Thanks to its high volatility and price momentum, cryptocurrency is an increasingly popular asset class amongst retail day traders. CFDs that track price changes in major tokens make cryptos even more accessible for investors without the steep learning curve that traditionally accompanies cryptocurrencies.
Fewer Obstacles Attract Investors to Products That Mirror Cryptos 1-to-1
Over the last year, the resurgent popularity of cryptocurrencies, which has closely tracked the appreciation in major coins, has managed to drive more awareness and engagement than the previous adoption wave, demonstrating cryptos staying power. Besides drawing enormous attention to the space, more consumers than ever before are using cryptocurrencies as a means of transacting.
For eager traders, cryptocurrencies’ opportunity is evident due to their volatile characteristics and rapid price swings. Unlike traditional asset classes like stocks, bonds, foreign exchange, or commodities, cryptocurrencies often make double-digit percent-based movements intraday, making them an exceptional tool for speculators and day traders attempting to capitalize on sharp market swings.
Still, just like engineering a car requires mechanical savvy, climbing aboard the blockchain train demands a serious learning curve. Between setting up wallets, learning the difference between private keys and public addresses, and the process of sending or receiving cryptos, the volume of reading that these processes entail are considerable.
Many companies are rising to the occasion to make cryptocurrency more accessible through the streamlined use of these products. Popular companies like PayPal now offer customers in select locations the opportunity to buy, sell, hold, and transact in cryptocurrencies with eligible merchants. In other areas, brokerages like Robinhood now offer the capability to buy and sell crypto within accounts.
The beauty of these developments is that cryptocurrencies…