Cryptocurrencies are gaining momentum and are unlikely to stop any time soon. Many companies add them as a method of payment, but also develop their own cryptocurrencies, which increases the popularity of both the company and the crypto industry.
On the other hand, the crypto industry is characterized by a large oscillation. This feature of cryptocurrencies should not be taken as a disadvantage, but exclusively as an advantage, because in the modern financial market you can profit from both the decline and growth of the value of these currencies.
Cryptocurrencies are an exciting, new investment vehicle whose volatility can be a great opportunity to make a profit. We are witnessing frequent and sudden changes in the financial markets, which can be an incentive for all those who want to achieve more significant results in trading.
The fall of Bitcoin
Bitcoin is the oldest and most valuable cryptocurrency in the world, but it is not immune to changes and oscillations in the market. The BTC is the most well-known cryptocurrency on the market, and its price had one of the biggest declines since China established a new sanctions regime against the currency.
There are two reasons for the fall in the price of Bitcoin. Primarily, Beijing banned banks and companies from providing services related to cryptocurrency transactions, which led to a price drop below $ 34,000.
The second happened just a week earlier when Elon Musk said that Tesla would not accept Bitcoin as a means of payment due to environmental concerns, which also led to a drop in the price of the cryptocurrency by about 10%.
How to take advantage of the decline of Bitcoin and other cryptocurrencies
While traders can definitely make money by buying cryptocurrencies when the price drops and selling them when they arise, it can take a long time in the process. Trading options are also very limited because they cannot short or trade leverage when it comes to regular crypto trading.
Given all of the above, it may be time to consider CFD trading.
The advantage of CFD cryptocurrency trading is that it allows traders to make money by correctly predicting whether the price of the cryptocurrency will rise or fall. In addition, this way traders can use leverage to significantly increase their potential profit. Security issues are also mitigated because the money is safe at the brokerage house, and cryptocurrencies are not on the stock exchange or in the wallet, which makes CFD trading more secure.
There are many ways to invest in this market, but one of the most diverse is the CFD trade in cryptocurrencies because it allows you potential earnings regardless of whether prices are rising or falling.
If you want to start right away, you can do it in a very simple way – by opening a trading account with a licensed investment company Limit Prime Securities.
By: Olivia J. – Gossip Whispers