When you trade cryptocurrencies, that means you are speculating on whether your selected market will rise or fall in value, without taking ownership of the digital asset. However, it is done by using derivative products.

Cryptocurrency volatility

Although the cryptocurrency market is new, it has experienced volatility due to large short-term speculative interest. There is a great need to know that between October 2017 and October 2018, the price of bitcoin rose as $19,378 as well as fell to lows of $5851. Along with this, other cryptocurrencies have also been comparatively more stable. New technologies are likely to attract speculative interest.

The volatility of cryptocurrencies is a significant part of what makes the market so exciting. Keep in consideration that rapid intraday price movements provide a wide range of opportunities for the traders to go long as well as short. However, some also come with increased risk. If you decide for exploring the cryptocurrency market, ensure that you have done the proper research with a risk management strategy. You can know all ups and downs of cryptocurrency market with OSOM Insights.

Cryptocurrency market hours

There is a great need to know that the cryptocurrency market is available for trading 24 hours a day, seven days a week. The reason is that, you must be known that there is no centralized governance of the market. Along with this fact, the cryptocurrency transactions also take place directly between individuals. There might be periods of downtime when the market is adjusting for the infrastructural updates.

Improved liquidity

Liquidity is considered the measure of how quickly a cryptocurrency is converted into cash, without impacting the market price. Bear in consideration, liquidity is essential because it is responsible to bring better pricing, increased accuracy for technical analysis.

In other words, the cryptocurrency market is illiquid as the transactions are dispersed at several exchanges. It means that small trades have significant impact on market prices and this is part of the reason of the volatility of cryptocurrency market.

However, while you are trading cryptocurrency, you can get improved liquidity as the prices are sourced from multiple venues on your behalf. It means your trades are more to be executed quickly as well as at a lower cost.

Ability to go long or short

While you are buying a cryptocurrency, it means that you are purchasing the asset up front in such a hope that it increases in value. However, while trading on the price of a cryptocurrency, take benefits of markets that are falling in price.

Faster account opening

When you are buying cryptocurrencies, there is a significant need to buy and sell through an exchange. The entire process needs you to create an exchange account as well as store the cryptocurrency in own digital wallet. However, this process can be restrictive and time-consuming.

In terms of cryptocurrency trading, there is no needto access to the exchange directly. Along with this, there is also no need to set up as well as manage an exchange account, so you might be and ready to trade more quickly.