Trading in the conventional stock market is not what it was in the relatively recent past, with the introduction of high-frequency trading algorithms it is now near on impossible to execute a trade and expect to beat a computer program, so how can you expect to get ahead of the market? Then with market manipulation by QE and stock buybacks, the movements of the market often don’t follow what the fundamental analysis says it should. On top of that, the heavy-weight investment firms often have first-hand access to market-moving news sometimes days before you do. So, what can you do? Of course, the only logical answer is to find a fresh new market.
Crypto investing generally suffers from none of these problems, and it also comes with advantages of its own. There is an ever-increasing array of new coins and tokens in niche markets to take advantage of and become a specialist in. Crypto trading brokers work in a market that is 24/7 with high volatility, which we are told is a bad thing, but volatility is only a problem if you are looking for a stable store of value to be used as a currency. But volatility is perfect for a trader to make maximum gains in a short time.
Crypto also has less regulation than the conventional markets and better access to international markets at the moment. It can also be more tax-efficient and can be more private if you know what you are doing. So, on that basis, let’s look at what is on offer.
Selecting your crypto trading brokers
Much like a conventional stockbroker, crypto trading brokers will offer a wide range of assets for you to invest in and different ways you can trade with those assets and invest in them. There are 3 main derivatives that can be used to speculate that are offered by crypto trading brokers, these allow a trader to get exposure to an asset without taking ownership of it.
Trading
- CFD (contract for difference - is a contract to buy or sell an asset where the difference in price at the end of the contract is what changes hands.
- Futures – is a contract between a buyer and a seller that must be settled at a specific price on a specific date.
- Options – is a contract between a buyer and seller that allows the holder to buy or sell the asset at a given price before the contract expires.
Investing
Your chosen crypto trading broker should also offer an OTC service so you can instruct them to buy any asset you want to take possession of. This kind of service will be particularly relevant for investors that will be buying large amounts of crypto. The advantage of using OTC crypto trading brokers over a crypto exchange are numerous. Not least, they help you avoid slippage on large trades and will reduce the cost of the trade by only having a single set fee rather than many fees involved in trying to fill a large order on multiple exchanges.
How do you get started?
To benefit from a full range of different trades and investment opportunities, you need a brokerage service and crypto trading brokers with a full set of service options that also has access to the entire market. They need to be easy to work with and fast in executing your trades to take advantage of this fast-moving market. They will need a range of services including an exchange and brokerage investment service and OTC. The best option to cover all these bases is NextHash crypto trading brokers.
Why buying large amounts of crypto is a problem?
There are a number of reasons for this, the first of which is liquidity. Although the crypto markets are large and growing fast, they are still nowhere near as liquid as a conventional exchange. So, when faced with the problem of buying a large amount of cryptocurrency you can often find that you don’t have enough buyers to fill the entire order, and those you do have are becoming increasingly expensive by demanding more than the market price due to your large order. If this happens you may be faced with the necessity of spreading your order across multiple exchanges and a very large number of sellers. Each one of these is going to incur fees so you are unlikely to know what your total buy price is until after the trade is completed. Of course, the same problem can occur when you are trying to sell large amounts of crypto. These problems could leave you with no way to proceed with a large financial investment. So, the solution is to hand the deal to your HexHash OTC broker, who will give you a single price, including all fees, to execute the transaction. He alone will need to deal with the problem of finding the sellers or buyers and will need to ensure that his overall deal has a small margin even though there will be a wide range of buy prices. So, although you can execute large trades on the Nextinter exchange it is likely that the better option would be to place the order with your NextHash OTC cryptocurrency broker.
How to choose your crypto trading brokers?
NextHash offers a crypto trading broker and OTC investment broker service along with their exchange called Nexinter. NextHash cryptic trading brokers are ideal for large volume trades and offer a simple secure and private brokerage service with fast execution times and low transaction fees. A single fixed price for the whole transaction means that slippage is a thing of the past.
In summary, NextHash offers the full range of exchange and brokerage services for all different situations you are likely to encounter as an investor or trader, so you can be sure to beat the market.