crypto currencies high spreads is a negative sum game

The high cost of holding crypto and the cost of dealing in crypto will result in moist traders losing or being in net loses.A search on google for success rate of day traders , will reveal 99 % failure rate , but krypto day traders will lose more.

Day krypto traders lose , because they pay 2 % spread + overnight interest income, to crypto brokers. The brokers promote it through their stooges on their forums, the stooges just pretend to trend trade krypto .........hoping to suck new naive punters into an gambling life.I would never recommend any trader to go into this crypto, the spreads and overnight interest will wipe their bottoms.
 
Last time I checked, Bitfinex had like 10 cents spread on BTC/USD - that's a pretty tight spread considering 1 bitcoin's price.

Bitcoin is at present 50 points but varies to 100 at a spread betting broker, these spreads are fine when there is volatility and trend but account blowing in choppy markets .These spreads at one time used to be 2 % of daily volatility, 2 % over 20 losses is 40%.I trade the same volatility on Dow for 1 % spread , krypto bitcoin spread was 70 for 700 points daily volatility = 10 %.

I made eas to forward test bitcoin for 2 months , the spread made it a negative sum game , there were never any profitable periods , the spread killed all profits.

This is why many brokers are happy to employ people to open 30 threads on a broker's forum to promote cryptocurrencies.
 
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Are these exchanges regulated , do they offer security of funds by regulatory bodies?

I find it easier to trade indices , offering same volatility with lower costs of volatility. Second reason is I know "I am investing something with underlying value".
 
.The higher the spread a trader pays, the more the trader will lose.The professionals will trade the "lowest spread to volatility" instruments.The more a trader trades, the more the negative spread edge a trader gets.The less a trader trades, the more he is likely to profit.

Spread is killing short term krypto traders, even 10 points is too much in choppy markets.Amateurs pay 70 spread and lose all their profits in spreads.

You can tell amateurs on forums from professionals.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
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The high cost of holding crypto and the cost of dealing in crypto will result in moist traders losing or being in net loses.A search on google for success rate of day traders , will reveal 99 % failure rate , but krypto day traders will lose more.

Day krypto traders lose , because they pay 2 % spread + overnight interest income, to crypto brokers. The brokers promote it through their stooges on their forums, the stooges just pretend to trend trade krypto .........hoping to suck new naive punters into an gambling life.I would never recommend any trader to go into this crypto, the spreads and overnight interest will wipe their bottoms.
Maybe, crypto wallets are much better than Forex brokers (crypto trading). On the other hand, I seem crypto is much challenging than the FX currencies.
 

J_C_Anderson

Trader
Aug 15, 2018
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For sure, it is better to trade cryptocurrencies directly, without brokers and CFD`s. In such case, you own that cryptocurrency, with the possibility to store it on your wallet.