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CFDs – The best way to invest in cryptocurrencies

If you want to invest and speculate on cryptocurrencies, this solution is probably the worst you have available.

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Image: PC Tech Magazine

What is the best way to invest in cryptocurrencies today? The answer can be the CFD (Contracts for Difference). CFD allows you to organize articulated investments, just like professionals would, as well as to access tools that instead of the classic channels for the exchange of cryptocurrencies.

Those who choose to invest in cryptocurrencies by choosing CFDs will be able to:

  • Operate with financial leverage, or multiplying the trend of the chosen cryptocurrencies. You will thus be able to increase the volatility of the asset, which you cannot do with a direct investment.
  • Operate with safer accounts: cases, where exchanges are punctured by attackers and investors capital endangered, are not uncommon. The most advanced broker platforms that offer CFDs protect you from all these problems.
  • Significantly lower costs: You will have to pay to trade via exchanges that can even exceed 10%. With the best CFD platforms, instead, you will find yourself investing by spending a few cents on each trade.
  • Advanced platforms: you will not have to operate via browser having any technical option available. When you choose a good CFD broker, you have advanced analysis, chart reading, investment signals, and much more. You can operate just as if you were investing in more traditional financial assets.
  • Ability to integrate the investment in cryptocurrencies with other types of assets: Typically, in fact, CFD Trader allows you to go and invest without any problems in other types of financial instruments, such as stocks, commodities, forex and other types of assets to speculate.
  • Short sale: we are in front of a tool that allows you to bet on the fall of the cryptocurrency you have chosen. Even this possibility, using exchanges instead of CFDs, is precluded.

It pays to invest in Bitcoins in CFDs

Cryptocurrencies continue to cause much discussion, dividing public opinion into two opposing parties, for or against the sector. However, it should be noted that the party in favor has recently been enriched with segments of the traditional financial and economic world, which seem willing to marry the reasons.

The volatility and liquidity of the market also continue to tickle the appetites of many potential investors. Those who want to try to profit from virtual currencies can do it in two very different ways: by purchasing the preferred asset directly or trading online with CFDs. The Contract For Difference can ensure large advantages, starting from the fact that to go to the collection, the price of the chosen uniform doesn’t need to go up.

It is also possible to open short positions, where it is believed that a given cryptocurrency is destined to fall in price within the period considered.

Why not trade cryptocurrencies with exchanges

Exchanges are websites specialized in exchanging cryptocurrencies with classical currency. You can access it and buy with Euro practically any type of cryptocurrency.

Limitations of exchanges

  • The exchange costs are very high: between commissions on the card, on the exchange, and spread, you end up paying from 2% to 10%, depending on the amount of money exchanged and depending on the exchange that we have chosen. We are faced with prohibitive costs, at least for those who want to trade!
  • You cannot access leverage, which is a fundamental tool because it allows you to go investing by multiplying the trend of the cryptocurrency you have chosen.
  • You have no advanced graph analysis: you cannot apply advanced technical tools to analyze the graph, to calculate resistances and supports, to decide when and how to enter the market.
  • You have no short selling, which means that you will not be able to invest by betting on the decline in the value of cryptocurrencies.
  • You cannot manage other assets, other than cryptocurrencies, from the same platform. This is perhaps the most important limit with regards to exchanges because it is never or almost a good idea to invest in a single category of securities or assets.


It should be clear to you that the best channel you have to go to invest in Cryptocurrencies is precisely the CFD. If you want to invest and speculate on cryptocurrencies, this solution is probably the worst you have available.

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