How you can benefit from the best conditions in trading cryptocurrencies
Trade cryptocurrencies using your own money and reduce your trading costs
Some market players have hastily deemed digital money the relics of the past. However, it can be a snap conclusion. The truth is that the hype triggered by the media over crypto assets has died down and consequently, speculative interest has faded away. Thus, cryptocurrencies have finally become a common market tool similar to fiat currencies, futures, and options.
Cryptocurrency has its own great advantage: in comparison with the US dollar and other fiat currencies, it is less exposed to external and internal headwinds in the market. Traditional currencies are hugely dependable on the market-moving events. If the news is negative, e.g. the US-China trade war, the coronavirus pandemic, a possible political crisis in Washington, the Armenian-Azerbaijani conflict, sluggish demand for oil, fiat money may be extremely volatile. Digital assets, on the contrary, advance on the backdrop of such events. Importantly, the rise in the price is not limited only to the leading virtual assets - bitcoin and ethereum.
Therefore, cryptocurrency should be a must-have asset in your trading portfolio, especially if you prefer a long-term trading strategy. If at least 10% of your trading portfolio consists of digital money, your diversification and hedging strategies may play out well for you in the future. Should you incur losses due to swings in the exchange rate of fiat currencies, virtual currencies will gain momentum enabling you to make up for losses. Besides, you will be able to increase their amount in your portfolio. In addition, regardless of its trajectory, cryptocurrency is a perfect trading instrument for the investor's portfolio diversification. Digital money can be volatile and allow you to earn both in intraday trading and in longer periods.
When choosing a broker that offers a great choice of digital assets, you need to pay attention to the following things: status, size, popularity, brand reputation, and experience in the market. Given that cryptocurrency is mainly a cutting-edge trading instrument that requires constant technological development from the broker, you should choose an innovative one. For instance, InstaForex, a well-known company in the financial world, perfectly fits this description. This broker offers its clients the modern-day services and technologies that are sure to meet the needs of the most fastidious traders. PAMM accounts and the ForexCopy service (an InstaForex service that allows clients to duplicate orders of successful traders) received high evaluation from investors.
Since we are talking about cryptocurrency trading, let us review trading conditions for this instrument provided by InstaForex. Notably, many clients consider them quite favorable.
InstaForex provides one of the lowest swaps available for trading cryptocurrencies in the market - 10% per annum, which is less than 0.03% per day. In addition, swaps for cryptocurrencies are charged only if a trader uses capital borrowed from a broker (leverage). That is, when a nominal value of a position is less than the amount of funds available in the trader's account, the swap amount will be zero. Importantly, this trading condition also applies to CFDs on shares.
Let's take a look at the following example and see how unique, beneficial, and simple this option is:
A trader has USD 10,000 in his/her trading account and uses USD 2,000 to open positions on other instruments (traditional currencies), applying leverage. Thus, the trader has 8,000 USD left in the trading account.
Later, the trader opens an order of 0.1 lot on #bitcoin (the price of 1 BTC is 11,600; it means that the nominal value of 0.1 lot is 1,160 USD), an order of 3 lots on #ethereum (3 * 400 = 1,200 USD), and an order of 0.1 lot on #FB (Facebook shares, 1 share = 250 USD, 1 lot has 100 share units, i.e., 205 * 100 * 0.1 = 2,500 USD). Thus, the nominal value of the lot is 1,160 + 1,200 + 2,500 = 4,860 USD. The trader can trade this money without having to use leverage, since he/she has 8,000 USD in the trading account.
Notably, if the trader did not have enough funds to open the indicated positions, he/she would have to use leverage. Thus, a swap would be charged for all these positions.
Summarizing all the above, we would like to say that the era of cryptocurrencies as a trading instrument has definitely not ended yet. It is only gaining momentum.
The era of cryptocurrencies as universal and accepted means of payment is ahead. Therefore, today, you have an opportunity to generate crypto profit under the best conditions provided by InstaForex.
This article was submitted by Instaforex.
