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How is cryptocurrency trading without a broker?

 How is cryptocurrency trading without a broker?


Digital currencies have been able to impose themselves strongly in recent times on most financial trading markets, especially after the great demand by individuals and companies to use these electronic currencies in trading operations like other regular currencies and stocks, which made these currencies a major entity in various trading operations, In this article, we will learn about everything related to the process of trading electronic currencies.

What are digital currencies?

Electronic or digital currencies are a group of decentralized, encrypted currencies that can be traded between many people around the world.

These currencies are traded completely electronically, as they are encrypted and intangible currencies, that is, they do not exist on the ground, and therefore are similar to data and digital assets.

Thus, electronic or digital currencies are done faster than cash currencies that are made through banks, as the latter require certain conditions as a minimum for fees and others, while digital currencies do not need any conditions and do not require the presence of an intermediary.

Buying and selling cryptocurrencies takes place within an electronic currency exchange, so a trader is required to open a bank account on this exchange by submitting an online application.

How is cryptocurrency traded?

If you are looking to make buying, selling or exchanging cryptocurrencies, you first need to have a crypto wallet, through which you can buy digital instruments for regular fiat currencies, which can then be exchanged for any of the alternative currencies.


But if you are looking for how to trade with electronic currencies, in this case you must register on the cryptocurrency exchange so that you can then take advantage of the price difference when you exchange them.


It is noted that there are a very small number of exchanges in the USA and UK that accept deposits in the form of fiat or cryptocurrency.


However, we find that the majority of exchanges around the world accept deposits in the form of electronic currencies independently, and the reason for this is due to the restrictions imposed by many banks on the process of cash exchanges in bank accounts.


Hence, it was necessary for the trader to have a special wallet for any of the cryptocurrencies he wished to trade in, and perhaps the most famous and most common of these cryptocurrencies: Bitcoin, Litecoin and Ethereum.


Once the balance is added to the trader's portfolio, the latter can conduct buying and selling operations and trading in any exchange that he wishes to enter.


How to trade cryptocurrency without a broker

There are many options in which digital currencies are traded without a broker, and through the following we explain the most important of these methods:

1. Trading through the stock exchange

The method of trading via the cryptocurrency exchange is one of the most popular methods of trading, and trading operations are carried out just like ordinary shares, by waiting for economic fluctuations throughout the day or week, which would affect the price value of the currency.

Thus, the trader can exploit the index of the rise of the cryptocurrency by selling it, or keeping it in the event of a decrease in its price value.

2. Trading via futures contracts

The process of trading through futures contracts, or what is called derivative contracts, is the process of trading cryptocurrencies at a specified price to be delivered in a specific time future.


This (derivative) method is called by this name because the financial value of these trading instruments is derived from other assets of any kind.


3. Double Option Trading

This method of trading is done by determining the expected price of the bug during a certain period of time, and at the end of this period you have the option to buy the currency after its market value has risen.


Or resorting to the other option, which is not to complete the purchase process, in the event that the price of the currency is much lower than expected, and of course then the buyer prefers to keep the shares of cryptocurrencies.

4. Trading by investing in funds

The method of using investment funds is one of the easiest ways to trade digital currencies, in which investors can create funds for these digital currencies, and among the most famous of these funds is the GBTC Fund.


Is it possible to get profits from cryptocurrency trading?

By presenting the mechanism and the ways in which it is traded, it can be said that the profit process is closely related to the type of cryptocurrencies that will be traded and what are the correct expectations in the future period for them.


In any case, it should be noted that digital currencies are one of the most volatile investment from case to case, whether in the long term or in the short term.


Finally, if you are seeking to obtain profits through electronic currency trading, you must first study the economic market well, in addition to not entering into deals until after studying it.

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