What are the advantages and disadvantages of using raw spread in cryptocurrency trading?

3 answers

• Dec 26, 2021 · 3 years ago
  Raw spread in cryptocurrency trading refers to the difference between the bid and ask prices without any markups or additional fees. One advantage of using raw spread is that it offers a transparent and direct pricing model, allowing traders to see the true market conditions. This can be beneficial for those who prefer to have full control over their trades and want to avoid hidden costs. However, raw spread trading may not be suitable for beginners or traders with limited capital, as it requires a deeper understanding of the market and may involve higher initial costs.
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• Dec 26, 2021 · 3 years ago
  Using raw spread in cryptocurrency trading can provide traders with tighter spreads, which means lower transaction costs. This can be advantageous for high-frequency traders or those who execute large volume trades frequently. Additionally, raw spread trading can offer faster execution speeds, reducing the risk of slippage and improving the overall trading experience. On the other hand, raw spread trading may not be ideal for traders who prioritize convenience and simplicity, as it often requires more advanced trading platforms and technical knowledge.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the advantages of raw spread in cryptocurrency trading. With raw spread, traders can enjoy competitive pricing and transparent trading conditions. The absence of markups and hidden fees ensures that traders get the best possible prices for their trades. However, it is important to note that raw spread trading may not be suitable for all traders. It requires a certain level of expertise and understanding of the market dynamics. Traders should carefully consider their trading goals and risk tolerance before opting for raw spread trading.
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