Benefits of cryptocurrency trading

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What is the reason to trade cryptocurrency?

When you trade crypto it is speculating on whether your selected market will appreciate or decline in value, but without owning this digital currency. This is accomplished through derivative products like CFDs.

The advantages of 加密货币交易 include:

Cryptocurrency volatility

While the cryptocurrency market is new, it has seen massive volatility due to large amounts of short-term speculation. For instance, between October 2017 until Oct. 2018, the cost of bitcoin went up to $19,378 then decreased to a low of $5851. Some other cryptocurrencies have proved more stable, although the latest technologies tend to draw speculation.

The volatility of cryptocurrency is a major reason why this market so thrilling. The rapid price fluctuations in the intraday market offer a variety of opportunities for traders to go both ways, but they also carry a higher risk. Therefore, if you decide to look into the cryptocurrency market, be sure you’ve done the necessary research and have developed an effective risk management plan.

Hours of operation for the cryptocurrency market

The cryptocurrency market is generally open to trading 24/7 all week long since there isn’t a centralised administration on the markets. Transactions in cryptocurrency are conducted in direct contact between people, and through cryptocurrency exchanges around the globe. There are however moments of interruptions when the market is adapting to structural updates, also known as “forks”.

With us You can trade cryptos against fiat currencies, like the US dollar between 4am on Saturday and the time of 10pm Thursday (GMT).

Increased liquidity

Liquidity measures how fast and easy an cryptocurrency can be changed into cash without affecting the price on the market. Liquidity is essential since it results in higher prices, quicker processing times, and improved precision for analysis of technical aspects.

It is generally accepted that the market for cryptocurrency is regarded as inliquid since the transactions are distributed across several exchanges, meaning that even small transactions can have a huge influence on the market price. This is the primary reason why cryptocurrency markets are unstable.

But, when you trade cryptocurrency CFDs You can enjoy greater liquidity since we obtain prices from various locations for you. That means your transactions will be completed swiftly and with a lower price.

The ability to go long or short

If you purchase cryptocurrency, you’re purchasing the asset at a time the hope of it increasing in value. However, when you trade on the value of cryptocurrency, you could profit from markets that are declining in value, and also rising. This is referred to as short.

Short Selling

Going long

As an example, suppose you’ve made the decision to open an open CFD trade on the price of Ether as you think that the price will fall. If you were correct, and the price of ether decreased relative to US dollar the trade would be profitable. But, if the price of ether increased in comparison to that of the US dollar, then your investment is at risk.

Leveraged exposure

Since CFD trading can be viewed as a leveraged option that allows traders to open positions that is a’margin’ investment that’s only a small portion of the total amount of trade. That is, you’ll gain significant exposure to the cryptocurrency market and only tie up a tiny amount of your money.

The loss or profit you earn through your cryptocurrency trading will reflect the total value of your position when the trade is completed, which means using margin trading gives you the chance to earn huge profits from a tiny amount of money. But, it also has the potential to amplify any losses, which includes the possibility of losses that surpass the initial deposit you made for a single trade. This is why it’s important to take into consideration the total worth of the leveraged position prior to trading CFDs.

It is equally important to ensure you have a proper risk management plan in place that includes the right limits and stops.

Faster account opening

If you want to buy cryptocurrency it is necessary to purchase and sell through an exchange. This will require you to open an account with the exchange and then keep the cryptocurrency in your personal digital wallet. This procedure can be time-consuming and time-consuming.

However, when you trade cryptocurrency it is not necessary to have for access directly to exchanges as we’re connected to the underlying market for your benefit. There’s no need to create and manage an account for exchange which means you’ll be up and running to trade more quickly. Actually, you might trade in less than five minutes using our application form that is simple and immediate online verification.

Should I purchase or trade cryptos?

Before you take a decision on whether or not to purchase or trade cryptocurrency It is crucial to be aware of the differences between both methods in depth. Check out our video and the table below for more details.

You may be interested in purchasing cryptocurrencies in the event that…

You’d like to have full possession of cryptocurrency
You’re content to pay for the entire amount of the asset in full upfront
You’d like to get the direct benefit of one exchange per account
You’re content to wait for an exchange account to open before you buy or sell
If you don’t mind initial limitations or deposits that aren’t as high.
You’re not afraid of paying extra charges for withdrawals or deposits

You may consider trading CFDs for cryptocurrency If…

You would like to speculate on the value of cryptocurrencies without actually owning the digital asset
You’re looking to increase the leverage of your position so that you can only put only a small portion of the initial cost
You’d like to make the most of tax benefits that come with CFD trading
You would like to be exposed to multiple exchanges through one account
You’re looking to start trading immediately
You don’t need a maximum amount of money you can deposit
You don’t want the fees for withdrawal or deposit