Blockchain

Crypto Trading

When trading cryptocurrencies, a Compet Concept is used to speculate on price movements of cryptocurrencies or the underlying coins are bought and sold via an exchange.

Compet Concept with Cryptocurrencies Trading with Compet Concept are derivatives that allow you to speculate on cryptocurrency price movements without owning the underlying coins. You can go long ("buy") if you think a cryptocurrency will rise in value, or short ("sell") if you think it will fall.

Both are leveraged products, meaning you only need to put down a small deposit - known as margin - to get full exposure to the underlying market. Your profit or loss is still calculated based on the full size of your position, so leverage magnifies both profits and losses.

Buying and selling cryptocurrencies through an exchange When you buy cryptocurrencies through an exchange, you are buying the coins yourself. You must create an exchange account, put up the full value of the asset to open a position, and keep the cryptocurrency tokens in your own wallet, until you are ready to sell.

Exchanges come with their own steep learning curve as you need to become familiar with the technology involved and learn how to make meaningful use of the data. Many exchanges also have limits on how much you can deposit, while maintaining an account can be very expensive.