As an alternative to the direct purchase of cryptocurrencies, trading on the stock exchange is also an option. However, no securities are purchased here, but merely speculated on the course of the digital currencies. Trading on contracts for difference is not only possible for cryptocurrencies, but also for indices, commodities and other currencies.
CFD trading with the broker at risk
It is suitable for all investors who prefer flexible and short-term investments. The advantage of trading on contracts for difference lies above all in its leverage effect. This will allow investors with a relatively small investment to bring more capital into the market. However, the leverage was limited to 1: 2 for cryptocurrencies. However, CFDs are extremely speculative and carry a high risk of loss. The volatility of the digital currencies increases this risk even further. Investors who want to stay flexible and do not shy away from the risk can try trading in CFDs. Many brokers even provide a free and often unlimited demo account. The virtual balance helps that you can see at GigaFX portal.
Crypto certificates for Bitcoin
The investment in cryptocurrencies is also possible in the form of certificates. For example, Vontobel provides bitcoin certificates, which allow investors to trade with no or limited maturity. The most recent certificate was issued on 30.10.2017 without a time limit along with GigaFX review.
Trading platforms for cryptocurrencies – that’s how different they are
The number of cryptocurrencies is constantly increasing. There are now well over 700 different digital currencies and there is no end in sight. In addition to the Hard Forks, there are always new digital currencies added. To keep track of this, it makes sense to compare the cryptocurrencies and their potential. Not all digital currencies can be traded on all trading platforms. Basically, there are distinctions in trade in three criteria:
- Coins traded in euros
- Cryptocurrencies traded in other currencies
- Cryptocurrencies traded against cryptocurrencies
Not every platform is equally secure and regulated. A wallet is mandatory for every direct trade. Without wallet, the digital currency units cannot be saved. Especially those who have larger amounts should pay attention to the safest possible storage.
Differences between the individual trading platforms
A comparison of the trading platforms reveals that there are numerous exchanges and marketplaces. They differ not only in the tradable currencies, but also in the pricing. In addition, some trading venues have their own wallet, while other providers do not provide Wallet for users. How can you find the best in this large selection of crypto exchanges? We took a closer look at the biggest stock exchanges.
Security on crypto exchanges
How is safety in general? All in all, this question cannot be answered. Many exchanges use the latest security technology to ensure a high level of protection for their users. Nevertheless, there are always hacker attacks in which countless coins are stolen. If you want to save many coins, you can use a decentralized crypto exchange. Here, the coins are not stored on the Wallet’s online wallet, but every user needs their own wallet. For this, the use of an offline wallet is recommended.
Fees in stock markets in focus
There are also differences in the fees. Experience shows that they range between 0.15 percent and up to 1 percent of the market value. In addition, purchases and sales are usually differentiated when calculating fees.