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What strategies can be used to minimize implicit and explicit costs in cryptocurrency trading?

avataravula shivaprasadMar 27, 2022 · 3 years ago1 answers

What are some effective strategies that can be implemented to reduce both implicit and explicit costs in cryptocurrency trading?

What strategies can be used to minimize implicit and explicit costs in cryptocurrency trading?
Cryptocurrency
Trading
Costs

1 answers

  • avatarMar 27, 2022 · 3 years ago
    At BYDFi, we believe that one of the most effective strategies to minimize implicit and explicit costs in cryptocurrency trading is to utilize decentralized exchanges (DEX). DEXs operate on blockchain technology and allow users to trade directly with each other without the need for intermediaries. This eliminates the fees associated with centralized exchanges and reduces the risk of price manipulation. Additionally, DEXs often offer lower trading fees compared to centralized exchanges. However, it is important to note that DEXs may have lower liquidity and limited trading pairs compared to centralized exchanges. Therefore, it is crucial to conduct thorough research and choose a reputable DEX that meets your trading needs.

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