10 Best Bitcoin Forex Brokers in 2020
What cryptocurrencies are traded on Forex?
Advantages and disadvantages of crypto trading
It is worth evaluating the advantages of this financial instrument over the usual currency pairs of the Forex market, as well as considering all its shortcomings to determine whether cryptocurrency trading is suitable for you.
• unlike trading in classic currency pairs on weekdays, cryptocurrency pairs with BTC can also be traded on weekends;
• as a rule, cryptocurrency pairs are more volatile than regular currencies. And this increases your potential profit.
• digital currency is less stable than classic currencies. Sudden jumps/drops in the value of crypto-pairs increase risks when trading;
• it becomes more difficult to analyze the price changes due to the strong volatility of the market; therefore, a trader will have to devote more time to forecasting cryptocurrency compared to trading in classic currency pairs.
A trader needs to be able to navigate the market situation well, forecast the price, and react quickly to gain large profits on cryptocurrency trading, otherwise strong volatility can cause serious losses.