Do I own the actual cryptocurrency such as Bitcoin when trading it with AXI?
While talking about Bitcoin, one thing first comes to mind is cryptocurrency. A lot of cryptocurrencies exist in the digital market. The peer-to-peer system started with the earliest introduction of Bitcoin. All cryptocurrencies are a form of digital money. It is supposed to be the safest mode of executing transactions in exchange for fiat currency or with cryptocurrency as well. Cryptography is used in cryptocurrency so it safely executes the cryptocurrency transactions. Understanding government regulations and cryptocurrency is critical for managing the complex realm of digital assets.
How does cryptocurrency trading work?
Investing in your cryptocurrency is your decision. Either through a digital wallet or investing as CFD. Using a digital wallet to purchase cryptocurrency at the latest ongoing market rate is quite simple. It is just like investing in stocks. And once you make sure that you own the currency, you can earn profit from it by selling that at a higher price other than what you paid for it. Another way to trade your cryptocurrency is possible through CFDs. It is just like trading FX and entities. But you can’t own the physical assets instead of trading on the ongoing price movements. It means that you can make a profit from it despite the crypto market trend going up or down. It is because you can use leverage, which is a little part of the capital that can give access to a greater value trade. For example, if you are trading with the amount of $1,000 with a pull of 100:1 which gives you open trade to a blue of $100,000. Whereas leverage can develop greater returns. But along with the higher returns, the risk factor also increases.
Brokers help to Trade cryptocurrency CFDs
Specialist categories such as commodities, FX, indices, and cryptocurrencies-like services were operated through some specialized trading. The trading of cryptocurrency is possible through CFDs where brokers use networks and some specific trading platforms where there are no digital wallets required. It is because the purchase of underlying assets is not required within CFD. It only takes leverage to minimize the initial financial investment to gain the full exposure of trading. If we compare the purchase cost of the asset then the trading of cryptocurrency using CFD through a broker, offers low obstacles on the way to entry. Moreover, you also will be able to earn more profit from either market advice, cryptocurrency CFD trading, or through investment flexibility as offered by the brokers.
Trading cryptocurrencies through an exchange
To avail authorization over a crypto asset, such as Bitcoin or Ethereum, it is mandatory to buy it through an online exchange with the help of a digital wallet and further pay for them as per the ongoing market value of the asset just like owning stocks. After that, once you have owned the assets, you will gain profit as long as the value of the asset increases relative to the purchase price at that point when you sell it. Moreover, as the digital currency market is decentralized therefore no external agency is there to interfere with its regulations and thus the chances of fraud and other cyber attacks increase. Thus, it becomes more important to execute your tasks related to the exchange of cryptocurrency or the transfer of cryptocurrency from one account to another via using these exchange platforms. Some exchange platforms-imposed fee charges on these kinds of services whereas some of them execute these tasks free of cost. Therefore, it is up to you which platform you would like to prefer. But make sure that you have done proper research and market evaluation before finalizing that platform for executing your tasks.
Owning cryptocurrency
If you are willing to own cryptocurrency and CFD by trading your cryptocurrency, it is not possible to do so because you trade your cryptocurrency only based on price variation for the said asset. Moreover, the crypto-related assets purchased were done in the collection accounts under AXI where all the gain has been collected but you cannot own that currency for sure. For this, there is an electronic ledger available where the collection of coins has been gathered and the underlying client cannot take privilege over it because it is not legally possible. Moreover, clients do not even claim on that account and thus remain in our ecosystem.