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- Investing in Cryptocurrency CFDs
The Advantages Of Cryptocurrency CFDs Trading
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Investing in Cryptocurrency CFDs
An interesting alternative to trading on cryptocurrency exchanges are trading platforms regulated brokers such as XTB. The XTB investment platform allows you to buy and sell CFDs (“Contact For Difference”), i.e. contracts on exchange rate difference - derivatives that allow you to speculate on the price, e.g. cryptocurrencies.
A characteristic feature of CFDs is leverage, which allows you to engage only part of the capital that would be needed to carry out a traditional investment. Leverage at XTB for cryptocurrency CFDs it is 1:2, which means that the investor only needs 50% transaction value to place an order. However, keep in mind that trading with leverage involves additional investment risk.
One of the advantages of trading derivatives such as CFDs is also the opportunity investing in inheritance, i.e. taking the so-called short investment position. That is, the investor can look for investment opportunities and earn not only when prices are rising, but also when they fall, which makes trading more flexible.
In investments, not only in cryptocurrencies, one of the key aspects is behavior liquidity of funds on the investment account, i.e. the possibility of convenient and quick deposits, and payments. XTB has several payment methods, e.g. payments by credit card, BLIK, PayPal. In at any time, you can quickly and conveniently order a withdrawal of funds that are safe and direct arrive in the investor's bank account, often the same day.
The activity of XTB is regulated by law and is supervised by renowned institutions such as ESMA, FCA or the Polish Financial Supervision Authority. XTB client funds are kept in segregated depositories accounts, which means they are separated from the company's funds, and the company is also subject to the funds guarantee company, such as KDPW.
The last factor that distinguishes the XTB trading platform from most exchanges cryptocurrency is the ability to open a free DEMO account that allows you to taking your first steps in investing without any risk. With his help you can verify the acquired knowledge in practice, learn how to use the platform, and check it using test "virtual funds" own investment strategies.
Just like any economic activity, investing in the markets is a necessity tax settlement for the transactions carried out. Tax issues can
However, sometimes they can be very complicated, which is why at XTB we offer assistance in annual settlements tax, providing all investors with a completed PIT-8C, along with the settlement all transactions carried out.
However, CFD trading is not for everyone. Please note that this is a derivative based on the price of the underlying asset, so when trading CFDs we do not become the owner of the cryptocurrency, and we only speculate on the change in its price. Moreover, the specifics CFDs are more conducive to short-term investment as holding open positions incur daily fees.
Advantages:
- Investment security resulting from the supervision of renowned regulators
- Subject to guarantee funds
- Fast and convenient deposits and withdrawals
- Possibility of entering into short positions - investing in price declines
- Free demo account to help you get started without risk
- Assistance in the annual tax settlement
Disadvantages:
- You do not become the owner of cryptocurrencies, you only speculate on price changes
- The specificity of CFD instruments is not conducive to long-term investments
- Offer limited to the 20 most popular cryptocurrencies
Read next: So-Called "Information Noise" Affects The Cryptocurrency Market| FXMAG.COM
