Why trade cryptocurrencies?


The majority of our readers would have heard about cryptocurrency and the different means of trading and exchanging it from one currency to another. But they may be wondering what they stand to benefit if they begin trading in cryptocurrency. In this article, we’re going to point out some of the things you stand to benefit from if you decide to start trading with crypto today.

When we talk about trading cryptocurrencies through an exchange, what we mean is that users are speculating on the value of the market they chose, without taking possession of the digital asset. Derivative products are used to make these bets. Cryptocurrency trading offers several benefits to players including;

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Benefits of trading cryptocurrency

Cryptocurrency Volatility

Despite being relatively new, the cryptocurrency market has experienced significant volatility due to the high short-term speculative interest. For example, Bitcoin rose to an all-time high of $19,378 between October 2017 and October 2018, and also fell to a low of $5851 within that same period. While another cryptocurrency has been relatively stable, new technology is likely to attract speculative interest.

Cryptocurrencies are known for their volatility, which is what makes them so exciting. Traders can take advantage of rapid intraday price changes to go short and long, but they should know that they carry a high risk. Make sure to have done your research and developed a risk management strategy before you decide to invest in the cryptocurrency market.

Cryptocurrency Market Hours

Due to the lack of centralised governance of the cryptocurrency market, customers usually have access to the market 24 hours a day, 7 days a week. On cryptocurrency exchanges all over the world, individuals can transact directly with each other in cryptocurrency. In some instances, markets may be down for some time as they adjust to infrastructure forks and changes.

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Improved Liquidity

A cryptocurrency’s liquidity refers to how easily and quickly can it be exchanged for cash without affecting the market price. By increasing liquidity, traders can trade faster and get faster transaction times, obtain better prices and have greater technical analysis accuracy.

Because cryptocurrency transactions are dispersed across multiple exchanges, the market is considered illiquid in general because comparatively small trades have a great deal of impact on market prices. Cryptocurrency markets are volatile due to this factor.

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Ability to go short or long

By purchasing a cryptocurrency, you invest in the asset upfront in a hope that its value will increase. However, when you trade cryptocurrencies, you can profit from both rising and falling markets. It’s called shorting the market or going short.

For example, if you think the market position will fall, you may decide to open a short CFD position on ether. You would profit from your trade if ether value fell against the dollar. Your position would be losing money if ether’s value increased against the US dollar.

Leveraged Exposure

Since CFDs are leveraged products, they let you open a position on a margin that is just a fraction of the whole value of the trade. So, only a relatively small amount of your capital needs to be linked to a cryptocurrency market to gain a significant amount of exposure.

When it comes to cryptocurrency trades, you will either make a profit or a loss based on the full value of the position at the moment it is closed. Therefore, margin trading offers you the possibility to generate large profits from a relatively small investment.

Nevertheless, it can greatly amplify your losses, including losses resulting from a trade that exceeds your initial deposit. To trade CFDs safely, it is important to consider the total value of the leveraged position. Also, you need to make sure you have taken steps to manage your risks. This should include stopping when needed and setting limits for the risks.


These are the benefits of trading with cryptocurrency. Now you can acquaint yourself with these benefits before making any further move in cryptocurrency trading.