The cryptocurrency world is once again in the spotlight as Bitcoin and other coins made record gains for the year. Those who bought BTC back in the summer of 2017 saw huge returns from their investments. Those lucky few have probably jumped back into crypto already, but what about those who missed the boat last time? Just where is the easiest and safest way to trade on cryptocurrency price moves in 2019?
There are now dozens of new and well-established crypto-exchanges offering trading opportunities. While many exchanges only accept Bitcoin as an entry currency, there are a few that have managed to obtain credit card options. There are hundreds of coins on the cryptocurrency list, and there are more Initial Coin Offerings (ICOs) every single month. Most of them are junk and see little to no liquidity (Buy/Sell movement), but there are a handful of coins that have soared to the top and remain popular amongst traders.
Another negative issue that every exchange fears is a breach of online security. Exchanges store the coins on their servers directly and provide alpha-numeric codes for moving crypto from one place to another. The problem is that a trader’s funds are only protected by the exchange’s server security, and there’s been plenty of controversy about exchanges not protecting client funds over the last four years.
Alternatively, traders can move coins from the exchange to a digital wallet or cold storage wallet which holds the crypto-codes safely and offline on a USB stick or memory card. This offers an extra layer of protection, but it’s a complicated process that takes time and requires you to be a little tech savvy. Is there a better way?
The majority of top brokers offer cryptocurrency CFD trading for the most popular coins. There are many advantages to trading crypto with a broker.
Firstly, your funds are not held on the broker’s servers. They are secured by banks and—at least with Exness—the trading accounts are monitored for unusual activities. With Exness, all your withdrawals go directly to the same bank account you used to make a deposit, so there’s no risk of waking up with a drained account one morning. This is also true for the many available payment systems that Exness accepts.
Another advantage of using a broker is the Trailing Stop—available as standard on the MT4/MT5 trading platforms. A Trailing Stop automatically closes an order, similar to a Stop Loss, except the Stop Loss point or level isn’t fixed. Instead, the stop level trails behind as the price rises, and freezes whenever the price falls.
For example, Bitcoin hit $17,000 on December 11, 2017. Feeling the pressure to close trades, many activated a Trailing Stop on an open Buy order, setting a buffer of say $1000. As the BTC price increased, ever closer to the milestone 20K, the Trailing Stops followed the price rise like a dog on a leash. On the evening of December 17, Bitcoin maxed out at $20,089 and started its bearish trend into oblivion. One example of a Trailing Stop held a position at $19,089. Just eight hours later, that Trailing Stop automatically closed the order and credited an account trading balance with $19,089.
It was a sad day for those crypto-traders not covering their assets. Within four days, Bitcoin fell to $11,833 and then made a series of massively volatile reversals that bottomed out at $6106 in February. After that, the tragic decline to the $3K level put Bitcoin’s reputation in the grave and all liquidity evaporated in the summer sun of 2018.
Broker’s clients had access to a Trailing Stop, and the lucky ones that used it walked away from BTC at the right time.
Trading crypto in 2019
Previous Bitcoin price moves were dynamite. In the last two rallies, the fuse was first lit, then there was a calm before the storm, and then boom! If the Bitcoin pattern of behavior repeats for the third time, having an Exness trading account at the ready can allow you to both Buy before the boom and Sell as sentiment sinks. You’ll have total fund security, a support team that actually responds, ease of access, and a Trailing Stop—just in case the bubble bursts again when you least expect it.
Don’t wait till it’s too late again.
Not sure how to get started? No problem. Follow this step-by-step guide.