How to judge whether you are a leek?Leeks are cut by transaction costs

Author: Huang Shiliang

Leek is a very happy word in the currency circle, and it seems that almost all friends call themselves Leek.Putting aside the joke, we should really avoid being a leek, otherwise we will be cut.

People are more important to know. How should we judge whether we are a leek?This may be a good question.I think there is an indicator to answer, which is my own transaction cost.

The higher the transaction cost of trading tools, trading products and trading strategies you use, the more likely it is to be a leek.

When we invest, nominal returns often come from a few percent of the market, and transaction costs, including transaction fees, slippages, and capital rates.gasFees, etc. are obviously certainly expenses, but we often ignore them.The cost of this certainty is often greater than the potential nominal benefits.Because the cost must be paid, but the benefits are full of uncertainty.

Any trading behavior that does not take these confirmation expenditures into consideration is a leek behavior.

Buffett once said a hypothetical case at a shareholders’ meeting. If a wealthy family or do nothing, the family business will naturally grow. But once they hire an analyst, broker or fund manager to manage their property, these guys will diversify your property and keep trading this transaction, and the family assets will become handling fees and slowly flow away.The result is that you become rich and you lose money by yourself.

What Lao Ba may be talking about is Bill Gates. Bill Gates hired a financial management team and lost most of his Microsoft stocks.

There are many similar studies in the academic community, such as analyzing why tens of thousands of retail investors on the Shanghai Stock Exchange lost money in the bull market. In fact, the principal has become handling fees and stamp duty, which has been given to the Shanghai Stock Exchange and the country.

In order not to make a leek, you have to ask before any transaction: What is the total cost of this operation?Let me ask you again, are there any lower-cost operating strategies?

There are various trading products and trading strategies in the currency circle.

I think the top transaction cost is deposit and withdrawal. You know, this thing is extremely costly. Not only is the transaction processing fee high, but the worst thing is that this thing is very risky, it will be frozen and may be arrested.

Tetherexist2024Profits announced in the year are as high as130I guess more than half of the incoming and outgoing commissions contributed by the leeks (the other half is the interest such as the treasury bonds earned by the US dollar collateral contributed by the leeks).So, don’t mess around and spend money.

Common trading products include spot, perpetual contracts, and options.Transaction method is on-chaindex,havecx.All kinds of explicit handling fees are easy to understand, and the spot price is generally thousands1To thousands2, the contract is about 10,000 yuan, but these are just matchmaking fees.

Another big part of transaction costs is hidden.For example, the funding rate of a perpetual contract depends on luck, and the time cost of options is almost at a terrifying level.

The funding rates for large currencies are generally annualized10%, the altcoins must be more than30%, but this thing can sometimes make money, it is uncertain. What is certain is that the cost of holding a contract for a long time is very, very high, especially altcoins.

If you are not a professional capital rate arbitrageur, but are trying to replace spot trading with contract speculation, then you are definitely a leek.

The same is true for options. The trading and holding costs of options are much higher than those of perpetual contracts, but I am not professional. I have held a small number several times.ETH callandput, and finally found that they were all lost.

There are also some fun strategies in the currency circle. Common ones in exchanges include online trading, dual currency financial management, and order follow-up.

Almost allcxThe transaction costs of these fun-making strategies are extremely high.

I used to think that grid robots are a good product, and I have used them many times, but in fact this iscxIt’s a thing that seduces users to pay for handling fees.

I have never done it seriously with dual currency financial management, but I always think that the cost is absolutely huge, otherwise it would be impossible to give an annualized 100% return, and the dealer will definitely make a profit without losing money.I’ve askedchatgpt, its essence is an option, and I estimate that the cost of buying options directly is lower.I’m too lazy to study it.

cxThere are also a large number of leveraged trading models, and the cost of leveraged trading will be even higher when it comes to leveraged trading.Because interest expenses are too terrifying, they are friends with time, and if you hold a leveraged position, you are not friends with time.

What I admire most are those who speculate on real estate with huge leverage. They are proud of owing bank money, and the more they owe, the more they think they are glorious.Big word for coward.

binanceexist2024The annual revenue is160Billion dollars, still remember2025Did the big explosion at the beginning of the year? Everyone said that it was caused by Binance’s profit margin withdrawal and cashing out.

Binance+Tether, the two companies are in2024The cumulative year is nearly300The annual income pool of $100 million is exactly the transaction cost of the leeks. We don’t know how much we have made, but they have made nearly300100 million.

The cost of on-chain trading products and strategies is even more complicated.

The most common one isdexSpot in itswapThere are all kinds of strange costs for transactions.

gasThe fees and transaction fees are considered obvious.

gasThere is no need to say about the fee. This thing is not a timeline or fluctuation, which is the inevitable price of on-chain activities.

swapThe transaction fee also varies according to the fund pool route, such asuniswaphave0.3%fee, there are0.01%fee,existuniswap v4After opening the custom handling fee for the fund pool, even a pool collection appeared.99%feeThe inexplicable pool.

Except for explicitgasFees and transactionsFee,existdexThe greater cost of trading in the market is implicit.

The biggest hidden cost isMEVSandwich attack, as long as your slippage is set too high, you are finished and you have to pay a high slippage tax.

The normal slippage is also very scary when trading a small amount of funds.Especially those small currencies,10%The slippage cost is common.

RobIDOThe strategy, the slippage cost to be paid is actually outrageous,50%All are common.

The most popular in the past two yearspump.funThe transaction cost is really outrageous. Everyone needs to pay for the transaction. There are transaction taxes, especially thesememeCoins are basically fast in and out, and they need to be traded once in a few minutes.0.5%The transaction fee will be lost after a few times of capital reduction.memeCoin traders are definitely exponential friction traders.

Almost allswapAll cross-chainswapThis brings about complex cross-chain handling fees, which requires two miners’ fees to be paid at the same time and bridge tolls.

I used to rely onLayerzerobrushunichainandETH L1The price difference is to move bricks, and then calculate it later.LayerzeroThat’s the big profit.

Airdropping is no longer a hot topic now, this strategy is that the transaction costs are huge.Airdrop is a typical strategy of success for a general and a strategy of consuming thousands of bones.It is a typical strategy of selling coins by collecting users’ transaction costs.

I feel that the gameplay on the chain is bettercxIt is easier to treat users as processing fees mining machines, and the hidden costs on the chain are higher than those on thecx.

Uniswap2024The total revenue from front-end charging is close to1$100 million, andswapUsers areuniswapThe accumulated transaction fees contributed in2024The total annual volume is12.7$100 million.

Pump.funEven more powerful, platform revenue (that ispump.funOfficially taken away)2024Years cumulative3.13USD 100 million, users have contributed a total of7.38The cost of $100 million (it seems to be half the costpump.funOfficial, half of it is homelp).

See it,defiThe handling fee harvester in it is not a small number. We don’t know how much we earn, anywaydexplatform+LPtokenIt’s really profitable.

Please clearly record your transaction costs during the specific investment operations.I’ll letchatgptA table estimate is listed, the data is completely fromAISearch and estimation, for reference only.