FXCM, a provider of online foreign exchange, is providing customers with a new form of “basket trading” comprised of some of the top 20 cryptocurrencies.
FXCM Brings Its Crypto Offerings to New Heights
The cryptocurrency baskets, which are available for the firm’s retail customers, are comprised of bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH), Litecoin (LTC) and Ripple (XRP). It’s intriguing to see companies still working towards retail participation in the crypto space given how many have turned their attention to institutional players, who are widely believed capable of bringing legitimacy to the industry.
Further legitimacy is often a good thing, but it is likely many firms are forgetting that while institutional players could make something mainstream, they often require “specific circumstances” to take part in a new venture. Thus, if the right legislation and trading tactics aren’t in play, there’s a good chance the crypto industry won’t experience further institutional trading.
Retail players, on the other hand, are the ones involved in the crypto space right now and keeping it alive. They’re out there everyday trading, and it would be wrong to ignore them or reject products in their names completely for the sake of attracting further institutional attention.
In addition to foreign exchange - or forex, as it’s also called - FXCM is also skilled at offering contracts-for-difference (CFD) and crypto trading in general, thereby pushing it into crypto exchange territory. Known as “Crypto Major” baskets, the company’s latest products can be traded all at the same time without having to be managed separately from one another. “Equal weighting” is also given to each coin, to ensure that each asset is treated with the same amount of dignity and respect.
This is designed to prevent certain coins from garnering more attention than others. It’s a process that helps to diversify customers’ trading portfolios. Brendan Callan - CEO of FXCM - explained in a statement:
Trading a basket of cryptocurrencies means our users are freed from the hassle of constantly monitoring the markets. Crypto Major therefore streamlines the trading process and protects our customers from unanticipated and adverse market movements. It is a great opportunity for our customers who are looking to move into crypto trading but don’t want to risk too much overexposure.
Trying to Prevent Certain Dangers
Overexposure occurs when a person or business puts too much attention on one specific coin. This is a surefire way to lead one’s portfolio into darkness given that if the coin ever falls or crashes completely, all the individual’s funds are likely to disappear instantaneously.
FXCM has been working to expand its offering for some time. Last May, the company provided two new CFDs to its customers based on bitcoin cash and Ripple. It also offers three other kinds of financial baskets, ones based on the yen of Japan, the U.S. dollar and on “emerging markets.”
The post FXCM Begins Offering Crypto Baskets to Retail Customers appeared first on Live Bitcoin News.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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