Trading Cryptocurrency With CFDs

There are several ways to trade cryptocurrencies. The first is purchasing them directly via trading platforms or third-party services. This requires understanding how crypto addresses and wallets work. For Bitcoin, the process can be tedious. You need to enter a lengthy code to send money between wallets and exchanges or decentralised marketplaces. Getting it wrong means you could lose your Bitcoin and never recover it.

The alternative is to use CFDs. Contracts for different track markets, including popular cryptocurrency pairs like Bitcoin/US dollar (BTC/USD). With these contracts, you pay or receive the difference in market price between when you open the contract and when you close it.

The primary advantage when CFD trading cryptocurrency is that you do not have to deal with the logistics of obtaining, sending, and holding your digital money. You trade the price differences using regular funds already in your trading account. You do not actually have to hold cryptocurrency at all. The only requirement for this type of speculation is finding a reputable crypto CFD trading platform.