Fair-Bit.com Presents: Crypto trading and the costs involved: what is the best way to buy and sell?
If you’re keen to start making a profit on cryptocurrency trading, you need to get smart and quick with your crypto trading.
What you want, of course, is to keep your overhead costs as low as possible when you buy crypto currency to sell down the line for a profit. In this domain of crypto-trading, it’s important to be aware of all the different fees you could incur that could have a huge impact on your trades ‘ bottom line.
It is very crucial that you limit the expenses incurred when investing in well-established assets such as Bitcoin and altcoin assets for long term. While paying a 5-10 percent fee when buying or selling your Bitcoin that might not seem like huge deal at its current value, it is vital to look further down the line, especially if you believe in the long term success of these digital currency.
Many crypto experts think that one day, Bitcoin could be worth $100,000 per coin. If you were to buy one Bitcoin for $100,000 you would be charged in fees alone between $5,000-$10,000.
Given all of the above, let’s look at the most cost-effective options for trading cryptos and optimize potential returns.
What Do Cryptocurrency Exchanges Charge?
There are several potential fees to bear in mind when choosing a cryptocurrency exchange to conduct your trades. Some will charge a fee just to pass fiat money into your account, but most-fortunately-don’t. Trading fees, presented as a percentage of total value of your acquisition, will apply to your crypto transaction. The safest thing to do after you buy the digital currency you want is to transfer your money from the exchange to a stable, private crypto wallet.
Try to find an exchange which offers the lowest fees for withdrawal, either as a flat fee or as a percentage fee. You should find the Exchange that will allow you to withdraw crypto assets free or for as little as $1, while withdrawal fees for fiat currencies could be more like $2-$3.
Using Peer-To-Peer Trading Platforms
There are increasing numbers of peer-to-peer trading platforms for such cryptos as Bitcoin. Most of these platforms charge small flat fees every time they make a transfer via their system. These fees tend to be about 1-2 percent of the total value of the crypto assets you would like to purchase. But the fee structure leans heavily to those who own the assets and provide the liquidity. In addition to the flat fee for the platform, they have the power to set their own commission fees, so be aware of this and try to find genuine sellers who aren’t out there to rip off investors.
Before delving into any of the crypto trading methods mentioned above, be sure that you are sufficiently experienced to connect with these platforms first, and have a clear handling of each platform’s cost and security considerations before leaving your hard-earned cash.
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