Thursday, 05 December 2019

Cryptocurrency Trading on Forex – Is It Profitable?

Cryptocurrency trading is an excellent opportunity to earn money on change of the asset value.
Cryptocurrencies are highly volatile since their rate can change by 10% or more each day, which means that you can get a good profit. Volatility creates a lot of trading opportunities that involve both a high level of risk and a large potential profit. Therefore, many traders who focus on short-term trading strategies use cryptocurrency for their activities.

Cryptocurrency trading is the same online trading, but instead of the usual assets, the speculator trades with digital currencies. The cryptocurrency market is more dynamic and unpredictable, the attention to it is constantly “heated” by a significant rise in prices.

The rapid development of the virtual currency market attracts traders as well. Now it is difficult to find a person who had not heard anything about cryptocurrency.

Cryptocurrency trading implies the opening of speculative transactions to buy or sell. To make a profit you need to buy cheaper and sell more expensive like when investing in a common currency. There is also an option with direct purchase of cryptocurrency and its storage on the wallet, it is the long-term strategy which is called buy&hold.

Crypto exchanges & Forex

Cryptocurrency can be traded both on the crypto exchanges and via Forex brokers. In total there are more than 2,000 cryptocurrencies, with more than 100 cryptocurrency exchanges worldwide.

Where is it better to trade cryptocurrencies? Both options have their pros and cons.

Forex cryptocurrency trading:

Forex brokers offering cryptocurrency trading are more popular with traders. JustForex offers its clients 13 cryptocurrency pairs to trade with competitive spreads from 0 and leverage up to 1:3. Working with a cryptocurrency via brokers protects you from hacks. However, you should track the trends of virtual currencies, because the risks of a sudden loss of virtual money are high. For instance, trading crypto at JustForex advantages are:

You can earn not only on growth but also on the fall.
There is no need to have a wallet for storing virtual currency. To start trading on Forex you need to get registered, open the crypto account, and deposit it.
Leverage allows you to reduce the starting capital. If you use a leverage of 1:3, then you can carry out transactions for amounts that are 3 times larger than the funds on the deposit. However, it should be noted, that the use of leverage involves risks.
Many brokers offer MetaTrader terminals, which are characterized by wide functionality. Here you can analyze charts using a variety of different indicators already built into the platform, add your own indicators and scripts, and also trade in automatic mode, using robot advisors.
Forex brokers offer professional support and high-quality services. Support service is available around the clock.
There are demo accounts for practicing strategies.

Cryptocurrency exchanges:


Cryptocurrency exchanges contain all the necessary tools for a trader, allow you to track the rate and history of transactions, place orders. If you want to explore cryptocurrency exchanges yourself and find the one that suits you best, it is recommended to pay attention to the following characteristics:

Trading volume. For making quick trades, it is recommended to choose exchanges with high trading volume.
Interface. A cryptocurrency exchange is the main tool of the trader. It should be clear and easy-to-use.
The percentage that the exchange takes from the transaction.
Deposit and withdrawal ways. Each exchange has its own set of options for depositing and withdrawing funds.
What to choose, cryptocurrency exchanges or Forex brokers is up to you to decide. Some choose the exchanges, other brokers. Brokers are convenient for scalping, exchanges – for long-term investment.


source:zerocrypted.com
Legal disclaimer: The insight, recommendations and analysis presented here are based on corporate filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. They are presented for the purposes of general information only, and all the information belongs to the original publishers. These may contain errors and we make no promises as to the accuracy or usefulness of the information we present. You should not make any investment decision based solely on what you read here.

Creamcoin Marketcap