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Crypto’s hidden trading costs demand the adoption of transaction cost analysis. Slippage, fees and fragmentation erode trust as crypto matures into institutional markets.
Opinion by: Arthur Azizov, founder of B2 Ventures
Transaction cost analysis (TCA) has long been an important tool in equity trading. With this instrument, traders can see the hidden costs that a transaction carries and minimize the difference between the expected and the actual price.
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As crypto matures, it begins to resemble traditional financial markets and functions like other tradable instruments. Crypto transactions also come with costs: fees that investors pay every time they buy or sell crypto.