Are there any risks associated with trading digital currencies on platforms that offer no commission?

3 answers

• Jan 01, 2022 · 3 years ago
  While trading digital currencies on platforms that offer no commission may seem like a great deal, there are still risks that traders should be aware of. One of the main risks is the lack of transparency. These platforms may not disclose how they make money, and there could be hidden fees or other costs involved. Additionally, platforms that offer no commission may have lower liquidity, which can result in slippage and difficulty executing trades at desired prices. Traders should also consider the security of these platforms, as they may not have the same level of protection as more established exchanges. It's important to do thorough research and consider these risks before trading on such platforms.
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• Jan 01, 2022 · 3 years ago
  Trading digital currencies on platforms that offer no commission can be tempting, but it's important to understand the potential risks involved. One risk is the possibility of price manipulation. Since these platforms make money through other means, they may have an incentive to manipulate prices in order to profit. Another risk is the lack of customer support and recourse. If something goes wrong with a trade or account, it may be difficult to get assistance or resolve the issue. Traders should also be cautious of platforms that offer no commission but have high withdrawal fees or other hidden costs. It's crucial to carefully read the terms and conditions and understand the risks before trading on these platforms.
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• Jan 01, 2022 · 3 years ago
  As a representative of BYDFi, I can say that while trading digital currencies on platforms that offer no commission can be appealing, it's important to be aware of the risks involved. One risk is the potential for scams or fraudulent platforms. Some platforms may offer no commission as a way to attract users and then engage in fraudulent activities. Traders should also consider the reputation and track record of these platforms, as they may not have the same level of trust and security as more established exchanges. Additionally, platforms that offer no commission may have limited features or trading options, which can be a disadvantage for more experienced traders. It's essential to weigh the benefits and risks before choosing to trade on such platforms.
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