What is cryptocurrency trading?
Cryptocurrency trading is trading with these currencies, either by buying and selling them on a trading market or through CFDs (Contracts for Difference). The latter allows speculation on the fluctuations in the value of cryptocurrencies. That is, you can bet that its price will go up or down, ergo, you can make money (and lose) with the increase and decrease in it.
If you prefer a conventional buying and selling, it is usual to buy cryptocurrencies – Bitcoin, Ethereum, Dogecoin, Ripple or Litecoin are some of the most used cryptocurrencies – with a spread (difference between the buying and selling price) that is clear and with market depth.
We have already said that it is a decentralized market (no central authority protects it), and it is managed through a network of computers. One of its main characteristics is that the cryptocurrency market is very volatile: assets can go up or down 10% daily. This makes it ideal for experienced traders who use short trading strategy often.
It is an extremely aggressive market where specialized cryptocurrency brokers used to offer unleveraged trading, however, more and more of them have decided to include leveraged cryptocurrency trading. And it is well known that this involves an obvious risk: with leverage you can make a lot of money (and also lose it).