Cryptocurrency – it’s a term that wasn’t even discussed as a concept just over a decade ago.
But with its extraordinary tendencies to fluctuate so wildly, more and more traders are considering digital assets like Bitcoin, Ethereum and Ripple as part of their portfolios making this relatively new asset class more mainstream than ever before.
Think we’re exaggerating?
Just take a look at this price chart of Bitcoin and notice the huge shifts in movement of its market value in just a short period of time:
Buying and selling of altcoins is not the same as other financial instruments.
Traditional factors that affect the market price of forex, stocks, commodities and indices are not the same with this new kid on the block.
Supply and demand, the number of rival digital coins and the digital exchanges where they are traded are the primary influencers that are dictating the value of crypto coins.
|Symbol||Name||Last Price||Change||% Change|
If you want to buy or sell crypto then you need to sign-up with a digital exchange and there are hundreds of brands available online like Coinbase and Binance with slightly different rates for converting them into fiat currencies like USD, EUR and GBP, an vice versa.
But here are the downsides:
First of all, majority of digital exchanges are not for ideal for newbies.
Secondly, a lot of these exchanges lack customer support via phone, email or chat and this is often the frustration of crypto traders.
And that’s not all…
These are at risk of hacking or theft with reports of exchange cyber attacks becoming more and more frequent.
What can you do about it?
Fortunately, there’s a safer and less risky way to trade cryptocurrencies and the surprising thing about this alternative method is that you don’t even have to actually buy or sell a digital coin in order to make a profit.
So what’s the secret? CFD or contracts for difference.
Cryptocurrency CFD Trading
Before we go any further…
You need to understand the basics of CFDs. Don’t worry, this will be very simple.
CFDs (contracts for differences) are varieties of derivatives.
The concept of these financial instruments is that they are derived from the prices of the underlying assets so in this case, the cryptocurrency that you’re interested to invest on (Bitcoin, Ethereum, Litecoin, Ripple, etc.).
With a CFD broker, you are trading contracts based on the price of a particular altcoin so the contract that you (as the trader) agreed with the broker is to exchange the difference in valuation between the price of the underlying asset when it was opened and the price when it was closed.
In other words:
You are basically speculating on the market price of a cryptocurrency.
Crypto CFD trading allows you to make profits REGARDLESS of the market’s general direction.
If you believe that a specific digital coin’s value will increase, you can go long (buy) and if you think that the price will decrease based on your speculation then you can go short (sell).
So what’s the point?
Trading cryptocurrency CFDs is much more beneficial.
All you have to do is find a broker which offers cryptocurrencies on their platform and sign-up for an account in order to start your trading journey.
But remember this:
Ensure that you register with a regulated and trusted broker if you are looking for trustworthy services.
But here’s something really interesting…
There’s no need to do your own research or go through several review sites to look for these brands because we’ve listed them all here for your convenience.
Feel free to check out these highly recommended CFD service providers and experience the new and safer way of trading cryptocurrencies!
Trusted and Regulated Brokers Where You Can Trade Cryptocurrency CFDs
Min Deposit: $200
Regulation: CYSEC, FCA
Min Deposit: $100
Regulation: FCA, ASIC, CySEC
Min Deposit: $100
Regulation: CBI, ASIC, FSC, FSA, FSB
Min Deposit: $200
Regulation: CySEC, IFSC