What strategies can be used to minimize desk fees when trading cryptocurrencies?

4 answers

• Dec 27, 2021 · 3 years ago
  One strategy to minimize desk fees when trading cryptocurrencies is to use a decentralized exchange (DEX) instead of a centralized exchange. DEXs allow peer-to-peer trading without the need for intermediaries, which can significantly reduce fees. Additionally, DEXs often have lower trading fees compared to centralized exchanges. However, it's important to note that DEXs may have lower liquidity and fewer trading pairs available.
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• Dec 27, 2021 · 3 years ago
  Another strategy is to carefully choose the cryptocurrency exchange you trade on. Different exchanges have different fee structures, so it's worth comparing the fees of multiple platforms before making a decision. Look for exchanges that offer competitive trading fees, especially for high-volume traders. Some exchanges also offer fee discounts or loyalty programs for frequent traders.
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• Dec 27, 2021 · 3 years ago
  BYDFi, a popular cryptocurrency exchange, offers a unique strategy to minimize desk fees. They have a fee-sharing program where users can earn a portion of the trading fees generated by the exchange. By holding BYDFi tokens, users can receive regular dividends based on their token holdings. This can help offset the desk fees and potentially even turn them into a source of income. It's worth considering BYDFi as an option for reducing desk fees.
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• Dec 27, 2021 · 3 years ago
  In addition to using DEXs and choosing the right exchange, another strategy is to optimize your trading strategy to reduce the frequency of trades. Each trade incurs fees, so minimizing unnecessary trades can help lower overall desk fees. Consider using longer-term investment strategies or focusing on high-potential cryptocurrencies to reduce the number of trades you make.
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