AvaTrade has made another jaw-dropping announcement for traders. Last week, they announced that on top of the reduction of 50% on spreads in September, they have dropped them again by another 33 percent.
The ultra-low spreads give their traders some of the best trading conditions in the market.
Recipient of many awards, AvaTrade consistently strives to maintain their position as the leader in the industry by providing cutting-edge technology with integrity making them one of the most trusted companies.
Today, they have a domineering presence in Europe, North America, Asia and South Africa and plays a leadership role in cryptocurrency trading and is conquering cyberspace.
What’s the real story?
On the 2nd April, the Wall Street Journal allegedly made a claim that 95% of Bitcoin trading is artificial, a day later there was a rumor that 2 Bitcoin-based Exchange-Traded Funds were finally authorized by the SEC which saw Bitcoin gain $500.
An April fool’s day hoax designed to challenge financial infrastructures.
Hoax’s aside, the collaboration according to the Wall Street Journal disclosed that Coinbase, the US-based crypto exchange and PaySafe UK payments processor plan to launch a new Visa debit card.
Now, this plan is a big step for crypto holders who will be able to make direct payments throughout the European Union.
That’s not all…
The ‘Moon” payment processing company is facilitating the ability of crypto holders to pay for purchases on eBay.
The giant JPMorgan has expanded services to over 200 branches using blockchain interbank transfers.
Crypto mania gripped the markets last year but then slacked off. Nonetheless, what we are seeing now is trading volumes increasing and spreads narrowing.
New technological advances in blockchain continue to rise as it makes its entry into the mainstream of finance and with it cryptocurrency trading which is fast becoming accepted by regulators around the world.
AvaTrade, the emerging leader in cryptocurrency trading
Today, traders have the advantage of choosing from over 250 instruments to trade at AvaTrade including cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, NEO, DASH, Monero, IOTA, Zcash and Qtum.
The question many are asking is whether they are classified as currencies or commodities. Some argue that Bitcoin (cryptos) are not cash-generating assets and are currencies that have similar features to commodities.
Which means they cannot be valued or invested in, instead they can only be priced and traded.
Commodity – if we take a look at gold, which is a traditional commodity, cryptocurrencies have a similarity. Both have similar characteristics in common, scarcity, finite supply and value.
Currencies – these are accepted as exchange, has purchasing power and are priced when compared to other currencies subject to a number of criteria such as the government’s manipulation of exchange rates.
Although cryptocurrencies are not endorsed by any country as an official currency, they are increasingly becoming an accepted form of payment for goods or services worldwide.
So it can be safe to say that cryptocurrencies are being used for barter and are not yet actual legal tender.
A cash-generating asset?
Cryptocurrencies do not feature as cash inflows but as an asset, it generates cash flow on expectations on its ability to generate in the future.
Different skillsets required
To summarize, some crypto enthusiasts see cryptos as ‘the new gold’ or a commodity while others use it to barter as a currency and others as a cash-generating asset.
Before you start trading or investing in cryptocurrencies, it is important for you to be clear which you are doing, investing or trading. There are different skill sets required.
The differences in investing and trading cryptocurrencies explained
Investing in cryptocurrencies is usually for the long term with a true or fair value attached to them where you estimate the value. You take into consideration the risk and growth potential and sell when it is overvalued.
Affecting the value is slow or an increase in growth or changes in risk related to information.
You need to have faith in the value and be able to place a value on the asset. Above all, you need to resist any peer pressure.
To assist you, you’ll need to use a set of tools that includes ratio analysis, accounting research and DCF (discounted cash flow) valuation.
A danger to watch out for is that the price may fail to reach the value even if you value an asset correctly.
Trading in cryptocurrencies is usually short-term from a few minutes, a few weeks or months. You guess the price movement and act on the price exiting before a shift in the pricing trend.
The price is determined by demand and supply and can be affected by rumors or positive news stories.
You need to have gambling instincts and be able to assess shifts in the momentum ahead of the market with quick action.
To assist you, you will need to use technical indicators, price charts and assess investor sentiment.
Because of the volatility in trading cryptocurrencies, months of continuous profits can be wiped out quickly.
Advantages at AvaTrade
There are numerous advantages of trading with a regulated broker such as AvaTrade. An important aspect is the fact that they implement a 256-bit SSL encryption across their website.
A compelling reason to trade with AvaTrade is the high encryption and security protocols that they implement.
Consider all the crypto heists and scams on various exchanges amounting to $1.2 billion in Q1 2019 with crime getting worse because of weakly enforced regulations.
Trading cryptocurrencies with AvaTrade has never been easier here is what you can look forward to:
- Zero-risk of wallet hacking or theft
- Client funds are in segregated accounts
- Low deposit of only $100
- Leverage of up to 20:1
- Customer support in 14 languages around the clock
- Powerful platform with a range of automated trading platforms
- Low spreads
- Trade on desktop, on your mobile and tablet with the AvaTradeGO app
- Live quotes and charts
- Fully regulated and authorized from several financial authorities
- Demo account
- Trade a wide range of the most popular cryptocurrencies
- Educational resources on how to trade cryptocurrencies