Fairbits Presents – Crypto Trading Products in 2020
Crypto trading, and crypto trading products with it, catches among the known community like fire. You can not know nothing unless you stay under the egg. So far, tens of billions have been traded at the market. Despite this, the market is tiny in comparison with any conventional sector.
This is why we wanted to share with everyone interested in this niche different types of crypto trading products available:
- Spot Trading
Spot trading, as its name implies, is the act of trading on the spot itself, one crypto into another. Many exchanges offer this service, including Binance, Huobi, Kraken, Fair-bits, etc. and now, according to the world’s largest crypto exchange list, there are over 550 different exchanges where you can trade cryptocurrencies.
This is the purest form of crypto-trading where you have order books kept by the crypto-exchange operator, and spreads decided by the trading individuals.
The spot trading exchanges operate on the basis of a model for nominal makers and takers. But if you use their charts / tools to perform accurate technical analysis of your positions, these fees can be compensated
- Margin Trading
Margin trading isn’t the cup of tea for everyone and it’s meant to be like that for good. In other words, it is also known as leverage trading where you can get an extra amount of cryptocurrencies for leverage borrowing to gain greater exposure to your trades.
For instance, if you have 1 BTC with you, and you are trading on a 100x leverage exchange, you can get a total of 100 BTC to position your trade. So here, you were able to borrow another 99 BTCs based on just 1 BTC to place your trade.
This leverage may be used in both spot trading and derivatives trading but is recommended only for experienced traders.
- Derivatives Trading
Next up is the hot crypto-derivative product. Their recent interest-based shoot-up could be attributed to several mature market crypto-traders. The crypto traders who have been trading on-the-spot since the early days of 2015 have also found out something. Namely how the markets for crypto-derivatives operate.
Crypto derivatives are usually either settled or cash-settled by Bitcoin depending on which network of crypto derivatives you want to trade on. But, if not done right, the futures and options can be lethal.
Sure, hedging your positions has the potential. Yet, it also has a strong chance to ruin your portfolio. That’s because the underlying asset is not trading here and slippages can cause irreparable damage to you.
- Crypto Paper Trading
Last but not least, if my favorite is because I have used this product most of the crypto trade.
Many of you might have heard of experimental crypto-trading apps or platforms that help you exchange cryptocurrencies with virtual money at real prices. This is what we call trading paper. Many services have started to develop this feature, as paper trading products will give amateur investors’ confidence to try their hands on cryptocurrencies by wagering the real money.
Conclusion on Crypto Trading Products
There are several more forms of crypto trading items that can be expected to come in this decade, as crypto just begins. The uncertainty is unlikely to subside soon. That’s why there are many more traders looking for ways to profit from it, and those crypto products will play a critical role there.
Fair bits goal is to make use of cryptocurrencies as liquid and effortless as conventional fiat currencies while emphasizing our regulatory obligations and striving to go beyond the standards of our customers. Fair bits always carry out the new and cutting-edge technologies while at the same time keeping the services we deliver as appropriate as possible.
Fair bits provide incomparable solutions for digital trading to a wide array of traders around the world. Fair-Bit is more than just a brokerage-we carry the latest trading technologies, outstanding security, and personal support to our customers.