Cryptocurrency broker license
Advantages of cryptocurrency broker license
- The possibility of making a profit not only on the rise of cryptocurrencies, but also on its fall.
- The ability to connect to trade significant leverage.
- More diverse tools for technical analysis and automated bidding.
CFD as a part of cryptocurrency broker license
When working through a broker you can be with a good profit on your hands even after the collapse of the market. For this purpose, contracts for price difference («Contract For Difference» or simply FD) are used. Of course, such a profitable way of trading quickly gained popularity and began to capture more and more new markets, not limited to traditional currencies, exchange goods and precious metals. More recently, cryptocurrencies have been added to the list of supported assets. Trading electronic assets through CFDs is very convenient, because the actual transfer of coins between the parties to the agreement is essentially not. In this way, the contract can make a profit when the price falls, not being the owner of the coins.
How to choose the best cryptbroker: the main criteria
Flexible (preferably around the clock) working hours. Not all sites can be operated on weekends and holidays, so you should consider this point for trouble-free trading in the future.
Ability to open shorts positions. The cryptocurrency market is characterized by high volatility, so the value of assets can change by 100 percent or more in just a day, and sometimes even faster. Short positions will help to get the most out of this state of affairs.
Minimum commission. Some services charge a commission on deposits, and others – withdrawals. Others may request interest for leverage or transaction processing. The fewer fees the platform provides, the higher your net profit.
Insurance operations. The opportunity to reduce risks will never be superfluous.
Forecasting and analysis. If you can still believe the technical analysis in the crypto-falutic sphere, the forecasts of the thing are very unreliable. If the broker assures you that his forecasts have accuracy above 90%, then you are a fraud.