As the popularity and awareness of cryptocurrencies broadens, the demand for a trading mechanism to express a view in these products has become a necessity.
Investing in cryptocurrencies such as Bitcoin, Litecoin and Ripple using contracts for differences (CFDs), traders can invest in digital coins without having to actually buy them. Additionally, at iFOREX you can invest in cryptocurrency CFDs with leverage and take advantage of a wide array of informative and educational tools.
What are Cryptocurrencies?
Cryptocurrencies are digital coins that provide access to several different businesses. Some of the more popular digital coins such as Bitcoin and Litecoin, provide access to payment processes. Others such as Ether, provide access to the Ethereum platform.
Cryptocurrencies are digital currencies that have independent operations that are not backed by a central bank. As opposed to fiat currencies such as the dollar and the Euro which are regulated by a country or a union’s central banks.
How Do You Trade Cryptocurrencies at iFOREX?
One of the major benefits of trading cryptocurrencies at iFOREX is that you can use a contract for different to invest in all the major cryptocurrencies. The benefits of using a contract for differences is that you do not need to purchase a cryptocurrency using a digital wallet.
Instead, you invest in a product that tracks the underlying movements of a cryptocurrency. iFOREX also provides leverage. This means that you only need to post a small portion of the value of a cryptocurrency. For example, with Bitcoin above 11,000 per dollar, it costs $11,000 to purchase 1-bitcoin. With leverage of 10-1 on nearly all cryptocurrencies, you only need to post 10% of the value of each coin.
How is a Cryptocurrency Traded?
You can trade crypto versus fiat currency or across cryptocurrencies. For example, you can purchase or sell Bitcoin versus the dollar, euro or yen. You can also purchase or sell Bitcoin versus Litecoin, or Ethereum. You can trade these CFDs and instead of trying to find an exchange that allows you to generate cross trade, you can use the contracts for differences provided by iFOREX.
Competitive Bid Offer Spread
What you will find at iFOREX is that they offer contract for differences with spreads that are very competitive. As a broker in the CFD space, iFOREX prides itself on offering spreads that are robust throughout the capital markets spectrum. They offer CFDs on currencies, commodities, indices, and shares along with cryptocurrencies.
Technical Analysis and Education
One of the benefits of trading cryptocurrency CFDs is that you have the benefit of using the iFOREX technical analysis tool kit. iFOREX has a state-of-the-art platform that provides its traders with charting tools and technical indicators. Here you can define support and resistance as well as determine a trend and evaluate momentum. This product is available on all CFDs including cryptocurrency CFDs. This allows you to formulate a risk management approach that would be similar to trading in all CFD products.