Cryptocurrency CFDs are quite popular with the community. Their ability to provide large profits within just a single day is extremely attractive to investors, hence we have nearly every Forex or CFD broker scrambling to put them on offer. But is it actually better to trade with CFDs or should traders just go for cryptocurrencies themselves? Well, first the difference between them needs to be mentioned.
Difference between cryptos and
A CFD is a Contract for Difference. It is not
the real thing. For example, if somebody buys $100 worth of a Bitcoin CFD, they
don’t actually own any Bitcoin. They just own a contract that says they bought
it at a certain price point. They can then trade this contract once the prices
go up and make a profit. This process doesn’t require a wallet, therefore its a
bit more popular with the less tech-savvy investors.
Why are CFDs better?
Every broker that offers crypto CFDs provides
traders with margin trading opportunities. Margin trading means to leverage and
that’s something people…