Cryptocurrency Trading

Everyone is talking about cryptocurrencies and the opportunities therein. But what exactly are they? How can one trade in cryptos? Are they worth investing in? Are they safe? Are they regulated? You want answers to these questions, don’t you? Well, you are at the right place – we got the answers to all your crypto-related questions. 

With years of experience in this market, we have gathered the requisite expertise and a tonne of information on cryptocurrency trading. Read on to discover more about this young but fast-growing financial market niche.  

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What Are Cryptocurrencies?

In layman’s language, cryptocurrencies are a form of digital payment used for the online purchase of goods and services. You can also trade these digital coins for capital gains if you so wish. Alternatively, they are also a viable store of wealth. 

These digital currencies are based on an innovation known as blockchain technology – a decentralised accounting system spread across millions of computers and servers across the world. 

The technology’s greatest appeal is its security. There are over 10,000 cryptocurrencies on the market as of this writing. Some of the top cryptocurrency coins include Bitcoin, Ethereum, Litecoin, and XRP, among others. As of May 27th 2021, the total value of all cryptocurrencies was estimated to be over $1.7 trillion – Bitcoin alone share about $735 billion of that market cap.

Crypto CFD Trading 

CFDs are investment vehicles that allow you to speculate on crypto price action without owning the digital coins in question. If you think that the coin’s value will rise, you open a long trade (buy), and when you speculate that it’s going to drop, you open a short trade (sell). 

Trading in CFDs is advantageous because your trades are leveraged, meaning that you will only have to stake a small amount of your account balance, known as margin, to cover a bigger market position. The only downside to leveraged CFD trades is that both profits and losses are calculated as per the full size of your market position. The leverage magnifies your profits and losses in equal proportion. 

Some of the benefits that come with trading crypto CFD are:

  • You do not need to use a special eWallet or an exchange account
  • They are available around the clock for seven days a week.
  • You can trade in any direction: buying or selling. 

How to Buy Top Crypto Coins

One way is by using your fiat currency to buy cryptocurrencies, but it’s also possible to exchange them for other cryptos. When buying crypto with fiat/paper money, you buy it at its market price. On the other hand, when exchanging crypto for crypto, you will receive the crypto equal to the value of the one you are exchanging it for.

To trade cryptocurrencies, you will need a digital wallet – an online application that holds your digital currency. Once that is done, open an account with a licensed and regulated exchange and proceed to fund it appropriately. You can then use your exchange fund to buy cryptos such as BTC and Ethereum.

There are numerous crypto trading exchanges and brokerage firms that you can use to buy and sell your digital currencies. Do your research and background checks before choosing the best one for your trading needs.

Crypto Trading vs. Stock Trading

Crypto trading is often depicted as being riskier than trading stocks, but that depends on the type of stock or cryptocurrency that you are trading and how you are doing it. Trading options and penny stocks can be equally or even riskier than trading crypto. 

Before opening any crypto market position, you should at least have an understanding of the risk that you are about to take. You can lose your entire brokerage account if you are not keen on mitigating and managing your risks.

Professional traders prefer holding cryptocurrencies long-term instead of trying to speculate and time the market. 

Get Started Today

Now that you have a better understanding of what cryptocurrencies are a how you can trade them, it’s time to get into action. The crypto industry is a revolution that is set to change the world’s economic order. Don’t miss out on the gains! Sign up here to get started with a demo or live account.

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