3. Trade with a broker
For those interested in capitalising on the price swings of cryptocurrencies without having to deal with the hassle of a digital wallet or worrying about the security of their funds, trading cryptos with a regulated broker is the most popular choice.
When it comes to security, funds with any UK regulated broker are protected up to £50,000 for the unfortunate event of an insolvency. It is worth noting that some brokers offer higher protection than that at no extra cost.
The second benefit of trading with a broker is leverage. With an increasing number of cryptocurrencies offered through traditional brokers, traders can now get access to exceptional leverage on a wide range of cryptocurrencies. This is an excellent way to boost your winnings irrespective of how low or high your starting capital is. However, do note that leverage is a double-edged sword that should be used with caution in order to limit potential losses.
Trading cryptocurrencies with a broker is similar to trading forex. Cryptocurrencies are quoted against the US Dollar or the Euro and traders can use spread betting or CFDs to capitalize on the price fluctuations. With most reputable brokers offering reliable trading apps to keep you on top of the crypto markets while on the go, it is not surprising that an increasing number of traders are dipping their toe in these exciting markets.