CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
EOS is the native digital currency of the blockchain protocol EOSIO, which was developed by the Cayman Islands based Block.one. EOSIO was released in an open source software format in June 2018. And according to its developers, it’s flexible, scalable and user friendly, with the ability to host high speed, secure and low-cost transactions.
EOS was initially released to the public in an initial coin offering (ICO) that was reported to have raised $4 billion on June 4, 2018, making it the largest ICO at that time. Investors used the Ether cryptocurrency to purchase EOS and did so based on confidence, despite there being no live product available at that time.
EOSIO is both a decentralised operating system and a smart contract platform that can be used to implement large scale decentralised applications. It does so in a way that reportedly solves the scalability problems associated with Bitcoin and Ethereum’s blockchains.
Although numerous exchanges let EOS transactions take place, buying and selling EOS tends to be safer if done through a regulated online broker.
Whenever the internet is involved, business activities can attract fraudulent behaviour. Take some time to learn about the more common scams to look out for that apply to cryptocurrency trading. Popular crypto scams include promoting fake exchanges, investment plans and mining groups, which should all be diligently avoided.
Other scams could ask for a start-up fee to let EOS be traded for fiat currency instantly. A scammer may also claim that investors will multiply the value of their investment fast, so beware of such claims since real opportunities with that sort of return rarely arise.
Phishing is another widespread practice that can impact cryptocurrency investors. It seems most common in email and social media, and it involves the fraudulent impersonation of an often-legitimate business that allows the phisher to obtain things like passwords, personal data and currency wallet access. This advice may seem obvious to some, but also avoid making financial arrangements with direct messages.
Even major cryptocurrency exchanges can have issues. A classic example was Mt. Gox that had to shut its doors after 850,000 bitcoins were removed by hackers in 2014. The exchange did not have a client protection fund, so investors have not gotten their missing coins back yet, although bankruptcy proceedings have recovered some money.
If at all possible, it therefore seems prudent to select a well-regulated and capitalised broker to use to trade EOS and other cryptocurrencies through. One example would be AvaTrade, which is a subsidiary of a company with a market cap of $17 billion. AvaTrade is headquartered in Dublin, Ireland, so it is subject to EU’s Markets and Financial Instruments Directive.
Another regulated broker that supports digital currency trading is eToro. Since eToro is also based in Europe, it remains subject to the EU’s strict financial regulations as well.
Most regulated online brokers like AvaTrade provide market access via MetaTrader4 (MT4), which reigns supreme as most retail forex traders’ preferred trading platform. Developed by MetaQuotes, MT4 makes customising chart types and colours simplified. The platform works on desktop, web, phone or tablet, with support for Android and iOS devices provided.
MT4 offers a trading and analysis interface that is easy to use, as well as offering features for more advanced traders, such as charting and technical indicators that allow traders to determine market trends. MT4 also allows traders to deal from charts and program/run automated trading programs called expert advisors (EAs).
Signing up at AvaTrade is easy, and the broker lets its clients operate in over a thousand assets in addition to all the important forex and cryptocurrency pairs, including popular EOS pairs. However, remember that trading generally results in exposure to market risks as the value of EOS and other cryptocurrencies can rise or fall depending on various variable factors.
Like most cryptocurrencies, the market for EOS has fluctuated widely since its ICO in June 2018. The value of EOS relative to national currencies like the euro or U.S. dollar and against top digital currencies like Bitcoin and Ethereum can shift significantly depending on how worldwide factors change.
With most altcoins like EOS, their markets are typically very democratic. This means that large orders can affect the supply and demand profile, often resulting in a move in the digital currency’s equilibrium value.
Furthermore, if a large business or payment company start accepting a cryptocurrency like EOS as payment or using the EOSIO blockchain technology, then this will usually boost the value of the coin. Blockchain and other cryptocurrency technology improvements can also affect digital coin values, as can hard or soft forks in a blockchain.
In addition, cryptocurrencies like EOS remain vulnerable to government regulation. Particularly problematic news would involve a country issuing a ban against using or holding the digital coins. Moreover, if another major exchange like Mt. Gox gets hacked, then that could also see digital currencies drop in value across the board as confidence in them declines.
Some popular cryptocurrencies can also have their value boosted when used as an unregulated store of wealth. This happened to bitcoin during the Cyprus banking crisis in 2013, most likely due to Cypriots loss of faith in their banking system after it was shut down for almost two weeks, with investors turning to investing in digital currencies instead.
Chart of EOS in U.S. dollars, as well as bitcoins (BTC), for its entire trading period from July 2017 until July 8th, 2019 with market cap and daily volume data included in indicator boxes below the price chart. Source: CoinMarketCap.
Read more about the different brokers trading some of the world’s biggest and most exciting cryptocurrencies here: