bitcoin trading

Is Trading Cryptocurrency Profitable?

When trading cryptocurrencies, you speculate on whether the market you selected will rise or fall when it comes to value; however, without actually owning the digital asset. This is usually done by applying various derivative products available in the market, such as CFDs. 

Trading cryptocurrency can help you make significant profits. This is why crypto trading is gaining more and more popularity every day. Some of the most prominent benefits of crypto trading are discussed below:

Cryptocurrencies are volatile:

The Crypto market is a relatively new one compared to other trading markets. However, in this short span of time, the market has already experienced high volatility. The major reason behind this is short-term speculative interest. For example, in the period between October 2017 to October 2018, the price of bitcoin experienced some unexpected changes. Once, it went as high as $19,378, and there was a time when it fell down to $5851. This was highly unlikely in other cryptocurrencies; however, modern and advanced technology often attracts speculative interest.

This volatile nature of cryptocurrencies is what makes them so exciting. Frequent price movements offer so many opportunities for traders to take advantage of. However, nothing comes without risk. Hence, if you wish to enter the cryptocurrency market, you must be through with your concepts and design a risk management strategy for security.

Cryptocurrencies are available 24*7:

The best thing about the cryptocurrency market is that it is available for trading 24*7 as there is no central authority in the market. Cryptocurrency transactions are done directly between parties through cryptocurrency exchanges worldwide. However, downtime is possible, such as when the market needs time to adjust to infrastructural updates.

Better liquidity:

Liquidity determines the period required by a cryptocurrency to get converted into cash without affecting the market price. High liquidity means quick transaction times, better pricing and accuracy in technical analysis. Generally, the cryptocurrency market has low liquidity as the transactions are distributed across numerous exchanges, meaning even the smallest trades can hugely impact the market prices. This is why the cryptocurrency market is highly volatile. But, if you trade cryptocurrency CFDs, your liquidity improves as you can source prices from various venues. Thus, you can execute your trades quickly at a low cost.

Faster account opening

Cryptocurrencies are bought and sold through an exchange. Hence, you are required to open an exchange account where you can keep your cryptocurrency in the form of a digital wallet. The process can consume a lot of time if done on your own. But when you choose a reliable broker for cryptocurrency trading, you are not required to access the exchange yourself. You don’t have to go through the hassle of setting up and managing an exchange account as it can be set up quickly by them. 

Leverage:

CFD trading is considered a leveraged product. Therefore, traders can easily open a position on ‘margin’ by depositing just a small fraction of the trade’s full value. Hence, you get significant exposure to the cryptocurrency market with just a small amount of your capital.

Trading on margin gives a chance to earn huge profits by making a small investment. However, the traders must understand that it may amplify your losses as well, which can sometimes exceed your initial deposit. This is the reason why it is important to take into account the full value of the leveraged position prior to starting trading CFDs. Additionally, It is vital to ensure a reliable risk management strategy.

Ability to go long or short:

When buying a cryptocurrency, you purchase the asset up front, hoping its value increases with time. But if you practise trading on the cryptocurrency price, you get to take advantage of markets that are falling or rising in terms of price. This process is called going short. For example, let’s assume you decide to open a short CFD position on the ether price as you believe that the market will fall. If your speculation is right, and the value of ether falls against the US dollar, you earn a profit. On the other hand, if the value of ether rises against the US dollar, you would make a loss.

 

bitcoin trading

What is bitcoin trading? Learn About Bitcoin Trading

Many traders on a regular basis are opting for bitcoin for so many reasons. Bitcoin, often known as BTC, is a type of cryptocurrency that came into existence during the 2008-09 recession. BTC is also considered an innovative payment network worldwide. This digital currency offers many benefits, like quick transactions and low costs. This makes bitcoin cover up for the lack of significant privacy features. Here are some of the best benefits one can avail by trading bitcoin:

  • Quick Transactions:

One major problem that traders face with fiat currency is that it takes several days and sometimes even weeks for a transaction to complete. However, with bitcoin, this problem can easily be resolved. Whether it is 2 o’clock in the morning or afternoon, you can get the money instantly. Since there are no intermediaries, there are no hassles and fewer waiting periods. Also, it is so much more convenient to send some BTC to your friend in another country. All you have to do is key in his bitcoin address and make the transfer. Additionally, there are no limits on the number of BTC transactions you can make in a day. However, once the transfer is done, you cannot reverse it unless the other party decides to do so.

  • Low Transaction Costs:

Imagine paying excessive fees every time you withdraw money, and that too from your own account. When you need to withdraw an amount over and above $1000, these fees can be as high as $35. But, by opting for bitcoin transactions, you don’t have to pay any such fee for making transfers, irrespective of the value. You only need to pay a small fee for transaction processing. The best thing is that this amount is very minimal.

  • Privacy:

Bitcoin transactions are the best for people who want anonymity and privacy while making transactions. Bitcoin wallet owners have one or more keys which are called bitcoin addresses. These keys are required to execute a transaction, meaning unlike credit cards where your name and other information are required for processing the payment, all you need is a key in the receiver’s address to execute bitcoin transactions.

  • Decentralization:

Bitcoin is a decentralized currency; therefore, governments or financial institutions such as banks can never interfere in bitcoin transactions. This is why bitcoins are an excellent option for people who do not prefer government interference or want privacy. There is a huge possibility of information getting hacked with traditional payment systems such as credit cards. Hackers can access your entire financial records and make fraudulent transactions. But, with BTC, such issues are less likely to occur because of its highly innovative blockchain technology.

  • Bitcoin Value:

Bitcoin value is yet another reason people prefer to trade with BTC rather than with fiat currency. Fiat currency may depreciate anytime without any prior notice. On the contrary, bitcoin sticks to the same price forever, which is set by the free market forces. This makes bitcoin a great choice. Unlike paper money, bitcoin has no strict regulations for conversion. Thus, you get full control over the bitcoins.

  • No Inflation:

One major problem with traditional payment systems is that they can cause high inflation. But, cryptocurrencies are decentralized; hence, there are no restrictions on the amount of bitcoin that could be mined. Hence, there is always a fixed supply of BTC available in the market. Therefore, your digital assets can never depreciate on account of value loss as bitcoin is not limited by any limitations.

  • Security:

Fiat currency is not so secure in the current scenario where cyber-attacks are happening worldwide by hackers. However, with bitcoin, each transaction is recorded in a ledger; therefore, no one can make unauthorized changes. Even if someone tries to do it, the BTC community will get to know; therefore, bitcoin transactions are very secure. 

Conclusion:

Many reasons make bitcoin a great alternative to other payment options such as credit cards. These reasons are making individuals opt for bitcoin regularly.

 

 

metatrader 5

Everything To Know About Crypto Trading on MetaTrader 5

In the past few years, cryptocurrency trading has become highly prevalent. Many traders from across the globe prefer to trade in the crypto market. The primary reason behind the enhanced popularity of the crypto market is that it is not regulated or controlled by any central authority or nation. Besides, the fiat currencies also do not affect the currency. Therefore, they are highly popular and are emerging as the major medium of exchange in several nations.

Among the available cryptocurrencies, BTC tends to highlight the maximum popularity. It has a significant fan following, and many traders invest their money into these currencies. These currencies are part of blockchain technology and are the future of exchange and trading. 

MT5 and cryptocurrency trading

Typically, traders keen on trading cryptocurrency must do it via a trading platform. Therefore, trading platforms are the primary requirement for trading. These trading platforms are supported by technical analysis, customer support, trading patterns, and trading charts. With the platform, the traders can ideally conduct a fundamental market analysis. 

Nowadays, traders can ideally trade cryptocurrencies on the MT5 trading platform. Furthermore, as the entire concept of crypto trading is relatively new, many forex trading platforms also account for crypto trading. Therefore, both the trading can be done on one platform. 

What is the MT5 trading platform?

Before commencing trading on the MT5 trading platform, it is essential first to understand its meaning of it. The primary purpose of designing MT5 was to assist the traders indulged in trading options and futures. The MT5 trading platform is well-known for aggregating all the trading positions at once. 

The popularity of the MT5 trading platform

MT5 is a well-known and established trading platform. Many traders from across the globe prefer to trade via this platform to get a better hold of the market. Here are some reasons that make the platform extensively popular. These are as follows: 

  1. The MT5 trading platform is easy to access on different applications. Therefore, it is mobile-friendly. Besides, it can be accessed on mobile, desktops, and other applications. 
  2. The platform is well-known for implementing trading algorithms and trading robots. Therefore, the traders can ideally get the top-rated market details and information. Furthermore, excellent professionalism is also maintained. 
  3. The platform has multiple built-in technical tools and indicators that allow the traders to understand the market quickly. 

How to trade cryptocurrencies on MT5

The overall growth of cryptocurrency has led to crypto trading on MT5. Here are the steps via which the traders can ideally trade cryptocurrency on this platform. These are as follows: 

  • Open the account: The first and foremost step is to open an MT5 trading account with your chosen broker. 
  • Logging into the account: The next step includes logging in to the trading account by using the details. 
  • Symbols: The next step requires traders to open the Symbols tab by right-clicking the Market Watch window. 
  • Selecting the asset: The traders must click the assets they want to trade. Thus, the traders must choose Crypto for trading ideally in the market. 
  • Trade pairing: Hence, now the traders can ideally trade cryptocurrency via the trading platform. By following all the steps, the asset gets ideally paired with the platform. 

The Bottom Line

Therefore, in a nutshell, it is fitting to mention that the traders can ideally trade cryptocurrencies via MT5. with the platform, the traders can trade effectively as the platform is extremely attractive. Furthermore, the traders can also generate revenue and expand their trading portfolios. The platforms are well-equipped with different cryptocurrencies like Bitcoin, Litecoin, and more. Hence, following the ideal steps mentioned in the article must be followed by the traders. By doing so, they can effectively trade in the market. 

crypto trading

Tips To Select A Forex Broker For Crypto Trading

Individuals looking to invest in the crypto market must know and understand the basics revolving around it. Over time, many traders across the globe have chosen crypto trading as a massive investment opportunity. Hence, as a result, crypto trading has evolved as one a significant financial asset. 

What is cryptocurrency trading?

Crypto trading is pretty similar to forex trading. Generally, the traders speculate on the price movements of different cryptocurrencies. In other words, the crypto traders take the financial position on an individual cryptocurrency against the dollar or another crypto. The trading is done via crypto coins.

Compared to the other financial markets and trading forms, crypto trading is a relatively new concept. Therefore, as a result, many traders are still not convinced. Furthermore, the crypto world is highly decentralized. It means that no central authority or nation has control over crypto movement and price.

crypto trading

However, individuals looking for a way to enter crypto trading can trade effectively via forex brokers. Several forex brokers currently account for a feature where traders from across the world can ideally trade cryptocurrency. Thus, the traders need not find a separate broker for trading cryptocurrency. They can easily do it via a forex trading platform.  

Every task related to cryptocurrency can be ideally performed on the forex broker’s platform. Primarily, many forex brokers offer CFDs. The CFDs stand for the Contract of Differences. With these, the traders can effectively trade cryptocurrency without becoming its owner. Thus, with the facility offered by the forex brokers, the crypto traders need not look for a specialized crypto broker and a digital platform.

Crypto trading methods

In general, traders can trade cryptocurrency in two different ways. These are as follows:  

    • Crypto CFD
    • Crypto spot

However, there lies a significant difference between both methods. The general difference is that the crypto CFD accounts for contracts. Hence, the traders can effectively trade crypto without owning it. While on the other hand, the crypto spot method includes the transaction; consequently, the trader becomes the owner of the crypto. 

Selecting a forex broker for crypto trading

Considering the popularity of crypto trading, many forex broilers account for crypto trading via their forex platforms. However, the traders must consider several aspects when selecting a forex broker for trading crypto. Here are some points that help the traders in making an ideal choice. These are as follows: 

  • Liquidity: It is suggested that the traders must ideally look at the liquidity before selecting a forex broker. A good liquid forex broker ensures that the traders will get excellent prices for their trades. 
  • Leverage: Leverage is generally available in every financial market. The same is also available in crypto trading. When the traders prefer to trade cryptocurrency via CFDs, they must consider the leverage the forex broker offers. With good leverage, the traders can lay their hands on more quantity by spending less money.  
  • Fees or commissions: The trading fees are primarily charged by every forex broker as and when a trading order is placed. It is suggested to select the broker whose overall charges are less as they are more economical. 
  • Client service: Crypto trading is available 24 hours a day. Thus, the traders must have access to client service at every hour of the day in case any issue arises. 

The Bottom Line

Therefore, in a nutshell, it is fitting to mention that crypto traders must make a wise choice by selecting the ideal forex broker that best meets their crypto trading needs and demands. All the options must be ideally considered before locking the deal with one. Besides, the experts suggest that if an individual is new to the crypto world, they must commence with CFD crypto trading as it allows them to grow their profits. 

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