Active Investor Cost

Definition ∞ Active Investor Cost represents the cumulative expenses incurred by individuals actively trading digital assets. This encompasses direct outlays such as trading fees, network transaction fees, and price slippage, alongside indirect expenses like the opportunity cost of capital. These costs directly influence the profitability and operational efficiency of high-frequency or short-term trading strategies within the volatile cryptocurrency markets.
Context ∞ The prevailing discussion regarding Active Investor Cost often focuses on its impact on market accessibility and the viability of various trading approaches in decentralized finance. Ongoing efforts within blockchain development aim to reduce these costs through layer-2 scaling solutions and protocol optimizations, thereby promoting broader market participation and liquidity.