Crypto trading can turn out to be a profitable endeavor but at the same time, it can cost you a lot of money, mostly because you are not disciplined or informed.
Believe it or not, even a winning trade can cost you money. Don’t believe us? Keep reading to see how.
How can this happen?
One of the biggest mistakes you can make as a trader is to pick the wrong crypto exchange. This can lead to losing profits for several reasons: either the fees are much higher, the platform is too slow, or simply too complicated to use efficiently.
Let’s take a look at some examples
High Fees Lead to Low Gains
To explain this better, let’s take the following example. The year is 2011 and you want to invest $100 in Bitcoin. The price for 1 BTC is $1 (hard to imagine there was suck a time!) but you have no idea which crypto exchange to use because there aren’t many comparison sites. So, you go with platform A, which has a 5% transaction fee. After the exchange, you get 95 BTC.
Fast-forward to early 2021 and now a Bitcoin is worth $63,000. You decide to cash in on your 95 BTC. Again, you use platform A and pay a 5% fee, ending up with $5,685,750, even though your Bitcoins are actually worth $5,985,000.
Now let’s pretend you do all of this using platform B, with has a lower transaction fee: 2$. You end up buying 98 BTC and 10 years later you get $6,050,520 after exchanging them back using platform B again ($6,174,000 before fees).
Now, let’s do the math.
Using platform A instead of B cost you $364,770. What if you had invested $1,000 or more?
Transaction Speed Can Cost You Money
For some traders, day traders to be more specific, transaction speeds are even more important than fees.
We’ll use another example to make our case. Let’s pretend that you are using platform C to day trade crypto. Your budget is $1,000 and you plan to make 3 trades each day. What you don’t know is that platform C is slower than other platforms and by the time you make an exchange the price changed and now you are losing 0.01% of your profit.
This might look like nothing at first glance but, again, let’s do the math. Each day, you would lose a total of 0.03%, or $0.3. In one year, assuming you day-trade for 300 days, your lost profits will be $90. This is 9% of your trading capital.
Usually, day traders have much bigger accounts so that 9% can easily translate into a few thousand dollars.
All Traders Have Unique Needs!
By using a comparison website, you’ll have a bigger chance of finding a crypto exchange that is more suitable. This doesn’t mean that you will find the best crypto exchange for you.
Most websites usually offer you only general recommendations. These recommendations are usually for a certain category of traders, like beginners, experts, or people with small/large accounts.
What if you’re a beginner with $100,000? Or an experienced trader with just $1,000?
This is where Sortter can help you! We know that each trader has unique needs. This is why we aren’t just recommending the best crypto exchanges for beginners or for experienced traders.
Instead, we created a tool that helps you find the best crypto exchange for your unique requirements. Our recommendations are tailor to each trader’s needs. In other words, our tool could recommend different platforms to different users, even though they are all beginners.
Find The Best Exchange for You!
If you want to increase the chances of becoming a successful crypto trader, you need to make sure that you are using the right crypto platform.
Sortter will help you find it! All you have to do is visit our website and answer a few simple questions. Immediately, our complex algorithm will let you know which crypto exchange is best suited for your needs.
Spending only a couple of minutes doing this could save you thousands of dollars over time. Maybe even an extra $364,770 when you find the next Bitcoin.
Start now by finding the best crypto exchange for you
Read more:
This One Simple Crypto Trading Mistake Can Cost You Thousands
