Over the last few years, many FX brokers started offering cryptocurrency trading. Most leading brokers have already enabled this feature, so the traders can choose from the best.
Crypto exchanges and brokers
Many would ask why you need brokers in order to trade cryptos when you have cryptocurrency exchanges where you can buy or sell them. This is a good question, but not that easy as it seems at first sight. Indeed, signing up for an account at a crypto exchange is hassle-free, and once you have it you can directly buy, exchange, and store cryptos on your wallet before the price goes up enough to sell them and earn your profits. Experienced traders, however, know, that crypto exchanges are unable to offer a comfortable trading environment and good conditions as most brokers do.
Simply put, crypto exchanges are new to the market, while most brokers have over 20-years experience in online trading and providing the clients with top tier services. An advanced user interface, 24/7 support, high security and safety, multiple charting options, mobile apps, and many more things are only available with online brokers.
Why cryptos are popular with traders
One of the major reasons is high volatility. While long term investors buy and hold assets for years, intraday traders prefer volatile markets to reap quick profits. Volatility offers a lot of trading opportunities, and although the risk is higher, the profit potential is much bigger. This is why those who prefer short term strategies are fond of digital currencies.
Another reason is that the crypto market is growing sharply. You will hardly find a person who has never heard of cryptocurrencies. It is being advertised heavily in financial media and elsewhere, which is also pushing the crypto market higher; as a result, people are constantly requesting crypto trading options from the brokers. Currently, there are many investors who trade on the digital currency market only.
Trading cryptos with leverage
Marginal or leveraged trading is very much popular with FX traders, as it enables trading large amounts that by far exceed the account balance. You should note however that trading leveraged products magnifies both potential profits and losses, so it is not fit for beginners.
Seasoned traders, however, tend to choose those brokers that offer good leverage, as they already have much experience in risk management. For your convenience, we have analyzed more than 50 most popular world-wide brokerages and have selected a list of brokers that offer cryptocurrency trading with a leverage of 10:1 and higher.
Each of the above has its own features and trading conditions that may have more or less weight for a certain trader. Please note that trading cryptocurrencies carries high risks by itself while using leverage in this market is even riskier and requires a lot of experience. If you are just starting out, we recommend you first testing your strategies on a demo account in order to understand whether you are fit for trading in this market. Only once you get positive results you can try it out on a live account.