The cryptocurrency market has recently received attention. Thousands of people in search of fame and fortune have rushed to test the new assets and have not hesitated to share their experience with others, so I will probably not say anything new in this article. However, it is always helpful to summarize all the facts in one place to see things more clearly.
So is there a big difference between the crypto trading vs bank trading? And how different is both tradings are from each other. So let’s try to find out.
Cryptocurrency trading is volatile.
Cryptocurrency trading has almost no history compared to traditional bank trading. Think about it: the first trade made by the bank was in 1773. Consequently, bank trading is very often done by trial and error. In the absence of available data and proven methods, but compared to cryptocurrency trading, crypto trading has its own strategies. The crypto market is the place to quickly gain profits, but it is also the place to lose everything in the blink of an eye. Cryptocurrency trading is therefore unpredictable.
Cryptocurrency market has a lower entry barrier
Most of the cryptocurrencies and the cryptocurrency market are not subject to clear regulatory guidelines at the moment, so there are plenty of opportunities to get started for everyone. Just register, sometimes even without any authentication procedure, to start trading, no huge amount of funds is required. As compare to bank trading, it requires a lot of paper work and also huge amounts to get started.
Cryptocurrency trading is P2P, no broker is needed
Cryptocurrency trading is attractive to many because it requires no intermediaries, you can trade on your account without the help of anyone, and be your own fund manager. The benefits of this fact are pretty obvious – crypto markets are extremely volatile, and sometimes the best decision is the decision made in a second. You simply cannot afford to wait. As comparing this to Banks trading, you will have to contact the broker and brokers will also charge fees to lock the trade.
Cryptocurrency market hours
The cryptocurrency market is generally available to trade 24 hours a day, seven days a week because there is no centralized market governance. Cryptocurrency transactions take place directly between individuals, on cryptocurrency exchanges around the world. However, there can be downtime when the market adapts to infrastructure updates or “forks”. With Coin-Bits, you can trade any cryptocurrency at any time.
Liquidity is the measure of how quickly and easily a cryptocurrency can be converted to cash without impacting the market price. Liquidity is important because it allows better pricing, faster transaction times and increased precision for technical analysis.
In general, the cryptocurrency market is considered illiquid because the transactions are dispersed across multiple exchanges, which means that relatively small transactions can have a huge impact on market prices. This is part of the reason why the cryptocurrency markets are so volatile.
When you trade cryptocurrencies with Coin-Bits, you are speculating on the rise or fall of your chosen market, without ever taking possession of the digital asset. This is done using derivatives such as CFDs.
However, when you trade cryptocurrency with COIN-BITS, you can get improved liquidity. This means that your transactions are more likely to be executed quickly and at a lower cost.