Table of contents:
- 1 Stellar Lumens Crypto Currency with CFDs & Leverage Optimal Trading
- 1.1 Stellar Lumens Crypto Currency with CFDs leverage & increase profits
- 1.2 SPECULATE ON XLM PRICE WITH CFDS
- 1.3 Crypto Currency Buy Stellar Lumens or trade CFDs?
- 1.4 RISK WITH CFDS OFTEN LOWER THAN EXPECTED
- 1.5 RISK FROM CRYPTO WALLET IS OFTEN UNDERESTIMATED
- 1.6 WITH CFDS, TRADERS HAVE NO RISK FROM THE CRYPTO WALLET
- 1.7 Stellar Lumens crypto currency with the broker trade & minimize risk with demo
- 1.8 TIP: LEARN FROM PROFESSIONALS AT THE BROKER
- 1.9 Capital requirement, in order to be able to buy crypto currency Stellar Lumens and trade CFDs
- 1.10 CAPITAL EXPENDITURE FOR CRYPTO CFDS LOW
- 1.11 USING LEVERAGE CORRECTLY WITH CFDS
- 1.12 LIMITING LEVERAGE TO LIMIT LOSSES
- 1.13 Price analysis for trading the Stellar Lumens crypto currency: CFDs usually offer more potential
- 1.14 BROKERS OFTEN OFFER FREE TOOLS AND INDICATORS FOR ANALYSIS SUPPORT
- 1.15 Conclusion: Stellar Lumen’s crypto currency is especially useful with Crypto CFDs
Stellar Lumens Crypto Currency with CFDs & Leverage Optimal Trading
CFDs allow traders to successfully trade the Stellar Lumens crypto currency. This does not even necessarily require a lot of equity or trading experience, as many brokers support their investors at the highest level. For example, they provide not only attractive trading conditions, but also free training opportunities and a practice account with virtual credit. Those who try out the crypto CFDs will quickly realize that they offer many opportunities in the market, especially in terms of volatility. We show how traders can trade XLM CFDs optimally and why they are often better than direct buying.
- XLM CFDs can be successfully traded by brokers even at the highest volatility
- Crypto CFDs can be traded with a maximum leverage of 1:2
- Traders need only little equity capital to trade Crypto CFDs
- Price analysis for CFD trading with technical and/or fundamental analysis easier
Stellar Lumens Crypto Currency with CFDs leverage & increase profits
Contracts for Difference, some traders love them, others are skeptical about them and others prefer to look for alternative financial instruments. What is certain is that CFDs offer many opportunities, although they are also associated with a higher risk of loss without risk management. However, for those traders who like the risk and prefer a short to medium term investment horizon, CFDs can offer interesting opportunities due to their diversity. For example, numerous crypto currencies can be traded even in difficult market situations. With the Stellar Lumens crypto currency, for example, as with many other Internet currencies, there are always highly volatile phases. For traders on the crypto stock exchange, such developments are often a (temporarily unsolvable) challenge, while traders can trade crypto CFDs profitably.
SPECULATE ON XLM PRICE WITH CFDS
Stellar belongs to the Top 10 of the Kryptowährungen, which is with the meanwhile over 3.000 offers already a stately achievement. The network was founded in 2014 and since then can look back on an enormous development, not only from a technical point of view. The Stellar Lumens exchange rate has also changed enormously and is subject to enormous fluctuations, especially since the summer of 2017. Traders can take advantage of these phases especially with the contracts for difference, because the positions are often traded for only a few hours or even minutes. Of course, trading at crypto exchanges is also possible, because even large trading places offer the purchase of XLM Lumens. However, due to market fluctuations, traders often have to wait longer until an ideal trading opportunity presents itself.
Crypto Currency Buy Stellar Lumens or trade CFDs?
Should I buy Stellar Lumens crypto currency or trade the crypto currency with a broker? This question is certainly asked by many investors, although there is no general answer. The trading activity at the broker and the exchange have a different approach and a completely different goal. While traders with a broker mainly speculate on a short to medium-term investment horizon, traders with an exchange often want to hold the XLM for a longer period of time in order to save taxes, for example, when selling at a later date. The activity on the exchange is also particularly interesting for many traders who would like to be part of the crypto-scenario and own the coins themselves. Both trading options have their advantages, but also disadvantages; need different prerequisites. In order to get an idea where the traders might have the better chances for profits and the easier access conditions, we compare both trading options.
RISK WITH CFDS OFTEN LOWER THAN EXPECTED
Many traders think that crypto CFDs are particularly risky derivatives. Basically this is also true, because the contracts for difference are actually not considered to be completely risk-free. However the question arises, how risky it is at all, if the crypto currency Stellar Lumens wants to buy and sell again. The risk is always a matter of definition, because due to the volatile price movements the traders at crypto stock exchanges are often confronted with the risk that for example the sale of the XLM is only possible after several months. The reason for this is volatility, which often makes it difficult to find a suitable trading date.
RISK FROM CRYPTO WALLET IS OFTEN UNDERESTIMATED
If traders have to wait unnecessarily long for a suitable time to sell, they have dead capital in their wallet, which is of course just as little advantage. In addition, there is another risk when trading at the crypto stock exchanges, which perhaps hardly anyone knows: the wallet. Why is a crypto wallet insecure, if it is supposed to be used to manage coins and tokens? In principle, this assumption is correct, but there are differences between crypto wallets in terms of security. While the offline crypto wallets offer optimal security, the online wallets are much less secure. This is why hacker attacks have frequently occurred in the past, with Bitcoin and Co. being stolen for millions. Such incidents shook the crypto market and prices fell. Even the renowned stock exchanges had to suspend trading at short notice in some cases, since an enormous loss of coins suddenly became impossible to stem.
WITH CFDS, TRADERS HAVE NO RISK FROM THE CRYPTO WALLET
If the dealers decide not to acquire the Stellar Lumens crypto currency directly, but to speculate instead only on their course of exchange, there is not the enormous security risk, which can perhaps occur with the Wallets. The traders do not need the Wallet at all, but with the broker only their Trading account. Trading is done either with own capital or, for an easier and above all risk-free entrance, with a demo account.
Stellar Lumens crypto currency with the broker trade & minimize risk with demo
If it goes and the comparison whether it is better to become active with an exchange or a broker, we must not forget the conditions of access to trading activities. Here too, there are significant differences, which are associated with different levels of risk. While the traders at crypto exchanges can usually only act with equity on their trading account, many brokers provide a free demo account. With its help, the traders can trade with virtual assets under near-market conditions without equity capital. This entry opportunity is ideal especially for traders who have had little or no trading experience.
TIP: LEARN FROM PROFESSIONALS AT THE BROKER
Many brokers not only provide crypto CFDs at attractive trading conditions, but also support investors in their plans. Therefore, too many traders for a first informative and above all uncomplicated entry of the brokers to the first contact point. In addition to the demo account, crypto brokers often offer free training material, which is even supported by tips and regular events of the trading professionals. The dealers can analyze for example in taking place Webinars free of charge with Trading professionals the current Krypto market and their view of the things explain themselves to let; Trading ideas get. Of course, there is never a 100 percent certainty of profit, but honestly, where do traders have the opportunity to get free tips and experience from real trading professionals?
Capital requirement, in order to be able to buy crypto currency Stellar Lumens and trade CFDs
When directly comparing Brokers Börse, the equity capital expenditure is also important. Who would like to buy the crypto currency Stellar Lumens with a stock exchange, that must pay depending upon market situation and current price for a unit for example 1.00 euro. A look at the price development shows that an all-time high of January 4, 2018 was quoted at a price of 0.852200 Euro. This contrasts with the low price of an all-time low on November 18, 2014, where traders were able to buy XLM for 0.001115 Euro. Admittedly, the purchase of the crypto currency does not seem so expensive at first glance, but nevertheless the traders bind themselves with their direct investment for some time, because the Stellar Lumens Coins are in the Stellar Lumens Wallet before they can be exchanged or sold again.
CAPITAL EXPENDITURE FOR CRYPTO CFDS LOW
If traders want to trade Crypto CFDs with a broker, they usually need little, if any, equity capital to do so. Many brokers even provide a free demo account with virtual credit for testing purposes, so that trading would theoretically be possible without equity. However, this does not generate real profits, but the demo account is only for practice purposes. If the traders really want to make profits with their trading decisions, equity is actually necessary. This can be deposited for example with Fiat money or even Bitcoin with many brokers. Experience shows that a position can be traded with just a few euros and enormous profits are possible with the use of leverage. Traders can use the leverage for example with a maximum of 1:2 for crypto CFDs.
USING LEVERAGE CORRECTLY WITH CFDS
Traders can trade CFDs with variable leverage with a broker. For example, while foreign exchange can be traded by private traders with a maximum leverage of 1:30, crypto CFDs can be leveraged with only 1:2. In order to understand the risks and opportunities of leverage, we will take a closer look at how it works. With the help of leverage, traders can multiply their capital outlay and thus provide more liquid funds in the market. The difference to the equity and what is used in the market is provided by the broker as financing. If the trade is successful, the traders naturally achieve significantly higher profits without having to invest so much equity capital at all. Instead, they only deposit a small security deposit.
LIMITING LEVERAGE TO LIMIT LOSSES
Leverage is used by many investors because of its increased profit potential, but its risk is often underestimated. In order to prevent this from happening and to enable traders to act without a total loss, we show possibilities for risk management with leverage. Traders should first approach leverage slowly at the beginning of their trading career and not immediately apply maximum leverage for the first trades with their own capital, for example. Instead, we recommend starting with a demo account and trying out the effects of the different levels of leverage. It is also important to take profits and limit losses, which can be done, for example, through the Take Profit and Stop Loss positions.
Price analysis for trading the Stellar Lumens crypto currency: CFDs usually offer more potential
If you take a look at the XLM course, you will quickly realize that there has been a tremendous development since its introduction in 2014. The volatility is clearly visible here, although it has increased, especially since the summer of 2017. Traders can trade the market situations quite flexibly with their investment strategy and the appropriate financial instruments, whereby CFDs show their strength especially in supposedly difficult market situations with high volatility. Direct trading on crypto stock exchanges is particularly suitable when a clear trend is evident, which at best will continue for a long time. Price analysis is particularly important so that traders can make optimal decisions based on market conditions. The technical and fundamental analysis offer optimal support in this regard, whereby technical analysis is especially popular with trading beginners due to its ease of use.
BROKERS OFTEN OFFER FREE TOOLS AND INDICATORS FOR ANALYSIS SUPPORT
Many brokers not only provide their investors with numerous crypto CFDs, but also offer support in price analysis. In addition to the basic knowledge, indicators and tools are also available free of charge on many innovative trading platforms. Above all the Metatrader has proved itself with many brokers, because it offers functionality paired with user-friendliness and technology on the highest level. For the technical analysis not only interactive real-time price charts are available, but also countless technical indicators, analytical objects as well as chart types and time frames. This makes it even easier for traders to perform optimal analysis and find their appropriate time to trade Crypto CFDs.
Conclusion: Stellar Lumen’s crypto currency is especially useful with Crypto CFDs
Buy directly the crypto currency Stellar Lumens or rather trade with a broker? – many traders are insecure. Both trading possibilities have their advantages, but also disadvantages. If you are interested in investments with the highest flexibility and support in price analysis, you should familiarize yourself with crypto CFDs at the broker. Traders can even trade the highly volatile price phases on the crypto market and hardly need any equity capital for this. The positions can be traded either with virtual credit (in the demo account) or with little equity capital at best, and still there is a chance of increased profits. Leverage is the lucrative secret behind crypto CFDs, because it multiplies the capital on the market by a maximum of 1:2 and thus offers high profit prospects even with little capital investment. But of course, the leverage can also work in the opposite direction and bring higher losses without risk limitation. Therefore, we recommend trading XLM Contracts for Difference with the appropriate risk management, which I can even practice with a demo account without any real risk. In our opinion, the Broker is the ideal entry point for all traders at the beginning of their trading career who want to learn and make the most of the opportunities in the crypto-market through their clever flexible investments.