CFDs are highly complex and highly speculative products with corresponding risk, not least because of the volatility of the cryptocurrencies and the application of a lever. An advantage of Duxa Capital trading in CFDs is that only a percentage of the total value of the trade needs to be paid to open a position. The difference between the entry and exit price can be a gain and a loss. Cryptocurrency volatility is high. In combination with margin trading, significant losses can occur.
- Cryptocurrency CFD trading is subject to certain costs that may be higher than other product categories. In addition to the spread per order in relation to the underlying, costs in the form of overnight financing (swap fee) may become due. The likelihood of making a profit should be considered in the context of the impact of trading fees. Compared to Fiat currencies (USD, EUR, etc.), there may be significant deviations in quoting cryptocurrencies that serve as the base currency for CFD positions.
- As a rule, CFD brokers offer exclusively advice-free services. Their services include the assumption of order execution. All information displayed on the brokerage website has the character of general information. They do not constitute an independent financial analysis or investment advice. The Broker will not make any trade recommendations to buy or sell certain CFDs or any securities. If the dealer suffers a loss on the basis of a specific investment decision, the provider will at no time assume responsibility for it.
What is better CFD trading or trading on a stock exchange?
The question “What is better CFD trading or trading on a stock market?”Cannot be answered absolutely. Depending on the preferred trading style, trading in crypto-CFDs may be more attractive than trading on a crypto exchange. Comprehensive profit opportunities offer both trading variants. CFDs are less designed for long trading. They are very suitable for day trading strategies. A seasoned CFD trader will take a position with the goal of quickly quitting at a profit. Daily returns of one percent and more are possible.
Conclusion on CFD Bitcoin: Trading a highly complex and high-risk financial derivative
Crypto-currency trading is growing in popularity. Traders have the option to physically purchase digital currencies or to move their share price performance. For many investors, first and foremost CFDs for Bitcoin trading are eligible. Above all, CDFs are popular because a relatively low capital investment enables high profits. Bitcoin CFD trades online on an off-exchange trading floor. For this they need a trading account with a CFD Bitcoin broker and a certain trading capital. Account deposits can be done very easily by bank transfer, credit card or eWallet.