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October 5, 2018

Difference between Cryptocurrency Exchange and Margin Trading

Do you know the difference of Cryptocurrency Margin Trading and Exchange?

cryptocurrency-margin-trading-exchange cryptocurrency-margin-trading-exchange

Mainly, you can invest to Cryptocurrency market in 2 ways.

There are many traders who are confused with these 2 concepts:

  1. Cryptocurrency Margin Trading
  2. Cryptocurrency Exchange

These 2 investment types make a huge difference for traders in terms of security and profitability.

So how the are distinguished? We are here to explain the differences.

Cryptocurrency Exchange

Exchange requires ‘Buying’ and ‘Selling’ the actual Cryptocurrencies in the market.

For example, you can buy Bitcoin from others (or Crypto Exchanges) and you can actually own Bitcoins online.

Then you can use the Bitcoin, to sell to others to make profit from the difference of prices or to make payments to other buyers.

Main Advantages of Cryptocurrency Exchange

  • You can own the actual Cryptocurrency that is yours
  • You can use them to make payments to online stores

Main Disadvantages of Cryptocurrency Exchange

  • The cost/commission is relatively high
  • The transactions involves small leverage (you can’t buy larger amount)
  • There are certain security risks as it is managed online
  • Service is often not regulated

For the list Cryptocurrency Exchanges, please refer to the page here.

Cryptocurrency Margin Trading

By trading on margin, you can make profit from the difference of market prices.

If you wish make money from the volatile cryptocurrency market prices, you can take advantage of this type of investment.

In this case, you won’t own a Cryptocurrency but you will only own positions (such as BTC/USD, ETH/USD etc) online.

Main Advantages of Cryptocurrency Margin Trading

  • No security risks involved to your Crypto fund as you don’t own any
  • You can leverage your trading to trade higher volume
  • You can trade Cryptocurrency with minimum cost
  • Service is often regulated

Main Disadvantages of Cryptocurrency Margin Trading

  • You can’t own a Cryptocurrency

There are licensed FX & CFD brokers, offering Cryptocurrency pairs on online trading platforms.

Such as XM, FBS, HotForex, JsutForex, FXOpen, IC Markets and Tickmill are the ones that offer Cryptocurrency pairs on MT4, MT5 and cTrader.

For the list of FX Brokers, please refer to the page here.

All Forex Brokers

  • 1Market
  • 4XC (4xCube)
  • AAAFx
  • AdroFX
  • AGEA
  • AltumFX
  • AvaTrade
  • Axi
  • Axiory
  • AZAforex
  • BDSwiss
  • BKFX
  • BlackStone Futures
  • Capex
  • ClickTrades
  • CM Trading
  • Deriv
  • easyMarkets
  • EightCap
  • ETFinance
  • Evolve Markets
  • EXNESS
  • FBS
  • FinmaxFX
  • ForexChief
  • ForexMart
  • ForexVox
  • Fortrade
  • FP Markets
  • FXCM
  • FXDD
  • FXGiants
  • FXGlory
  • FXOpen
  • FXPRIMUS
  • FxPro
  • FXTM
  • HotForex
  • HotForex ZA (South Africa)
  • HYCM
  • IC Markets
  • IFC Markets
  • INFINOX
  • InstaForex
  • IronFX
  • JustForex
  • Land-FX
  • Libertex
  • LiteForex
  • LMFX
  • LQDFX
  • M4Markets
  • MiltonMarkets
  • MyFX Markets
  • NordFX
  • OANDA
  • OctaFX
  • Oinvest
  • Olymp Trade
  • Pacific Union
  • PatronFX
  • PaxForex
  • SimpleFX
  • SquaredFinancial
  • SuperForex
  • ThreeTrader
  • Tickmill
  • Tifia
  • TIOmarkets
  • Titan FX
  • TopFX
  • TopstepFX
  • Trade Nation
  • Trade360
  • Traders Trust
  • Tradeview
  • UFX
  • USGFX
  • Valutrades
  • VantageFX
  • XM
  • XMTrading
  • XTB
  • YADIX

All Crypto-Currency Exchanges

  • Bibox
  • Binance
  • BitMEX
  • Bitpanda
  • BKEX
  • bybit
  • CEX.IO
  • CoinEx
  • CoinField
  • CoinPark
  • IRONX
  • Kriptomat
  • Paxful
  • PrimeBit
  • StormGain
  • Trade8
  • Wisebitcoin
  • XBTFX
  • YObit

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