As the name suggests, the new buzz in the currency trading field is about the highly evolved cryptocoin, bitcoins, also known as bitcoin cash. This virtual currency is highly exceptional in its qualities when compared to all other currencies existing in the world at present. It has a few fundamental characteristics that are incomparable, which has made it stand out from all other currencies existing in the world.
It is worth highlighting the fact that this currency was introduced not long ago. But, its presence did not come as a surprise to anyone. People were aware of its existence. It was published in late 2021. In the beginning, many people did not have an impression of this new currency. This was mainly because it was introduced with a price range that did not correspond to the needs and requirements of the traders.
Due to its under consideration status, many fraudulent traders tried to exploit the situation. They tried to profit from the desperation of the users. They offered a wide array of services and schemes that seemed to be lucrative. To increase their revenue, they took away money from the customers. So, the users were in a dilemma regarding the payment method. The only logical choice was to go for something that is less risky.
bitcoins is traded over the internet, across various platforms such as the major exchanges. It trades very seldom but has the maximum liquidity of all other currencies. Hence, it fetches a high return on investment. The low transaction costs and the high liquidity factor make it a preferred option of the investors, who were earlier reluctant to go for it due to the lack of confidence in its functioning and credibility.
Furthermore, when compared to other forex trading systems, bitcoins offers a much simpler and a much more convenient method of operation. It does not require any special knowledge. Users simply need to download the wallet and plug it into the computer. It will then provide the user with all the tools required for currency trading.
Transactions can be made instantaneously. There is no need of brokers or financial institutions. All transactions are made automatically by the software, hence enabling the trader to save on brokerage fees. This also reduces customer service costs, since there is no need for the customer care executives. All transactions are conducted through the internet, which further reduces the operational cost.
This is just the first part of the benefits of this new technology. Unlike traditional currency trading, the new system does not involve any risk of loss. Since the system is open to all, there is no geographical boundary. All traders are in the same location and it is easy to monitor the movements of prices simultaneously.
All the aforementioned mentioned advantages of bitcoins are possible because of the decentralization of its operation. Contrary to other currency trading systems, this new system is entirely based on the protocol. No centralization is involved, since the protocol is programmed into the computer at the user’s discretion. The only thing that needs to be done is to download the program from the Internet. All subsequent actions are done automatically.
The new feature of this software is known as the “lightweight” version. It can be utilized along with any of the existing currency trading platforms. It is completely separate from the server, hence making it foolproof. Furthermore, since it is a web-based application, it can be accessed from any location. No download or installation is required. All one needs is a modern computer and an internet connection.
The pricing mechanism is also different from other platforms. It deals in the twenty-four hour trades and is not dependent on the trading hours of the major exchanges. This means that a profitable trade can be executed even when the market is closed. This aspect makes it suitable for day traders. In addition, the transaction fees are much lower than those of the NYSE. Hence, it is a very attractive option for small investors.
Many other features such as charts, indicators, calculators, and the ability to manage multiple accounts have been integrated into the software. The use of leverage has also been enabled, and it is possible to multiply your investments. All in all, it is a very versatile piece of equipment which can be used for both short term and long term currency trading. Hence, it is just about time for one to switch to the latest and the best piece of technology that are available in the world of currency trading.