Trading cryptocurrencies and tokens in a combined portfolio strips away the unnecessary layers of fees that typically plague other investments, such as mutual funds. Because they trade directly on a stock exchange, you do not have to pay added costs such as trailer fees, sales charges, etc.
Cryptocurrencies and tokens are basically a stack of assets and underlying assets. So, investing in them lets you gain exposure to multiple assets and their benefits all at once.
Because majority of the trades we carry out on cryptocurrencies and tokens are done daily, weekly and monthly, the profits are classified as dividends, and are thus distributed to the investors holding these assets.
Investors can borrow funds (also known as buying on margin) to go long on an investment. This is convenient for people looking to use leverage to their advantage. Investors can also short assets, profiting when the cryptocurrencies and tokens decline in price.
Margin trading allows investors to multiply the investing power of their investment capital by accessing extra funds to buoy their original capital. This is usually advised for medium to large accounts.
Arbitrage trading or arbitraging involves the use of robots to detect significant variation in the price of a single cryptocurrency, especially Bitcoin across different exchanges, and immediately purchase from the lower price and/or sell to the higher price.
Futures trading allows investors to hedge against volatile markets and ensure they can purchase or sell a particular cryptocurrency at a set price in the future.
Spot trading is a continuous process of buying and selling cryptocurrencies and tokens on an exchange, at a spot price for immediate settlement. Profits come from volume.