How can I deal on cryptocurrencies?
There are two ways to deal cryptocurrencies: buy them in the hope of selling them on at a profit, or speculate on their value without owning them via CFD trading.
To trade CFDs on cryptocurrencies, you’ll need to:
- Create an account
As a CFD trader, you won’t need an account with a cryptocurrency exchange, or a wallet to store your tokens. Just an account with a leverage provider.
- Do your research
Cryptocurrencies may be free from many of the factors that influence traditional currencies, but you need to make sure you know your market.
- Apply your strategy
Settling on a trading strategy depends on your goals and preferences, and deciding which is right for you is key to your long and short-term success.
- Place a trade
Enter your position size, define your close conditions and click ‘buy’ if you think the cryptocurrency will rise in value, or ‘sell’ if you think it will fall.
- Close your position
Once you’ve reached your target – or decided it’s time to cut your losses – you’ll close out your position by reversing your original action: so if you bought, you sell, and vice versa.
Keep in mind that as CFDs are leveraged products, you’ll only ever need to put down a small deposit to gain exposure to the full value of the trade. This means your capital goes further, but you also stand to lose more than your initial outlay.