How to Trade Cryptocurrencies?

Cryptocurrencies are one of the most exciting markets for traders today. With Bitcoin and Ethereum leading the pack, a lot of people are getting curious about these “digital currencies” which are currently the hottest investment opportunities in the world.

CFD Trading: The Better and Safer Way to Trade

Derivatives trading in the form of CFD or contract for difference is the easier and safer way to invest in digital currencies. It enables you to speculate on whether the instrument will minus the actual trading hands. Basically it is an agreement is made to exchange the difference in value of the cryptocurrency from the time that the contract was opened and the time that it was closed. Fundamentally, the price movement of underlying asset will be the basis as to how much you have gained or lost and the greater the movement, the greater is your profit or loss.

Benefits of Trading Cryptocurrency CFDs

With a CFD service, trading is much safer and less risky. You can go long if you believe that the instrument’s value will rise or short if you speculate that it’s value will fall. Furthermore, you money is safer with a CFD service rather than on the exchanges because there is nothing to hack. For example, Kraken, which is one of the largest exchanges for Ethereum experienced a malicious attack causing the currency fell from $90 to $20.

Which CFD Service Provider Should I Choose?

If you’re in search of a brokerage to invest on these cryptocurrencies then we highly recommend that you open an account with a regulated and well-established company like eToro. They are one of the first CFD service providers that offer trading on these emerging products. With this brokerage, you can trade immediately and won’t be required to open a wallet and register to a digital exchange which usually takes up to 1 month to accomplish. Currently, they offer CFD trading on Bitcoin, Dash, Ethereum Classic, Ethereum, Litecoin and Ripple.

You may click here to trade with etoro.

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