Volatility is a necessary evil in markets. Volatility is what sends cryptocurrencies like Bitcoin and Ethereum soaring but also crashing. And although it can be quite a rollercoaster ride at times, it is thanks to that characteristic volatility that traders are able to turn so much profit from crypto assets.
That volatility can make or break traders, leaving them with losses and an empty bank account or living a life of luxury forevermore. It takes a lot of skill, but it also requires the right tools, and of course, the right platform to get the job done consistently and without question or issues.
Here are some of the best trading platforms today to trade the crypto market’s notorious volatility.
Coinbase Pro is where institutional traders in the US are buying their Bitcoins in bulk. More than 10,000 BTC are leaving the exchange each week, potentially going to hedge funds, corporations, and other high wealth entities.
Because of the popularity of this platform, especially during bull markets, it is a good start for beginners who want to avoid market volatility if at all possible. For those that are looking for only modest gains or want to keep risk at the absolute minimum, Coinbase Pro is a great choice.
Coinbase Global also just went public on the Nasdaq stock market, proving the company’s validity in the cryptocurrency arena.
PrimeXBT has an outstanding reputation, much like Coinbase, but offers far more flexibility and features under one roof. Unlike Coinbase Pro, however, PrimeXBT lets traders long and short the market using CFDs on crypto assets like Bitcoin and Ethereum. Users of the award-winning trading platform profit from both directions of the trend, not just during uptrends.
There’s also an extensive variety of revenue-driving tools beyond trading alone. There’s the Covesting copy trading module connecting followers and strategy managers for synergistic profits, a four-level referral program, and a unique way to get positioned in the market called Turbo. DeFi features will also soon be on the way through Covesting Yield Accounts when the tool launches in Q3 2021.
Binance has the most enormous variety of crypto assets out of anywhere, but there can be a lot of noise to filter out if you prefer to focus on Bitcoin, Ethereum, Litecoin, and other less speculative bets. The speculative nature of crypto is what gives them their volatile attributes, which means that the more obscure the altcoin, the more dangerous the trade.
Binance also offers a ton of exclusive features, has its own blockchain and coin donning the same name, a decentralized exchange, IEO launchpad program, and much more. The company is synonymous with crypto at this point, growing up alongside it.
Deribit is both a futures and options trading platform, providing traders with versatility for those who like to speculate and trade lots of volatility. Although traders can go long or short Bitcoin and Ethereum using the platform, there are a lot of rules, fees, and risks associated with these types of derivatives contracts.
Futures and options can often be tied to an expiration date, whereas CFDs offer complete flexibility with entering and exiting positions. Deribit also has a very limited list of assets available for trading, and both options and futures are cash-settled.
HODL Bitcoin, Or Trade Crypto Market Volatility Instead?
Is bitcoin a good investment? Simply put, it is the best performing asset of all time in terms of ROI, rising from essentially worthless to more than $60,000 per coin. But it didn’t get there in a straight line. However, volatility makes Bitcoin a better asset for trading than investing currently due to its speculative nature.
As the world attempts to price the revolutionary technology that is Bitcoin, the crypto asset will go through many more bull and bear markets, market cycles, uptrends, and downtrends before it is all over. Choosing the right trading platform with the right tools and assets, all under one roof is the only way to be prepared for whatever volatility the crypto market sees next.
Any platform you choose should have long and short positions, risk management tools such as stop-loss orders, and much more. The rest is up to personal taste and getting the most bang for your buck with any platform with the most expansive feature set.