CFD trading platforms online
Forex trading, Binary options, Cryptocurreny, shares, index, commodities, options, forex
Minimum deposit: 1€
Regulation:Many regulation and registratations
Forex trading, Cryptocurreny, shares, index, commodities, options, forex
Minimum deposit: 100€
Regulation:Many regulation and registratations
Cryptocurreny, shares, index, commodities, options, forex
Minimum deposit: 100€
Regulation:CySEC,FSB
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Trading CFDs may not be suitable for you. Please ensure you fully understand the risks involved.
Cryptocurrency Trading
Perhaps you have been sitting in front of the computer trying to buy something and seen the payment options on the website mentioning words such as Bitcoin, Litecoin or Forex currency. All of those are cryptocurrencies, meaning digital currencies that you can pay with on the internet, without having to worry about tax or tariffs, since a cryptocurrency tends to be international. The advantage with a cryptocurrency is that a user purchasing a product with these ”coins”, becomes anonymous.
Thanks to a wallet-file with only encrypted data, you don’t have to give away any sensitive details about your own identity that risk getting stolen later. Instead a cryptocurrency uses its own system where every address and user is some type of number or keycode that is stored safely and efficiently in files. This exists in a P2P-network that is connected using nodes to be able to process transactions.
On the other hand you should always keep in mind to take security backups if you store your wallet-files on your own computer, because a potential crash would result in everything getting erased. To be on the safe side you can hire a company that stores the files for you. It’s not uncommon that these companies also offer trading with the cryptocurrency in question.
Bitcoin
The first and original cryptocurrency that emerged 2009 in Japan is named Bitcoin. Later it has been followed by other currencies that more or less copied the idea. The cryptocurrency most similar to Bitcoin is Litecoin, which is a cheaper version of it.
Bitcoin is stored in the Bitcoin-network and there all data is stored too in so called blocks. These blocks then form a chain, where each block contains the latest transactions. The wallet-file in the network is named wallet.dat. The network contains key-nodes in one public part and in one private part. This private part mentions the user with the help of a number, while the public part reveals the Bitcoin-addresses.
Bitcoin can be bought at a trader or privately. In Sweden you can turn to several different options, for example Avanza or Bitcoin.se. You can also choose CFD Trading or Forex Trading that will be explained more in detail further below.
Bitcoin is now available at the Chicago Stock Exchange and has greatly increased in value after its introduction. There you can both buy and sell. To sell Bitcoin is usually more complicated than to buy it. On the other hand there are other types of markets that also accept Bitcoin.
Some examples of other cryptocurrencies
The most famous alternative cryptocurrencies are Ether, Litecoin, Ripple and Dash. Ethereum is the network and Ether is the currency. Basically it works like an operative system where you trade with the currency to access the operative system and all its apps. Litecoin is a cheaper version of Bitcoin.
Ripple has been created by a company and works more like an exchange system than as a currency and Dash works the same way as Bitcoin, but offers a system with faster transaction times. The Dash Network is based on a dual language system, making everything faster. Therefore Dash is mainly related to business and payment, where fast deals is of great importance.
To trade with cryptocurrencies
When you are about to buy a cryptocurrency, you can turn to different traders and exchange for it with the help of the local currency in the country. Nowadays there are also markets where you can buy and sell different cryptocurrencies similar to trading with stocks. Bitcoin, the first digital currency has increased so much in value that it has resulted in the introduction of cheaper alternatives. Those who were smart enough to invest in Bitcoin, have likely made a small fortune.
Invest using a broker
Many brokers dealing with currency offer trade with both Bitcoin and other cryptocurrencies. This means you can open an account to buy and then wait to see if the investment will increase in value. To open an account at a broker like that is fairly simple and fast. Another advantage is that you can pick and choose between many different currencies. Usually they have some minimal investment, for example 1000 SEK and you have the option to position more than you deposited.
There are two noteworthy disadvantages with this type of investment. The first is that the broker will take a small fee for each day the position is held and the second one is the security, as deposit insurance is needed in case the broker files for bankruptcy. Some countries are not making use of that, so investigate the situation in case things go south. It’s the regulatory authorities in a country that are responsible for this matter.
The cheapest method to trade with a cryptocurrency is to buy it and store it yourself in your wallet-file, to later sell it and make a profit. You have to make sure only you have access to the code and never store it in your email-account, because then it can easily be hacked.
CFD Trading and Forex Trading
CFD Trading was invented in London during the 90s and then it was mainly used for hedge-funds and institutional traders, but soon also became available for smaller, private traders. Together with Forex Trading, CFD made it easier for regular people to trade with stock and commodities.
CFD stands for Contract For Difference and means that the trader makes a wager on a particular asset, without owning the asset. The difference in price when you buy and when you sell, is in other words the profit or in worst case the loss. No exchange fees are needed and due to the leverage, a much smaller investment is needed as compared to actually owning the underlying asset.
The big advantage is that almost everything can be traded, which means it also applies to cryptocurrencies like Dash, Ripple, Litecoin, Ether or Bitcoin. It also takes advantage of what is known as leverage, where the trader only covers part of the value of the trade when it’s initiated. Trade with CFD works in the following way:
Choose the asset you are interested in, for instance Bitcoin.
Place your order and press ”Buy” in case you believe that the price of the asset will rise.
End the deal whenever you want to and take out a potential profit.
You have to pay attention to expiry date when the open position is converted into a CFD-contract.
With currency trading or Forex Trading you are dealing with two currencies, where one currency goes up against the other. When you trade with cryptocurrency like Bitcoin, the common case is that the regular currency faces off against the digital currency. Nowadays that includes CFD, meaning you have the option to also deal with other assets, which has lead to a major increase in the trade.
Never invest more than you can afford to lose
A piece of good advice when trading with currency is to always have a set amount to speculate with and never invest more money than you can afford to lose. What is known as leverage does increase the potential profit big time, but the potential losses are also increased. Sometimes it can be hard to remain in control over your impulses, just like with gambling.