In the case of cryptocurrencies, there is volatility. Even for some more conservative traders, this may be overkill. Therefore, before you start trading such volatile instruments, make sure that they are right for you.
Keep in mind that market fluctuations of 10% or even 20% in virtual currency prices during the day are not atypical. Great news for speculative traders is that they will be able to use leverage when trading with cryptocurrencies account Admiral Markets.
Remember, however, that leveraged trading increases not only your profits but also your losses. Therefore, use leverage wisely, after weighing all possible risks. You are probably wondering why it is worth using trading with such a volatile trading instrument?
Using leverage provides capital that you can use to trade other instruments, currencies, stocks, indices, commodities, etc. Thus, you can diversify your portfolio of financial instruments, thereby reducing the risk to your capital. The same time, if you choose to trade with leverage, you can double your positions when trading bitcoins or other cryptocurrencies and try to get the maximum profit if you can correctly understand the price direction.
Bitcoin Trading – Long and Short Positions
As mentioned earlier, when trading bitcoin using CFDs, you can benefit from price movement in both directions. At the same time, you will suffer losses if the worlds most significant becomes cheaper. On the other hand, if you think the current Bitcoin price is high and going down, you can go short and win when the price goes down. In this situation, you will lose if the price goes up. Taking short positions can also help those who have already purchased or mined bitcoins. By opening a short position for Bitcoin CFDs, they will be able to ensure their jobs against a fall in the Bitcoin price.
Start making money on both the highs and lows of Bitcoin using the best trading platform designed for trading various asset classes. Financial peak is best platform for bitcoin trading.
Bitcoin Trading – High Liquidity and Security
Another benefit of trading cryptocurrencies with Admiral Markets has to do with liquidity. Unlike trading virtual currencies with any the broker that can survive a temporary liquidity crisis and even collapse due to a hack or cyber attack, trading cryptocurrencies with Admiral Markets guarantees constant liquidity.
This liquidity is guaranteed by several of the largest cryptocurrency exchanges in the world.
This much protect you from the negative scenarios described above if you are trading on a specific crypto exchange that can bring you significant financial losses.
Trading Bitcoin with Admiral Markets – Fees
Before you start trading any instrument, it is recommended that you familiarize yourself with the associated transaction costs. Ignorance can lead to severe problems, especially in cryptocurrency trading, which can eat up a significant portion of your future profits.
The advantage of trading cryptocurrencies with Admiral Markets is that you do not pay commissions when trading them outside of the spread. You have no commissions for currency conversion, as well as commissions for transferring funds to and from your account if you are actively trading. Also, if you trade any other cryptocurrencies other than
Bitcoin, it will be converted to Bitcoin when you buy and sell the corresponding currency.
The only things you need to pay is the difference between the buy-sell price and the sell-sell price, that is the spread.
These flexible trading conditions are because the trader speculates on the price movement of the underlying asset Bitcoin or another the cryptocurrency that he trades instead of owning the asset.
However, it should be reiterated that when trading Bitcoins via CFDs, leverage can increase both profits and losses and therefore, an adequate risk management strategy should be implemented.
Bitcoin Trading – Technical Analysis
It is the application of analytical methods to determine the future direction of an asset’s trading, based mainly on its past behaviour. Technical analysis methods are numerous and varied, allowing traders to choose the best ones for them based on trading style, trading goals and risk aversion.
And this is partly because the fundamental analysis is practically not applicable to trading and investing in Bitcoin.
