Cryptocurrency trading is simply the buying or selling of a crypocurrency for another like Bitcoin, Litecoin, Ethereum or for U.S dollars or any other traditional currency. Crypto currencies can be traded on many Digital Currency Exchanges available online.
Traders can however trade or speculate on the price movement of any given cryptocurrency using Sread trading or CFDs provided by many online trading brokers.
This way a trader does not have to own the underlying cryptocurrency being traded which gives them flexibility on when to enter or exit the market.
Spread trading cryptocurrencies also means that a trader can take an advantage of leverage, which enables them to take in larger value positions in the market whilst paying only a small percentage as margin.
It is important to note that despite their advantages, leveraged financial products can also be of high risk and one needs to seek investment advice if unfamiliar with the pros and cons of trading using leverage.
Cryptocurrencies can be traded both Long or Short and are usually available for trading 24 hours a day. Spread trading cryptocurrencies is tax free and there is no capital gains tax to be paid.
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
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