How ETFs Can Help The Crypto Market?

All You Need to Know About ETF (Exchange Traded Fund)

MMutual Funds are a popular type of investment among investors. This instrument is popular with beginners because of its simplicity. Mutual Funds are an investment alternative for the investor community, especially small investors and investors who do not have much time and ability to calculate risks or analyze their investments. Mutual Funds are designed as a means to raise funds from people who have capital, have the desire to invest, but do not have sufficient time and knowledge.

1| ETF, what is it?

ETF is a Mutual Fund in the form of a Collective Investment Contract, the units of which are traded on the Stock Exchange. In other words, ETF is an investment product that combines two product characteristics at once: open-ended fund and stock.

The advantages and objectives of investing in ETFs

The following are the advantages and objectives of investing in ETFs compared to other investment alternatives: (1)Diversification: Automatic diversification of several leading stocks in one order. (2)Flexibility: Take advantage of high buy/sell flexibility, because you can directly buy and sell ETFs during exchange hours just like stocks do.

Can ETFs solve that?

2| Why are ETF good for cryptocurrencies?

ETFs on cryptocurrencies have the potential to eliminate security and instability issues in the cryptocurrency market. Investors can still be introduced to the world of bitcoin and remain in a familiar and regulated order.

What is the difference between owning a Bitcoin and a Bitcoin ETF?

Having a Bitcoin ETF there are no worries about the security or storage of the Bitcoin. The owner of the Bitcoin ETF illustrates that he owns Bitcoin but does not need to worry about where the Bitcoin is stored and asks if it is safe or not, the owner of a Bitcoin ETF does not have to worry about the technical details of the Bitcoin they have. It is enough to bring proof of ETF ownership and if you want to sell it, you can sell it like shares.

3| Multiply your profits with a leveraged ETF

Cryptocurrency trading is sometimes full of risks and often leads to big losses without realizing it. No one can confirm the exact number, often the analysis is not in accordance with market movements. Like forex, bitcoin leveraged trading can also be used to increase profits. For those of you who don’t know leverage trading yet, I will explain a little of the advantages of trading crypto.

What is the leverage ETF?

Leverage refers to the ability to take a much larger position with less capital, in other words, it can increase the profit of a trade or investment with small capital. A leveraged ETF has the potential to give you high returns, it can outperform the underlying index two or three times over a certain time frame. Like Hotbit which supports 1Day 3x Long (1D3L) and 1Day 3x Short (1D3S) trading.

Yes! Hotbit

Hotbit started trading leveraged ETFs on 4 June 2020. At Hotbit you can buy leveraged ETFs with USDT. For trading fees charged is 0.1% equal to the rate of spot trading fees.

4| The easy way to trade ETFs on Hotbit

Now that I understand the benefits of trading cryptocurrency ETFs, I will now review a brief way to trade crypto ETFs on HotBit. You can follow the steps below to get started investing or trading cryptocurrency on HotBit.

❶ Register at Hotbit

To start trading, you must first register again. You just have to set up an email or phone number. Please click [register] in the upper right corner of the Hotbit main page.

❷ USDT deposit

After you have an account at Hotbit, the next step is to enter an amount as a deposit. This you need to do before you start buying ETFs. It’s simple, click the deposit button on your HotBit account dashboard. There are two deposit options:
- USDT deposit from your local exchange
- buy directly with fiat via Epay

❸ Observe and study ETF charts

The next step after you have filled your deposit is to observe the trading chart. By observing the trend on the chart, you will find out when the price tends to go up (bullish) or the price tends to fall (bearish) so you can determine when is the right time for you to buy the ETF.

❹ Buy and sell ETFs

Buying an ETF is like buying any other asset. There are Buy and Sell buttons that you can find easily.

Key Takeaways — — — — — — — — — — — — —

❓ What is an ETF?
An ETF is an investment product that combines two product characteristics at once: an open-ended fund and stock. ETFs are classified as securities and can track the movement of an investment — a commodity such as gold or shares of a company — which investors do not need to buy gold or stock directly.

Crypto enthusiast — Copy Writer