What are Crypto Currencies?
Cryptocurrencies are virtual coins used in “peer-to-peer” transactions. These types of transactions are executed without any interventions of central banks and governments, therefore these are done directly between 1 user and the other.
Alongside the intrinsic value of all crypto currencies, in recent months these have attracted the interest of speculators, who have seen the enormous growth of crypto assets such as Bitcoin and Ethereum and have generated an enormous amount of money by trading them.
What are the Main Crypto Currencies?
Bitcoin (trading symbol: BTC) was the first crypto assets to be created and distributed. At the moment the value of 1 Bitcoin is close to $15,000 and crypto analysts have forecasted it to reach $50,000 in 2018.
Ethereum (trading symbol: ETH) is also very important and also one of the most promising virtual coins in the foreseeable future. It was created in last 2013 by a Russian-Canadian programmer called Vitalik Buterin.
What is the meaning of Alt-Coins?
AltCoins (or Alternative Coins) are more recent crypto currencies that have been launched in the market through a complex process named ICOs (initial coin offering). In recent months, the most interesting AltCoins are Monero, IOTA, Neo, Zcash and Cardano.
How to trade Crypto Currencies
When you are ready to start trading crypto currencies, you can decide whether to trade with an exchange or with a broker.
Trade Crypto with an Exchange
These are websites such as CoinMama, Xapo, Bittrex and, most notably, CoinBase. Essentially, by trading with an exchange, you will be able to buy and hold physical assets. However, none of the exchanges currently available on the market are regulated or have any sort of governance imposing code of conducts or any sort of regulation.
We recommend not to trade with an exchange as we have seen many customers having to wait a long time before being able to upload their funds into the exchange wallets, as well as many customers not being able (or having to wait weeks) to process withdrawals.
Trade Crypto with a Broker
The operators presented and carefully reviewed on this website are regulated companies offering trading services for crypto and in most cases also for traditional currencies, commodities, indices and stocks. By trading with a regulated broker, you will be able to ‘speculate’ on the trend of crypto assets by either shorting (or selling) or going long (or buying).
You will notice an immediate advantage if you decide to trade with a regulated broker, especially when your first deposit will immediately show in the account and, when you decide to withdraw your profit (or the entire balance of your account), this will be executed normally within the same day, or in 3 working day at the latest. Some brokers also offer the possibility to trade crypto with leverage
What is trading leverage?
When you trade with leverage you are essentially borrowing money to invest/trade as the balance of your trading account is insufficient to cover the entire trade size.
Why trade with a broker using leverage?
Although trading leveraged products is more risky, your earning opportunities will be increased exponentially.
Trading leverage allows you to put less capital down, which in turn frees your capital for other investments or trades. You will find brokers using leverage are also called CFD brokers, where CFD stands for contract for difference