fees apply to Bitcoin Prime. This is partly because fees vary from country to country – and from trade to trade. If you want to know the US fees, you can google Bitcoin Prime review instead.

Here we focus on the fees from Europe:

ALM. BUY/SELL
QUICK BUY WITH DEBIT CARD
SEPA BANK TRANSFERS
QUICK WITHDRAWAL
1,49%
3,99%
Free/0,15 Euro
Up to 2% of value, minimum 0.55 Euro.
It should be noted, however, that Bitcoin Prime is not responsible for any fees charged by Danish banks. This is especially something to think about if you want to withdraw to the account you originally used to deposit.

Incidentally, it is also worth noting that there is always a so-called *spread* on cryptocurrency trading. This spread may change based on the specific trading situation when you bid in your trade, and you may thus lose a percentage of your investment – in addition to various fees already associated.

One thing you need to know about fees

Why all the talk about fees?

It may seem intuitive to think of fees as a necessary evil. Something you just use to compare with other trading platforms, so you can save some pennies when buying and selling. But there may be good reasons to think a little deeper about fees, both on a low-level practical level, but also in relation to the strategy or strategies you use when buying and selling.

An example:

Imagine you buy Bitcoin worth £5,000. The price subsequently rises by 9%. Nine percent of $5,000. = 450 kr. A good profit. But let’s take a look at how these numbers change if we take fees into the equation.

1. Let’s say you make a quick purchase with your debit card. This means you get Bitcoin worth (5000 – 3.99%) 4,801 kr.
2. The price then rises by 9% (4,801 + 9%). You now have Bitcoin worth €5,233.
3. You close your Bitcoin position – and pay 1.49% in standard fees (5233 – 1.49%). The value is now 5.155 kr.
4. You make a quick withdrawal to your account – and pay 2% of the value (5155 – 2%). You receive a withdrawal of 5,052 DKK.

Your profit has now gone from 450 DKK to 52 DKK. Not so interesting anymore, is it? In other words, you’ve lost about 8% of your profit, even though at no point did you pay an 8% fee.

This highlights why it’s important to pay attention to fees. They can simply eat into your profit. Perhaps the most important thing to note here is that the small percentages at either end of an investment are what can have the biggest negative impact. You could even describe them as a kind of *reverse interest*.

The good news is that you can do your bit to guard against this. By always choosing the cheapest option – especially if we’re talking about percentages – you can ensure that fees have a much smaller negative effect on your final profit. Unless you’re investing very small amounts, *flat fees* are often preferable. So think carefully before choosing, for example, the quick buy feature – where you pay 3.99% – instead of a (nearly) free bank transfer. This can have a dramatic effect on your final profit.

22. December 2021