Trading cryptocurrencies via CFDs or Wallets

  • 242
  • 0
Today, traders and investors have two solutions to access cryptocurrencies:
  1. Via cryptocurrency CFDs
  2. Via cryptocurrency purchasing and trading platforms

which solution to turn to trade cryptocurrency?

Theanswer: there is no "best" solution. But these two solutions meet a different investor/trader profiles.

- Cryptocurrencies with CFDs:
This is the simplest and most efficient solution for scalpers, swing-traders, day-traders, etc. They can carry out bullish or bearish trades, with or without leverage, for gains/losses directly in euros.
This solution is also available to investors and lets them have all their assets on the same trading account.

- Cryptocurrencies with wallets:
This is the solution for really holding cryptocurrencies, for participating in ICOs and airdrops. But you always have to go through Bitcoin, Tether, Ethereum or NEO to finally unwind the position and finally return to euros.

If we wanted to roughly categorize these two solutions, we could say that:
- Cryptocurrencies with CFDs are generally reserved for traders.
- Cryptocurrencies with wallets are generally reserved for investors.

But it's not that simple. Because you can also invest via CFDs or speculate via wallets.

You are attracted to cryptocurrencies, but you don't know how to access them?

Let's solve this problem with questions and answers:

1/ Do you want to be able to make a basic investment in a cryptocurrency?
If YES, you can turn to a broker offering CFDs on cryptocurrencies

2/ Are you afraid of cryptocurrency purchasing and trading platforms? Are you concerned by their lack of regulation?
If YES, you can turn to a (well regulated) broker who will offer you limited risk CFDs on cryptocurrencies.

3/ Do you only want to invest in Bitcoin, Ethereum, Bitcoin Cash or Litecoin?
You can have access to them via CFDs or via a simple cryptocurrency purchasing platform (and not a cryptocurrency trading platform, which requires wallet to wallet transfers).

4/ Do you wish to participate in a cryptocurrency’s ICO?
Only cryptocurrency purchasing/ trading platforms allow this, because you really have the cryptocurrencies on a wallet.

5/ What is the investment horizon for these cryptocurrencies?
If your investment in cryptocurrencies is more like short term trading of cryptocurrencies, you can turn to cryptocurrency CFDs instead.
If your investment in cryptocurrencies can be more likened to medium/long term investment, you can turn instead to cryptocurrency purchasing or trading platforms.

About author

  • 6
  • 21
  • 47
  • 0

Add a comment

no pic