Robert Testagrossa – Why You Shouldn’t Buy and Sell From Crypto Platforms
Crypto is really making people get excited about investing again and that is something which all of us can get behind. There are still many naysayers in the community who don’t believe that crypto will be here forever, and they are more than welcome to sit this one out. Many experts in the community like Robert Testagrossa however, are more than happy to invest in this long term plan, and we are also seeing a great chunk of first time investors looking to get involved.
It used to be much more difficult to buy crypto than it is these days however, and it is crypto platforms which are making it easy for first time buyers to invest. Unfortunately however, they are also making too much money from first time buyers, and here is why.
What these platforms are doing is to sell the crypt to the customer for a set price. This makes life very easy for the buyer of course, and they can be sure to do nothing more than click how much they would like and then pay. The issue however is that they are being charged stock prices which are miles away from the actual current price of the crypto. Let’s say that Bitcoin is currently $37,000, it is likely that you will be buying it at $37,800 if you buy it stock, which means you are down before you have even started.
Now these platforms also offer the exchange choice, which is where you can buy and sell to others who are buying and selling the same crypto. At first glance however, this looks like some seriously confusing information and this is what the platforms are hoping for. They want people to be scared of the exchange so that they buy at stock prices, costing you more money. The reality however is that in less than 10 minutes you can easily understand the exchange and buy crypto at the price that you want, and a live price which is in line with the rest of the world. This is far easier than you may think, and it will save you a whole lot of money.
Selling Your Crypto
Many people will not even look at the price on the platform when they look to sell, which they can again do directly on the platform. This again will result in a huge loss of money. Let’s say that they do buy 1 BTC at $37,700, which is $700 over the odds. Now let’s say that the price has moved up to $40,000 and they wish to cash in, at the platform you will be offered something like $39,200, an $800 dollar loss. And so on the $3,000 which you should have made from this, you instead make $1,500 and the platform makes the same as well. This is exactly why you should avoid buying and selling on the platform, and instead look to use the exchange for the best prices.