Table of contents:
- 1 Monero Wallet: Create Monero Wallet and save CFD traders the trouble
- 1.1 Monero Wallet does not need resourceful CFD traders
- 1.2 MONERO WALLET DOES NOT HAVE TO BE WITH BROKER
- 1.3 ACCESS REQUIREMENTS AT EXCHANGE
- 1.4 CREATE MONERO WALLET OR USE MONERO ONLINE WALLET FROM EXCHANGE FOR FREE
- 1.5 DIFFERENCES IN CRYPTO WALLETS AND WHY SECURITY IS SO IMPORTANT
- 1.6 HACK ATTACKS HAVE AN INFLUENCE ON MARKET MOVEMENTS
- 1.7 OFFLINE WALLETS OFFER MORE SECURITY, BUT…
- 1.8 DON’T FORGET EQUITY FOR STARTING A BUSINESS
- 1.9 ACCESS REQUIREMENTS WITH BROKER MUCH EASIER FOR TRADERS
- 1.10 FREE TRADING ACCOUNT WITH VIRTUAL CREDIT OFTEN AVAILABLE
- 1.11 TRADERS SAVE THEMSELVES THE TROUBLE OF COMPLEX VERIFICATION
- 1.12 PAYMENT OPTIONS AND SEED CAPITAL: CFDS WITH VERY LITTLE EQUITY TRADING
- 1.13 MULTIPLY EQUITY AND TRADE XMR CFDS
- 1.14 NO RISK THROUGH MONERO WALLET WITH BROKERS
- 1.15 WHY IS DIVERSIFICATION ADVANTAGEOUS FOR BROKERS?
- 1.16 CFD trading as an opportunity without having to create a Monero Wallet
- 1.17 MAKING OPTIMAL USE OF LEVERAGE EFFECTS WITH CRYPTO CFDS
- 1.18 Price analysis especially important for CFDs
- 1.19 ANALYSIS METHODS: TECHNICAL AND FUNDAMENTAL ANALYSIS FOR CRYPTO CFDS
- 1.20 TRADE RISING, FALLING OR SIDEWAYS PRICES WITH CFDS IN A COMPLETELY FLEXIBLE WAY
- 1.21 HEDGING NOT ONLY SOMETHING FOR PROFESSIONALS
- 1.22 Good to know: This can influence crypto prices
- 1.23 INTRODUCTION/BANISHMENT OF A CRYPTO EXCHANGE
- 1.24 INNOVATIONS WITH CRYPTO CURRENCY ITSELF
- 1.25 HACKS OR NEW WALLETS
- 1.26 Decisions of politics or central banks
- 1.27 POLITICS HAS GREAT INFLUENCE ON CRYPTO COURSE
- 1.28 DECISIONS OF THE ECB OR OTHER CENTRAL BANKS AS INFLUENCE ON CRYPTO COURSE
- 1.29 EXPLORE THE NEWS SITUATION AND TRADE ON THE BASIS OF REAL-TIME INFORMATION
- 1.30 Conclusion: Monero Wallet traders do not even need to go to the broker
Monero Wallet: Create Monero Wallet and save CFD traders the trouble
Monero Online Wallet, Monero Paper Wallet – which Monero Wallet to use? The answer to this question can take a long time and be nerve-racking due to the many wallet possibilities. However, if you want to trade directly at the Crypto Exchange, you cannot avoid having a crypto wallet at hand. It is much easier to get started trading with crypto brokers, especially without a wallet. The traders can use the volatile price developments on the market for themselves; generate profits every minute. We show how traders can optimally seize their opportunities with XMR CFDs.
- Monero Wallet needed Traders do not need the crypto CFDs
- XMR Wallet is often only offered for a fee
- Traders can even leverage Crypto CFDs & multiply profits
- Trading with crypto brokers often even possible without equity
Monero Wallet does not need resourceful CFD traders
Privacy is becoming increasingly important in such a transparent society and the enormous use of social networks. The crypto-currencies, especially Monero, are also feeling this. It differs from Bitcoin and other currencies based on the Bitcoin block chain in the privacy features. Nevertheless, traders need a Monero Wallet if they want to trade the XMR directly at an exchange. The question arises as to how complex it is to create such a digital wallet and how secure its use actually is. After all, there have been repeated reports of hacking attacks in the past, not only on a Monero Online Wallet, but especially on Bitcoin Wallets.
MONERO WALLET DOES NOT HAVE TO BE WITH BROKER
Traders do not have to bear the supposed security risk when trading with a broker. It is usually not even necessary for investors to create a Monero Wallet when investing or trading CFDs or other financial instruments. Instead, the opening of a trading account is completely sufficient to profit from the movements on the crypto-market. We have tested how the two trading and investment options differ between crypto exchanges and brokers and how it can be done without Monero Wallet.
Comparison of conditions for trading activities at brokers and stock exchange
To better understand why trading on an exchange is often much more complex and challenging than trading with a broker, let’s take a closer look at both trading options. The first consideration is the access to the exchange and the broker.
ACCESS REQUIREMENTS AT EXCHANGE
Traders who want to trade XMR and other coins directly at a crypto exchange need
- Monero Wallet
Experience shows that the registration itself is extremely fast, because the stock exchanges provide an online form that makes registration possible in just a few minutes. This requires personal information such as name, address or e-mail. However, the registration process is by no means completed with the registration. Verification is necessary to ensure that the exchanges comply with the legal requirements and, above all, to protect those behind them. This means that the information provided in the registration form must be confirmed again. A valid identification document is required for this. Proof of address is provided, for example, via the last telephone bill. After the information has been confirmed/verified, the traders have access to their account and can almost start trading. All that is still needed is the crypto wallet.
CREATE MONERO WALLET OR USE MONERO ONLINE WALLET FROM EXCHANGE FOR FREE
Crypto Wallet is required for XMR trading activities. Traders must link this to their account at the Exchange. Those who have not previously been able to create a Monero Wallet often receive a free crypto wallet from the exchanges for use. With the registration many exchanges make the wallet available.
DIFFERENCES IN CRYPTO WALLETS AND WHY SECURITY IS SO IMPORTANT
Basically there are different types of wallet, which differ in terms of security. The topic of security is so important because in the past there have often been negative reports about it, which have influenced the price on the crypto market and unsettled traders. Basically, there are two differentiation criteria between wallets:
Before the traders create a Monero Wallet, they have to decide which wallet type should be used at all. Afterwards it goes on with the selection of a suitable offerer. Who decides for an on-line Wallet, has among other things the choice between a Monero Wallet Windows-based or can select from a Wallet for another operating system for the mobile terminal or the PC. The Monero GUI Wallet is also available. The advantage of online wallets is that users can use them mostly free of charge. However, there is also a disadvantage: security. Due to the online connection and without sufficient protection, the wallet may be exposed to hacking attacks. This means that in the worst case the coins could be stolen by a manipulation of hackers.
HACK ATTACKS HAVE AN INFLUENCE ON MARKET MOVEMENTS
In the past, there have been more frequent such negative incidents, which affected the prices on the crypto market. Worse still, many coin owners did not see their XMR or other digital currencies again and even large exchanges were affected by these cyber attacks and often had to suspend trading (for a short time) because large coin shortages were suddenly stolen within a very short time.
OFFLINE WALLETS OFFER MORE SECURITY, BUT…
To increase the security of a crypto wallet, for example, traders can also use an offline wallet. Different types of wallet are available:
- Monero Paper Wallet
- Hardware Wallet
While the Monero Paper Wallet is available free of charge and is created online, the Hardware Wallet is often only available on order in an online store. Thus the traders must become usually several days on digital purse. In addition one-time acquisition costs are necessary with the purchase of the Hardware Wallet, which is likewise void with the Paper Wallet. The Paper Wallet is arranged with a generator on-line and this character sequence is then printed on a piece of paper. Thus the Paper Wallet received also its name. By the missing Internet connection both Paper and Hardware Wallet offer maximum security, however there are differences with the comfort of use. The piece of paper is extremely fragile and susceptible to damage, making it unsuitable for (permanent) transport (for example in a handbag or trouser pocket). The Hardware Wallet offers much more comfort of use because it is designed similar to a USB stick and of course has a much more robust surface due to its plastic casing.
DON’T FORGET EQUITY FOR STARTING A BUSINESS
Trading on an exchange is not just about opening an account or creating a Monero Wallet, but very importantly, the equity capital must also be available. Traders must know that unlike crypto brokers, the stock exchanges usually do not have a demo account with virtual credit available to test and do not have to spend equity capital for this. Instead, traders need their own capital, which can be deposited in the form of Fiat money or other crypto currencies. For this purpose, the stock exchanges offer several well-known service providers, such as
- Bank transfer
- Instant bank transfer
The differences among payment service providers are mainly due to limits and possible cost expenditures. While credit card or electronic purse accounts are particularly fast to capitalize, merchants often have to wait up to five business days for credit when depositing via bank transfer. On the other hand, bank transfer limits are often much higher or even non-existent, unlike credit cards or electronic purses. This makes bank wire transfer account capitalization particularly suitable for traders who intend to trade larger coin shortages at the Crypto Exchange and, for example, invest heavily in XMR or other crypto currencies.
ACCESS REQUIREMENTS WITH BROKER MUCH EASIER FOR TRADERS
We have already seen that traders have to take a lot of effort to start trading at an exchange. But it is much easier to start trading with a broker. Instead of opening a trading account to verify this, deposit equity or keep the Monero Wallet ready, traders often only need a few seconds to register their account with a broker.
FREE TRADING ACCOUNT WITH VIRTUAL CREDIT OFTEN AVAILABLE
Now the interested investors must ask themselves, why the Trading start with a broker works too much faster and more easily than with a stock exchange. In practice, many brokers offer a variety of account solutions, including often not only a live account (which requires own capital), but also a free demo account with virtual assets. Traders can choose whether they want to get to know the broker under test conditions and try out their trading opportunities on the crypto-market or whether they actually already have their own capital deposited. The difference between the account models is that profits (but also losses) can of course arise from the live account and your own capital. With the demo account, all trading results are purely virtual.
TRADERS SAVE THEMSELVES THE TROUBLE OF COMPLEX VERIFICATION
The advantage of the demo account is that merchants can register and use the account in seconds. Because it is only done on virtual credit, verification is not required. In direct comparison to the speed of registration, the point therefore goes clearly to the brokers.
PAYMENT OPTIONS AND SEED CAPITAL: CFDS WITH VERY LITTLE EQUITY TRADING
The trading activities at a crypto exchange are only necessary with own capital. How high it is or should be, is always determined by the traders themselves. However, experience has shown that the direct purchase of coins often involves a lot of capital expenditure, not only for the mere purchase, but above all due to the additional costs. The Trader must pay transaction costs for example with the purchase of Bitcoin or other Kryptowährungen to the Miner, which are responsible for the fact that the procedures in the Blockchain are processed. Thus further costs are added to the actual purchase price of the Coins again on the Trader. That is void however with the commercial activity with the broker. The traders usually speculate on the price development and use XMR CFDs for this purpose. Trades can be realized with just a few euros and traders can still expect high profits if they use leverage, for example.
MULTIPLY EQUITY AND TRADE XMR CFDS
The traders can move a lot with the broker even with little equity capital, because there is, for example, the usable leverage in the contracts for difference. Depending on the selected underlying asset, traders have the chance to trade CFDs with a maximum of 1:30 (for foreign exchange) as a private investor. If the traders decide on crypto CFDs, the leverage is limited to a maximum of 1:2. But that doesn’t matter at all, because despite the supposedly low leverage, traders have the opportunity to double their equity in the market and thus achieve higher profits. This option does not exist for stock exchanges either.
NO RISK THROUGH MONERO WALLET WITH BROKERS
Another fact that speaks in favor of trading activities with a broker is that a crypto wallet is not required. The traders simply need their trading account (either with their own capital or virtual credit) and choose the appropriate financial instrument depending on the market situation. Since many brokers offer not only the crypto CFDs but also other financial instruments to the crypto market, diversification is even easier. However, experience has shown that the crypto wallet is not needed at all, as most brokers do not even provide direct trading of the coins. In this way, the traders are not confronted with the risk of having to make elaborate selections and take care of security aspects before the wallet starts trading. Instead, crypto CFDs, crypto securities or other digital financial instruments are traded in a very flexible way.
WHY IS DIVERSIFICATION ADVANTAGEOUS FOR BROKERS?
If you decide to trade with a broker, you will not only find crypto CFDs, but also countless other financial instruments on the crypto-market. In this respect, the broker differs advantageously from the stock exchanges, because with Exchanges, the traders can trade many different currencies, but only buy or sell. Especially in volatile market phases this can prove to be extremely difficult. With the broker, on the other hand, behind the opportunity to pursue a short, medium or long-term investment horizon with the help of the appropriate financial instrument and, depending on the market situation, use CFDs, securities or other digital financial instruments.
CFD trading as an opportunity without having to create a Monero Wallet
Trading XMR CFDs is especially interesting for many traders because of its flexibility. Therefore, we want to show how easy it is to trade contracts for difference on different underlyings even for less experienced traders and why the crypto volatility can even be an advantage. Although Contracts for Difference are generally considered risky, which traders should never neglect, they also offer enormous profit potential. Especially the leverage effect makes CFDs so interesting, because with a maximum leverage of 1:30, traders can easily multiply their equity capital and thus pave the way for higher profits. However, the leverage works in both directions, so that higher losses can also stand on the trading account. In order to avoid this, risk management is especially important for CFD trading. To hedge the losses and take the quick profits, we recommend trading the stop loss and take profit positions.
MAKING OPTIMAL USE OF LEVERAGE EFFECTS WITH CRYPTO CFDS
Crypto CFDs can be traded with a maximum leverage of 1:2. This means that traders need only a small amount of capital to open a position and can still take advantage of the full profit potential. The leverage causes the multiplication of the equity in the market, so that of course much more capital is available. More capital per traded position therefore also means higher profits. However, in order for traders to avoid total losses at the beginning of their trading career and to practice the use of leverage, we recommend starting with smaller steps of leverage.
Price analysis especially important for CFDs
The trading of contracts for differences is flexible and also allows for the optimal use of even the most volatile market phases in the crypto-market. To do this, however, the traders need a sovereign analysis of the XMR price. Brokers often even provide free tools and indicators paired with innovative trading platforms. This makes price analysis much easier, even for less experienced traders. This is also a crucial difference to the crypto exchanges, because they often do not offer traders the price analysis support they might need or want, especially for trading beginners. This is why trading with a crypto broker is so interesting for many traders at the beginning of their trading career.
ANALYSIS METHODS: TECHNICAL AND FUNDAMENTAL ANALYSIS FOR CRYPTO CFDS
Traders can use numerous methods for price analysis, with a focus on technical and fundamental analysis. Technical analysis focuses on historical data and uses it to make a forecast for the future. Fundamental analysis looks at the current market sentiment in light of economic data. Due to its ease of use, technical analysis has proven itself to be a useful tool for trading beginners, although it has one weakness: The current market sentiment is not taken into account, so that a wrong trading decision can be made, especially in case of sudden volatility. Traders should be aware of this risk and hedge their positions accordingly.
TRADE RISING, FALLING OR SIDEWAYS PRICES WITH CFDS IN A COMPLETELY FLEXIBLE WAY
While traders are often significantly restricted in their decisions on the crypto stock exchange, traders can make even better use of the volatility on the crypto market by trading with the broker. Those who choose XMR CFDs can trade falling, rising or sideways prices depending on the market situation. CFD positions are primarily traded intraday and this is exactly their great strength. At the end of the trading day, the traders know exactly what profits or losses they have achieved with their decisions. Furthermore, by closing the positions on the trading day, the unnecessary overnight holding costs are eliminated. If the crypto price trend shows a fast movement, the traders can also take advantage of this. Since the positions can be closed again even after a few hours or even minutes, CFDs are also optimally usable for volatile high phases. Better still, traders can even trade a position on falling AND rising prices (hedging) to ensure that a position will always make a profit.
HEDGING NOT ONLY SOMETHING FOR PROFESSIONALS
It is understandable that traders cannot realize extra profits with hedging, but at least there is a chance to practice trading on the crypto-market with each new position and to consolidate the knowledge of price analysis and trading decisions. Those who need support in this regard can, for example, take advantage of many free training opportunities with renowned brokers and even use the free demo account for the first attempts at hedging.
Good to know: This can influence crypto prices
Volatility is much more pronounced in the crypto market than in other known markets, for example. Those who know this and keep it in mind when making trading decisions are better prepared for supposedly sudden price fluctuations. However, the question arises as to what triggers such fluctuations in the first place. There are numerous reasons for this, but traders can take advantage of them. For example, if you subscribe to news reports on the crypto market in a targeted manner, you will no longer miss any political decisions that could have an influence on the development of the crypto price. In general, the crypto price can often be influenced by the following factors:
- Introduction/banishment of a crypto exchange
- New features of the crypto currency itself (e.g. adjustment of the block chain or fork)
- Hacks or new wallets
- Decisions by politicians and central banks
- To understand how certain events can affect the crypto course at all, let’s take a closer look at the factors.
INTRODUCTION/BANISHMENT OF A CRYPTO EXCHANGE
If a crypto exchange decides to introduce or ban a currency, this can be a signal to the market itself and the investors. The best example is the crypto exchange Coinbase when it decided to finally introduce Litecoin. This decision pushed the Litecoin price, because Coinbase is one of the leading exchanges worldwide. If it is suddenly a crypto-currency for trading available (or just no longer available), a new additional buyer potential (or lower buyer potential) results.
INNOVATIONS WITH CRYPTO CURRENCY ITSELF
Each crypto currency has experienced adaptations in its previous history. Some of them are bigger, others less. Also Bitcoin and other well-known Internet currencies had to accept for example already splits of their own Blockchain in form of the Forks. Such events are often announced early and ensure that the actual exchange rate of the crypto currency reacts to them. Whether this is positive or negative depends crucially on the upcoming events of its scope. Also the community of the crypto currency plays an important role, because if it is for example disputed, then it comes with a separation often to a (short term) exchange rate loss of the original crypto currency, while the new currency experiences an upswing. Who recognizes such moods early, can trade them with the CFDs, because also the short term exchange rate changes can be optimally used with the help of the contracts for difference.
HACKS OR NEW WALLETS
Anyone who owns a Monero Wallet often has to live with the risk that the coins could be stolen if the security is insufficient. This phenomenon is not as rare as one might think, as a look at the news on crypto wallets and hacker attacks shows. If the hackers actually manage to crack a wallet or manipulate it once again, these incidents are often rapidly reflected in the media. Anyone who subscribes to such current news on the crypto market from their broker can be the first to profit from the effects. If a crypto wallet has been attacked again and even larger amounts of coins have been successfully stolen again, the prices of the Internet currencies often fall, because traders are unsettled.
Decisions of politics or central banks
Political decisions and decisions of the central banks hope that the crypto rates will be moved. Now many investors may think, what such information has to do actually with the course development of Bitcoin, Monero and CO. In order to create the understanding for it, we deal a little more near with the topic of the crypto currencies, the regulation and the foreign exchange market. Originally, Bitcoin was created out of the financial crisis, which left the Fiat currencies in a bad light. Traders were unsettled, no longer had confidence in banks and feared misappropriation of their assets and investments. As an alternative, Bitcoin was created as a decentralized means of payment and became famous. It took a while, but meanwhile Bitcoin is not only a means of payment in many stores, but also a pioneer for more than 3,000 other crypto currencies. Nevertheless, the Internet currency is still not an officially recognized means of payment, but many governments are (still) skeptical about coins and even prohibit trading or mining with them.
POLITICS HAS GREAT INFLUENCE ON CRYPTO COURSE
If there is by a federal state government for example again a decision that Bitcoin or other Kryptowährungen are limited or even forbidden in the respective country, then that has usually also influence on the course development, because potenzielle dealers from the country are missing then.
DECISIONS OF THE ECB OR OTHER CENTRAL BANKS AS INFLUENCE ON CRYPTO COURSE
The same applies to decisions of the central banks, although this can also have a positive effect on the crypto currencies. If the ECB decides, for example, that interest rates will remain low, the classic investment options (including overnight and fixed-term deposits) are no longer worthwhile for many investors. They look for alternatives in such a case and come due to the flexibility and possibilities also with little capital at the market to act, fast to the crypto currencies; above all to the crypto CFDs.
EXPLORE THE NEWS SITUATION AND TRADE ON THE BASIS OF REAL-TIME INFORMATION
In order for traders to take full advantage of the current news situation, we recommend activating live notification for brokers. Meanwhile, many trading platforms offer as a special service the notification via SMS, push or e-mail as soon as there are interesting market changes or news. In addition, traders can also use the economic calendar at the broker, which, according to experience, contains all important events with their possible effects on the price development. Thus, the traders are well prepared when there are possible changes in the crypto market, which they can use for their own benefit. For example, if you trade on the day of an ECB decision with the forecast for a crypto price development, you can open your position at the beginning of the trading day without much effort and limit it precisely with the help of the limits. Then you have to wait and relax, because thanks to the automatic closing of positions when a certain limit is reached, traders can at best only take profits without having to constantly look at the market.
Conclusion: Monero Wallet traders do not even need to go to the broker
Traders have countless opportunities to trade XMR and other crypto currencies. In addition to the crypto stock exchange with the direct trading ambitions, the numerous financial instruments at the broker are now also among the most sought-after tools. The differences are obvious: With the stock exchange the traders often need not only more own capital funds, but must also make more expenditure, in order to begin at all with the trade. In addition to opening an account, the provision of the Monero Wallet is also part of the service. Added to this are the limited trading opportunities, because the volatility of the crypto price often means that there is no real chance for trading. This is where crypto CFDs show their great strength, because traders can take advantage of falling, rising or sideways prices. They do not have to create a Monero Wallet or maintain a lot of equity capital for this. No, instead, trading can also begin with little credit or even with virtual seed capital. Why not take advantage of the opportunities in the crypto market and start now with a demo account with the broker?