Cryptocurrency trading
Is becoming increasingly popular among retail traders, with thousands of digital coins available and numerous exchanges and platforms offering resources on how to trade these assets.
What is cryptocurrency trading
Cryptocurrency trading involves speculating on the price movements of cryptocurrencies against fiat currencies like the US dollar or other cryptocurrencies. Traders aim to profit from the highly volatile fluctuations in cryptocurrency prices, although this volatility also increases the risk of substantial losses if the market moves against their positions.
In addition to trading cryptocurrencies directly, traders can also buy and sell derivatives that allow them to speculate on price movements without owning the underlying assets.
Cryptocurrencies are decentralized digital currencies that operate on peer-to-peer (P2P) networks without a central authority. They are not issued or controlled by any government or central bank, distinguishing them from fiat currencies such as the British pound.
What is CFD in cryptocurrency markets?
Cryptocurrency markets are known for their high volatility, offering traders opportunities to speculate on price swings in cryptocurrencies.
Contract for Difference
A Contract for Difference (CFD) is a derivative product that enables traders to gain exposure to cryptocurrency prices without owning the underlying asset, whether it's a coin or token. In a CFD agreement, the broker and trader agree to exchange the difference in the value of the asset from the contract's opening to its closing.
Trading crypto
Trading crypto CFDs involves trading on margin, which allows traders to open larger positions with a fraction of the total trade value as a deposit. This use of leverage can amplify both potential profits and losses. It's important to note that trading crypto CFDs with 1:1 margin (no leverage) is also an option.
Instance
For instance, Nfo offers a 2:1 margin for Bitcoin (BTC) cryptocurrency CFDs. This means that with a $50 deposit, a trader can open a position worth $100 in Bitcoin.
Overall
Overall, trading cryptocurrency CFDs provides flexibility and potential for profit through leveraged positions, though it also carries increased risk due to market volatility and leverage effects.
What cryptocurrencies can be traded with Nfo.capital?
Nfo.capital’s trading platform enables traders to speculate on the prices of several cryptocurrencies, including Bitcoin (BTC), Ripple (XRP), and Ether (ETH). Additionally, the platform supports trading crypto CFD pairings, allowing traders to engage in speculative trades between different cryptocurrencies. Examples include XRP/BTC (Ripple/Bitcoin) or ETH/BTC (Ether/Bitcoin) pairs.
BTC
XRP
ETH
This functionality provides traders with the flexibility to capitalize on price movements across various cryptocurrencies and their pairings, leveraging the benefits of CFDs to trade these assets without owning them outright.
Trade cryptocurrencies with leverage
Cryptos are available to trade with up to 200:1 leverage. Start trading with as little as $100 to control a position of $20000.
Crypto CFD’s
Trade 24/7 on a wide range of cryptos No need to setup crypto wallets and private keys
Profit and loss control
Easily set Stops* and Limits to automatically close positions at desired prices. Stay informed of significant price movements with personalized price alerts.