Cryptocurrency can now be traded via CFD. The beauty of it is that everyone is welcome to participate in cryptocurrency trading. The earlier you get involved the better. Trading cryptocurrency in CFDs means that you will not have to own the crypto before you can make money from it. So many advantages are associated with crypto trading in Canada and we are going to enlighten you about some of the advantages below.
Best Cryptocurrency Trading Brokers in Canada
Top Canadian Cryptocurrency List
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Most Common Traded Cryptocurrencies in Canada
- Bitcoin (BTC) is the digital currency with the largest market capitalisation and price points since its inception in 2008. It dominates 50% of the whole market capitalisation of cryptocurrencies.
- Ethereum (ETH) is that the second largest cryptocurrency after Bitcoin and allows developers to make smart contracts on a platform.
- Litecoin (LTC) is analogous to Bitcoin but differs in terms of scalability. Litecoin may be a nother very fashionable altcoin and LTCUSD is a fork of Bitcoin (BTCUSD), copied from the code of Bitcoin and with some modifications and launched as a replacement project.
- Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a replacement version of the blockchain with different rules.
- Ripple (RPL) is popular among major banks with the Ripple Network a next generation real-time gross settlement system. It enables instant cross-border fund transactions at very low costs.
Benefits of Cryptocurrency Trading
The transaction process in crypto trading is very easy and straightforward. The fees are usually very low. This makes it even more attractive than many other CFD assets. As a crypto trader, you will have to speculate on if the value of the crypto will rise or fall. You will not have to own the crypto before you trade it. It is a highly volatile market. This is one of the many reasons to venture into cryptocurrency trading in Canada. The high volatility is because of the many short-term speculative interests in the industry. CFD trading in crypto allows the trader to make money by buying and selling the crypto asset.
Bear in mind that there are different types of cryptocurrencies out there today. You can trade any of them in CFD. Some of the commonly traded cryptocurrencies are:
- And so on
The most popular among them is bitcoin trading.
Market Open 24/7
The cryptocurrency market is open 24/7. As a result, you can trade at any time of the day or night. This means that the opportunity to make money via cryptocurrency trading is very huge and there is adequate opportunity for everyone. There is no central control over the crypto market. This is one of the many features that make it just perfect for all categories of traders. The trading takes place on a cryptocurrency exchange and it takes place between individual traders. The trading process also takes place all over the world. You can trade cryptocurrencies against one another. You can also trade them against fiat currencies. You can trade them during the week and also during the weekend. This is one area where crypto trading is better than forex trading.
The level of liquidity available in cryptocurrency trading in Canada also makes it stand out. The high level of liquidity makes crypto trading highly profitable. The liquidity provides better pricing in the crypto market. It also helps to speed up transaction times. Additionally, high liquidity can increase the accuracy of technical analysis. Transaction in cryptocurrency trading is dispersed across multiple exchanges. This is yet another factor that contributes to its high liquidity. The high liquidity makes crypto trading very profitable. It hastens the rate of executing trades. It also lowers the cost of trade execution.
You can buy or sell
As we mentioned earlier, you do not need to own the cryptocurrency before you trade it. You only need to trade based on the price difference. CFD trading in cryptocurrency enables the trader to buy or sell the crypto. Crypto CFD trading makes it possible for the trader to make money when the value of the cryptocurrency is rising or falling. He can buy if he predicts that the value of the crypto will rise. He can also sell if his strategy says the value will fall. When you buy the cryptocurrency, then we say you are going long. When you sell a cryptocurrency, we say you are going short.
The crypto market gives you access to leverage. Leverage helps to increase the capacity of your trading capital. The extra money is the leverage and it is given by the broker. The amount you can get as leverage depends on what you ask for. If you are using a leverage of 10:1 for example, it means that the broker will multiply the capital you can control by 10 of the amount in your trading account. If you have $1000 in your trading account, a leverage of 10:1 will help you to trade as if you have $10,000 in your account. Leverage can increase how much profit you can make. It can also increase how much loss you can make. So, you should use leverage very carefully.
Account opening is fast
Account opening in cryptocurrency trading in Canada is very fast. You will need to buy crypto from an exchange and also sell via the same exchange. You will need to first create an account with the exchange before you can do this. There is no need to own the cryptocurrency on exchanges. All you need to do is to deposit money in your trading account. You can even deposit the money using fiat currencies like United States dollars. You can carry out the entire trading process son a broker also. The account set up process on brokers’ platforms is always very fast. You can start trading almost immediately after you register.
Top 10 Gainers Crypto Today
Top 10 Losers Crypto Today
Cryptocurrency trading in CFD is very interesting and open 24/7. It can help you to make a lot of money. The use of leverage further increases your chance to make more money from crypto trading. Be that as it may, you should use the leverage carefully. While it is profitable, make sure you always trade with care. You should also only risk the money you can afford to lose on cryptocurrency trading in Canada. Make sure you have a good trading strategy before you start trading cryptocurrency.