Advantages and disadvantages of cryptocurrencies
The enormous hype surrounding Bitcoin and other digital currencies is gradually beginning to subside, with most investors losing significant amounts of money in its decline.
No one now believes that the value of these assets can only rise and generate profits for those who hold them.
Despite this, this asset remains an attractive target for speculation, as trading liquid cryptocurrencies still offers substantial returns.
Trading cryptocurrency on a currency exchange, rather than on a specialized platform, can currently yield significant profits.
Before you begin trading any cryptocurrency on the exchange, it's important to understand the advantages and disadvantages of the chosen instrument.
• High volatility – the rate can change by 10% in one day, which provides huge opportunities for earning 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 such a large number of patterns.
• Small lot – one lot in Bitcoin is only 1 Bitcoin, while the minimum transaction volume in most cases is 0.01. That is, without taking into account leverage, at a rate of 3500, you can open a transaction for only 35 US dollars.
Disadvantages:
• Brokers - not all companies have started working with electronic currencies yet, you need to spend a lot of time to choose a suitable broker - http://time-forex.com/kriptovaluty/brokery-kriptovalut
• Leverage - up to 1:10 is the maximum provided by brokerage companies, this is, so to speak, concern for the protection of client funds. Therefore, scalping with such leverage is quite difficult, you can only hope for high volatility.
• Spreads - as a rule, slightly higher than for regular 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 in terms of dollars at the current exchange rate of 35,000. For comparison, for regular 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 draining your deposit.
As you can see from the above indicators, cryptocurrencies are great for trading in a trading terminal, but large-scale trading is not possible unless you open multiple accounts with different brokers.
Read more about cryptocurrency trading here: http://time-forex.com/kriptovaluty/treyding-kriptovaluty
