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Why trade cryptocurrencies?

Why should you trade in cryptocurrency?

When you undertake 加密货币交易 you are making predictions about whether the market you choose will increase or decrease in value, but without having the right to your digital assets. This is accomplished through derivative products like CFDs.

The advantages of trading in cryptocurrency include:

Cryptocurrency volatility

While the cryptocurrency market is recent, it has witnessed substantial volatility because of huge quantities of speculative short-term interest. For instance, from October 2017 between October 2017 and October of 2018, the value of bitcoin went to as high as $19,378 before it decreased to a low of $5851. Some other cryptocurrencies have proved more stable, although the latest technologies tend to draw speculative attention.

The volatility of cryptocurrency is what makes 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 market for cryptocurrency, make sure you’ve completed your research and created strategies for managing risk.

Hours of operation for the cryptocurrency market

The market for cryptocurrency is typically accessible to trade all day long and seven days a week since there isn’t a centralised oversight for the marketplace. The transactions in cryptocurrency occur in direct contact between people, and through cryptocurrency exchanges around the globe. However, there could be times of inactivity when the market is adapting to infrastructure updates, also known as “forks”.

Here you can trade cryptocurrency against fiat currencies like the US dollar between 4am on Saturday and the time of 10pm Thursday (GMT).

Better liquidity

Liquidity measures how fast and easy the cryptocurrency can be transformed into cash, without affecting the price of the market. It is crucial as it leads to more competitive pricing, faster transactions and better precision for analysis of technical aspects.

It is generally accepted that the market of cryptocurrency is thought to be inaccessible because transactions are spread across several exchanges. This means 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 CFDs in cryptocurrency 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.

Ability to go either 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 invest in the price of cryptocurrency, you could profit from markets that are decreasing in value as well as increasing. This is referred to as short.

Short Selling

Going long

As an example, suppose that you’ve decided to open an open CFD trade on the price of Ether since you believe the market is likely to decline. If you were right and the price of ether decreased in comparison to the US dollar the trade would be profitable. But, if the price of ether increased in comparison to it’s US dollar, then your investment is at risk.

Leveraged exposure

Since CFD trading leveraged option It allows traders to open positions that is a’margin’ deposit that is only a portion of the total worth of the transaction. This means that you can gain an extensive exposure to the cryptocurrency market and only tie up a tiny amount of your money.

The amount of profit or loss that you realize through your cryptocurrency trading will reflect the entire worth of the trade at the time the trade is completed, which means trading margin 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 surpass the initial deposit you made for each trade. This is why it’s essential to evaluate the total worth of the leveraged position prior to trading CFDs.

It is also crucial to ensure you have a risk management plan that includes the proper 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 on exchanges and save the cryptocurrency to 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 exposed to the actual market for you. It’s not necessary to create and manage an account for exchange and you can get it set up and ready to trade faster. You can trade in less than five minutes using our easy application form and immediate online verification.

Should I trade or buy cryptos?

Before you take a decision on whether or not to purchase or trade cryptocurrency prior to making a decision, you must examine the pros and cons of the two options in greater detail. Check out our video and the table below for more details.

You may be interested in purchasing cryptocurrencies If…

You’d like to take complete possession of cryptocurrency
You’re willing to pay the entire amount of the asset up front
You’d like to get an exposure direct to one exchange per account
You’re content to wait until you have an exchange account before you can purchase or sel
You’re not worried about introductory limitations or deposits that aren’t as high.
If you don’t mind paying the additional charges for withdrawals or deposits

You may consider trading CFDs for cryptocurrency If…

You would like to speculate about the value of cryptocurrencies without actually owning the digital asset
You’d like to maximize your position to ensure that you pay in a tiny portion of the price upfront
You’d like to make the most of tax benefits that come with CFD trading
You’d like to expose yourself to multiple exchanges through one account
You’d like to begin trading right away
You don’t need a maximum amount of money you can deposit
You don’t want to be paying the fees for withdrawal or deposit