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IMO, it means that _most_ crypto trading is impossible (on less than 1D time frames at least)... or rather the edge you need to be successful is astronomical.
by robswc 4y ago
IMO, it means that _most_ crypto trading is impossible (on less than 1D time frames at least)... or rather the edge you need to be successful is astronomical.
If you have to pay $100 to place a $100,000 bet, you're going to burn through so much cash just to break even. Making a profit becomes exceptionally difficult.
Now, on an exchange like BitMex, its a bit more feasible because you get a rebate on some trades. So you can make back a portion of what you pay in fees. This is just a general overview though. There are more complexities to it.
- anonymoushn 4y agoYou can have -1bps/1.5bps maker/taker fees at FTX. It seems pretty tough to achieve fees similar to this at BitMex, but you start out with the maker rebate and have to work only to get the taker fees down. With the maximum shitcoin-buying and volume, you'll be at -1bps/2.1bps, but it's not clear how much the unreleased shitcoin will cost yet. With only dollar volume you'll get -1bps/2.5bps, which is similar to the 0bps/1.5bps you can get at FTX by opening an FTT long/short (though the daily cost of this long/short has recently been higher that your fee savings if your daily turnover is anywhere near $2mm)
- robswc 4y ago>You can have -1bps/1.5bps maker/taker fees at FTX Ahhh I wasn't aware they offered rebates. I would say if you're a serious trader, that is a better deal.