With the forex market being the most dynamic, cryptocurrencies have added an all-new dimension in currency trading. Defining formally, cryptocurrency is an entry made in a digital ledger that cannot be meddled unless it fulfils certain conditions. Many forex brokers have recently begun accepting cryptocurrencies for trading.
Today, the cryptocurrency market has a daily volume of about $100 billion, with most of that going through exchanges which are open 24/7/365. Stunned? Well, you should be if you haven’t started accepting cryptocurrency trading yet. But have you ever wondered why exactly trading cryptocurrency in forex has taken a boom? Let’s find out.
Benefits of trading cryptocurrency in forex **
This market, despite being introduced a decade ago, has experienced remarkable volatility only recently because of huge amounts of short-term speculative interest. It is indeed the volatility of cryptocurrencies that make this market so intriguing. Rapid day trading activities offer a wide range of opportunities for traders to go either long or short.
● Market hours**
The cryptocurrency market usually stays active 24×7 due to absence of centralised governance of the market. Also, cryptocurrency transactions take place directly between individuals on exchanges across the globe. This way, your traders won’t be left waiting and can continue trading as and when they wish.
● Better liquidity**
Liquidity is the measure of how quickly a cryptocurrency can be converted into cash without affecting the market value. Liquidity plays a vital role since it introduces your traders to better pricing, faster transaction times along with upgraded accuracy.
The main reason for this market to be volatile is the fact that transactions are scattered across multiple exchanges. This simply means that even smaller trades can have a massive impact on market values.
● Less affected by global events**
While the forex industry is susceptible to industrial news and scams, cryptocurrency markets are less impacted by global events. This lets your traders focus more on charts and technical analysis instead of scanning headlines.
● Faster account opening**
While buying cryptocurrencies, your traders would have to buy and sell via an exchange. This requires them to create an exchange account to store the cryptocurrency in their digital wallets. Sounds too time-consuming? It is indeed.