What is the difference between trading cryptocurrencies and trading CFDs on cryptocurrencies?

3 answers

• Dec 16, 2021 · 3 years ago
  When trading cryptocurrencies directly, you are buying and owning the actual digital assets. This means that you have full control over your investments and can store them in a digital wallet. On the other hand, when trading CFDs on cryptocurrencies, you are speculating on the price movements of the underlying assets without actually owning them. CFDs allow you to profit from both rising and falling prices, but you don't have ownership rights or the ability to store the assets.
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• Dec 16, 2021 · 3 years ago
  Trading cryptocurrencies directly can be more suitable for long-term investors who believe in the potential of specific digital currencies. It allows them to participate in the growth of the cryptocurrency market and potentially benefit from any future price appreciation. On the other hand, trading CFDs on cryptocurrencies can be more suitable for short-term traders who are looking to profit from the volatility of cryptocurrency prices without the need to own the actual assets.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we offer trading of cryptocurrencies directly, allowing you to buy and sell various digital assets. This gives you the opportunity to own the assets and potentially benefit from any future price increases. However, it's important to note that the cryptocurrency market is highly volatile and can be subject to significant price fluctuations. It's always recommended to do thorough research and consider your risk tolerance before engaging in any form of trading or investment.
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