However,5 Key Advantages of Cryptocurrency Trading Articles before you get started, it is important to consider whether you will speculate on the prices of digital assets or buy them. So, if you are interested in cryptocurrency trading, take a look at five key advantages of trading CFDs on cryptocurrencies.
1. Volatility in the Cryptocurrency Market
The cryptocurrency market is highly volatile, especially due to the bulk amount of short-term speculative interests. Prices of cryptos can fall or rise significantly within a short span of time. And this volatility makes cryptocurrency trading more exciting. Rapid changes in prices intraday can pave for lucrative investment opportunities to go short or long. However, frequent market fluctuations come with increased risks as well. Therefore, you should consult an expert trading partner such as SUISSE BANK to make a wide trading decision at the right time.
2. Flexibility to Go Short or Long
When you trade in a cryptocurrency, you https://coin-gpt.net/ are actually buying the digital assets upfront with the speculation of an increase in value. However, when you trade on the asset’s price, you get the flexibility to leveraging the market that is rising or falling. This is referred to as going short in cryptocurrency trading. You can also choose to go long, depending on the market conditions and volatility.
3. Improved Liquidity
How easily and quickly you can convert a cryptocurrency into fiat money, without affecting its market price, is called liquidity. This is an important factor because it aids in improved accuracy, faster transactions and better pricing. Typically, the crypto market is regarded as illiquid. This is because the trading transactions are widely spread across different exchanges. That means smaller trades may have a remarkable impact on the market prices of the cryptos. This is one reason why the crypto market is so volatile.