The four structures
"Referral bonus" covers four arrangements with meaningfully different economics. Identify which one you are looking at before deciding whether it is worth anything.
| Structure | Who is paid | When | What it means for you |
|---|---|---|---|
| Referrer only | The person sharing | On your signup or first trade | Nothing for you. Check the public promotion instead. |
| Both parties | Both | Usually after a qualifying action | The best case — worth using if the terms are clean |
| Volume-gated | Either or both | Only after a trading-volume threshold | Frequently pays nobody. See below. |
| Ongoing fee split | The referrer, continuously | Every trade you make, indefinitely | Costs you nothing directly — but changes their incentive |
The volume-threshold catch
This is where most referral programmes quietly fail to pay, and the mechanism is worth understanding because the marketing never mentions it.
A programme advertises, say, "$50 for you and $50 for your friend". Buried in the terms: the reward credits once the referred account has traded a certain cumulative volume within a certain window. If that threshold is meaningfully above what an ordinary user does — and it usually is — the reward never triggers for either party.
Everybody has behaved honestly. The terms were published. The advertised number simply described an outcome that, for most participants, does not occur.
What to look for in the terms
- Is there a volume threshold? If yes, compare it against what you realistically intend to trade. If it is higher, treat the reward as unlikely.
- Is there a time window? "Within 30 days of signup" turns a plausible threshold into an implausible one.
- Is the reward cash or credit? Fee credit cannot be withdrawn — the same distinction that runs through every welcome offer.
- Is your country excluded? Referral programmes carry exclusion lists like any other promotion.
- Must the code be entered at signup? Almost always yes, and almost never applicable retroactively.
- Does it conflict with the public promotion? Occasionally you must choose. Compare both.
Who is paying whom
A short section on something this industry discusses less than it should, and which applies to us as much as to anybody.
An ongoing fee split pays the referrer a percentage of your trading fees for as long as you keep trading. That does not cost you anything directly — it comes out of the platform's revenue. What it does is give the person who recommended the platform a continuing financial interest in how much you trade.
That is not sinister and it is worth knowing. Advice from somebody paid per trade you make is not the same as advice from somebody paid nothing, even when both are given in good faith.
Using someone else's code
Before you sign up through a referral link
- Compare it against the public promotion. Sometimes the openly advertised welcome offer is better than the referral, and you may not be able to have both.
- Check the reward is for both parties, not just the referrer. If it pays only them, you gain nothing by using it.
- Read the trigger condition. Signup-triggered: probably fine. Volume-gated: assume it will not pay.
- Enter it at signup. Retroactive application almost never works.
- Verify the platform independently. A referral link is a recommendation from somebody with an incentive. Check the legal entity on a register — NMLS for the US, ESMA for the EU.
- Never use a code that requires you to send crypto first. That is not a referral — see no-deposit bonuses.
Sharing your own
Two rules, and the first one is not optional if you want to stay on good terms with people.
1. Disclose it
Say plainly that the link pays you. "I use this and the link gives me a small amount if you sign up" takes four seconds and removes the entire problem. Sending a friend a link that earns you money without mentioning it converts a recommendation into an advertisement — and if the platform later disappoints them, the undisclosed incentive is what they will remember, not the recommendation.
In many jurisdictions, undisclosed affiliate promotion to the public is also a regulatory matter rather than merely an etiquette one. The FTC has been explicit that material connections must be disclosed.
2. Do not recommend what you would not use unpaid
The test is simple: would you send this link to a friend if it paid you nothing? If yes, share it and disclose. If no, the payment is doing the recommending, and you are converting your credibility into a small commission at your friend's expense.
Related: how to read any welcome offer, verifying a promo code, how to get free crypto, and the bonuses hub.
Crypto referral codes: FAQ
How do crypto referral programmes work?
Someone shares a link or code; you sign up through it; one or both of you receive something. The variable that decides whether it is worth anything is when the reward triggers — many only pay after the referred person hits a trading-volume threshold they may never reach.
Who actually gets paid?
It varies, and you should check before assuming. Some programmes pay only the referrer. Some pay both. Some pay the referrer a percentage of the referee's trading fees on an ongoing basis. That last structure means the person sharing the link earns more the more you trade, which is worth knowing about the advice you are being given.
Do I lose anything by using someone's referral code?
Usually nothing — the reward comes from the platform's marketing budget, not from your balance. Occasionally a referral code and a public welcome promotion are mutually exclusive, in which case using the code costs you the better offer. Compare both before deciding.
Why do so many referral codes not work?
Single-use codes already consumed, expired campaigns, country restrictions, or the code must be entered at signup and cannot be applied afterwards. That last one catches most people — a referral applied to an existing account generally does nothing.
Are referral rewards taxable?
Frequently yes, and this catches people who treat them as discounts. Crypto received as a referral reward can be a taxable receipt in many jurisdictions at its value on the day, and it always carries a cost basis for later. Keep a record — see crypto gift tax rules.
Should I share my own referral code?
Disclose it if you do. Sending friends a link that pays you, without saying so, converts a recommendation into an advertisement — and if the platform later disappoints them, the undisclosed incentive is the part they will remember. Say "this pays me a small amount" and the awkwardness evaporates.
Sources and further reading
Figures on this page were checked in August 2026. Fees, country lists and promotions change without notice — always confirm on the operator's own site before you pay.
- FTC — disclosures 101 for online advertisers — material connection disclosure requirements
- CEX.IO — promotions and terms — an example of published qualifying conditions
- NMLS Consumer Access — verify a platform independently of whoever referred you
- IRS — digital assets — US treatment of crypto received as a reward