Crypto Basics

Online trading and trading on Bitcode Prime involves speculating on financial instruments over the web. Trading is different from investment.

Financial assets traded online include stocks, commodities, market indices, forex, and crypto. You can trade these assets directly or through their derivatives. Examples of derivatives include Futures, Forwards, Options, and CFDs.

We will discuss CFDs below since Bitcode Prime trades crypto and stock through them. Keep reading for the basics of online trading.

Online investing explained!

Investment involves buying financial instruments with the goal of selling them when the prices rise. You will need to hold the investment for months or years for the prices to gain significantly. An investment in stock makes money through capital gains and dividends.

Investing in crypto only generates money through capital gains. However, crypto assets are known to make dramatic gains and are therefore more profitable than stock. The dramatic price changes also mean that this asset class is riskier to invest in.

Online trading explained

On the other hand, trading involves placing bets on short-time price movements. Trading occurs through specialized financial brokers. You can trade a financial asset directly or through its derivatives.

Derivatives trading explained!

A derivative is a financial asset whose value is derived from that of an underlying asset. The most common type of derivative is known as a Contract for Difference (CFD). CFDs can be traded on nearly all online traded financial assets.

The Bitcode Prime tools can be used to trade a variety of financial assets. However, the most popular ones are for crypto trading. We eliminate the complexity in trading by helping traders to analyze big data and build quality signals within minutes.