After both reaching all-time highs earlier this week, cryptocurrencies Bitcoin and Ethereum plunged by as much as 25% on Thursday as investors grab the opportunity to take some profits from its largest spike in price. Bitcoin prices retreated by more than 30% to $2079 while Ethereum was also down but a little lower by 25% to $274. This has caused cryptocurrency exchanges like Coinbase to experience outages due to a surge in traffic as traders attempt to make a buy or sell.
Volatility in the Digital Currency Market
These moves show that digital currencies are an extremely volatile asset class. And even if Bitcoin price has plunged, it’s current value still remains more a hundred percent higher from year to date. Financial experts believe that the digital currency market may be heading for bearish territory after hitting record highs over the recent weeks. Traders however are still optimistic that the value of Ethereum could still rise as it has been getting a lot of publicity as the alternative cryptocurrency to Bitcoin.
Why Choose CFD Over a Digital Exchange
With a digital exchange, there’s a chance that you might experience this kind of inconvenience as they could go offline when profitable opportunities arise. But with a contracts for difference (CFD) brokerage you won’t experience such outages since you will be trading on derivatives. This kind of volatility on cryptocurrencies makes for an excellent addition to your trading portfolio so if you are looking for a simpler and more convenient way to invest on digital currencies then CFD trading is the better option.
AvaTrade is among our top recommended brokerages that offer trading in the digital currencies trading market and below are some of their notable advantages:
• Start trading from as little as $100
• High leverage of up to 1:50
• No commissions and no bank fees charged on transactions
• Live language specific customer support
• Fully regulated
*Trading Forex and CFDs can be a risk to your investments. You should only trade with money that you can afford to lose.