What you need to know about crypto CFDs
Cryptocurrency CFDs are mutual funds that you can trade on shares of cryptocurrency (such as bitcoin)
This is not the same as buying bitcoins directly, but it has many benefits:
- You do not need to buy cryptocurrencies. If you want to create your own crypto-currencies or if you do not trust yourself with keeping your own currencies safely (for example, because they’re too expensive for someone like me), then this solution is perfect for you since no action is required other than creating a position in the market and play the stock market.
- No risk of losing your investment – You can immediately close their positions to return money at any time
3) You can create an unlimited number of positions
4) You can trade on leverage. This is very attractive since it allows you to multiply your earnings without the risk of losing more money than you have deposited. However, please note that leverage increases potential losses as well as profits – always remember this rule.
5) It is regulated by CySEC (Cyprus Securities and Exchange Commission), which means it is safe. There are no hidden expenses or fees, so if you look at the numbers on their website, they are really what you will be charged every month.
6) They allow withdrawals up to 0x25000 per week without verification requirements (it may vary depending on your payment method). This amount may change.
Step 1: Open an online cryptocurrency CFD trading account
You first need to open an online CFD trading account with a cryptocurrency CFDs broker. You will need to provide personal information like your name, age, e-mail address and contact number. You may also be required to submit scanned copies of valid photo IDs for identity verification purposes. If opening the account yourself seems too daunting, you can always delegate this task to someone else. As long as you are 18 years old or above, almost anyone can open an account with most brokers as long as they have enough funds in their bank accounts (note that these deposited funds are not used when placing trades on Forex/CFD platforms).
Step 2: Fund the account with a minimum initial deposit
You will need to deposit into your CFD trading account in the form of Euros or US Dollars (or any other currency, depending on where you live). You can choose from available payment options when making an initial deposit, such as bank wire transfer and credit card payments. Once the funds have been deposited into your trading account, it’s time for step 3!
Step 3: Start buying cryptocurrency CFDs
Before you can start trading cryptocurrency CFDs, you will need to choose which cryptocurrency(s) you want to buy. To do this, look through the different available cryptocurrencies or search for specific ones already appreciated. Once you have found a cryptocurrency that you wish to purchase using CFDs, click on it and select “Trade” from the drop-down menu.
Next, tick the box next to “Long” if you are buying these CFDs intending to profit off their predicted rise in value or “Short” if you are predicting a fall in price. Do note that choosing either one means that should your prediction turn out incorrect (i.e. BTC’s price rose instead of falling); then you will lose all of the money you have invested.
Step 4: Wait for the cryptocurrency CFDs to appreciate and make a profit
Your cryptocurrency CFD should begin rising in value as per your prediction after some time (though this time can vary depending on how volatile it is). Once its price reaches your target goal, you can proceed to sell it by clicking on “Sell” again like you did when purchasing it (note that if you wait too long before selling, then your position might start depreciating). After selling, remember to withdraw your profits into a bank account, and you’re all done!