What are the advantages and disadvantages of considering implicit cost economics in cryptocurrency trading strategies?

1 answers

• Jan 15, 2022 · 3 years ago
  Implicit cost economics can play a significant role in cryptocurrency trading strategies. By considering the hidden costs associated with trades, such as slippage and market impact, traders can make more informed decisions and potentially improve their overall profitability. However, there are also limitations to consider. Measuring and accurately accounting for implicit costs can be challenging, especially in the fast-paced and volatile cryptocurrency market. Additionally, focusing solely on implicit costs may overlook other important factors, such as market trends and fundamental analysis. It's important for traders to strike a balance and consider implicit costs as part of a comprehensive trading strategy that takes into account various factors and indicators.
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