The world of cryptocurrency trading is fast-paced and highly volatile with a huge risk-reward ratio. There are countless ways to trade digital currencies and this increasingly popular asset is gaining traction with professional investors looking for a way to diversify their financial portfolios. Whatever your preferred trading style, experience, profit goals or risk comfort level, you can find a strategy to meet your needs, with common crypto investing strategies like scalping and swing trading.
When it comes to the cryptocurrency markets, a lot of what you may already know about trading goes out the window. The digital currency sphere has unique characteristics that demand a different strategic approach.
For a start, crypto volatility offers great revenue opportunities but also dramatically increases your risk. Equally, security concerns such as exchange hacks as well as the growing pains of a new asset class, with regard to the gradual introduction of governmental regulation can have a huge impact on prices. These factors will affect your strategy, which in turn, will influence the type of platform or exchange where you choose to trade.
These are hard times for people all over the globe. The coronavirus has caused devastation, primarily from a health standpoint but also economically.
The IMF has stated that due to coronavirus, the world is facing the most damaging financial crisis since the great depression. Central banks have taken dramatic steps to stabilize economies with quantitative easing being used to prop up markets. No one knows when the coronavirus crisis will end and the resulting uncertainty has led to extreme volatility.
Crypto lending arbitrage is equally straightforward, referring to the process of taking out a digital currency loan from one lending source, which has a low interest rate, and then reinvesting that same crypto sum elsewhere to earn a higher rate of interest.