Trading crypto has many benefits. Among them, here are eight of the most interesting ones.
#1 Cryptocurrency Markets are Open 24/7
Trading cryptocurrencies is available 24 hours a day, seven days a week. You can trade cryptocurrencies on public holidays, weekends, and bank holidays. That means trading cryptocurrency is always available. The only drawback of this is that cryptocurrency prices become volatile. As a result, the cryptocurrency value can drop or rise abruptly.
#2 Cryptocurrency Markets are Always Liquid
Cryptocurrency markets are always liquid, which is not the case in stock markets. When you trade in the stock market, there are times when there is a lack of liquidity. That means you cannot buy or sell at the price you want to and may be forced to settle for a worse price. Cryptocurrency markets do not suffer from this problem because anyone can place an order at any time and get filled immediately.
#3 No Need to Pay Commission for Trading Cryptocurrency
If you’re used to trading stocks or bonds, the first thing that probably jumps out at you about cryptocurrency is that there’s no commission for every single trade. In other words, when you buy or sell Krrx crypto on an exchange, you only pay a small percentage of your total trade value as a fee rather than a flat commission per share traded.
The second thing that might surprise some people is how less of an impact it can make on their portfolio over time. If you have $10,000 invested in the stock market and make one $100 purchase, then take your profits by selling those shares later at their current market price—that sale would incur approximately $1 in brokerage fees (depending on where they were purchased). On top of that amount would also be added another $0.50-$1 worth of taxes owed because buying and selling stocks generates capital gains taxes whenever sales occur within twelve months after the purchase of date-and-time stamps (known as “wash sales”).
#4 Abundant Resources to Educate Yourself
There is an abundant amount of resources to educate yourself as a trader/investor. It is vital to have a good understanding of the terminology and lingo before you begin trading. You can learn everything you need to know by reading articles or watching videos on Youtube. When you trade crypto, you must do your research and understand what cryptocurrencies are all about.
#5 You Get to Own the Cryptocurrency
To trade cryptocurrencies, you must first purchase them. This means you can hold them in your wallet and trade them as needed. You may also choose to use a third-party wallet or exchange, which will allow you to trade your cryptocurrency for other (and potentially more) cryptocurrencies or even fiat currency.
While this can be risky due to hacking and other security issues, it also offers a greater level of freedom than if someone else holds all of your cryptocurrency for you. Trading allows users to buy goods and services with their coins without needing cash on hand, which is ideal for those who live paycheck-to-paycheck or don’t have access to traditional banks due to a lack of identification documentation such as birth certificates or Social Security cards.
#6 Cryptocurrencies are Less Regulated
In comparison to traditional financial institutions, cryptocurrencies are not regulated by any government, bank, or financial institution. Cryptocurrencies are not regulated by any government body anywhere in the world, and they don’t have a central authority that can tell you what to do with your investment.
As an investor, this means that you can trade as much cryptocurrency as you want without having to deal with annoying restrictions or regulations from anyone else but yourself!
#7 Leverage is Available
Leverage is a financial tool that allows traders to place larger positions in their accounts than they have available. For example, if you have $100 and want to trade with two times leverage (2x), you can open an account with $200 and use your $100 to buy two BTC or ETH tokens.
#8 Trades are Faster and Cheaper
The speed of cryptocurrency trades makes them much faster than traditional stock trades. While stock trading takes at least a few days to complete, cryptocurrency trades take minutes to hours. This means that you don’t have to wait long before you can begin buying and selling again.
You can also buy fractional coins with leverage, which allows you to make profits without having enough capital for a full purchase. If your prediction is correct, the amount of money that you make will far exceed what would be possible with non-leveraged trading methods.
However, if your prediction is incorrect and the price drops instead of rising as expected, this could lead to significant losses. That is because the amount borrowed from your broker will be much larger than what you invested in buying coins initially, which means there may be insufficient funds available.
So, do all these benefits appeal to you? Start investing in cryptocurrency if they do. You will not regret it if you do it right.