What are some examples of implicit costs in the cryptocurrency industry?

1 answers

• itsXrgonFeb 04, 2024 · a year ago
  Implicit costs in the cryptocurrency industry are something that traders and investors need to be aware of. One example of an implicit cost is trading fees. These fees are charged by exchanges for executing trades. They can vary depending on the exchange and the trading volume. Another example is network fees, which are charges for processing transactions on the blockchain network. These fees can fluctuate depending on network congestion and the complexity of the transaction. Lastly, there's slippage, which refers to the difference between the expected price of a trade and the actual executed price. Slippage can occur due to market volatility and liquidity issues. These implicit costs can impact traders and investors by reducing their overall profitability and affecting the execution of their trades. It's important to consider these costs when trading or investing in cryptocurrencies.
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