Advantages and Disadvantages of Demo Account on Crypto Trading
What is a Demo Account?
Demo account is a feature for practicing trading or trading games. do not use real money, virtual money will be given by the exchange as capital so that no loss/profit is obtained. Often demo accounts are practiced by novice traders, but many intermediate and advanced level traders also try their new strategies on demo accounts.
Advantages of Demo Trading
There is no risk and profit, As a means of practicing analyzing prices, strategies and making decisions, There is no fear, stress and other psychological effects, Recognizing the crypto trading process, Demo trading will also be able to increase confidence for novice traders.
Disadvantages Demo Account
Demo accounts are often considered as a marketing strategy for crypto exchangers, the purpose of crypto exchanges providing demo accounts is so that novices can learn and practice crypto trading, if they profit on a demo account, they will rush to try on a real account. The demo account is just a trading simulation so it is designed to make it easier to make profit, but in reality real trading is not as easy as on the demo account. Demo accounts are often considered only to practice trading, not to form a strong trading mentality. The capital provided by the broker on the demo account is very large, so it will be difficult for novice traders in money management when using a real account with small capital.
Well, I think that one of the biggest advantages of a demo account is that you get to learn how to trade cryptocurrencies before actually trading coins using your real funds. This is a great thing when it comes to experimenting with cryptocurrencies. Many people may not have that much experience in regards to trading crypto, so they may sign-up for a demo account. Not all the trading platforms offer such accounts though.