Today, traders and the general public have a huge range of options when it comes to trading and the financial markets. In fact, it can be argued there is going to something that appeals to everyone, especially nowadays at a number of online sites. So for instance, City Index offers lots of ways to trade including CFD, spread betting and forex. With regards to Crypto trading, there is a definite increase in interest and trading activity; especially as Bitcoin and other cryptocurrencies continue to make waves in the mainstream. As with anything, there are always going to be pros and cons. This certainly applies to trade in cryptos, and both the positives and the negatives should be considered before embarking on a crypto trading adventure. So, if you’re thinking about trading in cryptos read below for our guide on the main pros and cons.
It’s convenient to trade in cryptocurrencies as they can be bought and sold freely throughout the day. Cryptos are also a truly international product, meaning they can be traded across all countries and time zones around the globe. This is ideal for people who want to have the option to get involved in the action at a moment’s notice, no matter when or where they are. Furthermore, because it is truly a global product, it is available to everyone, no matter where you are based in the world.
Being able to trade cryptocurrencies on the go is not only a lot more convenient in the sense they can buy and sell from wherever they are, but it also allows a trader more control over their investment, never missing an opportunity to turn a profit.
Cryptocurrencies, Bitcoin included, are prone to fluctuating rates. These often include intraday swings where savvy traders can turn huge profits if they have their eye on the ball. While some may view the fluctuating rates as a negative, however, in the eyes of an experienced trader they’re the perfect opportunity to make big money fast.
Brands are finally accepting cryptocurrencies
We’re now at a stage where big brands such as Paypal, Microsoft, and Subway are accepting cryptocurrencies such as Bitcoin as a way to pay. So, if a trader has a good day and rakes in a good amount of profit, they could buy as many Xbox One games as they wish, or as many foot-longs from Subway. The more recognition cryptos get in the mainstream, the more brands will get involved.
Governments may get involved
The rapid rise of cryptocurrencies like Bitcoin, especially in the mainstream, could ultimately be the downfall for many traders around the world. Governments could look to get involved in some way, shape or form due to the use of cryptos by crooks. This means regulations could be put in place, therefore restricting its use and its traceability. While it is unlikely, it is still possible.
You can’t trade 24 hours a day
The markets are constantly moving where cryptocurrencies are concerned, and therefore so are the rates. A trade can’t be awake 24 hours a day, 7 days a week, so this means there is a chance they will miss out on important market movements while they sleep. This can ultimately result in trading losses occurring or a trader could miss out on the chance to make some serious profit. Crypto traders are only human after all.