Why trade Cryptocurrencies?
Cryptocurrencies are a unique asset class with several factors that make them unique and attractive in comparison to other markets.
Cryptocurrency trading is a 24-hour market, seven days a week. Traditional markets such as forex, stocks and CFDs tend to operate 24/5. Crypto trading is open to everyone, with the average investor usually trading USD for cryptocurrency on a market and avoid the complexities and investments of mining cryptocurrencies for themselves.
Cryptocurrencies are not “fiat currencies”, they are not under the control of the government so one economy does not have a stranglehold over the crypto prices. Cryptos react to a wide range of different events including Brexit and Trumps election, these saw crypto prices soare due to uncertainties over traditional fiat currencies. Unlike other asset classes (FX, Indices, Commodities, etc.), the Cryptocurrency market is dominated by retail speculators.
Cryptocurrency trading allows traders to diversify their investment portfolio, as cryptocurrency price is primarily determined by the market sentiment, demand and supply
Cryptocurrencies, especially Bitcoin, can be very volatile which means there is an opportunity for traders to catch rapid and frequent price movements.
One of the main advantages of trading cryptocurrency is that it allows traders to buy, trade and invest without the need to rely on banks or any other financial institutions. Anyone with a crypto broker account can trade cryptos.