The 5 benefits of trading Cryptocurrencies

 When it comes to trading cryptocurrencies, you are speculating on whether your chosen market will rise or fall in value, and you don't even own the digital asset. This is done by using derivative products such as CFDs. Let's take a look at the benefits of trading cryptocurrencies.

1. Volatility - While cryptocurrency is a new market, it experiences significant volatility due to huge amounts of short-term speculative interest. This volatility of cryptocurrencies is part of what makes this market so interesting. The high price movements provide quite a lot of opportunities for traders but also come with increased risk. 

2. Market Hours - Typically, this market is available to trade 24 hours a day, seven days a week because there it does not have any centralized governance. Cryptocurrency transactions take place directly between individuals, all over the world in various cryptocurrency exchanges. There are buried downtimes to adjust infrastructural updates.

3. Improved Liquidity - Liquidity is the measure of how quickly and with how much ease your currency can be converted into cash, without impacting the market price. This is important because it permits quicker transactions, better pricing, and increased accuracy for technical analysis. In general, this market is considered illiquid as trades are dispersed across multiple exchanges which is part of the reason the cryptocurrency market is so volatile.

4. Quick Account Opening - If you want to buy cryptocurrencies, you will need to create an exchange account and store your currency in your own digital wallet. This process may be restrictive and take a lot of time and effort. Once the account is created, the rest of the process is quite smooth and completely free of complications.

5. Leveraged Exposure - Since CFD is a leveraged product, it enables you to take positions on 'margin' which is a deposit worth just a fraction of the full value of the trade value. The profit you make from the trades will reflect the full value of the position, so trading on margin enables enormous profits by investing a small sum of money. However, it can also amplify your losses, and they may exceed your deposit on a trade. It is very important to make sure that you are following a strong risk management system, with proper stops.