A Contract for Difference (CFD) for Cryptocurrencies allows traders to speculate on prices without taking direct ownership of the digital currencies. By trading cryptocurrencies in the form of CFDs, you get the opportunity to enter the market and invest in coins without paying the entire trade’s value. It does not even require you to have a Crypto account or wallet. Hence, trading Cryptocurrency CFDs opens up more trading opportunities for you.

Trading digital currencies with CFDs introduces you to a variety of risk management techniques, including taking profit and stop loss tools. Such advanced technical instruments protect you against significant losses and also help you make informed decisions that improve your trading performance. Trading with CFDs gives you access to high leverage in a market. Since you can trade with more capital, it is possible to earn decent profits even with minor price movements. Trading on margin means that if you want to open a $2,500 position with the leverage ratio at 5:1, you only need a $500 capital.

Since all CFD brokers are regulated by a reputable financial authority, all clients trading Cryptocurrency CFDs are protected against malpractices, fraud, and theft. It is easier for traders to get their money back in case of any adverse circumstances. CFD platforms are secure and licensed, eliminating the possibility of your funds getting hacked.

The liquidity that trade CFD cryptocurrencies offers is higher than trading Cryptocurrencies directly. Since CFDs do not need any conversion from one currency to another, you can directly withdraw your money in one click. Trading Cryptocurrencies directly may seem more complicated as some do not support a direct cash-out system. In such cases, you are required to switch to Bitcoin or any other digital currency offering a cash-out system to withdraw your money. Direct trading also has a daily withdrawal limit, which creates a bear market risk as it can often lead to high losses due to sudden market dips.