What is Cryptocurrency CFD Trading?

CFD or contracts for difference is a popular investment product where you can speculate on the price movement of a cryptocurrency. It is a financial derivative wherein there you set an agreement (contract) with a brokerage company to receive the difference between the asset’s (in this case, the cryptocurrency) current value and its value in the future without the need to own or purchase the asset.

That means there’s no need for you to register with an exchange or have a wallet to store your digital coins. You just need to open an account with a broker but be sure that you choose one that is regulated and trusted. And just like the basics of CFD trading, you just need to enter your position size and choose Buy if you think that your chosen coin’s value will rise or Sell if you think it will fall. You can close the position if you’ve reached a target or you want to lessen your losses if your order is on the downside.

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