What is the reason to trade cryptocurrency?
When you trade crypto you are making predictions on whether your selected market will increase or decrease in value, but without owning your digital assets. This is achieved with derivatives like CFDs.
The benefits of trading with cryptocurrency include:
Cryptocurrency volatility
While the cryptocurrency market is new, it has seen substantial volatility because of huge amounts of short-term speculation. For instance, from October 2017 until October of 2018, the value of bitcoin went up to $19,378 then decreased to a low of $5851. Other cryptocurrency have been more stable, however, the latest technologies tend to draw speculative attention.
The volatility of cryptocurrency is a major reason why this market so thrilling. The rapid price fluctuations in the intraday market could provide opportunities for traders to go short and long, but they can also be accompanied by increased risk. Therefore, if you decide to look into the cryptocurrency market, be sure you’ve done your research and created strategies for managing risk.
Market hours for cryptocurrency
The cryptocurrency market is generally accessible to trade all day long all week long since there isn’t a centralised oversight on the markets. The transactions in cryptocurrency occur by direct interaction between individuals on cryptocurrency exchanges across the globe. There are however moments of interruptions when the market is adapting to structural updates, also known as “forks”.
You can trade cryptocurrency against fiat currencies for example, the US dollar starting at 4am Saturday until 10:00 pm on the Friday (GMT).
Better liquidity
Liquidity is the measurement of the speed at which an cryptocurrency can be changed into cash, without affecting the price on the market. It is crucial since it results in higher prices, quicker transactions and better precision for analysis of technical aspects.
It is generally accepted that the market of cryptocurrency is regarded as inliquid since the transactions are distributed across several exchanges, meaning that transactions that are relatively small could have an enormous influence on the market price. This is a major reason why cryptocurrency markets are unpredictable.
If you do trade cryptocurrency CFDs You can enjoy better liquidity as we procure prices from several locations for you. That means your transactions can be completed swiftly and with a lower price.
Ability to go either long or short
When you purchase an cryptocurrency, you’re buying the asset in the hope of it increasing in value. If you decide to invest in the price of cryptocurrency, you are able to profit from markets that are decreasing in value as well as increasing. This is referred to as short.
Short Selling
Going long
Let’s say that you’ve decided to open the short CFD option on the price of the ether as you think that the price will fall. If you were correct, and the price of ether decreased in comparison to the US dollar the trade would be profitable. But, if the price of ether increased against it’s US dollar, then your investment will be losing money.
Leveraged exposure
Because CFD trading leveraged investment that allows the trader to open a position with a margin – a investment that’s only a small portion of the total worth of the transaction. That is, you’ll gain significant exposure to the cryptocurrency market and only tie to a small portion of your money.
The amount of profit or loss that you realize in your cryptocurrency trading transactions will reflect the entire worth of the trade when it’s closed, therefore using margin trading gives you the chance to earn huge profits from a modest amount of money. But, it also has the potential to amplify any losses, which includes the possibility of losses that be greater than your initial deposit for a single trade. This is the reason it is important to take into consideration the value of your leveraged position prior to trading CFDs.
It is also crucial to ensure you have a risk management plan in place and that it includes the right limits and stops.
Faster account opening
If you purchase cryptocurrency and want to sell them, you must buy and sell them through an exchange. This requires you to set up an account on exchanges and save the cryptocurrency to your personal digital wallet. This can be a time-consuming and time-consuming.
When you do 加密货币交易 it is not necessary to have an account with the exchange since we’re connected to the underlying market for you. It’s not necessary to create and manage an account for exchange and you can be up and running to trade faster. You can 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 regarding whether you want to purchase or trade cryptocurrency prior to making a decision, you must examine the pros and cons of the two options in greater detail. Watch our video and look at the table below to learn more.
You may be interested in purchasing cryptocurrencies If…
You’d like to take complete 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 can purchase or sel
If you don’t mind initial restrictions or maximum deposits
You’re not afraid of paying extra charges for withdrawals or deposits
You may consider trading CFDs for cryptocurrency in the event…
You would like to speculate about the value of a cryptocurrency , but you do not own the digital asset
You’d like to maximize your position so that you can only put only a small portion of the price upfront
You’d like to avail of tax benefits that come with CFD trading
You would like to be exposed to multiple exchanges through one account
You’d like to begin trading right away
You don’t want to exceed your amount to deposit
You don’t want charges for withdrawals or deposits
