When it comes to investing and trading there is no hotter commodity than cryptocurrency. As it stands, Bitcoin, Ethereum, Monero, scores of others have posted incredible gains over the past year, making them ripe for an investment opportunity. With all this in mind, however, there are a few key differences that must be considered and calculated for. Understanding these key differences are one of the most important tools that Jordan Lindsey uses to gain an edge in the market.
For Jordan Lindsey, a major consideration for trading is the difference between bid and ask prices. There is always a difference between the price that you can sell something for and the price that you can buy something for, and this is no different for Forex or cryptocurrency. In the case of cryptocurrency, the difference between bid and ask is around .05% while typical forex spreads are lower, usually around .01% to .02%. These differences may not seem too significant, but for high volume traders this can be significant. This difference can represent a significant cut to your margins if not managed properly.
The next consideration Jordan Lindsey recommends new traders consider is the impact leveraged trading can have on your gains. Leverage trading has been available in the Forex markets for a very long time. It is entirely possible to receive as much as 200x leverage against your investment when working with a Forex broker. The same opportunities are not nearly as abundant for cryptocurrency trading. The first generation of leveraged trading accounts are finally being made available for Bitcoin, but there is next to no support for other cryptocurrency platforms. You will need to invest your own money without any sort of borrowing when working with bitcoin for investing.
Altogether there are many other considerations that must be made, but these are among the two greatest. There is a great deal of volatility and opportunity in Bitcoin and other cryptocurrencies, but the caveat there is not nearly as much support from trading platforms and markets. Jordan Lindsey recommends that anyone interested in currency trading do their own research, and check out the free information that currency traders such as himself publish for free.