Trading crypto is markedly different from mainstream stock markets. Although there are similarities in platforms and trading tools, differences feature in their execution styles.
For instance, in the securities market, a trader can open an account and use fiat currencies straight from their bank account to purchase their preferred stocks or bonds but in the crypto world, the dynamics vary.
Only a few cryptocurrency exchanges deemed to be satisfactorily regulated have enabled Crypto pair trading. Still, there are compromises to be made.
On one hand, the cryptocurrency exchange will be limited to only allow trading of a few digital assets that regulators classify as utilities and don’t tally with any specification of the Howey Test to be deemed securities.
Because of these limitations, they miss out on the opportunity of supporting as many cryptocurrencies as possible offering a broader trading foundation for millions of traders who wish to exchange a variety of tokens and coins depending on prevailing fundamentals.
With the option of buying coins using fiat limited and prohibited in some instances, an established crypto-forex broker like CryptoAltum offers traders over 60 crypto pairs. In reality, the concept of pair trading is nothing new.
It has been used in traditional circles for time immemorial and a strategy where traders pick two assets and buy one (go long), and simultaneously sell the other (go short) as prices of the two diverge.
The asset being bought is called the base currency while the one being sold is the quote currency. Take for example, when one says he’s going long the BTC/USD crypto pair, he will “buy Bitcoin” and sell USD.
All this happens in mere seconds and is less complicated in CryptoAltum where trading is done from an all-too-familiar platform, MT5.
Aside from the BTC/USD pair of which the quote currency is a fiat, traders can exchange crypto-to-crypto pairs like BTC/ETH, LTC/XRP, and so forth.
And there is better news when trading from CryptoAltum.
Vibrance and Liquidity
For each pair traded, say BTC/USD, there are no security concerns as the broker takes care of storage and other complexities since the pair actually plots the price of the BTC/USD pair from ten of the world’s top exchanges.
Furthermore, CryptoAltum considers the liquidity of each crypto pair before listing. Liquidity is the measure of how quickly an asset can be exchanged for cash without impacting market price.
All cryptocurrencies supported by CryptoAltum are some of the most liquid in the world where different order styles can be posted and filled without moving prices against the trader.
This is because the exchange continuously does a lot of leg work, only supporting digital assets offered by the over 5,000 blockchain projects, which are on-demand, marked with a vibrant ecosystem, secure, and solves a real-world problem guaranteeing continuity.
It is only when there is the certainty that a project will still be operating from a rock-solid blockchain a decade or two from now that traders will be confident enough to post orders and profit from the digital asset’s volatility.
Although listed pairs are already liquid as gauged from their performance in global exchanges, CryptoAltum has a 100% trade execution track record since it taps extra liquidity from leading market makers in the world to make the trading experience as smooth as possible. Further enhancing a trader’s experience is the extensive list of available pairs CryptoAltum has out of all crypto/FX brokers.
Bearing in mind that the goal is to turn in a profit depending on one’s prognosis, the position taken can prove very critical.
Aware of this, CryptoAltum offers one of the lowest trading fees in the industry and launched its service from the MT5 platform which is feature-packed with over 60 unique trading tools suitable for technical analysts.
Moreover, beginner traders can prime themselves and sharpen their skills from the free Demo account or follow daily technical analysis and news updates straight from the site. In case of any hitches, their customer care department is accessible not only through email, live chat, and phone but from Telegram and WhatsApp.
Sign up today and start trading!
Featured image via Pixabay.