02 Tax Burn Mechanism Implemented

Etoro

WEB: 1% Fee Added to Market Price

0.2% Tax Burn Mechanism Implemented

eToro, a popular cryptocurrency exchange, has announced that it will be implementing a 0.1% operational fee on all trades. This fee will be added to the market price of the asset, resulting in a loss in the position as soon as it is opened. The move comes after Terra's implementation of a 0.2% tax burn mechanism, which is designed to reduce the supply of the LUNA token and increase its value.

In addition to the 0.1% operational fee, eToro also charges fees for transferring crypto and using the eToro Money crypto wallet. These fees vary depending on the asset and the type of transaction. For example, transferring Bitcoin (BTC) to an external wallet costs 0.0005 BTC, while using the eToro Money crypto wallet to buy or sell cryptocurrencies costs 1%.

eToro's decision to implement these fees has been met with mixed reactions from the cryptocurrency community. Some users have expressed concerns that the fees will make it more expensive to trade cryptocurrencies on eToro, while others have argued that the fees are necessary to cover the costs of operating the exchange.

Conclusion

eToro's implementation of these fees is a reminder that cryptocurrency trading is not without its costs. However, it is important to note that eToro is not the only exchange that charges fees for trading cryptocurrencies. In fact, many exchanges charge similar or higher fees. Therefore, it is important to do your research and compare fees before choosing an exchange.

Cryptonews