Bitcoin
BTC$29 106.25

-2.42%

Ethereum
ETH$1 948.76

-4.39%

Tether
USDT$0.998927

0.01%

USD Coin
USDC$1.000000

-0.02%

Binance Coin
BNB$295.00

-1.85%

XRP
XRP$0.409415

-4.38%

Trading Cryptocurrencies with OBRinvest


07 Jun 2021

#Bitcoin

A cryptocurrency is a fairly new asset class that was created when Satoshi Nakamoto mined the very first block of Bitcoin. Cryptocurrencies are a digital type of currency that is guaranteed by the blockchain ledger. Just like other currencies, the cryptocurrencies can be used to buy goods and services. They can also be used as an investment as well as trading CFDs on them. Unlike the traditional fiat currencies, the cryptocurrencies are not issued by any government or central bank. They are decentralized and cannot be controlled by any individual or entity. This is part of the appeal of cryptocurrencies and one of the reasons they have become so popular.

Popular Cryptocurrencies

There are literally thousands of cryptocurrencies, but only a handful are very popular for traders. That handful includes Bitcoin, which was the very first cryptocurrency. It remains the largest by market capitalization and out of the entire cryptocurrency market, Bitcoin holds over 60% of the total market cap. Other popular cryptocurrencies include:

Advantages

Cryptocurrencies have some technological hurdles to clear, but they also have many advantages. One of the biggest advantages is the low fees for large transactions. There have been transfers of hundreds of millions of dollars made for less than $1. The transfers are also extremely fast. Where a wire transfer through a bank could take several days to arrive at the recipient, a Bitcoin transfer takes no longer than 10 minutes in most cases, no matter how large or small the transaction is.

When it comes to trading the chief advantage of cryptocurrencies is the diversity of assets available to trade. There are literally thousands of different cryptocurrencies, and each one has its own use case and price history. Traders are able to specialize in cryptocurrency markets if they like.

Other benefits of cryptocurrencies include privacy, decentralization, security, and strong ownership rights.

Trading Example

Suppose you’re interested in Bitcoin and believe it will increase in value versus the U.S. dollar in the coming days. You decide to trade BTC/USD using CFDs. Currently Bitcoin is being quoted at $36,410 / $36,510. You decide to purchase 2 units opening at $36,510. This is equivalent to buying 2 BTC, so you will gain or lose $2 for every $1 that Bitcoin moves.

Cryptocurrencies CFDs Trading Risks

As you can see from the example above there are some risks involved in trading cryptocurrency CFDs. The largest risk, especially for those who are inexperienced with cryptocurrencies, is the price volatility associated with the asset class. Because cryptocurrencies and the CFDs linked to them, are so volatile it is possible to lose a large amount of money in a very short period of time.

There is also the leverage involved in CFD trading to consider. With an asset that’s already as volatile as cryptocurrencies, adding leverage can be like pouring gasoline on a fire. Great if it’s in your favour, but disastrous if it goes against you.

Finally, because cryptocurrency markets are still relatively small and unregulated there is little price transparency. Manipulation is known to occur, the lack of transparency and liquidity, can cause significant variations when pricing cryptocurrencies.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 60.8% 82 $29 106.25 -2.42% 5.31% $554 291 732 800 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 64% 82 $1 948.76 -4.39% 2.87% $235 479 609 902 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 92.8% 1 $0.998927 0.01% 0.45% $74 133 574 134 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $1.000000 -0.02% -0.02% $52 342 870 112 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 63.2% 83 $295.00 -1.85% 22.08% $48 166 486 706 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 68% 71 $0.409415 -4.38% 13.13% $19 792 398 575 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $0.999245 -0.27% -0.42% $18 398 603 846 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 64% 77 $0.514791 -8.42% 17.73% $17 375 510 992 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 58.4% 84 $50.79 -8.30% 15.69% $17 139 777 776 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 61.2% 87 $0.084252 -5.17% 11.85% $11 177 788 099 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 62.8% 78 $9.61 -8.87% 19.27% $9 486 356 576 DOT 7 days price change
12 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 59.6% 82 $29 092.16 -2.40% 5.58% $8 144 434 333 WBTC 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 58.8% 82 $29.59 -11.64% 6.16% $7 963 113 848 AVAX 7 days price change
14 TRON (TRX) TRX TRON predictions 73.6% 55 $0.071826 -0.02% -1.60% $7 007 431 948 TRX 7 days price change
15 Dai (DAI) DAI Dai predictions 95.2% 1 $1.000124 0.04% 0% $6 501 256 168 DAI 7 days price change

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