Important points when trading cryptocurrencies

Cryptocurrency trading has recently changed significantly, shifting from specialized exchanges to the forex market.

While previously it was all about buying and holding Bitcoin until its peak price, currency exchanges have now equated crypto with regular currency.

Trading liquid cryptocurrencies on an exchange offers many advantages, but it's fundamentally different from initial trading with digital money.

So, let's move on to the most important aspects of cryptocurrency trading:

1. Speculative trading – first of all, it's important to note that if you buy crypto in a trader's trading terminal, you cannot withdraw this money to your wallet.

On the one hand, this is a minus, but on the other hand, it is a huge plus, since a transaction can be completed in a split second.

2. The ability to use leverage – meaning you can receive an interest-free loan from a broker at a rate of 1:10. Where 1 is your own funds, which act as collateral and are the only ones you can lose, and 10 is the broker's funds.

For example, with $1,000 you can buy $10,000 worth of Bitcoin

3. Lot size – while for other currencies 1 lot on the exchange is equal to 100 thousand of the base currency, for the BTC/USD currency pair one lot is equal to just one bitcoin.

4. Volume Limits – Unfortunately, the maximum trade volume per account is 10 lots, or in our case, 10 bitcoins. There's also a minimum volume limit of 0.01 lots—a hundredth of a bitcoin, so to speak.

5. Position rollover fee – as with other currencies, there's a swap fee, meaning if you leave your trade open for more than 24 hours, a fee will be charged. The fee is approximately 2.5% per month of the trade size.

Please note that from Wednesday to Thursday the commission increases threefold.

6. Spread – as always, selling is more expensive and buying is cheaper. If you buy cryptocurrency and immediately sell it, the difference will be about $20. You can read about the spread here: http://time-forex.com/terminy/spread-forex

7. Trading Hours – Trading is available 24/7, but there is a break from 12:00 AM to 1:00 AM, so be careful.

8. Platform Trading – Those who have worked with MetaTrader 4 know how functional this program is. In addition to chart analysis, you can place pending orders, set stops, use robots, etc.

It's simply impossible to describe all the functionality in a few words - http://time-forex.com/knigi/instruksyy-metatrader-4

9. Brokers – that is, those through whom you can make transactions in cryptocurrency http://time-forex.com/kriptovaluty/brokery-kriptovalut

As you can see, there are many nuances to trading cryptocurrency on a foreign exchange, but it's worth it. A professional trading terminal gives you a wealth of opportunities that will make your cryptocurrency trading much more successful.