What strategies can I use to minimize spreads when trading digital currencies?

3 answers

• Dec 18, 2021 · 3 years ago
  One strategy to minimize spreads when trading digital currencies is to use limit orders instead of market orders. By setting a specific price at which you are willing to buy or sell, you can avoid the wider spreads that often occur with market orders. This allows you to have more control over the price you pay or receive, reducing the impact of spreads on your trades.
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• Dec 18, 2021 · 3 years ago
  Another strategy is to choose a digital currency exchange with tight spreads. Different exchanges may have different spreads for the same digital currency pair, so it's important to compare and choose an exchange that offers competitive spreads. This can help you minimize the cost of trading and maximize your potential profits.
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• Dec 18, 2021 · 3 years ago
  At BYDFi, we recommend using advanced trading techniques such as arbitrage to minimize spreads. Arbitrage involves taking advantage of price differences between different exchanges or markets. By buying at a lower price on one exchange and selling at a higher price on another, you can profit from the spread. However, it's important to note that arbitrage opportunities may be limited and require careful monitoring and execution.
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