Cryptocurrency Trading for 2020 and Beyond at ETFinance

Сryptocurrency trading

Most people have heard of cryptocurrencies, or at the very least, they will be familiar with Bitcoin. But push the layman to explain how cryptocurrencies work, what they do and why they can be valuable, and you are likely to get a blank stare. The thing is, though, you don’t really have to understand the entire mechanical workings of blockchain technology to engage in successful cryptocurrency trading. Commit to gaining a basic understanding of crypto and a good understanding of the market and trading in general and then trading Bitcoin and the other cryptocurrencies becomes just like trading any other asset.

Cryptocurrencies: An Overview

There are dozens and dozens of cryptocurrencies – some 4000 today – with scores of new ones coming to the market all the time. The value of each cryptocurrency can vary dramatically. For instance, the price of a Bitcoin token since early 2018 has been in the thousands of dollars, whereas many other cryptocurrencies can be bought for pennies. The top cryptocurrencies by market cap include Bitcoin, Ethereum, Litecoin, XRP (Ripple) and Tether.

Facebook and other large global companies are set to launch their own digital currency, which will undoubtedly increase the interest in cryptocurrency trading. Each cryptocurrency will have its own specific function, but, again, understanding those functions isn’t essential to profiting from trading and investing in cryptocurrency.

Capitalise on the Volatility of Cryptocurrencies

There is a common misconception held by those unfamiliar with cryptocurrency trading. Many people share a perception that investors got rich from buying Bitcoin before it became valuable, and now they believe the opportunity to profit from cryptos is all but gone. That’s untrue for a number of reasons.

First, Bitcoin quadrupled in value across the first seven months of 2019. Secondly, there are lots of other cryptocurrencies that can be invested in and might one day increase in value. And finally – and perhaps most importantly – profitable cryptocurrency trading does not rely only on the price going up. Indeed, the volatility of cryptocurrency can make it an interesting proposition for traders looking to trade the market movement, even if the value of the crypto declines.

How to Trade Cryptocurrency Online

Of course, to trade cryptocurrency you have to know a little about what makes it tick. Just like regular assets on the financial markets, the value of cryptocurrency is impacted by political and economic factors and understanding how those factors might influence the markets will put you in good stead.

For example, the threat of restriction and regulation on cryptocurrency from national governments (notably the US) might negatively impact the value of a specific cryptocurrency, whereas efforts to bring it into the mainstream – as seen with Facebook’s foray into crypto – might have a positive impact on the cryptocurrency price. Understanding those things and using technical indicators and data analysis, just like you do when making decisions regarding regular forex trading, will work in your advantage.

Cryptocurrency Trading with ETFinance

If you delve into the world of cryptocurrency, you will see it’s an industry with an exciting future. Things like blockchain technology and smart contracts will power tomorrow’s businesses, and they are proof that cryptocurrency is more than just digital money. And, while many experts expect the market to improve in the future, when you trade cryptocurrency CFDs, you can trade no matter which way cryptos move, whether they become more valuable or less. That is because one of the features when trading cryptos with CFDs is that you can decide if the digital currency is going to go up in price or go down. As long as you trade in the direction it moves, you can profit

Cryptocurrency trading with ETFinance will give you the resources to learn more about this technology, as well as giving you the platform to make cryptocurrency trades using CFDs with MetaTrader 4, WebTrader, and our mobile trading app. Here at ETFinance, you will find what you need to begin trading cryptocurrencies. You can learn as you go with our educational center, take advantage of expert analytical tools and use the latest trading info via the platforms. Plus, you can choose from a variety of cryptocurrency CFDs including all the big names on the cryptocurrency list.