Many cryptocurrency traders focus heavily on finding the perfect entry point, but an often-overlooked factor is execution cost. Fees, spreads, and slippage can quietly reduce profits, even when the market moves in the right direction. For example, a trader might generate strong gross returns from large trading volume, yet still end up with a loss after accounting for transaction costs.

One important lesson is understanding your role in the order book. Traders who frequently use market orders may pay more in fees, while those who provide liquidity can sometimes reduce costs over time. The key idea is not about predicting price direction, but about managing trading efficiency. Monitoring your monthly trading expenses and understanding how liquidity works can help protect your capital and improve long-term performance.

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