Cryptocurrency has captured international attention. The number of tokens is increasing everyday and the way we trade them is constantly evolving. The revolution is firmly underway in the trading world becoming more effective and powerful in nature.
Today, investors buy their favourite cryptocurrency and sell them when the price goes up. Cryptocurrency is a digital currency that can use as a standard currency where ever that accepts it. However it is not under the regulation of the governments or issued by the central banks.
Cryptocurrency does not enjoy the same kind of stability when comparing to regular physical currencies but nowadays many people are using it for different purposes like shopping online or money transactions. However, there has been an increase in the number of such digital currencies.
Crypto trading, or cryptocurrency trading, is simply the exchange of cryptocurrencies. Like in Forex, one can also buy and sell a cryptocurrency for another, like Bitcoin or altcoin for USD and Euro. This is one way of getting involved in the world of cryptocurrencies without having to ’mine’ it.
Bitfair is bringing forth a service to consumers that lets them engage in leverage trading. When consumers decide to make an investment, they need to have as much information as possible. They make their decisions based on the predictability of the market, and many other investors often follow suit.
However, the issue that remains is that the system does not have very significant changes in stock prices, which means that investors cannot make major profits. Leverage trading allows them to perform these actions, which means that investors can capitalize on the smallest changes with Bitfair.
The whole goal of Bitfair is to introduce a way of trading that gives consumers the best profits possible, but without any major losses. Investors have the opportunity to leverage their positions by up to 1000x. The use of this type of trading is an investment strategy that is often used on the stock market, but that is adaptable for the crypto world as well. Consumers have to participate in margin trading, which handles part of the cost of the transaction.
During leverage trading, the whole point is for investors to use their own funds in the investment. Essentially, if the investor contributes $20,000 of their own funds into an account that features a leverage of 3 to 1, they can purchase up to $60,000 in stocks on the market. The whole system is about finding the best profit margin, and their platform shows these opportunities in the crypto industry.
Though there are many benefits to leverage trading, there are some major potential risks. Much of the investments are about predictions based on patterns and other details, and one wrong prediction could mean the loss of thousands of dollars. Due to these high risks, there are many investors that would rather only participate in leverage trading with an airtight stop-loss order, which sells the stock if the trade reaches a certain potential loss.
Bitfair’s introduction to the crypto industry breaks down certain limits by:
- Promoting additional leverage options with a range of digital, fiat, and crypto assets.
- Introducing negative trades to earn money when profits sink.
- Establishing smart contract options that enforce certain trading rules, including stop-loss orders.
Bitfair extends leverage trading to as many cryptocurrencies as possible. This lets investors profit heavily from information about a wide range of digital assets, rather than just the most popular ones. It also allows for greater diversification, thereby limiting the risk to each investor.
Whereas trading in the cryptocurrency industry is currently limited to profiting off positive price movements, Bitfair is allowing investors to short these investments. This means that if an investor expects a cryptocurrency to decrease in value, they can set themselves up to profit if and when it does. This further increases the opportunities for investment diversification.