Why should a trader choose to trade crypto CFDs?
Cryptocurrencies like Bitcoin and Ethereum are digital assets traders buy and sell for potential profits. Trading crypto CFDs offers some advantages over owning the actual cryptocurrencies.
What are Crypto CFDs?
A CFD is a contract you make with a broker to speculate on asset price changes. With crypto CFDs, you profit from crypto price moves without owning the coins.
Trading crypto CFDs has lower fees than buying the actual cryptocurrencies which require digital wallets and exchange fees. Lower costs benefit traders.
CFD leverage allows controlling larger crypto positions with less capital. For example, $1,000 in margin can trade $10,000 of crypto CFDs. Leverage boosts potential profits but also increases risk.
Go Long or Short
Go long if you think crypto prices will rise, or short if you think they will fall. This flexibility lets you profit from both upward and downward price swings.
CFD platforms offer charting tools and indicators to analyze price trends and identify high probability crypto trade setups. The technology aids traders.
If you own cryptocurrencies, shorting crypto CFDs can hedge against falling prices. CFDs provide a way to offset losses in your crypto portfolio.
Major crypto CFDs can be traded around the clock on weekdays, weekends, and holidays. 24/7 access allows reacting to news anytime.