Cryptocurrencies They have long since abandoned the niche of mere curiosity to become, in their own right, an important part of the global economy in various aspects. Not only have they been circumscribed to the sphere of savings or speculation, but they are an important asset to take into account in a facet as important as the foreign tradeBefore, it was practically the exclusive preserve of the US currency.
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Advantages of cryptocurrencies as a means of payment in foreign trade
One of the advantages that we will most notice in our pockets is that the transfer of cryptocurrencies has very low commissions, or even has no commissions in the case of some specific cryptos. This is because to carry out the transaction we do without banks, since we do not need any intermediary. A not inconsiderable amount of money, since the commission that entities usually charge when making an international transfer is very high.
There are experts who predict that in the future we will be able to pay directly with our e-Wallet (electronic wallet where users of cryptocurrencies store them) instead of using the classic credit cards. Seeing how cryptocurrencies are rapidly gaining positions, we cannot say that they are fanciful fantasies, but rather a vision of the near future with options to become a reality.
Cryptocurrencies eat ground from the dollar
Although it is somewhat timid, it is clear that the money that is invested in cryptocurrencies somewhere is being discontinued, and although the forex market is still, by far, the largest market in the world, what is cryptocurrency trading already move about $ 400.000 billion and it continues to grow exponentially (we must not forget that just 10 years ago cryptocurrencies did not exist except in the mind of some theoretician).
Also after a 2018 of constant falls, we must highlight the good year 2019 that cryptocurrencies have had in general, highlighting bitcoin, which, although it opened in 2019 below $ 4.000, it reached, when we touched the equator of this year , the $ 13.000. However, well above what its detractors predicted, many of whom did not see in bitcoin more than the umpteenth economic bubble that human beings suffer. The rest of the large companies, although they are above the price they had in January, are not performing so well in the second half of the year so far.
To begin with, we will say that we should not confuse trading through Contracts for Difference (CFD for its acronym in English) with cryptocurrencies, with trading through CFDs with forex or with the forex market itself, which is the currency exchange that must be carried out, for example, by a large company that operates in dozens of countries, with its corresponding national currencies.
In forex, people make or lose money in forex operations, because their price is constantly changing, so the ideal is to buy the currency down and sell it, or change it, when it is stronger, as we would do with any other financial asset.
But trading through CFDs with cryptocurrencies, currencies (forex) or natural resources, is more complex and has advantages and disadvantages, which we will comment on.
First of all, we operate by leverage, which means that if for example we buy CFDs of an asset for 1.000 dollars and the percentage of guarantee of tranches is 10%, to open the position we will only have to deposit 100 dollars, but if the price of the asset moves against us 20% we will lose 200 dollars, twice the money deposited, and vice versa, therefore, we aspire to earn, or risk losing, more money than would result from our investment alone.
This is because when opening a position the broker covers us with a “loan”. Obviously if we risk money we can lose it, and losing money that they have “loaned” means we will have acquired debts, in addition to having lost the money invested.
Therefore, it is very important before launching into this type of operation to make sure that the deposit we make we can afford to lose it (the options to accumulate losses are very high) and that we have extensive experience investing in high volatility markets.