Cryptocurrency Trading Explained?

Cryptocurrency trading is the process of speculating on the price movements of cryptocurrencies through a CFD trading account or buying and selling underlying currencies via an exchange. CFD trading is a type of financial derivative that allows you to speculate on changes in Bitcoin (BTC) prices and other cryptocurrency price changes without owning the crypto assets.

For example, you can buy if you think the value of the cryptocurrency will rise, or sell (short sell) if you think the value of the cryptocurrency will fall. Both are leveraged financial instruments, meaning you only need a small deposit, known as margin, to gain full exposure to the underlying market. Since your profit or loss is determined by the total size of your position, the benefits of cryptocurrency trading increase both profits and losses.