I learned a very noob lesson about spreads , very late in the game \ stacker news ~bitcoin

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I learned a very noob lesson about spreads , very late in the game

687 sats \ 6 comments \ @stack_harder 27 Feb bitcoin_beginners

This is purely down to my own ignorance but I have known that CEXs charge spreads, almost since I started using them, but I never actually checked the spreads until yesterday.

So I was on robosats doing my monthly DCA to try and scoop the dip, and the premiums were about 6% for my currency pairs. I understand the extra privacy premium but decided to see what Binance premium was, as in my head, I was sure it was way cheaper, like half a percent. I don't know why I thought this, I just did (they hide it in there quite well).

Anyway, turns out the Binance premium would have been 4% - that's crazy for a kyc. now sure other exchanges might be lower, but they're kyc too

Paying that extra 2% for non-kyc really is a no-brainer.

So yeah, if you have ever been put off my non-kyc buying for spread reasons, you shouldn't be.

Plus later in the day when i checked, not only had btc dipped more, but the spreads were down to like 3%, alas, i had already done my dca by then tho

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30 sats \ 0 replies \ @TheMorningStar 28 Feb

The spread is always a nobrainner for anyone who's buying for long term.

44 sats \ 1 reply \ @siggy47 27 Feb

Very good point. Jack Dorsey's cash app charges a sliding scale of . 75% -3% depending on the amount. A typical robosats size transaction would be 1.75%0-2.25%. Cash App may also charge a spread depending on market conditions. I have stopped worrying about robosats premium. I feel it is worth it.

36 sats \ 0 replies \ @stack_harder OP 28 Feb

i think it definitely is, plus the %s slide about on robotsats too so a no brainer for non-kyc.

105 sats \ 0 replies \ @0xbitcoiner 27 Feb

I don't think it's the broker that charges spreads; the spread usually refers to the difference between the buying and selling price. Many people take advantage of this spread to do arbitrage and make a few 'crumbs' of profit.