Currently, the cryptocurrency market has not taken its final shape yet. The regulation coming from local government authorities is quite basic, while many still doubt whether blockchain, as it is now, can be applied on a large business scale.
False stories appear every now and again, boosting volatility, and some cryptocurrency exchanges are regularly hacked or go bankrupt. All this shows the high-risk nature of the digital coin market.
Still, with all that, the total market cap of the cryptocurrencies exceeds $250B (it was just $40B earlier this year). Bitcoin, Ether, and Bitcoin Cash are the leaders, with $256B, $40B, and $22B respectively at the time of writing.
Bitcoin (BTC) is by far the greatest driver of the market. The first bitcoin exchange transaction took place in September 2009, when 5,050 bitcoins were exchanged for US$5.02. To date, BTC broke through $14,500 and is now the most valuable asset on the cryptocurrency market. Bitcoin has become a profitable investment for many, but there are many who are just approaching this instrument, too. High volatility brings a lot of excitement and anxiety, but also allows the speculators to capitalize on short-term moves.
Ether (ETH) is the second most popular digital currency, and also second by market cap. Most of the market players regard it as an investment vehicle, not a speculative asset. Apart from these two cryptocurrencies, investors and traders use such cryptocurrencies as Bitcoin Cash, Ripple, Bitcoin Gold, Litecoin, Dash, NEO, Monero, and IOTA.
Major exchanges offer cryptocurrency pairs trading, with BTC/ETH, DSH/BTC, and LTC/BTC being the most popular. To trade such pairs, one needs to thoroughly analyze the news and keep informed on the important events of the cryptocurrency market.
Currently, not only professional investors but also general public becomes more interested in cryptocurrencies.
Trading Bitcoin with a Broker
One of the easiest ways to get familiar with cryptocurrencies is opening a trading account with a major FX broker. Lately, upon cryptocurrency boom, more and more brokers have been offering digital currency trading to their clients. Trading conditions do not vary much from one broker to another.
More often than not, brokers provide access to cryptocurrency trading through MT4 and MT5 platforms. Let’s take BTC/USD for example. On average, the minimum position amount is BTC 0.1, with the spread of 0.30% or 0.40%, thus making it reasonable to trade on H1 and larger time frames. Leverage varies from 1:1 to 5:1, so you will need to deposit $200 to $1,000 in order to start trading. The broker usually takes a fee of 0.20% to 0.30% of the transaction amount.
It should be noted that bitcoin trading with a broker means trading contracts for difference (CFD’s) that enable taking profit in both rising and falling markets without physically owning the asset. For maximum security of your funds, we recommend you open accounts only with trusted brokers that are regulated by such prominent financial authorities as ASIC, CySEC, FCA, etc.
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Thank you for sharing this information.
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