Trading crypto pairs: global broker Octa’s guide

KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 18 October 2024 – These days, many traders in Southeast Asia look for cryptocurrencies as a high-value opportunity to diversify their portfolio. While some buy and sell crypto directly via dedicated crypto exchanges, others prefer trading contracts for difference (CFDs) on cryptocurrencies with Forex brokers. The latter approach allows traders to bypass all transactional and security difficulties associated with owning digital assets while tapping into crypto’s volatility and profit potential.

The difference between brokers and crypto exchanges
Crypto exchanges and brokerages operate differently in the trading landscape. The exchanges act as matchmakers and facilitate transactions between buyers and sellers to and from crypto and fiat currencies.

On the other hand, brokerages directly engage with clients and offer them guaranteed trade fulfilment and higher liquidity. They provide a broader range of financial instruments for trading, including contracts for differences on cryptocurrencies, fiat currency pairs, indices, and more.

When trading via a cryptocurrency exchange, the buyer becomes the owner of the digital asset once the trade is complete and stores it using an e-wallet. Conversely, trading USD/cryptocurrency pairs with a broker doesn’t involve the physical ownership of digital assets. Instead, traders deal with derivatives, such as CFDs, and speculate on the price movement of a cryptocurrency against the USD without owning the cryptocurrency itself.

The choice of a platform
Forex brokers often offer much higher leverage options than crypto exchanges, creating ample opportunity for profits. However, these opportunities come with a higher risk, meaning financial knowledge acquisition and continuous learning become even more critical as the primary source of progress towards financial goals.

Brokers also offer traders a larger pool of order options, including limit orders, stop-loss and take-profit orders, and more. This extensive arsenal helps traders use market fluctuations to their advantage and fine-tune their charts according to their preferences.

For those interested in profiting from the dynamically evolving crypto trading landscape, Octa, a global broker with extensive market experience, offers 34 CFDs on popular cryptocurrencies. This portfolio of digital assets allows traders to tap into crypto’s potential without burdening themselves with e-wallets and other dedicated tools that can compromise the security of their funds and personal data.

While many inexperienced traders start trading crypto on dedicated exchanges, opting for a broker with a more comprehensive range of assets may provide some advantages. In particular, brokers can offer a seamless and more secure experience within a single trading platform, higher leverage, and more portfolio diversification options.
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