The price has risen drastically, exceeding $3000 per in June 2017. Such serious growth is naturally interesting for major Forex brokers, and for this reason our usual Forex brokers have, one by one, added the opportunity to trade /USD and /EUR pairs.
The following brokers have added support for crypto pairs: Alpari Forex Club Amarkets Instaforex Many brokers have added the ability to make investments in , but one should not mix up margin with investing. When on margin, transactions are made with non-physically delivered BTCs, the so-called CFDs (see How To Trade CFDs). The benefits of CFDs are obvious: low liquidity causes high volatility, which makes it possible to earn good money. Why Traders May Be Interested In CFDs via The Forex Brokers?
Nowadays, there are many exchanges where you can trade physically delivered . Such exchanges are Poloniex, GDAX, Bitfinex, etc. On average the volume of daily ranges from 70 to 120 million dollars. The only thing is that the principle of earning money on such exchanges is built on the principle of “bought cheaper — sold more expensive.” This scheme does not work in conditions of a falling market. It’s the first drawback of exchanges compared to traditional brokers offering CFDs .
At the same time, many exchanges also offer margin . In this case traditional Forex brokers offering CFDs have one additional advantage. This advantage lies in . Yes, this is naturally not the same level of control as in the United States, but let’s consider the elementary case.
Traditional brokers such as Alpari or AMarkets have phones for communication, e-mail, real offices which you can visit and talk to real people. As for exchanges, for example, Bitfinex or -E have only e-mail for communication. In fact, one day they could pack up their bags and scam all the traders. Where can you find them then? And the third point I would like to consider is the difference between from traditional Forex brokers and exchanges. This is the safety of funds.
exchanges are hacked quite often. The perfect example is the Mt.Gox exchange, through which in 2013 up to half of all network transactions were made. The exchange was hacked and billions of dollars worth of ₿itcoins were stolen. And, in addition to the exchange rate collapse, the owners, i.e. traders, lost all their funds. I can’t remember any such incidents happened to traditional Forex brokers.
In this article, I did not mean to say that you should trade on crypto exchanges, and should not do so with traditional Forex brokers. It is profitable for someone to trade directly on the exchange with physically delivered , for others it will be more profitable to trade with leverage somewhere in Alpari or Forex Club.
The main point of this article is to show that you should not be skeptical about with classic Forex brokers, because under certain circumstances through them can be a very good option. The main thing is to work with a reliable broker, not the bucket . And as you know, everything is very complicated.
Published at Tue, 05 Feb 2019 22:12:46 +0000
