The Way to Take Advantage of Volatile Cryptocurrency Prices
Is Volatility Good?
One of the main reasons for investors, who want to take advantage of the Bitcoin price, is to increase their holdings. These are people who have earned Bitcoins and wanted to enhance their portfolio. More coins mean more profit, when the price does increase again.
As the price is increasingly volatile, there can be opportunities to sell at a high price and buy back when the value decreases. Centralised exchange platforms can be used for this, and even peer to peer trading. The hardest part is predicting when the price will become volatile again.
CFD Trading with Bitcoin
It can be simple to capitalise on rising, or falling prices by using CFD trading. A CFD (Contract for Difference) is an agreement between you, and a broker, to pay the difference between an opening and closing price of an asset. You may think it is more difficult than usual trading, but that’s not true. Not all brokers, however, will trade with cryptocurrencies.
Due to the volatility of bitcoin and other cryptocurrencies, they can’t be considered as currencies or media of exchange. But in case of accepting them by the platform, they can work for CFDs. Examples of such trades include the Ethereum/US Dollar pairing.
It is normal to find a cryptocurrency paired with the US Dollar or less often against the Euro or the British Pound. Margin requirements are still quite high, but they present an advantage for experienced traders, making money from the rise and fall of thecryptocurrency.
Make the Most of the Volatility
CFD trading with bitcoin can be a quick and seamless process. It removes the length verification process that is associated with other trades, and the deposits and withdrawals are almost instant.
This one of the matters where the Bitcoin volatility can be a blessing. It is also easy to forget the fact that all asset classes will be rapidly changing. Fiat currencies, stocks, digital assets – all of these can see sudden changes in their price or value. However, Bitcoin is still a new asset and not everyone will have enough braveness to try purchasing it.
If you want to try trading with CFDs, with Bitcoin or altcoins, you can choose Olsson Capital. It will give you a reputable platform for your trades, and you can seek advice as you go. Join the cryptocurrency revolution and go with those waves of volatility today.