It seems like cryptocurrency went from
obscurity to the darling of the trading world overnight. Essentially
cryptocurrency is a digital form of currency that is decentralized. Therefore
no one bank, government, or country has control over it. Bitcoin was one of the first
cryptocurrencies to hit the market.
Cryptocurrency is a true peer-to-peer payment
system where entries are kept in a digital ledger that is completely private
and secure. Some of the reasons for the popularity in this form of currency is
that it is impervious to fraud, there are no fees, the transaction is settled
immediately, and the funds are not subject to any exchange rates, interest
rates or charges; it is universal.
Lack of regulation is a massive draw for many
brokers and investors. Now that Bitcoin has set the pace, other cryptos are
also on the rise. However, there is a limited supply, which makes them even
more desirable and valuable. Cryptocurrency trading is a very hot trend, and
the time to get on board is now.
It Started With Bitcoin
Bitcoin was one of the first cryptocurrencies
to emerge back in 2007. Sometime during 2019, experts expect that more than 5
billion people will be using Bitcoin. Of those, more than half live outside the
U.S. Experts predict that Bitcoin could end up being the global currency of
Researchers at the New Jersey Institute of Technology predict that Bitcoin will be the sixth largest currency by 2030. The cost per
transaction in 2016 was $7.22, with 147 bitcoin blocks and 3675 bitcoins mined.
Bitcoin accounts for 33 percent of all cryptocurrency trading. According to
Satis Group, cryptocurrency trading is expected to increase by 50 percent this
Investment brokers fit into the equation by
helping you invest in the blockchain. Bitcoin, for example, rose 740 percent
during 2018. The potential to make a significant return is possible by
investing in cryptocurrency. There are two ways to invest in cryptocurrency.
The first is to purchase the actual currency based on current exchange rates.
The other way is to invest in a CFA, which is an umbrella vehicle that moves
with the actual asset. Investors gain profits and losses based on how the asset
Things to Consider Before
A few questions to ask yourself before jumping
into cryptocurrency investment:
How much risk are you willing to
What are your objectives?
How experienced are you trading in
You should never gamble with money you cannot
afford to lose. Cryptocurrency carries risks just like any other investment.
The volatility of the market is often difficult to predict with a specific
level of accuracy. If investing in cryptocurrency is new to you, a seasoned
broker with years of experience is probably a good fit.
Cryptocurrency trading is currently valued at about U.S.
$7.3 trillion. It is easy to see why anyone
would want a piece of that pie. However, before investing, you will want to
research your options and find a broker or platform that works best for you. There
are new offerings all the time. Some of the top cryptos available right now are
Binance, Bitfinex, Bithumb, Bitmex, Coinbase Pro, HitBTC, Huobi, and OKex.
Tips for Finding the Right
With the incredible expected growth in this
industry, now is the time to jump in and invest. However, before you go
shelling out your hard-earned cash, you will need an excellent broker to help you invest
wisely. Only certain forex firms handle cryptocurrency transactions. Product
availability may also help to drive your decision.
When selecting the best broker for you, it is
essential to consider a few factors. What is their pricing model and how will
that affect you? Does their execution model line up with your trading style?
You also need to think about platform and mobile offerings. Cryptocurrency is
different than traditional investment assets, and knowing all the ins and outs
The top choices for cryptocurrency brokers right now are Swissquote, Coinbase, AvaTrade, UFX, and eToro. Another option is Millennium Blockchain, who recently
invested in ChoiceTrade. The reasons cited are exceptional customer service,
security, insurance, and protection. Those brokers that offer mobile apps so
you can check on your investments, and initiate transactions are favored as
Other Considerations When
Some brokers offer more affordable minimum
buy-ins and competitive swap rates. Plus500, eToro, and AvaTrade offer a
variety of platforms to choose from allowing you versatility in managing your
assets. Compare fees; not all brokers charge using the same price structure.
Companies like Swissquote offer excellent
customer service and a wallet, but they do not allow wallet withdrawals. They
do this to protect their system against hacking. Looking for a stable, fully
regulated firm that is trustworthy and has established a presence in the
industry is vital when selecting who you want trading your cryptocurrency.