The Best choice for beginners Bitcoin Traders

Happy Easter Amazing SALE

Margin trading is risky but gainful. Every experienced trader will tell you that there are no good profits without danger. The question is: how can a regular person start trading? After all, he doesn’t need great profits straight away. What he needs is an experience that will, eventually, give him an opportunity to take advantage of trading. The price of this experience is your financial losses at the initial stage and hours of researching the obscure interfaces of stock exchange websites. In this article, you can find out how a beginner can bypass these barriers. Yes, it sounds formulaic in some way, but you’ll never know for sure without reading and trying it yourself.

FAQ about margin trading:-

What is margin trading?

Margin trading is a method of trading that includes borrowing of additional funds from the broker (In our case, CEX.IO exchange is the broker).

Why do I need to borrow additional funds?

That’s how you increase your buying power (your own funds + borrowed funds). The more buying power – the more money in turnover – the more of your potential income down the line.

How does margin trading work in the sphere of crypto currency?

Originally, margin trading was applied in the stock markets to trade stocks. Now that we have cryptocurrencies, that turned out to be a perfect tool for margin trading, because of their extremely volatile nature and the intention to increase. Bitcoin and Ethereum are the ones in the greatest demand for now.Best Margin Trading Bitcoin Exchanges

How does margin trading work?

The great thing about margin trading is that you can make profits no matter if the price is falling or rising. You have long and short positions. You open a long position if you predict price increasing, respectively a short position in case you think the price is about to drop. Here you can find a guide on how to do margin trading with CEX.IO and more detailed information on all the aspects.

How long position works?

In simple terms, it means that you buy Bitcoins at a low price and sell them at a higher one. The difference between the prices, minus fees, is your profit. Since the broker lends you money – the profit is higher than you would get by trading with your funds only.

How to open a short position?

In this case, you sell a certain amount of Bitcoins and wait until the price decreases enough in order to buy more Bitcoins, but with the same amount of money, you sold them. All the operations are done with the same combination of your own finances and the borrowed ones, in order to enlarge your profit.

What is CEX.IO?

CEX.IO is a London-based cryptocurrency exchange where you can trade Bitcoin, Ethereum and Bitcoin Cash or, simply, buy/sell any of them using your bank card. Apart from regular trading, CEX.IO provides margin trading service as well.World Best Bitcoin Exchange

Currently, the cryptocurrency industry is undergoing a strong inflow of newcomers. That’s why one of the primary purposes of CEX.IO is to make user-experience as intuitive as possible so that it is no novelty for those who have just jumped aboard.

The safety on the side of data is guaranteed by full encryption that won’t disclose any user private information, including bank card info and, all the more so, the crypto funds. CEX.IO has achieved 2nd level certification of PCI/DSS, so any payments related with banks are nowise at risk as well.

So, why is it the best choice for beginners?

Plain interface

Of course, every single crypto exchange or wallet works on the user-friendliness of their interface. However, it is quite challenging to achieve the desired result when it comes to margin or regular trading services. The point is that trading involves a lot of additional tools such as charts, market depth displays and more. All these features are indispensable for an experienced trader but way too complicated for a beginner. Getting rid of them is not a remedy. It seemed that there was not any workaround solution in order to please both audiences. Only a 24/7 work magic of CEX.IO development team turned the situation around. So, at the moment the interface has all the proper features for trading, that at once do not seem frustrating for a novice user, but motivate him forward. Still, if you have any questions you can always seek assistance from the support team.

No need to make an extra account

In most cases, margin trading requires a lot of initiatory procedures a user should do, that is to say, the making of an additional account and remitting funds from the initial account to the extra one. With CEX.IO there is no need in creating a margin trading account, thus you don’t need to transfer money anywhere. You only need to have one primary CEX.IO account, where you can make use of all the available services: buy/sell cryptocurrency with a credit card, margin and regular trading and, of course, the wallet. You have all in one place.bitcoin trading best site

Risk preventing system

So, it seems that most issues a beginner can go through have been discussed, except for one. How to stay calm about your funds, if you’re not an experienced trader, while margin trading is risky even for those with experience. CEX.IO’s risk preventing system is the answer. It allows you to sleep peacefully, because it monitors the price and automatically closes your position in case your forecast didn’t prove its value. In this way, you are secured against situations when your balance goes negative.

As you can see, using CEX.IO, you have most functions done for you automatically. As for margin trading, you shouldn’t scatter your attention on anything except the principal and ultimate goals:

  1. Come up with your strategy;
  2. Accordingly, select whether to open a long or short position;
  3. Choose the amount of money you want to invest.

After that, you only wait until the exchange rate does its thing. Even if it went wrong, the risk preventing system will secure you from losing substantial amounts of your funds. If all is well, you press the ‘close position’ button and clearly see the profit on your account.

CEX.IO has set a challenge to provide their users with a number of services that combine safety, convenience, and functionality. Margin trading is only one of them, however, the regard to it is proper enough to grant beginners the opportunity to bypass the barriers we were speaking about at the beginning of the article and, at the same time, provide experienced users with a well-worked trading platform.

Leave a Reply