The most secure way to trade cryptocurrencies in the current situation
The bankruptcy of the FTX exchange was unpleasant news for many investors involved in exchange trading.
As a result, everyone who held funds on this site lost their money and it is not known whether they will be able to return at least some of it.
This is not the first bankruptcy of such organizations, and it is likely that soon we may again hear unpleasant news about another collapse of the cryptocurrency exchange.
After all, most crypto exchanges are uncontrolled organizations and use investor money at their own discretion.
In this situation, many exchange players are wondering what method to use to conclude speculative transactions on cryptocurrency pairs?
Wallet trading – you can buy and sell cryptocurrencies directly in your e-wallet:
A rather controversial option, in my opinion, since apart from high commissions and the lack of leverage, there are almost no auxiliary tools.
In addition, the reliability of such wallets is also quite questionable and at any moment they can repeat the fate of the exchange.
Stock brokers are the best choice today, since most of these companies have bankruptcy insurance:
True, it is limited to an amount of 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:
• Ability to place stop orders - stop loss, trailing stop, take profit.
• Leverage up to 1:10
• Auxiliary scripts - advisors , indicators
• Interest on free funds on deposit - funds not participating 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 to carry out financial transactions.
A list of cryptocurrency brokers can be found here – https://time-forex.com/kriptovaluty/brokery-kriptovalut
Brokerage companies, unlike cryptocurrency exchanges, have existed for decades; in addition, cryptocurrency assets are only one of the asset options that are traded through these brokers. This fact in itself significantly reduces the risk of bankruptcy.
Due to recent events, I myself have completely switched to trading cryptocurrencies with classic stock brokers.