For a long time, investors have heavily relied on Forex (FX) market to trade their currencies. This trend has been because of the Forex market is the largest and most liquid currency market. Cryptocurrencies and Crypto CFD Trader are different though. Through Forex currencies on average trillions of currencies are traded daily. There is no central marketplace for the currencies exchange but over the counter hence giving it the pride of being the largest market of all ages. This trade is characterized by total value traded and involvement of any country, firm or individual to participate in the market and transactions taking place on the spot or through a forward basis. The world’s largest Forex exchange markets are in major global financial centers such as New York in the US, Tokyo Japan, London in England, Singapore, Frankfurt Germany, Sydney Australia and Hong Kong China.
Meaning of cryptocurrencies
The world is dynamic, and change is the only constant factor, the introduction of the cryptocurrencies has brought a significant paradigm shift from the traditional Forex exchange to usher in a new era and platform of currency trade. This new form of business has rivaled Forex transactions and led to fear and criticisms from the old guards and the conservatives who would rather be champions of status quo than new inventions. But what is these cryptocurrencies, we should ask ourselves.
Cryptocurrencies are virtual currencies. They operate independently of banks or any other financial institutions and governments. And just like traditional Forex currencies, cryptocurrencies are also exchanged or speculated on for returns. The reason for this business to take root in the world is that, it is fast and has high returns as compared to other investments.
Crypto CFD Trading
In Crypto CFD (Contracts for Differences) Trading, an investor can speculate on changes in the price of a cryptocurrency, e.g., Ripple, Ethereum or Bitcoin and use leverage meaning an investor will only be required to remit a portion of his/ her investment or contract total value. Leverage also multiplies the impact of price changes hence affecting both profits and losses directly. Thanks to the auto pilot technology of the new system that enables the robot to project accurate outcomes
There is a considerable number of cryptocurrencies available in the market, and at Crypto CFD trader, they offer the five of the most popular ones namely Ethereum, Ripple, BitCoin, and Litecoin. Through CFD trading an investor can deal on cryptocurrencies by either buying them a hoping to sell them at a profit or by deciding to speculate on their value whether an increase or decrease without owning them.
A wise investor should understand that as CFDs are leveraged products, he’ll need a small deposit of his investment or contract for him to gain exposure to the full value of the trade. But this also means, putting down a small amount not only makes the capital go further, but one also stands to lose an amount much higher than the initial stake.