Crypto trading, or cryptocurrency trading, is the exchange of cryptocurrencies either through a regulated Forex broker or through a cryptocurrency exchange trading platform.
Crypto trading, like Forex trading, involves the exchange of one currency for another. Cryptocurrencies can either be exchanged or traded for others, or they can be exchanged for fiat currencies, and vice versa.
With the world moving steadily deeper into the digital age, and in recent years with advancements in technology, digital currencies have gained a substantial amount of leverage over fiat currencies, especially in Africa.
Africa has been in the front row where online trading is concerned in the past few months, with cryptocurrencies becoming a favorite among various traders, and it is important to look at the factors that may have led to this explosion.
Cryptocurrencies can be traded 24/7 as opposed to the Forex Market which runs 24/5 – indicating a weekend gap in between. African traders can trade any time of the day, any day of the week without fear of closing positions before the trading day ends.
The Crypto Market is, next to the Forex Market, one of the most easily accessible as a lot of brokers and exchange platforms now cater to African traders and offer them comprehensive and competitive trading conditions.
Lower transaction costs
The Crypto market is liquid as there are massive volumes being traded at any given time, which results in lower transaction costs.
There are fewer fees involved with crypto trading and this benefits a lot of traders, especially African traders greatly especially if they only have a small amount of capital available to start trading.
Cryptocurrency Market remains strong during Covid-19
During 2020, various markets have seen a sharp rise and fall due to the emergence and spread of Covid-19 on a global scale. Cryptocurrency trading, however, has seen a dramatic rise as there are numerous advantages in investing in cryptocurrency.
Cryptocurrency trading is also not as dependent on the same factors that influence other markets as cryptocurrencies cannot be controlled by governments or banking institutions.
Due to the great number of participants in the Crypto Market, it is one of the most volatile markets in the industry and when understood correctly, African traders can make use of strategies to harness this factor and increase their profits greatly.
Due to the volumes traded in the Crypto Market, the liquidity is greatly increased, and this means that transactions can be executed quickly and hassle-free. It also means that African traders can benefit from great prices and faster order execution.
It also means that accurate technical analysis can be conducted without the market price being influenced.
There are various reasons why crypto trading has seen a significant increase in Africa, especially over the past few months says Louis Schoeman from Forexsuggest.com
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Cryptocurrency trading has become more common and popular especially in Africa and more traders are flocking to this market to reap the benefits and rewards thereof.