The majorities of crypto currency buyers invest in a certain coin in the longer term because they believe in their development potential and want to realize the highest possible profit in a later sale. The cryptocurrency market is very volatile, resulting in larger price swings up and down. Investors need a lot of patience. If you do not want to spend this money and want to realize profits faster with cryptocurrencies, you have two options.
- Duxa Capital investors can buy or sell on Crypto exchanges. The purchase of bitcoins on a crypto exchange usually takes place on the basis of the respective market price against US dollars or euros. In order to sell bitcoins, the corresponding fiat currency must be sold. Since many cryptocurrencies are traded among themselves, bitcoins can be purchased without US dollars using other coins. If the price of Bitcoin rises, a profit, paid out in US dollars or euros, can be realized on sale. If a sale occurs after the price has fallen, a loss would be realized.On many crypto exchanges, cryptocurrencies can not only be bought and sold. The coins can also be used for trading and profit from price movements. On some of the trading venues only crypto currencies can be traded among each other. It is not possible to buy Bitcoins with Euros or US Dollars.
The increasingly popular trading option is the trading of crypto CFDs. Specialized crypto brokers allow traders to speculate on price movements using CFDs (Contracts for Difference). Bitcoin CFD Broker trades bitcoins through a CFD account. To speculate, they do not have to own the cryptocurrency. The trader opens a position that will go up or down depending on the performance of the coin against the US dollar (USD).
What are CFDs?
CFD trading offers more advantages than direct trading. The benefits include access to foreign markets, leverage and short positions in underlyings. In leveraged trading, the client only has to deposit a percentage of the actual value of an underlying asset to open a position. This gives him the advantage of buying Bitcoin that he does not have to invest all his capital. Even smaller amounts of capital are enough to trade larger positions. On the one hand, leveraged trading allows yields to be increased. On the other hand, leverage can maximize losses as well. Around 75 to 80 percent of traders lose money in leveraged trading. All capital is subject to a risk of loss.