Is Cryptocurrency A Profitable Financial Instrument For Trading?

By Author: madhav joshi
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Benefits of trading cryptocurrency in the year 2021

Whether you are a market participant or not, you must have heard the word cryptocurrency. These are the virtual coins which are the best alternative to the traditional transaction such as credit card and cash. Many great business people, including Bill Gates, consider cryptocurrency as the future of the digital world. It is a popular financial instrument that can lead to potential profit if you should have a robust trading foundation or knowledge. The article is dedicated to the advantages of these digital coins. We will wrap up the entire text by providing you with some authentic platforms to pursue trading.

Benefits of cryptocurrency

1) Decentralise system and no transaction cost

In the traditional monetary system, entities such as legal representatives, agents, and financial service providers add significant expense and complexity to a simple transaction. It may include commissions, brokerage fees and several different charges and paperwork.

The digital transactions ...
... are far above this. One of the major benefits of these coins is that they take place through peer-to-peer network structure, one-to-one transactions. It is standard practice and leads to the elimination of a middle man. Moreover, it enhances clarity in building audit trails, mitigates the confusion (who will pay whom), and surges accountability as both parties involved in the transaction know each other.

2) Easy transfer of assets

Many financial analysts say that the virtual coin blockchain mechanism resembles the large property rights database. It is used to enforce and accomplish two-party agreements on several assets. Another benefit of using a digital coin is that one can use it to aid professional transfer modes.

The holder of virtual coins has sole governance of your account. Thus, it decreases the expense and time associated with making asset transfers.

3) Larger access to funds

Two basic mediums including internet and digital data transfer, facilitate the cryptocurrency transfers or exchange. These services are readily available with everyone as far as today's world is concerned. Everyone has internet access; just the need is having little knowledge about digital networks and ready access to their significant portals and websites.

As per the recent report, more than 2.2 billion people worldwide have access to mobile phones or the internet. At the same time, they do not have access to a conventional banking system or exchange. There is nothing wrong in saying that once the regulatory and digital infrastructure are properly put in place, the cryptocurrency will show its full potential. It will make the transfer of assets and transactions available to the entire market.

4) Ease international trade

Virtual currencies are not subjected to interest rates, exchange rates, transactions cost and several other duties imported by a particular country. Using the peer-to-peer networks of blockchain, transactions, and cross-border transfers may proceed without complexity over currency exchange variations.

5) Ownership of an individual

As far as the conventional monetary system is concerned, you effectively give your ownership to a third party which can use its power over your securities. They may shut your accounts without providing any notice. One of the major benefits of virtual coins is that unless you have provided management of your digital wallet to the third party, you have a sole right of the corresponding public and private encryption keys. It makes up your digital address or identity.

6) Confidential transactions

Another benefit associated with digital coin transactions is that each transaction which you proceed is a unique exchange between two individuals. The exchange of data is done via a push basis where you send exactly what you intend to send to the receiver and nothing beside it.

It helps in protecting the privacy of your financial data and history and guards you from the identity theft or information theft which is on a larger level under the conventional system. In this conventional system, the data get exposed at any level in the transaction process.

How to enter the cryptocurrency market?

Cryptocurrency trading is gaining widespread popularity because of its potential to generate massive profit, but how can you start trading in the market? The very first step is opening an online trading account with an authentic financial service provider. For this, you are required to follow the following steps.

1) Get yourself registered by providing name, last name, country, email id and phone number for verification.
2) Enter the one time password provided by the firm on your mail or phone.
3) Once the verification is complete, you will have to upload certain documents including address proof, identity proof, bank and financial statements (not older than six months).
4) Choose the trade you wish to pursue and deposit the amount for the same.
5) You can now start trading.

If you are neophyte and fear entering the market, you can go with the broker's virtual or demo trading account. It allows you to trade free of cost. Moreover, it provides an ideal platform for practice trading and risk management techniques and strategies before entering the real trading world. You can avail HFTrading demo account by visiting the official site.

Top financial service providers offering cryptocurrency trading

1) Global TradeATF: Global TradeATF is a brand name of Bayline Trading Limited, established in 2013. The firm is regulated by the International Financial Services Commission of Belize. It allows trading on multiple cryptocurrencies at the minimum deposit of $250. Trading with the broker is commission-free; it earns from spreads and swaps. The leverage offered by the firm on cryptocurrency trading is 1:400.

2) HFTrading: HFTrading is a leading brokerage firm in the arena of financial market trading. It is a brand name of CTRL Investments Limited established in the year 2019. Though being a relatively new firm, it has attracted many traders through its trading features and affordable trading range. The minimum deposit to open a trade with the broker is $250 without any commission on trading. You can trade on MetaTrader 4 and web traders with the firm.

The Bottom Line

Hopefully, the various advantages of cryptocurrencies provided in the above article must have struck your mind. You must also be thinking to start trading in it, but you require deep knowledge and strong fundamentals for this. If you wish to read more about this emerging market and the future of the money market, you can visit www.fxreviews.best. It contains various articles and courses on a bitcoin investment, virtual coins trading, trading platforms, cryptocurrency strategies and related scams.

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