What are some tips for reducing brokerage fees when buying or selling digital currencies?

3 answers

• Dec 20, 2021 · 3 years ago
  One effective way to reduce brokerage fees when buying or selling digital currencies is to use a decentralized exchange (DEX) instead of a centralized exchange. DEXs allow for peer-to-peer trading without the need for intermediaries, which can significantly lower fees. Additionally, DEXs often have lower trading volumes, resulting in reduced fees compared to centralized exchanges. However, it's important to note that DEXs may have lower liquidity and fewer trading pairs available.
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• Dec 20, 2021 · 3 years ago
  Another tip to reduce brokerage fees is to carefully compare fees across different exchanges. Each exchange has its own fee structure, and some may offer lower fees for certain trading pairs or order types. By doing thorough research and comparing fees, you can choose an exchange that offers competitive rates and helps minimize your overall brokerage fees.
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• Dec 20, 2021 · 3 years ago
  At BYDFi, we recommend using limit orders instead of market orders to reduce brokerage fees. With a limit order, you set the maximum price you're willing to pay when buying or the minimum price you're willing to accept when selling. This allows you to avoid paying higher fees associated with market orders, which are executed immediately at the current market price. By being patient and using limit orders, you can potentially save on brokerage fees.
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