Digital Currencies Market
Trading digital currencies is somehow similar to Forex trading. Digital currencies are quoted both in US Dollars and Euro, so you can speculate in both scenarios, when the market increases or decreases. If you think that the price of Bitcoin will go up soon, then you open a buy position on BTC/USD. If the price goes in the direction you speculated, you will make profits based on the size of the position and in the amount of the Bitcoin price raise. If the price goes down, you will go through a loss.
Let’s emphasize the difference between trading fiat currencies and digital currencies. Digital currencies are young and highly volatile. Said so, risk management is vital for digital currency traders, who want to participate in this fast moving market. The other difference is that digital currencies are immune to monetary inflation. Digital currencies have a predefined maximum market caps, while fiat money can be printed by the highest financial authority of a country.
Why trading Digital Currencies?
Digital currencies have the tendency to be a highly volatile asset, so they provide tremendous opportunities for traders to open positions with big price movements. We provide different leverage levels, which we strongly advise to be carefully used, because of the huge power leverage comes with. Tvision offers various digital currencies that can be traded in pairs to fiat currencies or other digital currencies. Trading digital assets with Tvision has many advantages like:
High volatility – Any dynamic price movement is shown live in the charts we provide in our trading platform. You just need to keep an eye on them.
Go long and short – You are able to profit in rising and falling markets, open buy or sell positions accordingly.
Diversification – Diversify the risk by investing your capital in the most appealing asset of nowadays.
New opportunities – Expose your capital in a decentralized market, which is less affected by geopolitical events.
Easy access – Open the trades with the same ease as trading in Forex or commodities.
Bitcoin and its ‘friends’ are not regulated by a central bank or other authorities. Digital money is mined by millions of computers located in different parts of the world, called ‘nodes’. This network of nodes has the function of the Federal Reserve, Visa and MasterCard which enables online transactions. There is a big difference, because these nodes are spread around the world and they save and verify the data of the past and recent transactions. Records are kept on a public list which is available for anyone. Owners are identified by an e-wallet ID only.
Which digital currencies should I trade?
Bitcoin – It was launched in 2009 as the first decentralized digital currency. Bitcoin leads the market in terms of market capitalization and the highest price for currency.
Bitcoin Cash – It was launched in 2017, and by the end of its first day in the market, it was ranked the third digital currency, along Bitcoin and Ethereum. Today, it keeps a powerful position on the top five most traded currencies in the market.
Ethereum – It is an open platform that enables developers to create and deploy decentralized applications. It allows users to run decentralized blockchain apps called smart contracts. They are very secure, have a digital history which allows a perfect auditable process, no downtimes or censorship.
Ripple – It is a real-time currency exchange network, created by Ripple Labs. It uses its native digital currency, XRP, to process the online transactions. It differs from other systems, from Bitcoin for example, because it was created first as an exchange network, and after the currency was released.
Litecoin – It was created by Charlie Lee in 2011. It is on the top five digital currencies in terms of market capitalization. It was created to allow peer-peer low-cost payments.