The benefits of cryptocurrency trading include:
The cryptocurrency market might be relatively new for beginners, but they are attracted to the cryptocurrency market because of its experienced significant volatility giving profits of huge amounts in the short-term speculative interest. For example, between October 2017 and October 2018, the price of bitcoin rose as high as $19,378 and fell to lows of $5851. Other cryptocurrencies have been comparatively more stable, but new technologies are often likely to attract speculative interest.
The volatility of cryptocurrencies is the major part, what makes this market so exciting. Rapid growth in price movements can provide a range of opportunities to traders to go long and short but also come with increased risk. So, if you decide to explore the cryptocurrency market, make sure that you have done your research and developed a risk management strategy.
The cryptocurrency market is usually available to trade 24 hours a day, seven days a week because there is no centralised governance of the market. Cryptocurrency transactions take place directly between individuals through cryptocurrency exchanges all over the world.
Liquidity is the measure of how quickly and easily a cryptocurrency can be converted into cash, without impacting the market price.
When you buy a cryptocurrency, you are purchasing the asset upfront in that hope that it will increase in value. But when you trade on the price of a cryptocurrency, you can take advantage of markets that are falling in price, as well as rising. This is known as going short.
When you buy cryptocurrencies, you are required to buy and sell through an exchange like Binance, which requires you to create an exchange account and store the cryptocurrency in your own digital wallet. This process is very simple and user friendly.