The interest in trading in cryptocurrencies such as Bitcoin and Ethereum have increased significantly in recent years. One way to position yourself in cryptocurrencies is by trading CFDs on cryptocurrencies at a CFD broker. There are several benefits to doing this.
Quick and easy: The fastest and easiest way to trade cryptocurrencies is through a CFD broker. You do not need to create a Wallet and then turn to a crypto exchange. All that is required is to open an account with a CFD broker that offers trading in cryptocurrencies.
- Increased leverage exposure: Most CFD brokers offer leverage for investors who buy CFDs in cryptocurrencies. Leverage provides the investor with the opportunity to multiply his exposure to a greater extent than trading cryptocurrencies directly.
- Make money both in ups and downs: Since CFDs (Contracts of Difference) are precisely speculation in price changes in an underlying asset such as crypto, it is possible to position yourself even if you believe in a decline in a particular cryptocurrency. If the investor believes in an upturn, you go a long way. If you believe in a drop, you open a short position.
An investor who is holding in a particular cryptocurrency and now sees a decrease in value has the opportunity to position himself in a short trade. CFDs will increase in value in the event of a continued decline, thereby compensating for the declining value of the previously acquired holdings of cryptocurrencies. In an optimal trade, the investor closes his short position when the cryptocurrency is at its weakest and takes a profit when the trend changes.
Start trading cryptocurrencies
So far, buying Bitcoin and other cryptocurrencies has been complicated and time-consuming. To buy a Bitcoin, you have had to go through the following four steps: 1) Create a wallet. 2) Create an account with an exchange site, also called crypto exchange. 3) Transfer money and only then, 4) Buy Bitcoin. In many cases, it costs to create a wallet, and the exchange sites charge high fees for buying and selling transactions.
Another disadvantage is that the purchase does not take place immediately – sometimes you have to wait for several hours until the order has passed. These factors have, for a long time, prevented many who are interested in trading in cryptocurrencies. That is why we recommend trading cryptocurrencies with CFDs instead. At PDExtrading.com you can find UK regulated CFD brokers, you can speculate in Bitcoin and other cryptocurrencies, quickly and easily in the same trading account.
Instead of buying a cryptocurrency and only earning on the rise, you trade CFDs on cryptocurrencies. If you believe in an upturn, you open a long position. If you think that a particular cryptocurrency will fall in value, open a short trade. If you want to leverage your positions to increase your investment, most CFD brokers offer that opportunity.
The next natural step is to take a look for UK CFD brokers we at of PDExtrading.com can recommend to trade CFDs on Cryptocurrencies
CFD contracts are complex instruments that involve a high risk of rapid losses due to leverage. Of non-professional customers, 69% lose money.
CFD contracts are complex instruments that involve a high risk of rapid losses due to leverage. Between 69 and 75 per cent of all non-professional clients lose money on CFD trading at the providers listed on this site. The content, opinions and conclusions of PDExtrading.com are not financial advice. Of PDExtrading.com assumes no responsibility for any losses, costs or other consequences that may arise from actions taken based on the content on the website. The information available on of PDExtrading.com is not updated every day and may in some cases not be correct. The website contains collaborative links to our partners – you as a visitor and trader are not affected by the links.