CFD Crypto Trading


With cryptocurrencies, or rather with everything related in some way to the most famous of them, Bitcoin, as if the bag had literally torn again in recent months. Although cryptocurrencies are at the center of events again and more and more people are interested in trading them, it is not clear to everyone how to start. That is why we have prepared today's article, which should serve as a kind of necessary minimum for a successful start.

CFD Trading cryptocurrencies, or physical exchange on the stock exchange or in an exchange office?

Purchase of physical cryptocurrency on the stock exchange / in the exchange office

The most common method of trading cryptocurrencies is still physical exchange on crypto exchanges or in exchange offices. In this case, everything goes the same way as if you went shopping somewhere in a store. This means that for a fiat currency (EUR, USD,…) you buy a certain amount of cryptocurrency.

The question remains whether the physical purchase of cryptocurrencies is a wise choice. We can still encounter certain alternative possibilities of "purchases and sales" and the crypt market itself is also not completely without shortcomings. As an example, let us mention, for example, the unregulated nature of certain exchanges or the threat of theft of cryptocurrencies without the right to compensation.

CFD Trading Cryptocurrencies

Unlike the first method, CFD (Contract For Difference) does not physically hold cryptocurrencies but speculates on their value. Thus, there is no physical purchase, but only a kind of agreement between two "traders", where one speculates on the decline in value, while the other on growth (a trader whose speculation turns out to be correct in time, then gets paid from the other at the end of the contract).

Thus, in the case of CFDs, it is possible to earn both an increase and a decrease in the price of the underlying asset (in this case, an increase in the value of the cryptocurrencies concerned).

What are the advantages and disadvantages of CFDs?

Disadvantages of CFD

The smaller offer of cryptocurrencies - compared to cryptocurrency exchanges and exchanges, the number of CFD contracts of cryptocurrencies is considerably limited. Exchanges usually offer traders dozens, sometimes hundreds of cryptocurrencies, while in CFDs only the most lucrative of them are usually available.

Swap fees - another of the disadvantages of CFD "swap fees", ie fees for holding a position overnight. However, for traders who intend to actively trade in cryptocurrencies, this should not be such a problem, unlike those who plan to keep cryptocurrencies for years.

Leverage - CFDs allow you to trade leverage, but with which traders can record relatively higher losses.

Advantages of CFD

Regulation - Good brokerage companies that offer the possibility of CFD trading are usually subject to strict regulations and must therefore operate according to certain rules, which are responsible for their violation. Cryptoburses, on the other hand, are not subject to any regulations.

Deposit insurance - Unlike a crypto exchange, in the case of regulated brokers, traders' deposits are insured to a certain extent and there is, therefore, no risk of theft of funds.

In addition to education and services - CFD brokers offer a number of educational, informational, and other materials on their websites and as part of their further expansion, but crypto exchanges are commonly lacking. In fact, it can be said that traders will not find any of it there.

Greater possibility of diversification - in addition to the possibility of speculating on the change in the value of cryptocurrencies, it is possible to diversify much more within the CFD, for example into currency pairs, precious metals or oil.

Leverage effect - just as financial leverage is a disadvantage in the case of loss-making CFDs, in the case of a positive development, on the contrary, it allows to achieve a higher capital appreciation and thus becomes an advantage here.


It is entirely up to personal preferences which of the above options the trader chooses. Finally, we also allow our clients to trade in CFD cryptocurrencies. So if you want to give cryptocurrencies a chance and you can be sure that your finances are safe, your trading positions will not be manipulated and you will also have the opportunity to study for free in online trading, Purple Trading is the right place to start.

So if you are interested in trying trading on your own with first-class trading conditions and a professional forex broker, then do not hesitate to try our demo account, which can be set up on our website completely free of charge and without risk here:

We wish many profitable deals!

Purple Trading team

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