The cryptocurrency market continues to expand. One way to take advantage of the opportunities in this market is to trade contracts for differences on different cryptocurrency pairs. There are a number of benefits to trading cryptocurrencies without having to open a wallet and find the cryptocurrency that trades in your fiat currency. The process of using CFDs provides a number of ways to trade this new and exciting market. By trading cryptocurrencies such as Bitcoin, Litecoin, and Ripple in the form of CFDs, traders have the opportunity to invest without having to actually buy them. Additionally, by using the tools that are offered at iFOREX you can invest in cryptocurrency CFDs with leverage.
What is a Contract for Difference?
A contract for differences on a cryptocurrency pair is a financial asset that tracks the movements of specific digital currencies. Instead of swapping your fiat currency for a cryptocurrency, you are investing in an asset that tracks that cryptocurrency pair. All you are responsible for is the change in the price.
What Cryptocurrencies are offered
iFOREX.com offers a wide variety of cryptocurrencies that are paired with different fiat currencies. Your choices include Bitcoin, Litecoin. Ethereum, Dash, EOS, and Ripple. You can trade most of the cryptocurrencies versus the dollar, euro and yen as well as versus other cryptocurrencies. For example, you can speculate on the direction of Bitcoin versus Etherieum without having to purchase or sell either, and just by buying or selling a CFD. In addition, you can employ leverage. Most of the CFDs offered by iFOREX offer leverage of up to 10 to 1.
What Educational Material is Available?
The iFOREX educational material is vast and touches on the most popular way to trade the cryptocurrency market. iFOREX provides a wide range of videos showing you why cryptocurrencies move and what types of impetus are needed to occur to alter the current landscape. There is an entire technical analysis section which touches on momentum, trend following, and mean-reversion. Technical analysis is an important topic as sentiment is a key factor that drives the cryptocurrency market.
If you are new to cryptocurrency trading, you should spend some time looking through the interactive tutorials which describe how the market functions. You can then move on to the educational E-books which discuss why markets move and what type of new information you should be looking for to catch the next big move in a cryptocurrency. In addition, iFOREX offers real-time news that covers the cryptocurrency market.
What Platform is Used?
The beauty of using the iFOREX platform is that CFDs are integrated into the platform that is used for currency, index and commodity trading. By investing in cryptocurrency CFDs, you can trade these markets as you would other capital markets. The execution of a transaction is seamless. In addition, you can use your mobile application to trade cryptocurrency CFDs, and monitor your cryptocurrency positions. By trading cryptocurrency CFDs you can avoid opening a cryptocurrency wallet and attempting to find an exchange that will allow you to trade the digital currency of your choice. iFOREX makes the process more efficient and provides a wide variety of tools to help you make your investment decisions.