Are you weighing in to invest in Bitcoin trading but not sure if it is the right move for you? You may come up with a decision after reading the benefits of cryptocurrency below;
- Bitcoin is Volatile- Short Term Trading
Cryptocurrency trading rides on a lot of volatility, which makes trading advantageous since it is short termed by nature. Since trading is for short-term profit, Bitcoin trading helps users make quick money. Hence, new users to trading may find this easy to invest less (as low as $256) and hope to make more quickly. This attracts more and more investors since many of them are looking to make money, but don’t wish to put too much at risk. Since there is no pre-defined fixed value for Bitcoin, they are traded as per the last trade value per bitcoin. This helps traders in managing a healthy baseline.
- 24 Bar 7 Trading Time and Order Variations
Unlike other trading platforms, Bitcoin can be traded anytime 24 bar 7. Traditional currency trading has a pre-defined time for trading. Live trading usually has three components like High, Low and Volume. The High depicts the highest value that a bitcoin has traded in the past 24 hours. Similarly, the Low value shows the lowest trade price a particular cryptocurrency has traded. The Volume shows the number of bitcoins that traded so far. Bitcoin gives you a benefit to choosing how you wish to trade with the types of order. Below mentioned are the different types:
Types of order
Market/instant order – 100% fulfilled–You put out a market order for a selective number of Bitcoins, and it does not fulfill until the selected order completes. The only drawback with market orders is that prices vary from seller to seller. You may have 10 bitcoins at one price, and the remaining 10 at a different price. Hence, usually, you end up paying more.
Limit order– A limit order is a better option as it helps you to lock the price, but you end up buying fewer bitcoins as there may not be any sellers who would be willing to trade Bitcoins at the price mentioned by you. This is safer than the market, but still at a loss
Stop-loss order– This type of order is the safest way to transact, but it has low returns. You can pre-define closure of trading if the price falls below a certain limit. This helps you save your investment.
- Bitcoin Exchanges Usually Have Lower Fees
Bitcoin exchanges charge lower fees compared to other merchants who sell bitcoins directly. This is advantageous for novice traders who have low capital to invest in the beginning.
- No Direct Communication
There is practically no direct communication between the buyer and the seller. The trade is listed as BID (buy orders) and ASK (sell orders) on the same page. Hence all information is directly available on the screen. Modern-day trading software like Bitcoin Revolution lists all the necessary information for trading and gives the users all the benefits to aid them into trading. New Users can read about Bitcoin Revolution review from sites like trustedbrokerz.com
- Unregulated– No Identification Process
The cryptocurrency trading is an unregulated space and hence it helps new users to start trading instantly without going through authorization paperwork. This attracts more traders into the bitcoin space, which results in more buying and selling, and keeps the risks low.
Cryptocurrency trading is unlike any other trading process. There are high risks involved since it is deregulated, and prices differ from country to country. New users should read reviews and read all information related to cryptocurrency trading before deciding to invest. Optimum amount kept at low-risk stop-loss trading style is recommended when starting off initially.