CRYPTOCURRENCY

Trade Cryptocurrency Markets with Skyefxmarkets

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CRYPTOCURRENCY TRADING

Cryptocurrency trading is the buying and selling of cryptocurrencies on an exchange. With us, you can trade cryptos by speculating on their price movements via CFDs (contracts for difference). CFDs are leveraged derivatives – meaning that you can trade cryptocurrency price movements without taking ownership of any underlying coins. When trading derivatives, you can go long (‘buy’) if you think a cryptocurrency will rise in value, or go short (‘sell’) if you think it will fall. By contrast, when you buy cryptocurrencies on an exchange, you buy the coins themselves. You’ll need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in your own wallet until you’re ready to sell.

How do cryptocurrency markets work?

The cryptocurrency market is a decentralised digital currency network, which means that it operates through a system of peer-to-peer transaction checks, rather than a central server. When cryptocurrencies are bought and sold, the transactions are added to the blockchain – a shared digital ledger that records data – through a process called ‘mining’. in cryptoglobalmarkets, traders using leveraged derivatives that allow for both long and short positions, large and sudden price movements present opportunities for profit. However, at the same time, these also increase your exposure to risk. In short, the more volatile the market, the more risk you carry when trading it. With us, you can use CFDs to trade 11 major cryptocurrencies, two crypto crosses and a crypto index - an index tracking the price of the top ten cryptocurrencies, weighted by market capitalisation. Our selection includes:
Bitcoin
Ether
Bitcoin Cash
Litecoin
EOS
Stellar
Cardano
Bitcoin Cash/Bitcoin
Ether/Bitcoin
Dogecoin Uniswap

Bitcoin Trading

Like any financial asset, the price of Bitcoin is dictated by the laws of supply and demand. Bitcoin has always been compared to gold in this regard, in that there is a finite number of coins that will ever be available. Beyond that, market participants will, over time, determine the fair value of Bitcoin depending on its use cases and adoption. Another major price influencer is media coverage. In its early years, the price of Bitcoin was constrained as the media branded it a passing cloud and a coin for the dark web. In this age of social media, such negative coverage can scare potential investors. However, positive media coverage of both Bitcoin and its underlying blockchain technology has provided favourable fundamentals for the foremost cryptocurrency and emboldened investors. Bitcoin trading may be decentralised, but the power of major governments around the world cannot be ignored. Bitcoin has been the subject of frequent changes in regulation in various aspects, including taxation. Part of the reason the price of Bitcoin fell sharply after the highs of late 2017 was massive regulatory pressures from China. But regulation is not necessarily a negative fundamental. In some instances, positive regulation serves as a tool to legitimise Bitcoin as a mainstream financial asset, and this can lead to increased demand. Bitcoin’s price is also influenced by what happens within the Bitcoin community. Part of the reason the price of Bitcoin surged during the COVID-19 pandemic can be linked to the halving that happened in May 2020. Bitcoin halving is when the reward for mining Bitcoin is halved. This theoretically limits the supply of Bitcoin as the incentive to mine is reduced. With supply limited, demand increases, and the price of Bitcoin increases as well. How To Profit from Bitcoin Trading When the Market Goes Down Bitcoin is a highly volatile asset, with changing sentiment capable of driving prices from one extreme to another. The market can experience overzealous optimism one moment and then quickly change to dark pessimism. At the end of the day, though, investors have to file their taxes whether prices are rising or falling. Luckily for investors, Bitcoin is subject to capital gains tax. This presents a unique opportunity for claiming tax deductibles when prices are plunging. If you suffer a loss from your Bitcoin investment, you are entitled to include the details so as to reduce your overall tax liability. For a Bitcoin loss to be ‘valid’, it has to be realised. This means that you have to liquidate your position. You can only suffer a loss when you sell Bitcoin at a lower price than you bought it. If prices fall, but you do not sell, that is an unrealised loss and does not qualify for a tax deduction. For instance, if you bought 1btc at $40,000, but the price is now $35,000, and you sell it, you will have realised a loss of $5,000. If you file your returns, you can claim a capital loss worth $5,000. In the US, capital losses can be claimed up to a maximum of $3,000. But the good thing is that excess loss can be rolled over to subsequent years indefinitely. So, if in 2020 you suffered a loss of $5,000, you are entitled to tax-deductible of up to $3,000, and you can carry forward the additional loss of $2,000 to 2021. Bitcoin and other cryptocurrencies are inherently volatile. The good days are cherished, but the bad days need not be stressful. By using this tax-harvesting trick, you will be able to reduce your tax liability when Bitcoin prices fall.

TRADING

0.01 lot

TRADE WITH UP TO
500:1 Leverage

Ether Trading

Trading on Ether follows the same method as other major cryptocurrencies, which are traditionally traded on an exchange – involving buying and selling the selected currency. However, you can also trade on Ether by speculating on its price movements by using CFDs. This financial product is a leveraged derivative, meaning you can take a position on the market without having to own the underlying cryptocurrency. It also means that while your profits may be amplified, your losses can exceed your initial deposit. Make sure to manage your risk before opening your position. With Skyefxmarkets, you won’t sell or buy Ether on an exchange, but instead you will be trading on Ether prices through our CFD offering. You can trade CFDs on our award-winning platform,1 or you can trade on Ether CFDs via MetaTrader 4 and ProRealTime . Plus, you’re more likely to have your orders filled at your desired price due to our large client base and liquid cryptocurrency markets. Alternatively, you could take a position on our Crypto 10 index – an index tracking the price of the top ten cryptocurrencies, including Ether, weighted by market capitalisation.

TRADING

0.01 lot

TRADE WITH 100:1
LEVERAGE

Skyefxmarkets CRYPTOCURRENCY CONTRACT SPECIFICATIONS

CRYPTOCURRENCY TRADING HOURS

Product Open (GMT+3)
Bitcoin Mon 01.00 to Fri 24.00
Ethereum Mon 01.00 to Fri 24.00
BitcoinCash Mon 01.00 to Fri 24.00

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