traderai.ai

Why Choose to Trade Crypto CFDs in AI Trading?

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.

Lower Costs

Trading crypto CFDs has lower fees than buying the actual cryptocurrencies which require digital wallets and exchange fees. Lower costs benefit traders.

Leverage

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.

Stop Losses

CFD platforms allow you to set stop loss orders which automatically exit your position to limit losses if the price moves against you by a certain amount. Stop losses control downside.

Technical Analysis

CFD platforms offer charting tools and indicators to analyze price trends and identify high probability crypto trade setups. The technology aids traders.

Hedge Risk

If you own cryptocurrencies, shorting crypto CFDs can hedge against falling prices. CFDs provide a way to offset losses in your crypto portfolio.

24/7 Access

Major crypto CFDs can be traded around the clock on weekdays, weekends, and holidays. 24/7 access allows reacting to news anytime.

No Digital Wallets

With CFDs, you don’t have to deal with cryptocurrency exchanges or digital wallets to store coins. Avoiding wallets simplifies trading.

Demo Practice

Many CFD brokers offer practice demos to simulate trading with pretend money. Test different strategies with virtual funds before risking real capital.