What are cryptocurrency Brokers ?
On the off chance that you did not watch the news in the last 9 months . There is a new Financial Market on the rise.
The financial industry today sees a huge surge in interest for digital forms of money or cryptocurrencies, thou they lost a touch of the buildup that was taking off toward the finish of 2017, they are as yet the most energizing industry today.
The advancement and developing of this industry will influence everybody and individuals that see this will profit all the more then those that don't,it is that simple.
So how are you able to get into cryptocurrencies.
1 you can start your own ICO.
(ICO is the abbreviation of Initial Coin Offering. It means that someone offers investors some units of a new cryptocurrency or crypto-token in exchange against cryptocurrencies like Bitcoin or Ethereum. )
not sure this is the easy way to go and you need a helathy dose of nerddom to make it stick but many ICO's actually only make money by the investments of people , many do not get developed in the end . not my choice.
2. you can start Mining
this is an whole other game and set up and there are people way more qualified to talk about this then me . but in short Mining requires you to buy a lot of stuff. 🙂 it is a process in which transactions for various forms of cryptocurrency are verified and added to the blockchain digital ledger. And for facilitating this transaction you are paid in the cryptocurrency. very very little every time but the idea is that it adds up and if the price of the crypto rises so does your portfolio value.
you can invest in the best ones . This is a good options , there are crypto currencies that are developed by reputed cryptocurrency companies that will make it a great investment. problem is which ones ? these cryptocurrencies companies all aim big and many crash , finding those that will make it requires you to be close to the fire.
Bitcoin is something that was not forseen by most ( yours truy included) thou i expected it to start agining ground slowly. thee are crypto currency apps that will show you which ones are slowly gaining ground and which ones are a good investment,
there is soo much news out there at the moment that everytime a new company makes a partnership with some blockchain crypto it is blasted all over the net , prices rise high within minutes ., so again for someone that is not that patient and sit and wait till i catch a brake , i went for the third options.
4. Trading Cryptocurrencies
at this moment there are a few cryptocurrencies brokers that i am looking at to open an account. so what is an cryptocurrency broker or crypto currency broker exactly?
You will find that in many cases these are top top brokers forex that now offer cryptocurrency assets for trading
Why Trading cryptocurrency and not investing ?
People tend today to trade these cryptocurrencies before that actually invest in them.
The reason for this is clear as when you are trading you are able to make money on the rise but also on the fall of a crypto.
As we have seen with bitcoin that dropped after it was at a rate close to the $20,000 back to below $10,000, this move makes many people say that this is a bad investment but they tend to forget that at the beginning of last year Bitcoin did not even pass the level of the $1,000.
What are cryptocurrency Broker ?
Traders today have for trading currencies , indices and commodities always turned to the numerous forex brokers that offering trading services for this , companies, etoro, avatrade and GKFX to just name a few. There literally hundreds of such companies and some are good others are bad.
These companies are often regulated through regulations like Cysec, FSA and other regulatory entities. The regulation required the brokers to work in a certain format to avoid money laundering and at the same time protect the traders from scam brokers.
After this the Binary options Broker came along.
These brokers offered a different kind of trading which also required most of the time a different trading platform. Where forex brokered in general offered metatrader 4 or metatrader 5 from metaquaotes. Or had their own trading platform like etoro binary option brokers used other providers like the trading platform like spotoption .
Now with the new market of Cryptocurrencies there is a new type of broker.
These brokers also have their own trading platform that is dedicated to trading cryptocurrencies, you will be able to trade these currencies against the main valuate like the USdollar British pounds, euro and other majors. Or you will be able to trade one cryptocurrency against the others, the last one is in general not offered by the forex brokers and might actually be even more interesting to trade then for example Bitcoin against the Dollar.
The Platform is very easy to use and fully mobile compatible because there are still not a huge number of cryptocurrencies that one can trade the platform looks simple and not over crowded.
Trading in MT4 one does for the charting and I have to admit that some of the charts and EA's that you have in MT4 could benefit the crypto trader. s there is room for improvement in this matter.
Now there are new brokers that are not offering the standard trading platform the Forex industry offers but are going only for thee dedicated cryptocurrency trading platform for example AirsoftLTD. These brokers like WeberFinance and Xcoinbroker are not regulated but full-service brokers that look to make a name for themselves and establish a broker for the long term.
Should you Use a Crytobroker instead of a Forex Broker?
This depends on what you look to trade. The Forex industry will never make cryptocurrencies it is main tradable assets , this you will notice in the daily analysis and market pates as they are more stock, commodities and regular currencies related . same for the market view.
The cryptocurrency broker focusses only one thing and that is cryptocurrencies. So, this is their bread and butter and this you will feel.
Xcoinbroker for example has a very thorough market analysis for its main cryptocurrencies and weberfinance offers a crypto news section on this trading platform.
So yes, if I plan to trade only crypto I rather do this with a broker that is only offering crypto trading.
What are cryptocurrency Broker ?