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Webull crypto trading in 2021 - HIDDEN FEES?! - My HONEST Review - YouTube

Channel: Adam Nelson

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what's up guys and welcome back to my

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channel where i talk all about money my

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name is adam nelson and today i'm going

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to be talking to you about my thoughts

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about the Webull app

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specifically for trading cryptocurrency

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now i have a bit of experience trading

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cryptocurrency on exchanges

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a few years ago as well as buying and

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selling a little bit on coinbase but i

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try not to do that too much just because

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of the fees anyway i recently downloaded

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the Webull app in order to buy and sell

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dogecoin

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and i had some experiences which were a

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bit different from buying and selling on

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an exchange or on coinbase and i wanted

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to share those with you because i think

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it might be a little helpful and just so

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you know there are some hidden fees

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with Webull when you trade

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cryptocurrencies and i'm going to be

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talking about that in just a little bit

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so first i want to talk about why i

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decided to use Webull instead of any

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other exchange that was out there

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and it really came down to the fact that

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i didn't want to use some sketchy

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chinese website for trading

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cryptocurrencies i've seen too many

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instances where people have lost their

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money because they store

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on these exchanges which aren't as

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secure as you might think they are or

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the owners just abscond with all the

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money and so i'm a little skeptical of

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using things like that okay so let's

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dive right into some of the pros of

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using the Webull app to trade

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cryptocurrencies

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ignoring some of the perks that you get

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when you first sign up for a Webull

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account or when you refer friends to use

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the weibull account such as getting free

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stocks

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i think that Webull has a lot to offer

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when it comes to trading

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cryptocurrencies

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first of all and most important to me

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there are no commission fees when you're

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trading cryptocurrencies on Webull now

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just to clarify this not to say that

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there are no hidden fees because there

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certainly are

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however i'm going to be talking about

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those in just a little bit like i

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mentioned before the second pro i wanted

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to touch on of using the Webull app to

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trade cryptocurrencies is that you can

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get your money into the app

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absolutely free you can do this by using

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an ach transfer from your bank account

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and you can just transfer those funds

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directly into the app you can also

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withdraw that money afterwards after

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you've made a million dollars in the app

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trading cryptocurrencies

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back into your bank account for

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absolutely no fee again

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now if you want a little faster yes you

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can pay to wire it over

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but this will cost a little bit of a fee

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another reason you might decide to trade

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cryptocurrency using the Webull app is

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because they support some of the most

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popular cryptocurrencies out there and

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i'm talking about bitcoin and litecoin

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ethereum and dogecoin and bitcoin cash

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and there may be some others that i'm

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forgetting another benefit is that you

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can set up a customizable watch list

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now this means if you don't care about

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other stocks or index funds or anything

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and you only care about cryptocurrencies

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then you can only watch the prices of

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those cryptocurrencies and you can

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ignore everything else

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and yes you can do this with plenty of

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other services but it's really nice to

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have it all in just one place

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the other thing i really like about

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weibull is that it's really user

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friendly and this is really important

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for anybody who hasn't really traded

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before

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it can be really daunting to get into

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some sort of system that is overly

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complex

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and one thing that i really like that

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Webull does is that they have these tool

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tips or

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messages that explain how different

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things work or what different things

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mean

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and so this can be really friendly to

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anybody new to trading cryptocurrency or

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stock in general another thing that i

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liked about weibull is that it looks

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like they take security seriously i'm a

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software engineer and so i think i

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appreciated this fact when most people

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would just be maybe annoyed

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with it but before you can actually

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trade any funds you have to enter a

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secondary password

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and i really like this yes it's annoying

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sometimes but if i ever leave my phone

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lying around

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i know that somebody can't just get in

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and execute trades and buy and sell and

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then transfer funds out to their bank

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account instead of my own because they

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don't know my secondary password another

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really big reason that i like using

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weibull to trade cryptocurrency over

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something like robinhood for example

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is that i've never heard of an example

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where they've had to lock down their

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system and suspend

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trading cryptocurrencies especially in

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really high volume events

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for example i was recently trading

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dogecoin because i was trying to profit

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off of the fact that elon musk would be

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hosting saturday night live and i have a

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couple videos about that if you'd like

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to check those out you can just click up

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there

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anyway long story short dogecoin crashed

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and using Webull i was able to sell my

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dogecoin before i lost too much money

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however

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the same event happening in robin hood

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had a different story they had to lock

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down their account and they suspended

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crypto trading entirely

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and so everybody who wanted to sell at

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the 70 cent mark was not able to and

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they probably lost a lot more than me

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now that's not to say that Webulls

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perfect or that they'll never shut down

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their cryptocurrency trading because of

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high volume events like this in the

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future

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it's just i haven't heard about them

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specifically i also haven't gone out and

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looked for any so it's possible that

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there may be a few in the past that

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happened that i'm just not aware of that

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said i've also heard of multiple

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instances where this happens with robin

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hood

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and so me personally i'm going to avoid

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that app and the final reason why i

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really like weibull is because it makes

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it really easy to buy into the meme

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cryptocurrencies like dogecoin recently

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my wife and i have really enjoyed

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trading dogecoin and i don't think we

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could do this as easily anywhere else as

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we could

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here on Webull okay all that said i'm

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not gonna tell you that the weibull app

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is perfect for trading cryptocurrencies

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there are also some really negative

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attributes of using this app the first

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thing

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is that while yes typically the ui is

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really user friendly there are some

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pieces which

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aren't very easy to navigate for example

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if you want to get into your brokerage

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account using the mobile app i find it

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really unintuitive the

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buttons that you have to press in order

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to get there i also think that they

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sometimes make it a little too easy to

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buy stocks or cryptocurrencies on their

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web app

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so just be cautious of that and another

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thing that i really didn't like about

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trading cryptocurrency on the weibo app

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is that it felt like some of the

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transactions took a really long time to

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process

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now i mentioned i had some experience

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trading on exchanges on cryptocurrency

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exchanges directly

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and with those buy and sell orders i

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felt like they processed instantly

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whereas these i feel like they take a

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few minutes even after the price crosses

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the threshold like if i'm

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if i have a limit buy order for example

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it takes a few seconds after

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or a few minutes even after it crosses

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that threshold for my order to actually

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process

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and i only mention this because i have

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actually personally lost some money

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because of this

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this is important to me because i watch

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elon musk's tweets about dogecoin and as

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soon as he tweets i want to buy dogecoin

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instantly before the price goes up too

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high because

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i know there's almost always a chance to

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make money doing that also just as a

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disclaimer i'm not telling you to do

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this yourself i'm not giving you any

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financial advice or anything and try it

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at your own risk

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the other really annoying thing that i

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don't like about Webull is that there is

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hour per day where you can't execute any

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cryptocurrency trades

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this means that even if the price tanks

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you can't sell

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and even if it shoots up really really

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high you can't sell you can't profit

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necessarily

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and it may normalize by the time that

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that hour block is

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up and it's not like this one hour

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period happens at a time that would make

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sense like

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maybe midnight or one o'clock in the

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morning when everybody's asleep it

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happens

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right in the middle of the day right

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around 5 30 p.m eastern standard time i

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believe so that's

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really annoying the other downside of

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using Webull instead of some of these

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other exchanges or coinbase for example

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is that you never actually own the

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cryptocurrency that you buy you're

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basically just trading against its value

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and the reason i say that is because you

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can't actually transfer

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out of Webull any cryptocurrency that

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you purchase into one of your own

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wallets for which you have your own

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private keys and so long as your

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cryptocurrency is

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held by anybody else you don't actually

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own that now this may not be a big deal

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for a lot of people if you're just

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trying to get in real quick and get out

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after

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what you think is going to be a big

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spike or pump in the price

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and so that's actually why i got into

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using Webull in the first place because

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i wasn't too concerned about holding the

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coins really long term but i feel like a

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lot of people don't necessarily

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understand this and i think they should

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before they start buying a bunch of

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cryptocurrency using some of these apps

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another difficulty i had with using

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weibull for trading cryptocurrency is

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that it doesn't

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include a depth chart now this is

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something that i use personally when day

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trading

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to determine where the walls are where

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the support is when i'm trying to buy or

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sell my crypto so i can plan

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what price i should come in at now for

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me this wasn't a deal breaker by any

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means because i knew this kind of chart

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existed and i knew where i could find it

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for me i just went to bittrex.com where

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i could monitor this

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depth chart however i did find it really

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frustrating that i couldn't just monitor

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everything

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in one place and so i think people could

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easily add something like this and maybe

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they already have it for their stocks

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i'm not really sure

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but at least for doge and their

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cryptocurrencies i didn't see anything

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like this

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the other major issue i had with trading

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cryptocurrency is that Webull doesn't

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support stop-loss orders and if you're

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not already familiar with what this is

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basically it's a way that you can say if

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the price ever reaches this certain

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price

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i want to sell no matter what and it's a

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way to protect yourself from losing too

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much money now the alternative that i

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was able to do

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is just watch the charts constantly but

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this wasn't very practical

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and i had another monitor up while i was

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working and i felt like it was

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constantly distracting me and so long

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term i don't think i could do this

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as a software engineer it also seems

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like something that would be really easy

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to build and so i don't know why they

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haven't done this already but maybe it's

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in the works

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the other gotcha that you need to know

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about is that whenever you place a buy

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order or a sell order

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the time in force when you set it today

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it's not always actually going to last

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for 24 hours and i say this because

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whenever you reach that one hour period

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that i mentioned before

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where they stop all cryptocurrency

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trading well they cancel all your

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cryptocurrency orders as well and this

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is actually pretty frustrating because

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i've lost money because of this as well

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the other downside about using Webull

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for trading cryptocurrency is

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something that i feel like most people

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can probably get around with a little

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bit of planning

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and that's just that it takes quite a

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bit of time for your funds to actually

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settle now it's my understanding that

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with robinhood

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you can use pending funds that are

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coming into your account immediately to

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trade cryptocurrency but with weibull

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at least right now you have to wait

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until those funds completely settle

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before you can actually trade and this

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is yet another thing that has cost me

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money and i mentioned it in my video

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where i'm talking about trading dogecoin

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leading up to snl with elon musk so if

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you want to hear about that more

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check that out here that said you can

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get around this issue just by having

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enough funds already in your account

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settled and ready to go for any moments

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notice purchase

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okay and finally i wanted to mention the

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hidden fees when you're trading

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cryptocurrency on Webull they're kind of

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tricky about this if you don't read the

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terms you may not realize that they're

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actually

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taking a cut out of each transaction

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whenever you place a buy or

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sell order and they kind of disguise it

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by calling it bps or basis points and

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they say they take 100 basis points for

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any purchase or sell order now for a

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single basis point this would be

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0.01 of your buy or sell amount however

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Webull takes 100 basis points

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and that translates into one percent of

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your buy or sell amount for example if

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you wanted to buy a dogecoin and you

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spent 10

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on it you would only really get nine

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dollars and ninety cents worth of

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dogecoin for that ten dollar purchase

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and that ten cents difference is going

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to Webull and the same thing happens

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whenever you sell as well

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basically Webull's just sneakily taking a

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little bit of money

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and this hidden fee is legal because

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you've already agreed to their terms and

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they call it out in there however i know

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that nobody actually reads those so

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that's why i'm calling it out here and

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i'm pretty sure that this would be

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illegal if they did this with stocks or

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anything controlled by the sec but these

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aren't stocks these are cryptocurrencies

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and they're not

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as heavily controlled by the sec and so

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i feel like Webull can get away with

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what i consider to be

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somewhat of a sketchy practice but also

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if you're playing with cryptocurrency

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you're probably going for more than just

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a one percent gain

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and that's probably actually pretty easy

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to get and so for me that's not actually

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something that's a really big deal but

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it's something that you should be aware

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okay so that covers it for the pros and

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cons of using the Webull app to trade

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cryptocurrencies if you found these

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points helpful please consider hitting

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that like button below and to wrap up

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this video

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overall i would still recommend that you

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use weibull and it's not just because i

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get free stocks if you sign up using my

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link below i do think that apps like

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Webull and robinhood definitely have

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their place

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if you're not really concerned about

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owning the cryptocurrency that you're

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trading and you want to make a quick

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buck or

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probably lose a quick buck if i'm honest

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then these apps are a viable option

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i also feel like most of the downsides

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of using the Webull app to trade

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cryptocurrencies

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have a workaround so long as you know

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what the problem is in the first place

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and hopefully this video helps you

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identify some of those pitfalls before

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you get into things

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so if you are looking into getting the

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weibull app and starting day trading

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either stocks or cryptocurrencies

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please consider using my link in the

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description below i do get some free

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stocks and i'd be very appreciative of

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any support i can get on this channel

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i've also previously created a video

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about the seven things you need to know

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before you start day trading and trading

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cryptocurrencies

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is practically the same thing and so if

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you're new to this and you're thinking

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about actually pulling the trigger and

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getting into this

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i really recommend that you go watch

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that video now also if you have any

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