All about the Cryptocurrency Platforms - Learn to Trade
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All about the Cryptocurrency Platforms

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Ali Qamar

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Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more


Information on Cryptocurrency Exchange Platforms

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Contrary to what many might want to believe, cryptocurrencies are not a new trend as they have been with us for about 11-years. However, despite their age of existence, it is the last two years when cryptocurrencies have truly gone big and global.

 

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That, of course, has nothing to do with countries and their size as crypto assets are not limited to borders and are available to anyone at any time.

The Two Unique Ways in Which Virtual Currencies get Exchanged

Virtual currencies seem to have emerged from oblivion to develop as a multi-billion-dollar industry attracting billions of dollars’ worth of investments globally.

Following cryptocurrency’s decentralized features, crypto holders who know how to use them enjoy multiple advantages and excellent features. More often or not, virtual currencies are exchanged or used in the following two ways:

Virtual Currencies as a Tool for Trade, Money Transfers, and Speculations

As many know by now, investors and traders can buy virtual currencies through credit cards, money transfers, fiat currency, etc. Once a crypto trader or investor acquires a certain amount of virtual assets, they can decide to trade them to someone else who uses a compatible virtual asset wallet.

The crypto exchange process or crypto trading process might be between individuals or businesses who either share a crypto wallet that is hosted by a crypto exchange or a standard crypto wallet.

In typical cases, cryptocurrency holders own a certain number of virtual assets that they can use to transfer coinage to another person, pay for items bought, or hold them for speculative purposes. The process of moving virtual holdings to another person is essentially the same as sending money to another person by way of bank RTGS.

Cryptocurrency traders and investors have the option of buying and selling virtual assets on different exchange platforms guided by the principle of buying low and selling higher to make a profit.

In some instances, crypto investors and traders can use crypto wallets to speculate a crypto performance without necessarily using a crypto exchange. How they manage to speculate is by buying virtual assets and storing them in their crypto wallets until the prices appreciate to their desired levels.

On reaching their desired levels, the crypto holders sell their virtual assets to another person who also intends to make a profit from the asset — creating a continuous cycle that is dictated by the principles of demand and supply.

CFD Trading for Cryptocurrencies

CFD is the acronym for Contract for Difference, and it’s a trading method that is employed to allow individuals to trade and invest in cryptocurrencies by engaging in a contract between themselves and a middleman.

The crypto trader or investor engages a broker who in turn opens a direct transaction on their behalf on a specific market. When the position of the transaction closes, the trader and the broker share amongst themselves the profit and everyone goes home happy.

For instance, if an Ethereum investor engages in a CFD trade worth one bitcoin, the investor will gain one dollar for every dollar appreciation in the Ethereum price. When the transaction is open, a certain percentage of his available funds is utilized to keep the transaction open sustaining the cost of the spread.

When the prices of Ethereum go up or down, the profit and loss margins are reflected in the trader’s account while no real exchange between the US dollar and Ethereum takes place.

 

8cap - Buy and Invest in Assets

Our Rating

  • Minimum deposit of just 250 USD to get lifetime access to all the VIP channels
  • Buy over 2,400 stocks at 0% commission
  • Trade thousands of CFDs
  • Deposit funds with a debit/credit card, Paypal, or bank transfer
  • Perfect for newbie traders and heavily regulated
Don’t invest in crypto assets unless you’re prepared to lose all the money you invest.

 

What are Crypto Exchanges and which ones Accept Crypto CFD Trading?

A crypto exchange platform is an online network that supports the exchange, buying, and selling of several virtual assets. Despite the high number of crypto exchanges existing today, not all crypto exchanges are trustworthy. Also, crypto exchange platforms are usually made up of forex exchange platforms that incorporate cryptocurrency CFDs.

All crypto exchange platforms are connected to their liquidity providers who avail crypto liquidity that enables the crypto exchange clients to execute crypto trades at near-instant speeds.

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