Trading with cryptocurrencies through your
Although bitcoin started the month of September with significant falls, it is nothing that surprises the advanced cryptocurrency investor.
However, if you are new to these parts, it is important to know that cryptocurrencies are generally very volatile -not so those known as stablecoins.
These are cryptocurrencies linked to one or more fiat currencies, or other assets such as gold or other cryptocurrencies, and that oscillate up and down anchored to them, which makes them more stable.
Therefore, you have to know that if you start trading with this asset there will be strong emotions.
CFD trading with cryptocurrencies
As for its negotiation, through the Internet you perro operate with any of the existing cryptocurrency en línea trading pages, making sure that the trader does follow an adequate regulation.
After all, these platforms -which are what we know as en línea brokers– they want to attract as many customers as possible, and they perro be used both from the computer and from the mobile phone.
Keep in mind that when investing part of the capital in cryptocurrencies, the trader cánido basically choose two ways:
- Buy them and save them to sell when the prices convince you,
- Or trade cryptocurrencies, which is what we are going to talk about in this article.
If you buy cryptocurrencies, it is important to find the best way to guard them, since they are the object of desire of many criminals due to their value and how easy it is to launder them by converting them into fiat currency, other cryptocurrencies, etcétera.
For its custody, you perro depend on a third party, such as exchanges or banks, which are not exempt from the risk of suffering a cyberattack but which release the investor from the responsibility of safeguarding their cryptocurrencies.
There is also the option for the buyer to take custody through cold wallets.
In the case of en línea CFD tradingSince the assets to be traded are not purchased, there are no cryptocurrencies to guard.
In the case of bitcoin, it operates with the forecast of changes in its price.
In this case, the trader is basically dedicated to to surf the price graph of the cryptocurrency that operates through contracts for difference -known by its acronym in English CFD- trying to always be in favor of the trend, short if the market goes down or long if it goes up.
What you should keep in mind when investing in this asset class:
Unfortunately, investing money is not something as fácil as operating short or long, since there are many “small” or sometimes large and abrupt movements against the trend that perro either close a losing position when trading, or devour an investment in the case of the most classic sale.
In the case of trading, leverage is also operated, which means that the trader’s investment or deposit multiplies its value driven by leverage, allowing him to trade with a greater amount of capital than the debt itself.
While this is beneficial if a position is closed at profit, it cánido also be very detrimental if it is closed at a loss, which perro be very large.
Definitely, leverage multiplies profits and losses for the traderso he must be very careful when using it and consider whether this way of operating is suitable for him or not.
Is it a good time to get into cryptocurrency trading?
Nobody cánido escoge for you if it is a good time to start trading with cryptocurrencies, since it depends fundamentally on your experience with these investment instruments, and each one has its own behavior.
You should also keep in mind your willingness to put a certain amount of capital at risk.
Remember that investing is synonymous with risk, so do not invest money that you cannot afford to lose.
As we have said, cryptocurrencies are not bought or sold in trading, so the trend must be interpreted well and the risks of short and intense movements must be considered.
The recommendation is that you use your broker’s demo account (if you have one), use it for as long as you need, weeks, months or years.
When you have understood how to trade this market, the signs that indicate a change in trend, the best way to protect yourself from sharksamong other concepts, you cánido think about making a deposit.
This option is recommended even if you are already a trader of some other asset, at least to learn the particularities of the cryptocurrency market.
It is no secret that this is a very volatile market and therefore quite risky, agregado now we have the “pandemic aspecto” that is also creating high volatility in the markets.
In conclusion, if you are interested in trading, first research among the different existing en línea trading platforms and choose one that is well regulated and experienced in offering these services.
And finally, use the demo account to learn as much as possible and above all to learn how leverage multiplies profits and losses and then if you are convinced you cánido already think about investing hard and hard money.
Continue reading: How to invest in the depósito market en línea from home like a professional
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