Now imagine someone with a million dollars as investing money... decide to buy 100 btc with the price at 10k a coin to make it simple. I don't want to use an altcoin as an example because those are risky and you can easily lose everything as coins do drop to zero... so basically stick with the top coins on the list. Now let say btc went up and down for the next few days and then btc went up to say 10500, now the person sells all 100 btc for 1.05 million dollars. Let say trading fees are 0.25% fees. Is that the rate now for trading btc? Now in the first transaction, to buy a million dollars worth of btc.. fee would be 2500 dollars right? Then when you sell the btc... fee is 2625 dollars... can anyone confirm the math here?
Yes, your math is
correct. When you place a buy order, you need to enter the desired price and the dollar amount you wish to trade. The cryptocurrency exchange will automatically calculate the amount of bitcoins you will receive if this order is fully executed. In other words, you need to make a deposit and bid $1002500 to buy 100 bitcoins at the price of 10000 USD per 1 BTC with a fee of 0.25%. When you place a sell order, you offer 100 bitcoins at the price of 10500 USD per 1 BTC. The cryptocurrency exchange will give you only $1047375, so the profit will be only $44875.
In my opinion, having a lot of investing money does
not make trading easier at all. When you trade a large amount of different assets, you can loss a lot of money if you make a wrong financial decision. Moreover, the centralized cryptocurrency exchange can be hacked at any time. This incident can lead to bankruptcy of the company. You
should manage all risk
regardless of the amount of bitcoins you trade.