- November 21, 2018
- Posted by: Michael
- Category: Breaking news
Even though many financial experts and investors predict cryptocurrency growth, the reality is now elsewhere and our digital coins have been bleeding hard for a while. Some of them are now hitting their new low of the year. There are now 2 ways how to take advantage of such a situation. Either you believe that cryptocurrencies will go up in the long run and you purchase them now when they are down and therefore “cheap” (my personal viewpoint). Or you decide to short them and capitalize on situations when the market is going down.
Where it’s best to buy cryptocurrencies
As an investor who wants to buy cryptocurrencies and hold them for a while, you need to look for a company that does not have overnight fees. If you would not do so, your broker would most likely charge you with this fee each night your position is opened. From our crypto broker comparison, we already know that companies such as e.g. etoro and IQ Option do not charge it (if you do not use leverage). The former has also very tight spreads on cryptocurrencies and supports copying other traders on the platform. The latter allows trading with as low as 10 dollars, the spreads are, however, significantly bigger.
Where to short cryptocurrencies
Shorting cryptocurrencies is offered by each CFD crypto broker and from the companies we tested and reviewed, Plus500 and XTB were put respectively on the 2 first two places. Both have very tight spreads and are regulated by the CySEC and FCA. While the latter scores in the trading platform and educational materials the former has even tighter spreads and positive overnight fee for sell positions. That means the company adds to your balance a certain amount when you stay in a sell position on cryptocurrencies overnight.
Where the market is going?
Christmas is around the corner and by this time last year, we witnessed one of the biggest uprises in cryptocurrency prices. Whether this trend will occur once again is anyone’s guess, but as traders, we need to be ready for any situation the market prepares for us. Only then we are fully able to take advantage of it.