When you are interested in improving your financial situation without actually switching to a different profession, trading could be an option worth contemplating upon. The Forex market has drawn numerous investors wishing to cumulate wealth, due to the wide range of benefits it provides. With low costs and impressive gain potential, becoming a trader could be a wise decision, but if you want to access even more advantages, you should also look into Forex trades that involve cryptocurrency instruments. It’s not new information that with the rise of Fintech, crypto coins have started to draw the attention of many individuals, and Forex traders have been the ones to see the biggest potential of these virtual currencies. Because trading in crypto can seem a bit more complex than the traditional way of doing things, researching the subject more in-depth, and understanding a few relevant aspects will help you reach optimal conclusions. Here are some things you should be aware of:
Why should you include cryptocurrencies in your trades?
One of the main questions you are probably asking yourself at the moment is if including cryptocurrencies in your trading practices is actually a beneficial choice. Why should you fund your account or withdraw your gains in the form of cryptocurrency? What does this alternative actually bring to the table?
- Exchange rate fluctuations
Let’s start with the most important factor to analyze here and that is winning potential. When you are trading Forex with Bitcoin or any other crypto coin, depending on your preferences, your gains could reach much higher levels than they would when using traditional currencies. The exchange rate of these virtual coins can fluctuate tremendously in a short period of time, and while there is always the risk of devaluation, it’s worth taking considering how much money you could make if things work out in your favor. Profit opportunities exist, and they are quite tempting.
- Decentralized Valuation
In comparison with regular currencies, crypto coins are not subjected to any geopolitical influences. A country’s interest rates or inflation will also not be impacting the value of the coin, nor will any other issue having to do with macroeconomics. Cryptocurrencies have a decentralized value, so their valuation will not be unexpectedly altered in a random manner, aspect that contributes to the appeal of crypto forex trading.
- High leverage opportunities
Forex brokers that provide the possibility of trading with cryptocurrencies instruments usually provide high leverage at the same time, even up to 1:1000. This means, you could make a lot of money even with a single trade, something you couldn’t say about regular trading methods.
- Transaction security
Are your transactions actually secured? This might be something you concern yourself with, whenever you are working with a new broker or making a transaction. Because with cryptocurrencies, you will not be asked to provide important personal information, such as bank account details, you could obtain peace of mind, knowing you are completely secured.
- Fewer geographical limitations
If you want to use a broker from a country you would not normally have access to, when pursuing Forex trades, using Bitcoin could be a great solution here. Because there are no global limitations involved, if both parties involved want to transact, you won’t have to worry about complex regulatory demands.
Popular Cryptocurrencies in Trading
You may now understand a bit better what this form of Forex trades has to offer, but which virtual currencies are actually worth trading in the Forex market? There are a limited number of options that have gained popularity:
- Bitcoin – because it was the first cryptocurrency developed, and it still dominates the crypto scene, Bitcoin has naturally become the first option of Forex brokers and traders.
- Ethereum – it comes with inflationary characteristics and smart contract functionality.
- Dash – has code similar to Bitcoin but includes other extra features, such as the possibility of making transactions anonymous.
- Litecoin – with its trading ticker being LTC, Litecoin is also found in the list of Forex brokers’ cryptocurrencies available for trades.
Trading cryptocurrencies via Forex brokers
Once Forex brokers have understood that they could easily add to their regular fiat currency pairs cryptocurrencies as well, some of them have rapidly included this possibility on their trading platforms. These trades are treated in the form of contract for difference, with no actual exchange between assets. Trading crypto coins via Forex broker is advantageous because opening an account is easy and convenient, trading platform characteristics are probably already familiar to you if you have been trading Forex for some time, and it’s also easier to trade bigger amounts. As a Forex trader, getting started with crypto will seem less challenging when you work with a broker.
How to choose the right broker
Because cryptocurrencies might not be something you know much about, it’s important to pursue your trades via a trustworthy platform. There are quite a few Forex brokers available that give you the possibility of funding your account with virtual currencies, withdraw funds in the same manner and also make your crypto transactions simple. To make a proper choice here, you are advised to read reviews, check out the most popular option as selected by experts and research a few details about the broker before setting up an account. Leverage, deposit amount and spreads are the top aspects to inform yourself on when making a selection.
If Forex trades have caught your interest for a while now, and you would be interested in a transaction that involves cryptocurrency instruments, the details explained above could help you reach better decisions here. While regular Forex trading practices remain appealing, if you want to switch to an option with increased potential, this alternative could be ideal. Crypto Forex trades have increased in appeal since crypto coins have become so popular and more particularly, since Bitcoin has boosted in value so much. Now that you know a bit more on the topic, you can conclude whether this is something that would suit your current status as a trader or if you’d rather maintain the same traditional approach to Forex.
TheBitcoinNews.com – Bitcoin News source since 2012
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored or guest posts, articles and PRs are NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise