Advantages and disadvantages of cryptocurrencies
The huge excitement about Bitcoin and other digital money is gradually beginning to subside; most investors lost a lot of money due to its fall.
Now it no longer seems to anyone that the value of these assets can only grow and bring profit to the people who own it.
But despite this, this asset remains an attractive object for speculation, since trading liquid cryptocurrencies still allows you to make good money.
It is cryptocurrency trading on a currency exchange, and not on a specialized platform, that can now bring good profits.
Before you start stock trading in one of the cryptocurrencies, you should know what advantages and disadvantages the chosen instrument has.
• High volatility - the rate can change by 10% per day, which provides huge opportunities for making money even without using leverage.
• Good forecast – in most cases, it will not be difficult for a professional trader to predict where the price will go in the near future.
• Patterns – it is difficult to imagine another asset for which one could find the same large number of patterns.
• Small Lot – One Bitcoin lot is only 1 Bitcoin, with the minimum transaction volume in most cases being 0.01. That is, without taking into account leverage, at a rate of 3500, you can open a deal for only 35 US dollars.
Disadvantages:
• Brokers – not all companies have started working with electronic currencies yet, it takes a lot of time to find a suitable broker - http://time-forex.com/kriptovaluty/brokery-kriptovalut
• Leverage – up to 1 :10 is the maximum that brokerage companies provide, this is, so to speak, concern for the protection of client funds.
Therefore, it is quite difficult to scalp with such leverage; you can only hope for high volatility. • Spreads – as a rule, are slightly higher than for conventional currencies, but the difference is not so significant as to pay attention to it.
• Maximum volume – unfortunately, its size leaves much to be desired, the maximum volume of transactions on the account does not exceed 10 lots or 10 bitcoins per dollar at the current rate of 35,000. For comparison, for ordinary currency pairs this figure is equal to millions of dollars.
• Rapid trend – trading requires increased attention, since the trend can be simply rapid and if you do not use stop orders, there is a possibility of quickly losing your deposit.
As you can conclude based on the listed indicators, cryptocurrencies are great for trading in a trading terminal, but you won’t be able to trade on a large scale.
Unless you open several accounts with different brokers. Read more about trading crypto currencies here - http://time-forex.com/kriptovaluty/treyding-kriptovaluty