What are Bitcoin CFDs?
If you just want to trade price changes of BTC without actually buying or selling the underlying asset you need to look for trading sites allowing trading with so-called Contracts of Difference. This is a speculation on the course of price development, in which leverage can be used. For this reason the possible profits can be increased significantly, but the same applies to the risks.
For example, if you want to trade with 100 euros, you only need ten euros. These ten euros serve as collateral for the loan of the remaining 90 euros. In trading with contracts for differences, this security is also called margin. CFD trading allows you to avoid the problem that many users do not have the necessary capital to trade the cryptocurrency on a larger scale.
A further special feature is that speculation on the loss of a currency can also be carried out. In this case, complicated financial constructs are used, where a sale at a more favourable price is already agreed in the future. If the price actually falls, profits can also be made. Without a doubt, the potential returns are high, and as already mentioned, the same applies to the potential losses.
When trading contracts for differences, speculation is only carried out over very short periods of time. These short periods of time make it all the more difficult to estimate price developments. While the performance of Bitcoin in the coming weeks and months can possibly be estimated on the basis of some key figures, these possibilities hardly exist with the short-term fluctuations. In addition, interested parties should also bear in mind that the loss can be far greater than the amount invested. This applies in particular to capital, which also hardly seems to be dispensable.
What to consider when choosing a Bitcoin Broker
Fees and Security are decisive
One of the most important criteria is the amount of the fees, which are usually charged pro rata to deposits and withdrawals. For this reason, it is particularly useful to find a Bitcoin Broker who can facilitate favorable transactions here. The second aspect concerns security. The provider should be trustworthy, offer good customer service and also officially accept German customers – otherwise the account may be closed at short notice. In order to avoid losses under any circumstances, the balance should be deposited quickly into a digital wallet. Because not only honest investors are after the lucrative Bitcoin, but also many hackers.
The topic of security also includes checking all participants who are involved in trading with the cryptocurrency. To ensure that the purchase of Bitcoins functions smoothly, the sellers should be verified by the trading platform. The best Bitcoin trading platform thus not only brings together supply and demand, but also acts as a fiduciary. This enables secure trading that creates the basis for high returns. The only problem in this context is the price development, which is difficult to forecast. Here it will be crucial to wait for the next few months.
More criteria can be found in this source: http://getbitcoal.org/best-bitcoin-broker/
With CFD Trading noone can steal your Money
One of the advantages of CFD trading compared to trading real Bitcoins is the fact that in the case of CFDs no attacker can steal your funds. Although this risk does not exist in every case, your own funds should be protected. If you own Bitcoins yourself then a secure wallet is advised: especially larger credit balances should be secured in a hardware wallet.
This guarantees that there is no loss because the account is hacked or even blocked. Alternatively, it is also possible, for example, to place a small portion of your own Bitcoin assets in a mobile wallet. This makes it particularly convenient to be able to process payments with your own smartphone while on the move. Alternatives such as a free Web Wallet can be conveniently used from any end device, but are not quite optimal in terms of security aspects – all data is backed up on a provider’s server. Consequently, data loss or hacks may occur during transmission.
What Advantages are associated with Bitcoin Trading
The crucial question – regardless of which is the best Bitcoin trading platform – naturally arises with regard to the sense of trading the popular cryptocurrency. Trading Contracts for Difference naturally enables high profits regardless of the price development, but due to the risks it is only recommended if the capital is not urgently needed.
In principle, trading with CFDs is also possible if no cryptocurrencies are used. In other words: whoever wants to trade CFDs does not specifically need the Bitcoin, but can also speculate on commodities or bonds. Trading is interesting above all because one speculates on a possible increase in value of the Bitcoin. According to experts, this increase in value may indeed occur soon. After Bitcoin initially recorded considerable increases in value in 2017, the collapse came at the beginning of 2018. Basically, there are now two ways of valuing these price slumps.
On the one hand, it could be assumed that the boom of Bitcoin is over. However, the popularity among many investors does not suggest this, especially since there were good reasons for the price slump. These reasons lead to the second possible assumption that it is possibly only a breather. The crackdown by many regulators has unsettled investors, which is why there were many quick sales.
Incidentally, the current share price must of course take into account that a fantastic return has still been achieved compared with the starting price a year ago. Thus, one could also assume that Bitcoin will soon be flying high again. Quite a few analysts still assume that six-digit dollar amounts could be reached in 2018. Therefore, it would probably be the right time to enter Bitcoin and profit from the yields.
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