For several years, virtual currencies like Bitcoin have established themselves as an essential investment vehicle for individual investors. The volatility of cryptocurrencies offers crypto traders plenty of trading opportunities. Thus, digital currencies have become more and more popular in the trading strategies of those who wish to diversify their portfolios and improve their trading performance.
Today, there are two methods to profit from the cryptocurrency market:
- Buy crypto-currencies on an exchange platform to keep them in an online or offline crypto-currency wallet
- Trade these financial assets via CFDs directly on a trading platform
One of the main issues in 2019 was the emergence of decentralized finance ( DeFi ), a new type of finance executed in protocols without trust (“trustless”) without the need for financial intermediaries.
Today, cryptocurrency users around the world can make use of traditional financial services such as credit, lending, trading and investment in a decentralized and transparent way. All you need is an internet connection and a crypto wallet.
In 2020, this new market segment is expected to continue to grow.
Defi decentralized finance
DeFi arose to revolutionize the way payments are made, giving more freedom, governance and security to the world population (Image: Medium / Vladislav Shabanov )
The rise of DeFi
Bitcoin was the first DeFi implementation. It has enabled users to conduct financial transactions with other individuals without the need for financial intermediaries in the digital age. Bitcoin and criptomoedas like were the first wave of DeFi. The second wave was driven by the DeFi blockchain the Ethereum, adding another layer to its programmability blockchain. Now, at the beginning of 2020, people (and companies) can contract, grant, negotiate, invest, hedge and store crypto crypto “without confidence” thanks to the growing number of DeFi applications on the Ethereum network. According to data collected by DeFi Pulse, the US dollar ether equivalent of DeFi protocols grew from $ 293 million in January to more than $ 687 million at the end of December 2019. Using this metric as a reference to estimate the value of the DeFi market, we can see that this sector exploded in 2019, growing by more than 130%.
Why Trade Crypto-Currencies With CFDs?
Unlike cryptocurrency exchange platforms which allow you to exchange your euros for cryptocurrencies that you can keep as long as you want in your virtual wallet, the benefits of trading cryptocurrency with CFDs are greater, Especially for those who want to take advantage of rapid price changes.
But what is a CFD anyway?
A CFD, Contract for Difference in English or Contrat Pour la Difference in French, is a type of derivative product. It is therefore a financial instrument whose valuation depends on another instrument called the “underlying”. By using a CFD, you never own the underlying. You only invest in the variation in its price between the opening and closing of your contract.
Benefits of Trading Crypto Currencies Via CFDs
- Bullish and Bearish Investments – Earn by taking advantage of the rise but also the fall in cryptocurrency prices
- Leverage – Take advantage of margin trading and leverage that increases your market exposure
- High volatility – Make the most of the volatility of the cryptocurrency market
- Better Liquidity – Get better prices and shorter transaction times allowing you to increase your performance through better liquidity
- No Cryptocurrency Holding – Avoid the risk of loss, theft and cyber attacks associated with storing your cryptocurrencies in a wallet since you do not hold tokens using CFDs
- Flexible trading hours – Trade in a 24 hour market
- Regulated and secure environment – Benefit from a safe and regulated trading environment with protections as a private trader like that against negative balance
- Low initial capital required – Start trading cryptocurrency CFDs with relatively low capital (minimum deposit of 100 EUR at Admiral Markets)
- You may prefer to hold crypto-currencies in the following cases:
- if your goal is to participate in this monetary revolution and to hold tokens to use them later
- if you can afford to pay the full value of the cryptocurrency
- if you have the time to research the best site to buy cryptocurrency and the safest way to keep your tokens. Finding the best cryptocurrency wallet is essential for the security of your funds so that they are not exposed to cyber attacks.
- if you are not afraid to forget your private keys to access your tokens. Indeed, if you lose them, if they are stolen from you, or if you forget them, you will lose your cryptocurrency investments forever.
- if you don’t have a problem using unregulated crypto exchanges which may impose buy, sell or withdrawal limits
- if your investment horizon is long-term and only upward
Now here comes Bustex.io with the best options for the mass. Burstex.io happens to be the first crowd owned crypto exchange in the world that is built over the Burst blockchain. Not clear what it means? It shows that Burstex is now owned by the shareholders. They are the same shareholders who receive the profits from the collected trading, listing fees and withdrawal. So are you interested to be a shareholder and take part in the trading process? It’s easy. The official Burstex token called BEX, is already launched on 15th June 2020. Staking on the Burstex will automatically turn you into a shareholder now. So what are you waiting for? Go with the best! Go Burstex! You will literally be running your own exchange there!