The dark side of the cryptocurrency: understand the effect of transaction rates their benefit
The cryptocurrency has revolutionized the way we think about the commercial and financial sectors in general. With the increase in digital currencies, such as Bitcoin, Ethereum and others, investors and merchants have been able to use new investment opportunities that have not previously been available.
However, one of the biggest challenges of encryption currency are transaction rates. Transaction rates are charges charged by cryptocurrency options to treat events in the blockchain network. These rewards can vary from a few centimeters to hundreds of dollars per store, which makes it difficult for beginners and experienced merchants to obtain profits in this mode.
What causes transaction rates?
Transaction rates are due to a series of factors that include:
- Network congestion : When more events occur in the Blockchain network than in real time, rewards are essential to encourage mining workers to validate new transaction blocks.
- High computational force is required
: New block chains require significant amounts of computer power to solve complex mathematical problems and create a valid block chain. As the number of users increases, as well as the computational force, which leads to higher transaction rates.
- Centralized exchange rates : When negotiated in centralized values exchanges (CEX), rewards can be higher than pairs exchange (P2P).
- Exchange Committees : Some exchanges charge additional rates for services such as buying and selling, lifting and deposits.
Impact of transaction rates on profitability
Transaction rates have a significant impact on profitability on cryptocurrency mode. Here are some reasons why:
- By reducing benefit margins : As transaction rates eat their profits, it is increasingly difficult to obtain profits even if you get a good capital invested.
- Increased commercial costs : higher transaction rates can lead to higher commercial costs, reducing the attractiveness of cryptocurrency investment.
- Limited liquidity : lower transaction rates can limit the number of stores that will be made, limit liquidity and hinder the change of cryptocurrencies.
How do transaction rates affect several commercial strategies
Transaction rates can affect several commercial strategies, including:
- Long -term investments : Investors that maintain their spaces for long periods of time may need to accept higher transaction rates.
- Day store : Short -term merchants often try to take advantage of market fluctuations, and high transaction rates can affect them less.
- Speculative trade : Due to the achievement of low and high sales for speculative activities, such as decline and sale, it may be more difficult to achieve higher costs associated with transaction rates.
Reduction of transaction fees
Consider the following strategies to mitigate the impact of transaction rates on your profits:
- Use the P2P exchange : changes in pairs exchange can often collect lower payments than centralized exchange.
- Select an exchange with low rates or not : choose an exchange that charges competitive payments for buying and selling cryptocurrencies.
- Consider cryptocurrency wallet Use: cryptocurrency wallets can help reduce transaction rates, allowing you to move coins directly between accounts without a network.
conclusion
Transaction rates are a significant obstacle to cryptocurrency mode, which affects profitability and commercial strategies. By understanding the causes of transaction rates and how different commercial strategies, investors and merchants affect conscious decisions about their investments.
