What is a Bitcoin CFD?

CFD is a type of derivative trading. When buying a Bitcoin CFD you are not technically buying Bitcoin as a form of currency but a contract between you and the CFD broker. CFDs allow for margin trading and leverage. You can’t withdraw CFDs from a platform and deposit it into another but you can do so with cryptocurrency assets (ie. non-CFD)

What is CFD trading?

CFD trading means you trade a Contract For Difference, It means that the buyer and seller settle the transaction in cash after the change in price difference of the commodity through a contract of certain specifications.

Is cryptocurrency CFD trading profitable?

Cryptocurrency CFD trading does have the potential to produce profit, with little need for massive amounts of capital. The option to put a small percentage of the value of the asset towards the trade is a real advantage. This particularly helps those who are new to CFDs.

How do cryptocurrency CFDs work?

Crypto CFDs work through a trader making predictions about the future of a digital currency. In all cases, the trader must put down a small percentage of an asset’s value as collateral (of sorts) for the trade. Cryptocurrencies can, for this type of trading, be traded in pairs.