What is nickel?
Nickel is classified as a transition metal and was first isolated in Sweden by Axel Fredrik Cronstedt in 1751. Nickel is a silvery white metal that has been used in currency for centuries and is currently primarily utilised in steel production.
Nickel is primarily used for its corrosion-resistant characteristics by mixing with other metals and creating alloys. Due to this anticorrosive attribute, over 80% of the current supply of nickel is used for the production of stainless steel, with a further 10% used in the plating of iron and brass. Electric vehicle manufacturing and consumer electronic battery components are a fast-growing segment for nickel. Mining and smelting operations have recognised that the global push for greener technology will lead to an increasing shift in the end use of their product and have begun producing higher purity nickel to meet this growing market. Global demand has increased by an average of 4% per year over the past decade and the nickel price trend has risen in line with this demand.
Asia is the largest producer of nickel with Indonesia supplying more than any other country in 2020. The Philippines, Russia, New Caledonia and Canada are other major global suppliers.
Performance of nickel
The nickel spot has risen steadily since the market crash of March 2020 when it dropped to its lowest point since 2017. As of late May 2021, the nickel price has traded within the 52-week range of $12,092.50 - $20,107.50. The spot price has increased by over 46% in the 12-month period ending in mid-2021.
The volatility shown in the nickel price chart attracts traders on the lookout for fresh opportunities. with Oer $1.4 trillion worth of contracts were traded in 2017, with the futures market seeing the bulk of trading.
How to invest in nickel
The London Metal Exchange or the New York Mercantile Exchange are popular choices for those looking to invest in nickel . You can also buy ETFS or stocks in mining or smelting operations that are involved in the industry.
Traders looking to invest in nickel using the Currency.com tokenised platform are able to profit from upward or downward movements in the commodity without having to invest directly. Tokenised assets are crypto derivatives whose value is linked to the value of a particular asset, in this case the nickel price.
The token is registered using distributed ledger technology (DLT), the same way cryptocurrency is recorded. This technology allows trading using crypto without the need to convert back and forth with fiat currency, saving exchange fees. The use of this technology allows tokenised asset trading to be efficient, inexpensive, and secure.
Trading tokenised assets based on the nickel price lets you take a long or short position depending on whether you feel the price today is over or under-valued based on the price chart. Trading in tokenised assets on Currency.com also allows traders to benefit from the leverage offered on the platform, up to 1:200 leverage on commodities.
Why trade tokenised nickel with Currency.com?
Trading tokenised nickel on the Currency.com tokenised assets exchange has a number of advantages. Tokens are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument’s price.
Trade tokenised nickel with Bitcoin or Ethereum. Benefit from the price movements without exchanging your crypto assets into fiat.
Trade tokenised shares with a tight market spread and benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world’s top commodities, with up to 1:200 leverage.
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
Currency.com has a scalable and low latency order management system, which can execute 50 million trades a second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
Tokenised shares trading guide
Trading tokenised commodities is no more difficult than regular shares. To begin trading tokenised assets, you will need to follow some simple steps:
1. Register for an account with Currency.com.
2. Deposit funds (with crypto or fiat) in the account.
3. Determine the position size desired, accounting for leverage offered by Currency.com.
4. Determine your trading position (long or short) based on expected price movement and purchase tokenised commodities.
5. Currency.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, Nasdaq, NYSE, and Gain Capital.
6. Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position.