Bitcoin
BTC$68 278.57

-0.38%

Ethereum
ETH$3 895.77

-0.31%

Tether
USDT$0.998943

-0.04%

Binance Coin
BNB$601.39

-0.01%

Solana
SOL$171.42

2.71%

USD Coin
USDC$1.000061

0.01%

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.


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 74.8% 43 $68 278.57 -0.38% -4.32% $1 345 400 809 941 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 63.6% 70 $3 895.77 -0.31% 2.68% $468 028 945 782 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $0.998943 -0.04% -0.09% $111 847 033 976 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 88.8% 6 $601.39 -0.01% -1.98% $88 756 634 769 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 65.2% 73 $171.42 2.71% -4.55% $77 056 762 894 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 94.4% 1 $1.000061 0.01% 0.01% $32 464 668 588 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 89.6% 6 $0.531361 0.46% -2.28% $29 453 574 385 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 72% 50 $0.165070 -2.39% -1.61% $23 848 390 229 DOGE 7 days price change
9 Toncoin (TON) TON Toncoin predictions 69.6% 64 $6.44 -0.32% -0.23% $22 370 418 462 TON 7 days price change
10 Cardano (ADA) ADA Cardano predictions 85.2% 19 $0.459252 -0.49% -8.44% $16 392 782 942 ADA 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 82% 33 $0.000026 2.23% 0.87% $15 438 115 111 SHIB 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 72.8% 52 $37.32 -0.09% -8.04% $14 662 529 748 AVAX 7 days price change
13 Chainlink (LINK) LINK Chainlink predictions 58.4% 82 $18.18 4.79% 8.58% $10 674 965 951 LINK 7 days price change
14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 78.8% 42 $68 436.87 -0.24% -4.17% $10 638 276 521 WBTC 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 83.2% 33 $7.38 -1.17% -2.07% $10 610 167 735 DOT 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.