Grow your Portfolio with the Scallop Exchange
There are many things that can be done on a crypto exchange but, before we mention them, let’s get ourselves reacquainted with what a cryptocurrency exchange is.
A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. Crypto exchanges work similar to online brokerages, as users can deposit fiat currency (such as U.S. dollars) and use those funds to purchase cryptocurrency. Also, some exchanges allow users to earn interest on assets held within the exchange account.
There are two types of exchanges:
- Centralized & Decentralized Exchanges
Centralized exchanges have similar business models to a traditional stock exchange, they involve a third party that facilitates the trade, takes deposits, and safeguards the holdings of its users.
Decentralized exchanges are more interesting in the sense that they have no middle man. They are known as ‘trustless’ as they are built on smart contracts.
Now, here are some of the features of cryptocurrency exchanges:
- Order Book: The order book is a feature of a centralized exchange. In this feature, you can buy or sell orders to fill at a future date. This helps to plan out trades, set stop losses, and is very efficient in getting good prices in periods of marker weakness.
- Margin Trading: When a trader chooses to trade on margin, they increase their buying power by borrowing from the exchange at a multiple of the assets they have deposited. In theory, this could increase your returns, but there are risks involved.
- Fractional Shares: Fractional shares let investors buy a portion of a stock, making it easier to diversify even with small amounts of money. This is particularly advantageous for investors who are working with limited capital but want to build a highly diversified portfolio.
- Fractional NFT Trading: An innovative feature on some exchanges is the fractionalization of NFTs. This means that users can buy fractions of a whole NFT, for example, a Bored Ape, via a futures contract. And as such, when the NFT is sold, users can receive a share of any profit. This significantly lowers the barrier to entry to purchase valuable NFTs.
- Derivatives(Futures and Options): These are leveraged trading instruments offered on some exchanges. A futures contract is a promise to buy an asset at a given date, and an options contract provides the purchaser with the option to buy an asset at a specific price at a specified date. These two instruments allow you to increase your purchasing power and have very different payouts depending on the price change. The advantage to these instruments is that you can achieve a lot more profit from the same amount of capital.
One secure and sure platform that has the features earlier mentioned is the SCALLOP EXCHANGE.
Scallop exchange is a cutting-edge new platform that adds to the Scallop ecosystem. On the scallop exchange you can:
- Deposit crypto(buy with a credit card) and sell your crypto on the market. A step-by-step guide is shown in the link below 👇
- Trade Futures: Scallop Futures makes it simple to trade crypto derivatives contracts.
Wondering how you can do this on the Scallop exchange platform, here’s a link to the guide 👇
- Trade with margin: Please note that scallop reiterates that high leverage is an extremely high-risk trade that may result in losses and should be used only by experts who can manage their risks.
Here’s a link to the guide on how to trade with margin on the Scallop exchange platform 👇
Scallop Chain is an innovative fintech ecosystem for users that want a faster, more efficient way to securely manage their crypto + fiat in a single place.
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