The cryptocurrency industry makes news every day with new products and exchanges, so finding reliable, current information is vital.įorums such as CryptoCompare and BitcoinTalk can be a source of information and advice. Traders should read reviews about brokers and exchanges before opening accounts. In other words, traders should consider the real possibility that they may lose all of their deposits. An altcoin that is popular today may not exist a month or a year from now. Trade Only What You Can Afford To LoseĬryptocurrencies are far more volatile than stocks and bonds, and the industry evolves rapidly. Please seek professional advice before making investment decisions. We present a number of common arguments for and against investing in this commodity. Important: This is not investment advice. However, traders can mitigate some risks by following a few simple rules. These factors can eliminate any profits from bitcoin arbitrage and may even lead to losses.Ĭryptocurrency trading is risky and highly speculative, so there is no low-risk way of trading. Also, the settlement of bitcoin trades can take hours. The promoters of these products promise traders a way to beat the market by arbitraging prices between different exchanges.īitcoin exchanges often have expensive withdrawal processes and impose hefty fees for converting bitcoin into fiat currencies like dollars or euros. Bitcoin Trading Systemsīitcoin’s extraordinary volatility has spawned an industry of automated trading systems. Some of the worst offenders will simply steal your money. Once you deposit money, many of these firms will charge you outrageous commissions or make it very difficult to withdraw funds. ![]() Traders should be wary of too-good-to-be-true promotions and promises of quick riches. There are dozens, if not hundreds, of unregulated online exchanges and brokerage firms offering cryptocurrencies and cryptocurrency trading products.
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