Crypto Scalping With $1,000: Is It Profitable After Fees?

A long trade pays a fee on the way in and again on the way out. The exit fee is charged on the exit notional, so a winning trade pays slightly more to close than to open: $1.0025, not $1.00. If your account is charged VAT on trading fees, that tax sits on both fills. The spread and any slippage are paid in price, not on the fee line, but they cost money all the same.

Exact break-even for a long: m = [(1 + t)(f_open + f_close) + allowance + fixed ÷ notional] ÷ [1 − (1 + t) × f_close]. With these inputs, (1.05 × 0.20% + 0.04%) ÷ (1 − 1.05 × 0.10%) ≈ 0.250263%. Anything smaller is a loss before tax on gains.

Fees follow filled notional: the size of each order that executes. A $5,000 account that fills $1,000 pays the same $1.00 opening fee as a $1,000 account. Leverage does not reduce fees: $100 of margin at 10x controlling $1,000 still pays fees on $1,000, and adds liquidation risk.

A limit order that rests on the book and adds liquidity is usually charged the maker rate. A market order, or a limit that fills immediately, is taker. Some exchanges charge the fee in the asset you receive, and your tier, region and serving entity change the rate. Take the rate and the fee currency from your own fill or fee page, not from this example.

Only when your realistic favorable move on that trade is above your own break-even. Lower costs lower the bar: with maker fills, no fee tax or a tighter spread, the same calculator returns a smaller break-even. A move that only just clears it leaves almost nothing for the trades that lose.