# My Cost of Trading in Bitcoin: A Personal Journey by Bibek Mahato
Since I began trading Bitcoin in 2019, the digital asset space has evolved dramatically. With an initial investment of around 4.6 million (assuming your local currency), I ventured into swing trading—a strategy that seeks to capture gains in Bitcoin over days or weeks rather than minutes or months. Along the way, I learned that trading costs go far beyond just the price you pay for Bitcoin itself.
Here’s a breakdown of the real costs I faced in my Bitcoin trading journey.
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## Trading Fees: More Than Just Numbers
On every buy and sell order, I paid fees that varied depending on the platform and my trading volume. Using exchanges like Binance and Coinbase Pro, my trading fees hovered around 0.1% to 0.3% per transaction. While this might seem small, these fees add up quickly when you’re making multiple trades weekly. Over time, they shaved off a meaningful percentage of my overall returns.
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## The Spread and Slippage: Invisible but Costly
I quickly realized that the spread—the difference between buying and selling prices—and slippage during volatile market swings also chipped away at my profits. Swing trading requires timely entries and exits, and during high volatility, executing orders at desired prices became challenging.
There were times when my market orders executed at prices significantly different than expected, especially during sudden price moves. Learning to use limit orders helped reduce this cost but added complexity to my trading.
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## Volatility: Double-Edged Sword
Bitcoin’s notorious price swings created opportunities but also significant risks. Swing trading relies on capitalizing on these moves, but sometimes sudden downturns erased gains before I could exit. Managing risk through stop-loss orders and position sizing became critical.
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## Security Costs: Protecting My Investment
Given the size of my investment, I prioritized securing my Bitcoin outside exchanges, investing in hardware wallets and multisig solutions. While these incurred upfront costs, they were worth it to mitigate the risk of hacks and theft, which are all too common in the crypto space.
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## Taxation and Record-Keeping
Keeping accurate records of every trade was a major task. Each buy and sell is a taxable event, and depending on my country’s regulations, capital gains tax impacted my net profits. I engaged a crypto-savvy accountant to help manage filings, adding to my overall trading cost but ensuring compliance.
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## Lessons Learned
My journey taught me that understanding and managing the total cost of trading is as important as picking the right trade. Trading fees, slippage, security, and taxes all contribute to the bottom line. For swing traders like me, balancing these factors alongside market analysis is key to long-term success.
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## Final Thoughts
Bitcoin trading is not just about watching the price charts but also about carefully managing the costs and risks. My experience since 2019 shows that while the rewards can be significant, so too can the hidden costs. Staying informed, disciplined, and secure has been the foundation of my approach.
If you’re starting out, my advice is simple: factor in every cost, plan your trades carefully, and never underestimate the power of risk management.
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