Cryptocurrency Trading 4.76/5 (144)


Cryptocurrency trading

Cryptocurrency trading has become increasingly popular in recent years, with traders looking for better returns than are currently available in more traditional investment products.

Quick guide ~ 2 min read

Cryptocurrency trading has exploded in popularity over the past few years as the value of major Cryptos like Bitcoin, Ethereum and Ripple has soared.

Bitcoin in particular has driven a huge investment drive with the price of a single coin rising to as much as $20,000 recently and, with demand only increasing, prices could yet move higher, providing plenty of exciting opportunities for traders.

With fewer barriers to entry than traditional forms of investing, thousands of people in Australia have been cashing in on the price surge in major Cryptos to earn substantial sums.

Cryptocurrency trading Australia, where to get started?

Trading cryptocurrencies enables you to not only buy, but also sell without actually having to own the crypto. This is not something you can do on a cryptocurrency exchange. As the price of cryptocurrencies rises and falls you can place a buy or sell trade, taking advantage of the huge daily volatility. It’s not as complicated as it sounds. If you think the price will go up, you buy, or conversely, if you think the price will go down, you sell. You’re not actually owning any of the cryptocurrency, you’re simply trading on the market price difference and the direction this might take.

We’ve reviewed all of the major Cryptocurrency trading brokers and looked at how their platforms perform, which Cryptos they offer, the spreads available at each broker, whether or not they have education/learn to trade resources and more. However, please read this quick guide to find out how trading Cryptocurrencies can be more advantageous than buying.

Best Cryptocurrency trading platforms Australia in 2018!

WebsiteBroker RatingCryptocurrencies AvailableTrading MethodFeesLocation/ LicenceVisit

www.cityindex.com.au

5 Star RatingBitcoin, Bitcoin Cash, Ethereum, Litecoin & RippleCFD & FX (capital at risk)Free to join, fixed spreads Australia / ASIC

www.pepperstone.com

4 Star RatingBitcoin, Bitcoin Cash, Ethereum, Litecoin & DashCFD and FX (capital at risk)Free to join, competitive spreadsAustralia / ASIC

www.plus500.com.au

3 Star RatingBitcoin, Bitcoin Cash, Ethereum, Litecoin, NEO, IOTA & RippleCFD only (capital at risk)Free to join, competitive spreadsAustralia / ASIC & AFSL #417727

Advantages of Cryptocurrency trading Australia vs buying

Cryptocurrencies, such as Bitcoin, are currently some of the world’s most exciting markets to trade and as the digital currency boom continues, prices are set to rise even further over the next few years.

Starting in early 2013 the rising price of Bitcoin has triggered a global surge in demand for Cryptocurrency and has driven record highs and impressive returns for investors.

A new frontier in financial speculation

It is no secret that up towards the end of 2017, there were record low levels of volatility in lobal markets like Shares, Indices, FX and Commodities

Cryptocurrencies have been the one shining light for investors looking for the opportunity to take advantage of market volatility by trading assets which promise returns over the shorter term.

Take Bitcoin for instance; the Cryptocurrency has experienced swings of up to 25% and its price has risen by over 20,000% since it first launched.

It is exactly these price swings that have attracted traders with a keen eye for assets that offer significant returns. Rather than buying actual coins, savvy traders speculate on price movements in the underlying market to go both long and short of a range of Cryptos like BitcoinEthereum and Ripple.

How to trade Cryptocurrency

Trading cryptocurrencies is done via a CFD which stands for Contract For Difference. It’s a very simple way to make profit from the price movement without having to physically own the underlying crypto currency. You can trade on the price going up and down using a CFD and close the contract/ trade anytime.

With any one of the major Cryptocurrency brokers, you’ll be able to apply for a CFD trading account and get started as soon as your account has been approved.

When you trade CFDs on popular Cryptocurrencies you’ll be trading on leverage, this means that for a relatively small initial contribution, you can have a significant exposure to the market thereby boosting your potential returns.

It is important that you remember that leverage works both ways and you can also magnify losses in the same way.

Another key benefit of trading with a trusted CFD broker is that you’ll be able to make use of smart risk management tools like Stop Losses and Limit Orders to help secure your profits and minimise losses in times of excess volatility.

A key part of trading Cryptocurrencies successfully is researching how and why prices move up and down. Be sure that when you select a Cryptocurrency broker that they offer you quality research and analysis on the issues which impact price movements.

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Your Capital is at risk. CFD Trading is a leveraged product which means that you can lose more than you initially invest. It may not be appropriate or suitable for all investors. Ensure that you understand the risks involved in Cryptocurrency trading and seek independent financial advice if required.