This post is inspired by the IG-sponsored post on D&S.

1. You own the underlying asset when you trade

When you buy cryptocurrencies, once the coins are in a wallet which you have the private key to, you are the owner of the coins.

2. There is no counterparty

Unless you are leaving your coins within a centralized exchange to make trades, all the coins that you can access with your private key are yours and you don’t have any counterparty. You directly interact with the blockchain to send your coins, or receive more coins directly to your ownership

3. There will be volatility

In a market with plenty of speculators, the volatility is high. Even for the “large cap” coins, it isn’t strange to see swings of 20% within a day.

4. Don’t use leverage

Related to #3, with the huge amount of volatility in the cryptomarkets, you don’t …