Crypto Trading: Risks and Solutions for Retail and Institutional Traders

Cryptocurrencies aren’t a new phenomenon. Everyone has heard of digital assets. In recent years, some countries have imposed restrictions, while others have accepted cryptocurrencies as legal tender. The crypto industry has become so common that more retail investors and large market players are entering the market. Still, risks related to regulation, security, and market liquidity exist for retail and institutional traders, which prevent them from fully trading.

Why Is the Cryptocurrency Market Still Risky for Traders?

Bitcoin was launched in 2009. Since then, more and more traders have been entering the market. The attractiveness of cryptos has led to a growth in the number of cryptocurrency exchanges and brokerage firms. Although it’s been over a decade since Bitcoin was launched, the reliability of brokerages remains questionable.

Brokerage firms allow traders to buy, sell, and exchange cryptocurrencies through a single platform, which is supposed to ensure a high level of security and effectiveness of trade execution. However, this is not entirely true. Most brokers provide derivative trading, including contracts for differences (CFDs), meaning traders cann…

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