The most secure way to trade cryptocurrencies in the current situation
The bankruptcy of the FTX exchange was bad news for many investors involved in exchange trading.
As a result, everyone who held funds on this platform lost their money, and it is unknown whether they will be able to recover even part of it.
This is far from the first bankruptcy of such organizations, and it is quite possible that we may soon hear unpleasant news about another cryptocurrency exchange collapse.
After all, most crypto exchanges are unregulated organizations and use investors' money at their own discretion.
In this situation, many stock market players are wondering what method to use to make speculative trades on cryptocurrency pairs?
Wallet trading – you can buy and sell cryptocurrencies directly in your e-wallet:
This is a rather controversial option, in my opinion, since in addition to high commissions and a lack of leverage, there are practically no auxiliary tools.
Moreover, the reliability of such wallets is also rather questionable and at any moment they could repeat the fate of the exchange.
Stock brokers are the best choice today, as most of these companies have bankruptcy insurance:
True, it is limited to 20,000 euros, but it is still better than nothing, especially since you can use accounts with several brokers, thereby increasing the insured amount several times.
In addition, everyone knows other advantages of trading through stock brokers:
• Possibility to place stop orders – stop loss, trailing stop, take profit.
• Leverage of up to 1:10
• Auxiliary scripts – advisors , indicators
• Interest on free funds on the deposit – funds not involved in transactions are stored in the currency of your choice and interest is accrued on them. The rate sometimes reaches 20% per annum.
• Availability of licenses for financial transactions.
A list of cryptocurrency brokers can be found here: https://time-forex.com/kriptovaluty/brokery-kriptovalut
Brokerage firms, unlike cryptocurrency exchanges, have been around for decades, and cryptocurrency assets are only one of the many types of assets traded through these brokers. This fact alone significantly reduces the risk of bankruptcy.
Due to recent events, I have completely switched to trading cryptocurrencies with traditional exchange brokers.
