Like Forex trading, trading cryptocurrency is also a way of converting different bitcoin into useable USD or vice versa. Unlike bitcoin mining, cryptocurrency trading allows you to enter the world of cryptocurrency without purchasing any hardware or buying any initial investments. Networks like Palm Beach Confidential can help you set up your trading account and run you through a crash course on what to expect when you first start trading bitcoin. Like Forex trading, www.wsj.com states that cryptocurrency trading is a lucrative method of earning money. Though Forex trading has its high points, cryptocurrency trading is much easier to get in and out.
The typical time spent to set up a bitcoin trading account is less than an hour. Forex demands that you open an account and have it verified with the access codes and registration forms they send which can take weeks if not months for to and fro communication. It will take an additional few days to transfer the funds you want to start off with your Forex broker from the bank account you like your account to be. Further, let’s not forget that Forex is virtually impossible to leave once you have registered as a trader. On the other hand, crypto-trading is an individual process; hence, transferring bitcoins from the exchange to your wallet is all you need to do to leave.
One of the biggest advantages of bitcoin is the spread. A spread is the price difference between the asking and bidding prices of a market maker. Though individually there may not be as much of a difference, don’t forget that when you’re selling by the thousands, the rate will be significantly higher which is not including the transactions fees. A recent study revealed that the spread for Forex is approximately 0.018% while with bitcoin, it is of the order 0.0002%. Technically this means that the difference between the exchange rates is so insignificant that you made virtually no loss in the crypto exchanging method.
Another key feature of cryptocurrency trading is margin trading and leverage. Margin trading allows you to use the selling or buying power of your peers by allocating some funds (or margin) to do so. This fund will be held until you can pay the capital and interest back. Leverage refers to trading for an amount you do not have by assigning a higher value to each currency you trade. Forex allows for some degree of margin trading and leverage but not to the extent of crypto trading. Both these methods can be employed to gain higher profits faster. Even if you do not have an amount to trade, if you can accurately predict the outcome of the trade, you will still earn a profit.
These inherent features barely cover why cryptocurrency trading is a great way to earn money. Many coins are known to triple and even quadruple the values almost immediately. The trick is to take it slow the first few tries and to educate yourself thoroughly on the rules of the playing field before even thinking about conducting a trade. Follow your instincts when trading till you find the safest yet fastest way to indulge in the promising prospects of the crypto trading market.