There are a few different scenarios you should be thinking about when calculating your investment exit fees with our crypto calculator app:
Gas Fees: If you are trading onchain, you will need to keep gas fees in mind. Gas fees represent the price a web3 wallet has to pay to execute a transaction on a decentralized blockchain network. For popular chains, like Ethereum, these fees can vary anywhere from a few dollars to hundreds of dollars depending on the current state of the network. Less popular networks will have lower fees, but may not have as many investment opportunities as more popular networks.
Gas fees can vary widely on a minute-by-minute basis, but by checking historical gas price data you should be able to forecast what you should be expected to pay to make a transaction on your blockchain of choice.
Trading Fees: If you are trading on a centralized exchange like Binance or Coinbase, you will need to pay fees to make your trades. Fees can vary depending on the size of your order, the type of order you are making, and what coins you are trading. Consult with the documentation of your exchange of choice to find this information when using our crypto profit calculator app.
Onboarding/Offboarding Fees: If you are planning to cash out crypto gains into a fiat currency, or you are looking to put cash into crypto, you should be mindful of the fees that may be charged for these services. Most companies that conduct fiat-to-crypto conversions charge fees for this service. Depending on the type of transaction and your geographic area of service, these fees can vary widely. Always be mindful of how much you will need to pay if you plan to undertake conversions between fiat and crypto.
Keep in mind, there are stablecoins on the blockchain that allow you to cash out your profits to synthetic fiat currencies (USDC & USDT for example). However, you also still may be charged a fee when converting stablecoins to traditional fiat currency in a bank account.
In addition, stablecoins have different underlying risks than traditional fiat currency. Always do your own research when investing in new tokens and be aware of the risks. Our crypto and Bitcoin profit calculator can help you forecast potential returns, but it is up to you to protect those returns.