There are generally two ways to trade cryptocurrencies. They are:
Cryptocurrency Exchanges
Cryptocurrency exchanges allow traders to open accounts and link them to their cryptocurrency wallets. Some wallets store your digital assets, while others simply record all your cryptocurrency transactions. The wallet owner is ultimately responsible for the security and ownership of the assets. Typically, a public key or address is used to send cryptocurrency, while a private key is used as proof of ownership of the cryptocurrency in your wallet.
Opening a cryptocurrency wallet and protecting it from hacks and malware can seem daunting and confusing to beginners.
Cryptocurrency trading with CFDs
Cryptocurrency beginners turn to CFDs to overcome the weaknesses of portfolios. By using CFDs, traders can speculate on price movements in the cryptocurrency market without having to own and secure the cryptocurrency. Furthermore, CFDs allow for leveraged trading, meaning traders can open a trade with just a fraction of the total trade value. While this greatly increases the potential for profit, it also increases the risks involved and should be used with caution. Check out the Cryptocurrency section of our website for more information on the cryptocurrency CFDs we offer and how to manage risk.
You can also speculate on both rising and falling cryptocurrency markets since CFDs do not involve owning the underlying asset. Another advantage is that the cost of trading via CFDs is much lower than trading through exchanges.
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