10 Most Popular Questions about Trading Crypto CFDs
Cryptovest
Published Sep 26, 2018 08:36AM ET
Updated Sep 26, 2018 09:40AM ET
10 Most Popular Questions about Trading Crypto CFDs
Although crypto trading is flourishing across the world, many investors are still unfamiliar with trading crypto CFDs. CFDs or Contracts for Difference are derivatives that allow you to speculate on the price of an underlying asset, without actually owning it. In a highly volatile market like that of cryptos, CFDs are often considered an ideal way to trade digital assets safely.
Here’s a list of 10 most popular questions investors ask about this method of trading.
h2 1. Why trade crypto CFDs and not just trade them directly on exchanges?/h2Although many people gain exposure to the market by directly buying and selling cryptocurrencies, the process is rather tedious. Processing times for these transactions are very long, due to a large burden on exchange networks. Unlike the FX markets, these exchanges are usually unregulated. There have also been instances of wallet hackings in the past.
CFDs, however, allow fast transactions, without exposing you to the risk of theft because you won’t actually hold the underlying asset. CFDs are also provided by FCA-regulated brokers like Blackwell Global giving you peace of mind.
h2 2. How to buy Bitcoins?/h2Rather than just buying Bitcoins by exchanging fiat money, and then storing them in wallets, you could purchase a CFD in BTC/USD. You will just have to open a live account and then trade crypto pairs from a chart on the MT4 trading platform.
h2 3. Will I have to open separate accounts for trading crypto CFDs?/h2No, brokers like This article appeared first on Cryptovest
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