Cryptocurrencies have indisputably made an impact in the trading sphere since their inception in 2009. So it might not come as a surprise that many traders and investors alike seek access to these digital currencies’ world which keeps enveloping and developing over the years. This Trader’s Guide video delves deeper into Cryptocurrencies and explains how you can trade CFDs on Cryptocurrencies with Plus500’s fintech platform. Watch this video to untangle Cryptocurrencies, the different ways through which they can be traded, and the myriad of Cryptocurrencies CFDs offered on Plus500’s trading platform.
What Are Cryptocurrencies?
Cryptocurrencies are digital assets that use cryptography to secure information and prevent third-party attacks. This means that Cryptocurrencies are nearly impossible to fake or spend twice. Moreover, a vast majority of Cryptocurrencies are also decentralised and block-chain based, meaning they are based on a network that is distributed across multiple computers and is not governed by governments or authorities. Furthermore, unlike fiat currencies’ transactions which require a third-party intermediary validation like a bank, Cryptocurrencies secure online transactions without the need for a third party.
How to Trade Crypto CFDs
Traders may trade Cryptocurrencies through Crypto exchanges and therefore own them. Alternatively, traders may access the Crypto market by trading Crypto CFDs with a provider like Plus500. Crypto CFDs may be adequate for those seeking to dip their toes into the Crypto market without having to worry about storing their Cryptocurrencies in a safe digital wallet away from hackers or for those who wish to benefit from Cryptocurrency prices without owning them.
Trading Cryptocurrency CFDs means that you do not own Crypto, since you speculate on its price movements instead. In addition, in comparison with traditional Crypto exchanges, Crypto CFDs allow for easier access to your account’s available balance and can thus be liquidated more easily since accessing your funds is relatively more manageable than withdrawing from a complex Crypto exchange. Nonetheless, traders should bear in mind that since CFDs are leveraged they can potentially maximise their gains and their losses depending on the direction of their trade.
How to Trade Cryptocurrency CFDs with Plus500
For those interested in trading Cryptocurrency CFDs, Plus500 offers CFDs on some of the market’s most popular Cryptocurrencies including Bitcoin (BTCUSD), Ethereum (ETHUSD), and Cardano (ADAUSD). As for traders that like to access multiple Cryptocurrencies at once, Plus500 also offers its Crypto 10 (Crypto10) index, which gauges the movements of 10 popular Cryptocurrencies simultaneously.
To trade Cryptocurrency CFDs with Plus500, go to your trading platform or app, click on the Cryptocurrency category, scroll down to your favourite Cryptocurrency and open a position by either clicking on the sell or buy options depending on your goals. Alternatively, you can simply type the name of your chosen Cryptocurrency in the search bar and open a position then.
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