Why are people trading stock and bond markets on cryptocurrency platforms?
Trading stocks and bonds online is a new, relatively unregulated and somewhat risky activity, according to a new report from the brokerage firm Research Line.
“The trading space is still very new and it’s hard to really measure how big it’s growing,” Research Line’s Matt McFarland said in a conference call with investors.
“But it’s getting better and better.”
McFarland explained that while trading stocks and bond marketplaces are a risky endeavor, the risk is relatively low.
In fact, Research Line estimated that trading platforms made up just 1.5 percent of the stock market’s $3.3 trillion market value at the end of January, down from 8.4 percent at the beginning of the year.
Trading platforms are generally only allowed to sell stocks and have to be approved by the SEC.
However, some platforms like BATS and Gilt offer a much more lucrative and unregulated investment opportunity.
“The volatility in the stock and bonds market is higher than most people would imagine,” McFarsell said.
“There are a lot of opportunities that you can take advantage of if you have some familiarity with the technology.”
A lot of people are taking it for granted.
But, in reality, it’s a whole different ballgame.
You have to get into it with a lot more caution,” McShane said.
Traders can use digital tokens to purchase stocks and debt securities, and they can use cryptocurrencies such as Bitcoin and Ether to do the same.
The new report is one of several reports released this week from major brokerages that examine cryptocurrency trading platforms and how they are becoming more common.
In a statement, Research Link CEO Mark Schubert said the firm is not a regulator and that trading is a completely legal and ethical way to invest in the digital economy.
McFarsell, who is a former SEC chairman, said that trading can be a risky investment because it’s unregulated.”
There are no regulatory requirements that say that you must follow a specific price-setting strategy to be able to do this.
But if you do, you’re breaking the law,” McHane said in the conference call.”
But if you’re in the market, and you’re trading stocks, you can just follow the simple rules and do it with confidence.
“McHane’s firm also has a wealth of research on cryptocurrency trading, and he said that he’s received requests for more research on the topic from both traditional financial institutions and other cryptocurrency enthusiasts.”
We’re hearing a lot from people wanting to learn more about the technology, but also from investors and investors wanting to know more about trading,” McIrene said.”
I think the big question is, is it safe?
Are you making a mistake?
Can you actually lose money?