Forex or Cryptocurrencies? The Questions You’ve Wanted to Ask
Now that everyone goes mad over cryptocurrencies and buys Bitcoin, it’s easy to get confused. What should you trade? With all the buzz, plus that crazy Bitcoin growth and volatility, is it time to switch? And if not, why should you continue to trade forex?
Buying Bitcoin and CFDs on Bitcoin: See the Difference
More and more people invest in cryptocurrencies. Popular platforms, such as Coinbase, let you purchase Bitcoin. Some other trading platforms, let you trade cryptocurrencies the way you could trade currencies (forex) or stocks. In the first case, you actually BUY cryptocurrency, and you might choose to sell it anytime. In the second case, you do not buy the cryptocurrency itself, but the CFD (contract for difference) on it. Basically, you speculate on the price to go in a certain direction. This is an important distinction, where many beginner traders get confused.
Is it Safe to Invest Into Cryptocurrencies?
You can find very conflicting positions about trading cryptocurrencies. Some say it’s the future, while others believe it’s a bubble about to explode. The serious concern about cryptocurrencies is that those assets, which are in fact neither currency, nor commodity, aren’t regulated by any means. The Internet is flooded with inspiring ‘success stories’ of great investments, so of course, it’s tempting to go overboard with buying ‘some coin’. Furthermore, now that trading futures on Bitcoin is being introduced, this growth is very likely to slow down (this is what happens once the futures are rolled out).
As a retail trader who is interested in the safety of your investment, you should keep in mind that cryptocurrencies are entirely non-regulated. Their price can be manipulated in multiple ways, and there are multiple cases of speculation that allegedly keep driving the price up. Now that the institutional traders are joining in, there’s a good chance that the situation will become even more complex. This development and the whole phenomenon of cryptocurrencies is fascinating to watch but is very tricky to predict.
Some Brokers Offer CFDs on Cryptocurrencies. Why not Harborx?
At Harborx, we put the security of our clients’ funds as our top priority. We provide trading forex – the world’s most liquid market, and we follow all requirements of our regulator (CySEC) when it comes to protecting our clients’ best interests. We find trading cryptocurrencies too risky for our clients at the moment, and, as we cannot guarantee the fairness and security of this investment (and in fact, no one can), we recommend that our traders stick to what’s just as safe as it is promising: currency trading.
Harborx lets you trade 50+ currency pairs, plus Gold and Silver. With the weekly Leaderboard competition, missions, and more, Harborx is a fun and accessible way to trade currencies and enter the world’s most liquid market.
Risk warning: there is a high level of risk involved with trading forex, commodities, indices and other contract-for-differences. Past performance is not a reliable indicator of future results. You must be aware of the risks associated with trading directly or indirectly on margin. Please ensure that you fully understand the risks involved and do not invest with money you cannot afford to lose. Please seek independent advice if the risks involved seem unclear to you and refer to our full risk disclaimer.
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