A lot of traders are complaining about the outraged fees exchanges are charging. Once you start trading, five dollars here and five dollars there begin to add up after some time. Even though this may seem like a ridiculous amount, but if you spend the entire year trading and making transactions, then you will realize how much money you are visiting on fees. Of course, the exchange you choose plays an essential role in this process because each of them charges the different amount. Considering that some coins have increased in price, the transaction fees can be significant. So, we are going to show you how to avoid costs using the two U.S. most popular exchanges, Coinbase and GDAX.
To start, you will need to open an account and Coinbase and GDAX are linked. So, when you have funds in American dollars, you can transfer money from one platform to the other without paying fees. Next, head over to GDAX website and click the withdraw button and choose the amount you want to withdraw. This should be easy, right? Your next step would be when to buy and which currency you wish to purchase. In this case, you can also use the Market order, the limit order, or a Stop order.
Market order – this will provide you to buy cryptocurrencies at the given value, and this type of transaction will cost you 0.3%, and in this case, you are considered a taker for the order.
Limit order – this type of trading allows you to make the order. It’s a simple procedure; you just put the number of coins you want to buy, as well as the price. When you are using a limit order, you will want to offer the price that is lower than what the current market value is. Also, in this type of order, you are considered a maker and your fee will be zero.
Stop order – stop order is similar to limit order, but in this case, you are selling your cryptocurrencies. So, if you don’t want to risk your money, or you think that market will crash, you just start the stop order which triggers the exchange to sell as many coins as you place, at whatever price you put it at. Again, you are a maker, and you don’t pay fees.
Recently, many traders reported losses from fake websites that look like exchanges. So, when you are trading cryptocurrencies, with any exchange, you need to be very careful and make sure you are signing on to the right website. Even if they provide a secure system, you need to know that you aren’t entirely safe. So, when you are looking for an exchange to invest your money, make sure to read the online reviews and compare the experience of other traders. On the other hand, Coinbase is a very reputable exchange in the U.S., but they might not be accepting the traders from all over the world.
A cryptocurrency, also known as digital currency, is created and managed through the use of encryption techniques and methods called cryptography. It all started with the creation of Bitcoin in 2009. Back then, a rare number of people knew about the existence of Bitcoin, until it captured the significant media attention in 2013. Nowadays, the situation is completely reverse, since this cryptocurrency reached its peak. Considering the recent development of digital currency market, traders and investors now have more options and a lot of cryptocurrencies to choose. But, let’s look at the prognosis and what future holds for us.
We are all aware of its popularity, and a lot of investors are crazy over Bitcoin. This cryptocurrency is made through a process of mining, where people use highly advanced computers to verify transactions and some complicated algorithms. At this rate, every ten minutes, 25 Bitcoins are created. These features make Bitcoin different from other flat currencies, which depend on the government. Even though flat currencies are a more secure way of investing the money, a lot of people think that cryptocurrencies are the future of the economy. The value of Bitcoin depends on the money investors are willing to pay, at a particular point in time. On the other hand, you don’t have to focus your attention only on Bitcoin because the stock market is full of digital currencies waiting for investors, you just need to find your match and follow the prognosis.
Considering that Bitcoin is a decentralized currency, it means all transactions are anonymous, and this is a fertile ground for many illegal activities, such as money laundering. This situation has attracted a lot of attention from many government agencies, and even FBI and DHS got involved. In May this year, the DHS froze the accounts of Mt. Gox, the most significant Bitcoin exchange, under the accusations that it broke the anti-laundering laws. This is an important matter to discuss, after all, you are investing your money, and you need to know where it goes and what can go wrong?
One of the largest limitations they face is what will happen with the money if a system crashes, or if virtual vault gets hacked. But, the more popular they become, the more regulations the governments will impose. Even though the number of traders has increased in the last couple of years, they are still in the minority and this a big chance for market growth. On the other hand, not anyone can trade cryptocurrency and are still required to have some basic knowledge. This complexity compared to traditional stock market will deter the majority of investors.
The most significant challenge for cryptocurrencies in the future will be to become the part of a financial system, but they need to fulfill a lot of criteria. They need to become easier so that an average consumer can understand them. In this case, they have a long road ahead of them.