Micro currencies trading is gradually gaining momentum, as retail investors continue flocking to the multi-billion-dollar financial markets. This activity is surrounded by confusions and puzzles that often mislead people and create unnecessary barriers for entry to this lucrative niche.
In two words, microcurrencies can be understood in two ways – as foreign currency pair trading with micro lots and trading of special crypto microcurrencies with narrow uses. In the first case, you act as a usual Forex trader but operate smaller lots to minimize losses, and in the second case, you transact with cryptocurrencies meeting specific parameters.
This article explores the concept of microcurrency stocks, delves deep into the process of choosing a reliable trading platform, and examines the benefits of using DotBig Forex broker as your trusted platform for all trading activities. Let’s clarify the features of this emerging trend to inform your starting steps as a microcurrency trader.
Our Top Pick: DotBig
After analyzing a set of micro currency trading platforms, we’ve arrived at our top pick – the DotBig company. Every DotBig CFD trader receives a broad set of unique trading instruments to test various strategies and earn money on currency rate fluctuations across various currency pairs.
The platform currently supports a huge variety of trading options no other broker holds under one roof, such as:
- Portfolio investments;
- Venture investments.
The company is officially registered as DotBig LTD in Estonia and on St. Vincent and Grenadines, thus ensuring compliance of all transactions with EU financial regulations. Your money is intact with DotBig, and you can enjoy a broad variety of financial instruments on a platform with a user-friendly UI and plenty of educational advice on how to buy microcurrency and trade safely.
Top Micro Currency Trading Platform’s Features
So, how did we arrive at the choice of DotBig as our most preferred trading medium? Here are the key criteria a micro currency trading platform should meet to ensure safe operations.
- Spread-free CFD trading (or minimal fees for CFD contracts);
- Tight spreads with low slippage chances;
- Educational materials for beginners;
- Additional resources for trader information and updates.
The DotBig CFD trader space meets all these criteria because the company ensures low commissions, tight spreads, a detailed economic calendar, social trading features, and a demo account for no-risk training.
How to Invest in Microcurrency?
You won’t find it difficult to open an account, verify it, and start the DotBig trading activities. Go to the DotBig website, register an account, and follow simple verification steps. Once the process is over and your application gets approved, it’s time to replenish the account for the sum you plan to allocate to trading and select the micro currency pairs or crypto microcurrencies for further transactions.
How Can You Improve Your Finances with Trading?
Saying that you can get rich quickly with a micro currency trading platform would be deeply wrong, as many people lose money on trading activities. However, with proper risk management and sober money management measures, you’re bound to succeed in this highly volatile and lucrative industry.
The best way to quickly improve your finances with trading is the use of reasonable leverage to finance your margin trading. In this way, you can operate sums several times larger than your deposit to gain proportionally higher revenues from your small budget. It’s recommended to be cautious about margin trading, as a significant price move against your position can cause its liquidation. If you act wisely, however, and don’t violate the risk management principles, you can quickly grow your deposit with well-planned leveraged deals.
Another popular method of lucrative trading is hedging your open positions. It’s reasonable to create specific hedges for risky positions or the positions that are currently in a negative state (you’re losing money on them). In this case, opening a hedge short position with a CFD instrument to protect your current long position in the existing portfolio. As a result, you will balance the earnings and losses on your deposit wherever the market goes.
Is It Worth Investing in Microcurrency Today?
Speaking about Forex micro currency trading, it’s always a favorable moment to start out, as micro lots can help you train the trading strategy and avoid significant financial losses. You can grow your deposit steadily and hone the skills until you’re ready to proceed to larger lots; the main thing is to work with a transparent, reliable broker like DotBig CFD trader.
If we talk about microcurrencies in the crypto world, today may be a critical moment to invest in a micro currency with immense potential. Most cryptocurrencies are down by 50-99% from the last peak of pricing last year, and the end of crypto winter will quickly bring them back to their previous heights. Thus, investing today and being patient to price fluctuations can make you rich tomorrow, provided that you do your due diligence and invest only in projects with top rankings and sound perspectives.
As you can see, the DotBig company is a favorable choice in the sphere of microcurrency Forex trading. It offers reasonable fees and has flexible deposit requirements to support beginner traders. Here is a set of frequently asked questions about the basics of micro currency trading you should study before opening an account.
What are microcurrency stocks?
Microcurrency stocks are the lots of 1,000 currency units that beginner traders find more convenient and safer to operate in the Forex market. Such small currency lots allow traders with small deposits to speculate on currency price fluctuations and use a lower initial balance and capital investments that a regular Forex account would require.
How do micro accounts work?
A micro account is a helpful instrument for a retail investor who seeks to minimize the risk of losing money on substantial price fluctuations. This account type allows conducting the trading operations with micro lots of 1,000 currency units – a 1/100 part of a standard low size.
How to start trading microcurrencies?
You should open a micro account at DotBig and deposit a sum that can cover the price of a micro lot in the currency of your interest. Verify your account to receive access to the trading features. For instance, if you plan to trade the USD/CAD pair, you need to have $1,000 and the broker’s fee on your deposit to start the trading operations.
How much does a micro lot cost?
It depends on the currency pair you wish to trade. If you want to trade any microcurrency pairs with USD, you will pay $1,000 for a micro lot plus the broker’s fee. If your base currency is different (e.g., GBP, EUR, etc.), you will need to pay a price equal to 1,000 units of that currency and additional cover the service fee on the platform.