Advantages for trading Crypto as CFD. Crypto as CFD trading. Before getting into the topic we need to understand what is a Contract for Difference. The contract for difference or CFD it’s simply a contract between two parties (investor) and an investment (broker, spread-betting or banks). The parties, exchange the difference at the end of the contract determined by the opening and closing prices. Looking at the same concept, cryptocurrencies are known as a financial instrument. Adopted by major companies and even central banks the CFD aspect of its trading can have both advantages and disadvantages.
Like any other investment, there is RISK!!! The best way to manage risk is by understanding if the rewards can compensate for the risk. For proper risk management, investors have to be aware of the best possible outcome and the worst case scenario. The three major categories to build proper risk management and/or a smooth and safe trading experience are as follow:
Part of the scams nowadays is very similar in 80% of the cases such as Ponzi Schemes or Pump and Dumps. Investors and most beginners fail to do their due diligence and investigate the companies or entities if they're regulated. The most commons ones are “get rich fast”, “100% return on investment” or “algorithmic software”. The easy way to prevent that is by researching the investment firm or broker. Check on their websites, under “AboutUs” if valid registration and license numbers are present. Assuming they have, when clicking it will redirect to the Security and Exchange Commission who is regulating the company.
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Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks.
Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Highway Media Group would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Therefore, Highway Media Group doesn’t bear any responsibility for any trading losses you might incur as a result of using this data. Highway Media Group may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.