Law of diminishing return of a trader

[Alexandoy]

This topic is my theory on the crypto market. Think of all the traders that are buying and selling. They gain profit from each other. When A sells at a higher price and B buys then A makes a profit while B is in limbo and waiting. When B sells to gain a profit and A buys that it is like A and B have just exchanged money.

In that example of trading by A and B, it is clear that there was no money injected in the market. But the exchange center charged a fee and the digital wallet also charged a fee. Would you agree that the law of diminishing return is in the works? Your money is dwindling because of the charges.

 

[lonely]

Your explanation is very good but i dont know how the crypto world work that is why i just want to have someone who have good idea on how the whole thing work so there can help me out.

 

[Mika]

I do not think one trader will be selling to another trader. Trader A might be selling to Mr. B which may be using crypto to make a payment. Trader C might be buying from Miss. D who sold her crypto after holding for a long time. Trading is not selling A to B and vice versa. A lot of things go around trading.