Are there any risks or drawbacks to using Coinbase Pro's automatic buy feature for buying cryptocurrencies?

3 answers

• May 02, 2022 · 3 years ago
  Using Coinbase Pro's automatic buy feature for buying cryptocurrencies does come with some potential risks and drawbacks. One possible risk is the volatility of the cryptocurrency market. Prices can fluctuate rapidly, and if you set up automatic buys at a specific price point, you may end up buying at a higher price than anticipated. Additionally, there is always the risk of technical issues or glitches that could affect the execution of automatic buys. It's important to monitor your purchases and be prepared to make adjustments if necessary.
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• May 02, 2022 · 3 years ago
  Yes, there are risks associated with using Coinbase Pro's automatic buy feature. One drawback is the lack of control over the timing of your purchases. If you set up automatic buys, you may end up buying cryptocurrencies at a time when the market is experiencing a downturn. This could result in buying at a higher price and potentially losing money. It's important to carefully consider your investment strategy and assess whether automatic buys align with your goals and risk tolerance.
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• May 02, 2022 · 3 years ago
  While using Coinbase Pro's automatic buy feature can be convenient, it's important to be aware of the potential risks. One risk is the possibility of price slippage. This occurs when the price of a cryptocurrency changes between the time your automatic buy order is placed and when it is executed. If the price increases significantly during this time, you may end up paying more than you intended. It's also worth noting that automatic buys may not be suitable for all investors, especially those who prefer a more hands-on approach to trading.
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