Three reasons to trade cryptocurrencies
Cryptocurrencies and blockchain technology have opened up numerous trading opportunities. However, price gains and volatility swings are both scaring and enticing traders.
There are three main reasons traders are choosing cryptocurrencies.
1. Cryptocurrencies are a free market
As a decentralised market, cryptocurrencies are different from the heavily regulated and highly traded world of forex. This means that both the risks and the opportunities of trading cryptocurrencies are far greater.
If you are interested in speculating on the value of cryptocurrencies like Bitcoin and Ethereum, you can now do this via spread betting or CFD trading. This means you can take a view without actually purchasing either currency.
2. The opportunities for growth are large
Cryptocurrencies are in their infancy which means that there are plenty of opportunities for new traders to enjoy potential growth. Ethereum, for example, has witnessed a 3000% yearly rise. All this is exciting news for traders who are able to see the potential for profits in the near future.
These large price movements do, however, create the risk of large losses if you trade in the wrong direction. It’s important to put risk management strategies in place when you trade cryptocurrencies.
3. Crypto is a low-entry investment
In traditional market trading, individuals are competing against wealthy corporations such as banks. These big players can afford to hire analysts, professional traders and the latest intuitive software. This means that smaller traders may not have the resources to compete.
With cryptocurrencies, there are fewer barriers to entry. If you use spread betting or CFDs, you can go long or short of cryptocurrencies risking as little as a pound a point.
Trading cryptocurrencies carries a high level of risk, including the risk of discontinuation. Learn more about managing your risks and start trading cryptocurrencies now with Intertrader.
For more information, trading education and offers visit Intertrader
You should under no circumstances consider the information and comments provided in this article as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.