Cryptocurrency can be traded on OLYMP TRADE through buying of Ether (or any other CFD products) when you predict that the price will fall in value in which you sell the ether against the US dollar. For instance, when the present market price may be around $200 and you take the decision to buy just five contracts (which has an equivalent to 1 ETH each to create a position at the price) at the buy price of $205 which is a bit higher than the market value or price as a result of spread.
If fortunately the prediction is right and the ether value fell against the US$ ,the trade will be a gain(profit),like if their is a move in the market by 45 points in favour of you,the profit that will be gotten on the trade will be 5×45=$225. On the other hand, if their is a rose of ether value against the US$,the trade will totally be a loss.
The demo account attached with this article gives a better understanding on how to trade CFDs on OLYMP TRADE broker. A good look should be given to it to ensure better chances of gaining. The demo shows the likely moments when gains might occur.
Blockchain can be said to be in a table format where new or latest information are entered into a new colum and row. However, it should be noted that blockchain collect information in groups, each block has a specific storage in which whenever they are filled up, they are chained together with the ones previously filled.The blockchain follows such procedure.
How does blockchain works? Taking Etherum for example.
Collection of computer is needed by Etherum to store up its blockchain. Blockchain as a good database stores up every transaction made on the Etherum platform. Etherum is made up of thousands of computer network which are operate by separate individual from different locations.
Those computer network of Etherum are referred to as nodes. Hence, because of the decentralized nature of blockchain, all transaction can be seen through the use of blockchain explorer or personal node, transactions going on are seen live- transperancy.
Blockchain are safe for transactions because after the addition of block to the end of a blockchain, the alteration of the content is usually a difficult task unless there is a general agreement to do so (this act is not common) . In addition, blockchain can be used in elections for voting i.e modernized voting, through this, electoral manipulation is removed.
Moreover, blockchain also has some disadvantages which includes:-
Technology Cost
Limited Speed
Illegal Activities i.e activities of hackers to hijack.
Let's look at one or two of the advantages;
Transperancy
The banking of the unbanked.
Secured Transactions.
The research on Cryptocurrency won't be complete without looking up for some examples which includes Bitcoin, dogecoin, ethereum.
Bitcoin:- this is a digitalized currency which does not have a single administrator but operate through the means of decentralization. This is the most common one.
Mere looking at the explanations above what to consider when trading in the crypto world could be seen through the insight of getting to know more about the penny coins available on the top 20 scale for the year and to denote which 5 out of them is likely to have a boost up during the years to help give returns on investment but in also considering the investor shouldn’t expect his returns within the same year if possible cause it might not be of reasonable profit on investment.
Considering the year the penny coin to be invested in was created and noting if it has likely results of people trying to invest also which could be called the waves of blockchain. The investor should make reasonable researches about the penny coin or the fully fledged type of coin he wants to embark his investment on.
Are CFDs risky financial products?
Maybe or maybe not. CFD trading is risky mainly because of the margins involved. You are likely to make large profits but also large losses. However, Unlike warrants and options. CFD doesn’t have an expiration date. Traders can keep their contracts for as long as they want. For me the problem with trading CFDs is that your counterparts is also your broker.
The broker is suppose to be there for you whenever a problem arises but not all the time, if you make money on CFDs, the broker is likely to lose and vice versa.
A word of advice, pls educate yourself and have a deep knowledge before trading such derivatives.
Do all brokers offer cryptocurrency CFDs?
In my opinion, Yes
First, you have to make a list of brokers, check and compare their crypto selection,fees,trading platform, deposit and withdrawal options and many more. Although not all brokers accepts US clients.
Most of these brokers platforms offer free demo accounts, so you can practice and test the brokers with virtual money. Some brokers that offer cryptocurrency CFDs include: OCTFX, ETORO, BDSWISS and EXNESS.
As a trader, you have to practice trading using demo accounts offered by some brokers platform. Let’s me show you how to do on OCTFX.
NB:This demo account is meant for Pratice only as it provides the same trading as real accounts. The only difference is you don’t trade with real money, so it’s completely risk free.
Opening an account on OCTFX is a fast and easy process which can be done in few steps. You have to notice that by opening an account on OCTFX, you have to read the customer agreement and unconditionally accept the terms.
You also have to be aware of the substantial risks involved. (This is for those opening a real account but not excluded for demo accounts owners)
First, visit their official website octfx.com, on getting to to the landing page, this is usually the homepage of every websites, scroll down a bit and you will see two options start trading and practic, click on practice and you will be directed straight to your demo account.
Next step, after clicking on the practice button, you will be directed to their account opening page and must fill all your details correctly and proceed to the accounts opening button and click. Or you can sign up with your Facebook or Goggle accounts.
Finally, your account has been created and has been credited with virtual money to trade on their platform.
Thank you for stopping by to read my article.
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