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This lesson is very interesting to me, I am going to discuss it today in this post. Professor @kouba01 explained his lesson in an nice way. Let's get started,

What is a cryptocurrency CFD?

CFD means “difference for the contract”. It is a type of short-term trading that allows the investor and trader to make assumptions about the price movements of various financial instruments such as cryptocurrencies without owning the initial financial investment. A CFD can be considered as a derivatives component. To CFD trade any cryptocurrency, you can guess about the difference between its current and future prices. Again, if you have already seen the trend, you have achieved it. If the trend goes against you, you will lose and if the trend goes towards you, you will be in profit.

Highlights:

• No need to use an exchange account or special wallet!

• In any case, buying and selling is just as accessible

• Available 7 days a week, 24 hours a day!

How do I know if cryptocurrency CFDs are suitable for my trading strategy?

CFD is a popular trading method around the world, from beginner to expert. CFDs basically attract new traders for access to different financial markets without requiring huge amounts of capital. Stock traders return to CFD trading as an efficient portfolio diversification and risk-hedging tool. The convenience of using a single platform with access to multiple markets only increases the popularity of this derivative.

Below are some of the reasons that can be specified for who is suitable:

• I don't have the ability to hold a large amount of crypto assets for high profit.

• I want take profit no matter what the market situation is uptrend or downtrend no matter what.

• I do not have enough capital to participate in high profit trades which is why CFD trade is not suitable for him.

• I have featured a short-term trade to take advantage of the slightest bear market.

Are CFDs risky financial products?

It is certainly noteworthy that CFD trading carries a high degree of risk. Given that the price of the investment can both go up or down, you could face a loss if the market goes against your expectations. Leveraged trading has a higher potential return which is missed with more risk. If your losses exceed your account balance, you may face liquidity of your account.

So I can say that it is suitable for the risky traders, who make the initial thought of winning or losing regardless of how profitable the trade is.

Do all brokers offer cryptocurrency CFDs?

No! In this case Not all brokers offer cryptocurrency CFDs.

There are some platforms they offer cryptocurrency CFDs:

etoro: etoro is a trading platform that also has the advantage of trading in the stock market and cryptocurrency. In addition to cryptocurrency trading, they also offer cryptocurrency CFDs for CFD traders.
etoro has a graphic-intensive platform that serves cryptocurrency traders where customers outside the United States can trade strip and contracts for a difference. The key feature of this unique proprietary platform is that any individual client can easily apply copy trading at ease.

Explain how you can trade with cryptocurrency CFDs on one of the brokers (Using a demo account).

I will open a demo account on etoro and do a tutorial on how to trade cryptocurrency CFDs.

Go to https://www.etoro.com and click three parallel icon on the top of the left and click Join Now

• Now you need to create an account. To create an account Input your username, email address and a password( password should be strong)

• Click Create Account.

• Once the account is created, a new page will open in front of you.

• You can create a virtual or real portfolio account here. I will made this tutorial by creating a virtual account.

• Click on the top three lines on the left side.

Select Virtual Portfolio and go to virtual portfolio.

• You have successfully created a demo account. Now click Trade Markets.

• Since we will trade crypto, click on crypto above.

• I chose Bitcoin as an asset i wanted to invest in CFDs so, i click on Bitcoin market. And now click Trade

• I am selling 0.5 unit of portfolio.

• All set, now Click Open Trade
  

Conclusion: This lesson was great because I was able to gain knowledge about new trading. Thanks to professor @kouba01 for this great lecture.

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Cc: @kouba01