What are the hard to borrow fees for digital currencies?

3 answers

• Nov 24, 2021 · 3 years ago
  Hard to borrow fees are fees charged by brokers or exchanges when borrowing a particular asset is difficult. In the context of digital currencies, these fees are charged when there is a high demand for borrowing a specific cryptocurrency, but the supply is limited. This can happen when traders want to short sell a cryptocurrency or use it for other trading strategies. The fees are typically higher than normal borrowing fees due to the scarcity of available coins. It's important to note that hard to borrow fees can vary between different exchanges and cryptocurrencies, so it's advisable to check the specific fees before engaging in any borrowing activities.
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• Nov 24, 2021 · 3 years ago
  Hard to borrow fees? Yeah, they're like the VIP section of borrowing digital currencies. When a cryptocurrency is in high demand for borrowing, but there's not enough supply to go around, exchanges charge these fancy fees. It's like getting a table at an exclusive club - you gotta pay a premium. So, if you're planning to short sell or do some fancy trading stuff with a popular cryptocurrency, be prepared to shell out some extra cash for those hard to borrow fees. Just make sure to check the fees on different exchanges, 'cause they can vary quite a bit.
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• Nov 24, 2021 · 3 years ago
  Hard to borrow fees for digital currencies can be a pain, but they're a reality in the trading world. When a cryptocurrency is in high demand for borrowing, exchanges like BYDFi charge these fees to make sure there's enough supply to go around. It's like a way to keep things fair and prevent hoarding. So, if you're planning to borrow a popular cryptocurrency for short selling or other trading strategies, keep an eye on those hard to borrow fees. They can be a bit higher than regular borrowing fees, but that's the price you pay for playing in the big leagues.
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