Earnings on crypto-currencies with brokers: what are their advantages?
Trading with crypto-currency brokers
Than convenient brokers for beginners
How to start working with brokers
Prospects of trade in crypto-currencies
Bitcoin and other crypto-currencies are actively used for both trade and long-term investments. To earn on them today is not trying, perhaps, only lazy, and the phenomenal growth of the bitcoin course stirs the minds of more and more people. Trading on the stock exchange is quite troublesome, but it’s an exciting and profitable business.
However, what profit do you expect if you take up the trade in crypto-currencies with the help of exchanges? What is more reliable – crypto-exchanges or brokers?
Trading with crypto-currency brokers
Earning in the crypto currency, more and more users are moving away from the calculations (mining) and gradually switch to the exchange game. This is understandable, because mining requires more computing power, and the profitability of new crypto currency production is steadily falling.
Additional complexities create constant fluctuations of rates, because of what the profitability of mining falls even more. What’s the result? To play on the difference of bitcoin courses, that is, to engage in stock speculation, becomes more profitable, and the threshold of entry into this sphere is still relatively low.
Given that the Crypto-currency, in spite of the rate hikes, is constantly rising in price – the long-term trend in this market is “bullish”. Therefore, the typical exchange strategy on the market of crypto currency is as follows:
In the case of bitcoin, revenue can reach colossal figures, because in January one BTC cost around $ 1,000, and more recently (December 2017) updated the historical maximum of $ 12,000.
It’s no wonder that more and more brokerage companies do not want to stay aside and add crypto-currencies to their pool. In fact, legal brokers consider crypto currency as an ordinary trading instrument, although at the same time virtual money still does not have a certain legal status.
So, why use the broker’s services is more reliable and more convenient than trading on crypto-exchanges.
First of all, brokerage houses have a legal status and work under the license of the Central Bank. In other words, these are law firms that provide intermediary services in the sphere of finance.
In the field of crypto-currencies, everything is still the opposite, as in the Wild West: you can easily earn and just as easily lose. For example, due to the instability of the work of exchanges or fraudulent management actions.
Technical disruptions in the operation of sites are observed everywhere – especially during peak activity at the course jumps. At the same time, users always have suspicions that the exchanges “fall” from the influx of traders, which does not add confidence.
In addition, the threshold for entering crypto-exchanges is quite high. In some cases, the transaction fee may be up to 5%. Additional fees are charged for the input and output of currency.
Of all the advantages that crypto-exchanges have in front of brokers, you can distinguish only the number of trading instruments. On the exchange it is easier to diversify the investment portfolio by buying and selling altcoyins. This allows you to get rid of illiquid on time and invest in promising crypto currency. Brokers still prefer to operate with popular coins – mainly bitcoin.
Another drawback is the lack of anonymity – brokers allow you to trade only registered users. However, for traders this is not essential.
The main recommendation: to choose a broker with the widest possible list of virtual coins. For example, AMarkets provides a portfolio of eight popular crypto-currencies: Bitcoin, Ethereum, Ethereum Classic, Litecoin, Ripple, Monero, Zcash, Dashcoin.