Trade Cryptocurrencies on cTrader
During 2017 and the major rise in popularity of cryptocurrencies and mainstream media attention this asset class caught, many retail forex and CFD brokers was this as an opportunity to cater their services to a wider audience. Many brokers started to offer cryptocurrency CFD trading on their platforms. Most brokers started with just Bitcoin vs USD, and then Ethereum vs USD. If you are interested in trading cryptocurrencies on cTrader, this article will help you to know more about the market and which cTrader brokers offer cryptos.
In recent months, we have seen more and more brokers introduce cryptocurrencies on cTrader as CFDs and increase the number of different cryptocurrencies they offer, with some brokers offer as many as 20 trading pairs on cTrader with a combination of different assets in their pairs, such as crypto vs crypto pairs, not just crypto vs fiat.
The Difference Between Trading Cryptocurrency CFDs or on an Exchange?
The key differences between cryptocurrency exchange trading and cryptocurrency CFD trading are pretty distinct. The main principle still remains the same, you profit from price fluctuation of the two assets in the pair you trade. However, the opportunities to make money on the crypto markets is much better with contracts for difference whereas the risks between the two methods of investing in cryptos have the potential to lose your entire deposit.
Benefits of CFD Crypto Trading
Crypto CFDs are Regulated
Most Forex and CFD brokers are regulated somewhere in the world, which gives you as an investor certain protections, depending on the jurisdiction. Whereas most crypto exchanges are not regulated and the coins and tokens they offer for trading are not recognised as assets. When you deposit cryptocurrencies with a crypto exchange, that exchange could be hacked and your entire deposit is at risk. Additionally, if you are trading with a crypto exchange that accepts fiat, their access to banking could be lost without notice and therefore locking your deposit.
Crypto CFDs Offer Leverage
By increasing your buying power with leverage you are able to potentially increase your gains by opening a bigger position (the size of your trade) than you would be able to do with an exchange trade that is unleveraged. This allows you to profit from smaller price movements. Obviously, this comes with risks, and you should be aware of them before you start investing. As we see it the risk of losing the entire amount you invest exists in both exchange trading and leveraged CFD crypto trading.
Bitcoin Price Correlation
Typically, the price of most of the established coins such as Ethereum, Litecoin and Bitcoin Cash correlate to the price of Bitcoin. This means that as the price of Bitcoin rises or falls, so do the other coins. Considering most crypto exchanges don’t have fiat (USD, GBP, EUR) crosses this means its difficult to make money when for example buying Ethereum with Bitcoin, and selling back to Bitcoin, since the prices move together. This limits the potential to make money. Most CFD brokers offering cryptos have fiat crosses, which means you can profit from the price movement of the cryptocurrency against the Dollar, Euro or Pound.
To take advantage of big price movements on an exchange which does not offer fiat pairs you would probably have to look towards investing in recently listed tokens or invest in ICOs. To do this you will need to purchase the tokens during the pre-sale stage. This stage is before they get listed on an exchange. Alternatively, you will need to purchase the token just after it gets listed in order to profit against the above mentioned established cryptocurrencies.
Going Long and Short
When trading on a digital asset exchange you can only profit when the digital asset you have bought increases in value against the one you sold. With CFD trading on cTrader you are able to profit when the value of a digital asset falls by shorting it. This opens up an interesting opportunity to make money when the markets are declining in value against fiat.
When trading crypto CFDs you are able to deposit the fiat money you already have to make money on the crypto markets and withdraw your profits the same way you deposited making it easy to spend your profits. This makes it simple and easy to start speculating on the cryptocurrency and digital asset markets.
Which Brokers offer Cryptocurrencies on cTrader
A number of cTrader brokers are now offering cryptocurrencies on cTrader. If you are interested in seeing what options are out there, take a look at the broker’s bellow who are offering cryptocurrency trading on cTrader.
Tradeview Markets have the lowest commissions and tightest spreads on crypto pairs in cTrader. They have a total of 5 crypto CFDs on their cTrader platform.
- Bitcoin vs USD
- Ethereum vs USD
- Litecoin vs USD
- Bitcoin Cash vs USD
- Ripple vs USD