This One Simple Crypto Trading Mistake Can Cost You Thousands
By David Thompson
Sep 15, 2021 12:55 PM EDT
Sep 15, 2021 12:55 PM EDT
This One Simple Crypto Trading Mistake Can Cost You Thousands(Image by Sergei Tokmakov Terms.Law from Pixabay ) (Credit: Getty Image)
Trading cryptocurrencies can be extremely profitable, but it can also cost you a lot of money if you aren't disciplined and, most importantly, informed. What most people don't realize is that you can lose money even when you are winning a trade.
By choosing the wrong exchange, you can end up paying higher fees or losing profits because the platform is slower. Or, even worse, losing part of your budget because the platform is too complicated for you to use - you don't know how to set a stop-loss limit and end up in a losing trade.
Below are some examples of how much choosing the wrong exchange can cost you.
Let's go back to early 2011 when Bitcoin was just $1 (one dollar). You decide to invest $100 in Bitcoin (excellent investment choice!), but you don't know which crypto exchange to use. Because it's 2011, there aren't many exchanges to start with and even fewer comparison sites. So, you decide to go with platform A. You buy Bitcoin with your $100, but you also have to pay a 5% fee, ending up with 95 BTC.
You keep the 95 BTC for 10 years and sell them when Bitcoin reaches $63,000. Congratulations, you're a millionaire. Your Bitcoins are worth $5,985,000, but you still have to pay a 5% transaction fee, so you actually get $5,685,750. But what if you had used a comparison site back in 2011 and found out that platform B only had a 2% transaction fee?
You would've bought 98 BTC using platform B. Ten years later, you would've exchanged them for $6,174,000. After paying the 2% transaction fee, you would have been left with $6,050,520. That one simple mistake you made back in 2011 cost you $364,770. But what if you had $1,000 to invest? Or more?
Fees aren't the only things that can lower your profits. If you're a day trader, transaction speed is crucial.
Let's look at another example. You sign up with platform A and deposit $1,000, which you use to make at least 3 trades per day. But platform A is slow, and between the time you tell it to close a trader and when that order is finally executed, you lose 0.01% of your profit.
That might not look like much at first so let's start adding up the numbers. If you place 3 trades per day, that's 0.03% or $0.3. In a year, you can easily lose $90 (if you day-trade for 300 days), or 9% of your capital. Most day traders have bigger accounts; those 9% can easily translate into the difference between taking an amazing vacation or not.
Using a comparison website to find the best crypto exchange will probably help you increase your profit margins. Still, you should keep in mind not all comparison websites are created equal.
Many comparison pages or websites analyze each platform and place them into specific categories. That's why you'll end up seeing lots of recommendations like "best for beginners," "best for experts," "best for small accounts," etc.
But what do you choose when you're a beginner with a large account? Or an expert with a smaller account?
This is where Sortter comes in! We know that each trader is unique and has specific needs. That's why we're not just recommending platforms that are good for a certain type of trader. Instead, we created a set of onboarding questions that help us find the best crypto exchange for your specific needs.
Let's imagine that both you and your friend both want to get into crypto trading but have no prior experience. Even though you are both beginners, one would benefit more from using platform A while the other from using platform B.
If you want to start trading crypto, or you just want to make sure that you're using the best platform, visit our website right away and answer our simple questionnaire. Once you've answered all our questions, our advanced algorithm will do its magic and show you which exchange is best suited for your needs.
All it takes is a couple of minutes of your time! Who knows; they might save you from potentially winning an extra $364,770 when investing in the next Bitcoin.
Start now by finding the best crypto exchange for you!
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