Cryptocurrency volatility is at all-time high. The digital coins offer lots of volatility for day traders and for anyone interested in sharp market movements. It has also become a financial trend to prefer cryptos to FIAT currency, so it’s not a surprise that many people have flocked to the cryptocurrency market in search of opportunities. Being so volatile, many brokers offer crypto trading under a lot of constrictions, if they offer it at all. iFOREX is one of the brokers whose 25 years in the industry allows it enough stability to be able to offer traders the opportunity to operate in this exciting market.
iFOREX is a CFD broker that’s been around since 1996, but why should you even consider trading cryptocurrencies as CFDs? By trading cryptocurrencies such as Bitcoin, Litecoin and Ripple in the form of CFDs, traders can invest in their price movement without having to own them. This is a major advantage for those who want to take part but are hesitant about setting up an elaborate e-wallet in which to store their digital coins. Setting up and operating an e-wallet requires a long password syntax (which can be stolen by hackers, just like cash by cutpurses), and should you want to sell a Bitcoin, for example, you’ll need to find a buyer and then wait for the transaction to complete, sometimes too slow in the highly volatile crypto market (prices can change while you wait for a transaction to complete, thus causing you to miss or lose coin value). By Trading crypto as CFDs, and only investing in the underlying asset, you are safe from theft, as you don’t really own the coins.
As in with any CFD, trading crypto as derivatives gives you the opportunity to leverage your invested sum. With iFOREX offering as much as 13:1 on Bitcoin itself, you can multiply your invested amount on trades by 13. While leverage can be super helpful when trading currencies or other instrument types, it is extremely advantageous when considering crypto trading; as Bitcoin prices keep soaring, $1,000 are not enough to buy even 1 Bitcoin. But with $1,000 in your iFOREX account, you can open deals of up to $13,000. This is a great benefit for those who still wish to take part in this market long after Bitcoin has reached astronomical value.
But wait! Even $13,000 are not enough to buy 1 Bitcoin these days. Are you to be excluded from trading it until you have enough cash to enter the market? iFOREX is breaking it down so that you can, literally. Through their iFOREX account, traders can open deals on fractures of cryptocurrencies, with Bitcoin trades available as low as 0.1 BTC deal size. What can you do with 0.1 Bitcoin? A lot! If a Bitcoin is valued at $60,000, for example, 0.1 fracture is worth $6,000, which means you can trade 0.2 Bitcoin using leverage, with just $1,000 (and with spare change left). Sounds complicated? Let’s break it down:
If 0.1 Bitcoin is worth $6,000, and iFOREX gives you the ability to multiply your investment by up to 13, that means your invested $1,000 can be used to trade 2 fractures of 0.1, for the price of $12,000. And if Bitcoin prices rise by 3% (which is even lower than its daily average), the profit margin on these 2 fractures will be $360. That’s 36% return on your investment. (Not all deals grant a positive return, learn the risks and how much you are willing to lose before you start).
Some brokers also limit the exposure for crypto deals, which means that even if you have a lot of money to invest, you can’t go beyond a certain amount. Brokers do that to protect themselves from high vocality. A broker that offers you higher exposure possibilities is more likely to be stable and trustworthy, as their risk management allows them to offer more without risking themselves, and that is a good sign. iFOREX offers some of the highest exposures for crypto, and even if you don’t have the money to trade 3 or more whole Bitcoins, it is comforting to know you can trust in the stability of the broker that offers it.
If leverage or margin trading is not for you, iFOREX offers the opportunity to trade digital coins with no leverage. This can reduce risk of market volatility, while still giving you a great opportunity to trade cryptos in fractures for the hope of seeing results. Add to that all the other benefits of trading cryptocurrencies via CFDs, and you got yourself a sweet deal.
Trading cryptocurrencies with iFOREX is a great plus, with benefits including multiple trading alternatives to choose from, such as Dogecoin, Litecoin, Stellar, Dash, Bitcoin and others, and even Crypto vs. crypto pairs like Bitcoin/Ethereum. They offer low minimum deal size which allows you to start trading as low as 0.1 Bitcoin CFDs, an upgraded maximum exposure that lets you hold 3 or more Bitcoin CFDs, attractive leverage of 13:1 and competitive spreads so you can utilize more for your money. All these makes getting into crypto trading more stable and affordable with iFOREX.