What is cryptocurrency CFD trading?Trading cryptocurrencies using CFDs means that you are trading assets you don't actually own.
CFD trading is speculating price movements via your CFD trading account. This means that your goal is to earn from price movements between crypto/crypto or crypto/fiat pairs and you don't actually own any crypto you trade.
Imagine your friend is putting a house on the market and invites bids to be made. You bet with another friend on whether the bids will be higher or lower than the list price.
You don't own the house, but if you win your bet, you earn money.
That's sort of what CFD trading is, you're speculating the price of cryptocurrencies without actually owning the underlying coins.
You can buy a crypto (go 'long') if you think the price of the crypto will rise or you can sell a crypto (go 'short') if you think the price will go down.
CFD trading normally offers you leverage, which allows you to trade with 5 to 500 times more money than you actually have.
This means that you can start trading with very small deposit.
Even if you deposit just $10, you might be able to trade for up to $50 or even $5000.
And you can earn gains from the total amount.
Of course, this means that you can gain more money faster, but it also makes it easier and faster to lose our deposit.
Getting started with crypto trading might seem like like learning Chinese, but it's actually not that difficult.
Trading cryptocurrencies using CFDs means that you are trading assets you don't actually own.
When you are looking for places to trade cryptocurrencies, you'll notice that many of them are called cryptocurrency exchanges while others call themselves cryptocurrency platforms. What's the difference?
What are the most popular cryptocurrency pairs to trade? And what does a cryptocurrency pair mean anyway?
Before you start trading cryptos, make sure you're aware of all possible costs and fees related to crypto trading.
What are the main differences between trading cryptocurrencies and trading stocks? Which is more profitable? Let's look into it!