Today, there is another way people are trading Bitcoin that can be much safer than owning and “holding” Bitcoin. In fact, it’s possible to make money from Bitcoin without ever physically owning any of the currency.It’s now possible to trade Bitcoin CFDs. CFDs, also known as Contracts for Difference, essentially allow traders to bet on the value of Bitcoin rather than buy and sell Bitcoin currency itself. You can use CFDs to bet on whether the price of Bitcoin will go up or down. The beauty of CFDs is that they don’t require you to own the thing you’re betting on. In reality, you’re wagering on the contract itself – so you’re placing money on whether the price will rise or fall, rather than directly trading the currency itself.For many people, trading Bitcoin on CFD is a solid choice. It allows you to get involved with Bitcoin without jumping through the hoops required with setting up a Bitcoin wallet and buying Bitcoin from an exchange.There are numerous advantages that trading Bitcoin on CFD has to trade Bitcoin directly. We will take a look at them below. We will also give some more information involving direct Bitcoin trades, arming you with all the information required to decide whether CFD trades are the right solution for you.
Bitcoin CFDs allow you to trade movements in the price of Bitcoin without owning or purchasing Bitcoin. This is useful because you do not have to worry about security issues regarding Bitcoin, such as encrypting your wallet, downloading a back-up, etc. When trading CFDs, there is no need to purchase the underlying asset. This makes investing in Bitcoin safer for those worried about the security of Bitcoin or those who do not want to set-up a wallet and purchase Bitcoin. Traders can speculate and make money on large price movements without needing to know how to acquire or store Bitcoin securely. Also, another benefit is that you can buy or sell Bitcoin at exchange prices. Trading in Bitcoin directly means you would have to sign-up to exchanges or purchase Bitcoin at a markup from the market price. Trading CFDs means you can buy or sell at the market price and gain more from large swings in either direction.
Published by 777options.com
Bitcoin’s value, like that of any other commodity, will not continue to rise forever. Every trend has an end, and trading this new resource versus the Dollar gives some handy advantages over purchasing it outright. Bitcoin isn’t backed by any physical asset, making it very difficult to value, other than by applying technical analysis to assist with short-term trade setups. This is where trading systems and proper money management come into play. That is your advantage over others who have yet to learn about Bitcoin CFD trading.
Continue reading in bitcoinsmaster.