Investing in crypto currency has been slowly becoming mainstream over the past few years, with many investors purchasing shares of digital currencies such as Bitcoin and Ethereum. Even some Wall Street firms have begun to engage in this process as well.
Currency trading is a popular medium of exchange, but there are many risks involved when dealing with this type of investment. It involves placing an offer and asking for money to be exchanged for some amount of currency. In return for the right to buy or sell these currencies, the investor can receive a return on the value of the currency they are investing in.
Many traders who choose to trade crypto-pairs find that it is also a great way to diversify their investments, as it allows them to obtain shares of currency which may not be easily available elsewhere. While it is tempting to do this from home, many potential investors choose to invest in private accounts at banks or brokerages to receive currency that may not otherwise be readily available.
There are several advantages to investing in private accounts as opposed to those offered through regular brokerage firms. One advantage of private trading accounts is that you have the ability to customize your trading portfolio and test out a variety of strategies before you make your final decision.
You can trade currency pairs based on a variety of different investment styles. You can take advantage of them in either direction, buy into the rise and hold onto your assets when the market makes a good move, or trade away in anticipation of a decline.
Trading in both directions can be risky, however, as you may end up with a loss of a large amount of money if you are not careful. To mitigate this risk, it is best to look for a broker who specializes in currencies trading and offers a variety of various account options.
These services generally charge a one-time fee for setting up a bank account, and you will have access to all of the various currencies offered through the brokerage. Some may even offer a more complex solution that includes access to other types of cryptocurrencies such as those backed by gold or silver.
While there are many additional features available to brokers, three major providers have emerged as leaders in the industry. The three companies are Kraken, Liberty, and Cryptocompare.
Kraken is perhaps the most well known of the CryptoCompare providers. They focus primarily on the trading of Ethereum and other more popular cryptocurrencies.
Liberty offers private accounts for a one-time fee, and they provide a full range of features, including access to a wealth of other cryptocurrencies. They also offer other specialized services such as forex trading and other forms of international trading.
Cryptocompare offers a more specialized service, offering more precise and easy to use tools and advanced analysis tools. These are excellent options for anyone who is looking to trade in a way that is consistent with their own personal style.