CFD trading on cryptocurrencies
CFD stands for “Contracts For Difference” and essentially represents a contract between two parties, one agreeing to pay the other the price difference should see an asset rise or fall beyond a certain point. A trader could lose more than their initial deposit should the market move against them. It is important to note that CFDs are not regulated by any government body and allow traders to bet on markets without owning the underlying asset.
Cryptocurrencies have seen explosive growth in interest over recent years, but a significant portion of the population has yet to invest. In fact, according to Statista, cryptocurrencies reached an all-time high of approximately 180 billion U.S dollars’ worth of investments in January 2018.
One of the main obstacles often cited for not investing in cryptocurrencies is a lack of knowledge and understanding about making such investments. The cryptocurrency market moves extremely quickly, with values rising and falling by hundreds or even thousands of dollars overnight. As well as this, cryptocurrencies do not follow any standard financial model; they are incredibly volatile and challenging to predict, making them attractive to investors but challenging for brand new traders.
What exactly is Cryptocurrency CFD Trading?
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