Cryptocurrency Trading Guide: Benefits, Trading Signals and More
Crypto trading is becoming increasingly popular, and can be a highly lucrative form of trading.
The surge in the popularity of Bitcoin (BTC) has attracted a great deal of attention to cryptocurrency trading all over the world.
In addition to the launch of countless dedicated crypto trading platforms, established Forex and share trading online brokers have also ventured into the crypto sphere, allowing beginners to access the crypto markets via their CFD and spread betting accounts.
The Benefits of Cryptocurrency Trading Crypto trading has a number of important, distinct benefits over trading other asset classes, particularly for amateur traders who have a 9-5 and want a secondary source of income.
Most cryptocurrencies are highly volatile, regularly shooting up and down several percentage points on a daily basis.
This means you have the potential to make larger gains on an intraday basis, as there are large price swings which you can benefit from (this does, however, come at the expense of added risk.)
Unlike the stock market, which opens for just a few hours per day (during which you’re probably at work), the cryptocurrency market is accessible 24 hours, seven days a week. This is because cryptocurrencies are a decentralised asset class, so they can be traded on an exchange at any time as long as there is sufficient supply and demand.
The great benefit of this flexibility is it allows anyone to trade, as even people in full-time employment can trade crypto after or before their shift.
Profits earned from crypto trading are tax free in some forms in many jurisdictions. For example, if you trade crypto with a spread betting provider, such as IG Index, your earnings are completely tax-free in the UK.
Crypto Trading Signals
Experienced and amateur traders can both benefit greatly from crypto trading signals, as they can simplify your trading, save you hours each day and greatly increase your profits.
Trading signals are essentially software packages and algorithms designed by analysts and quants to predict the market and place trades automatically on your behalf (though some just advise you which trades to make, and you manually execute them.)