Fees could be killing your Bitcoin investment returns, according to the Los Angeles Times. It’s become quite clear over the past decade that fees have a significant impact on long-term investment performance. The Times reports that the expense ratio of mutual funds, the fees investors pay annually, have dropped by 42 percent since 1994 as investors have become saavier to the effect of fees on their portfolio. However, many cryptocurrency investors lack that savvy, trading on exchanges that either charge exorbitant fees or hide their fees altogether. The Times notes that Coinbase’s fee schedule is so complicated that many investors are totally unsure how much they’re forking over to the exchange.
When Bitcoin Investing Reaches Mainstream, Customers Likely to Question Exchange Fees
Bitcoin exchanges often charge unclear or excessive fee amounts, according to the LA Times, and savvy investors won’t tolerate it forever