This method can be pretty appealing bitcoin cfd because, unlike just buying Bitcoin, you have the chance to make money even if the market goes down. This forex and CFD broker also features different tools and options that cater to different types of traders. The innovativeness is evidenced by the fact that the online CFD broker has gone one and created two proprietary trading platforms. It also supports the all-popular MetaTrader platforms, making their platform as accessible as possible.
eToro – Best for Social Trading
CFDs are also a flexible product, which means you can tailor your trading strategy to suit your individual needs. Finally, it is important to remember that CFDs are speculative products, and there is always the risk of losing all your capital. CFDs also have other advantages such as the ability to go short (sell) as well as long (buy), which gives you more flexibility in your trading. Plus500 is also a regulated broker, which means that your money is safe.
Best Bitcoin CFD Brokers to Use
As of July 2024, the 1-year correlation between Bitcoin and gold sits at 1, illustrating a high positive correlation. This is significant as prior to the ETFs, Bitcoin was largely traded through Futures and Cryptocurrency Exchanges. The introduction of ETFs opens up interest from Wall Street, because they can now gain exposure to Bitcoin via Spot ETFs, available through stock market exchanges. This scarcity mechanism is designed to effectively slash the inflation rate on Bitcoin, and will continue until the maximum supply is reached.
- When you invest in an ETF, you indirectly own a portion of the underlying assets, making it suitable for long-term investors seeking diversification and stability.
- Unlike traditional futures contracts or options, Bitcoin CFDs are derivatives without expiration dates.
- It has integrated the most advanced tools and analytics and has a relatively straightforward onboarding process.
- When you trade a CFD, you enter into an agreement with a broker to exchange the difference in the asset’s value between the time the contract is opened and when it is closed.
Overview – 7 Best Bitcoin CFD Trading Platforms 2025
Depending on where they operate, brokers that provide CFDs may be subject to stringent regulatory restrictions. This regulatory system may provide you with extra protection, but it also puts duties on both brokers and you. Leverage shows a major distinction between the two trading approaches. Traditional Bitcoin trading usually uses no leverage; you can buy Bitcoin with the money you have in your pocket.
Beginners might also like Pepperstone due to it’s user-friendly interface and excellent customer support services which are available around the clock. For more detailed information on leverage and margin trading, you can refer to this article. Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology. XTB is excellent for its tight spreads and strong regulation, making it a great all-rounder. However, the best broker for Bitcoin CFDs depends on your individual needs.
Skilling Key Features
They offer leverage as high as 500x, which is higher than most other brokers on this list. Apart from Bitcoin CFDs, they offer a broad variety of tradeable instruments including stocks, commodities, and indices. The advantage of using a Bitcoin CFD broker is that you don’t have to worry about the volatility of the Bitcoin market. You also don’t have to worry about storing your Bitcoins safely, as that is all taken care of by the broker. The downside is that you will have to pay a commission to the broker every time you make a trade. In terms of fees, given that it is also zero-commission, the costs of trading are minimal.
How to Deposit Funds into Your Markets.com Trader Account
Typically, users buy crypto assets on spot trading platforms, which trade tokens without the use or option of leverage. As a result, tokens are generally only bought on a CFD platform when used for day trading. Regulated by the FCA, ASIC, CySEC, and SCB, Eightcap lets you trade CFDs on several different assets, including cryptos, FX, and indices. It offers two trading platforms — the MetaTrader 4 and MetaTrader 5. AvaTrade is arguably the most accessible and one of the most regulated crypto CFD trading brokerages.
If you think that Bitcoin’s price will go up, go for a buy position. If you expect a decrease in Bitcoin’s price, opt for a sell position. To keep yourself safe, it’s crucial to choose a reputable and regulated broker with a strong financial standing. Make sure to do your research and due diligence before getting involved to mitigate counterparty risk. If the market doesn’t swing your way, you may find yourself on the losing end of the transaction, demonstrating how dangerous the volatility can be in crypto trading.
- This strategy only uses the Volume-Weighted Moving Average (vWAP), and in essence, is a simple support and resistance trading strategy.
- More often than not, however, you’ll need to make deposits in fiat currencies – such as the GBP or CAD.
- In this guide, we have taken a closer look ate each platform to determine why it is a good option to use.
- However, it is usually possible to access multiple markets such as stocks, commodities and forex, as well as cryptocurrency.
- Here is the step-by-step process of trading Bitcoin CFDs on the platform.
- For instance, scalpers would use 1m and 5m charts, while swing traders would operate with 30m, 1H, and 1D charts.
This strategy is based on the assumption that markets tend to move in a single direction (downward or upward) over lengthy periods. Here are some popular strategies to help you maximize your potential gains while limiting the risk. Next, decide whether you want to go for a “buy” (long) position or a “sell” (short) position.
The best Bitcoin CFD brokers to use in 2024 include Plus500, eToro, Oanda, AvaTrade and Pepperstone. Each of these providers offer charting tools and analysis features that are ideal for active traders who want to take advantage of short-time price fluctuations. The mechanics are similar to Bitcoin CFDs but involve traditional asset classes. Crypto CFDs offer traders access to a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple, all from a single trading platform. This allows you to diversify your portfolio and explore different trading opportunities without switching between multiple exchanges or wallets. Look for brokers that offer advanced tools like charting packages, technical indicators, and Expert Advisors integration.
MT4 also embraces a proprietary scripting language – MQL4 – that you can use to create expert advisors (robot traders) for the on-platform trade automation. Instead of purchasing the asset directly, you purchase a contract for difference (CFD). This is a type of derivative product that represents an agreement between a broker and a trader. If you think that the price of a crypto will go up, you purchase a ‘buy’ contract. Whereas, if you think that the price of a crypto will go down, you purchase a ‘sell’ contract.
If you believe Bitcoin’s price will increase, you can open a long CFD position. Low latency matters for scalping, where even milliseconds can impact your entry or exit price. Decide if you believe $BTC’s price will rise (go long) or fall (go short). ✅ Same contracts for all, creating a larger pool of buyers and sellers, making it easier to buy or sell quickly. If you understand these macro and micro drivers, you can identify trading opportunities regardless of $BTC’s price direction.
If the currency of your trading account isn’t the same as the currency you are trading in, you may be charged conversion fees. For example, if your account is in Euros and you trade Bitcoin CFDs priced in USD, the broker may impose a fee to convert between the two currencies. The spread is the difference between the buying price (ask price) and the selling price (bid price) of a BTC CFD. This is essentially the broker’s commission for facilitating your trade. In simpler terms, it’s like a built-in fee for every trade you make. It might be a new method to navigate the cryptocurrency market, but the concept itself has a long and established history in traditional financial markets.
It also stores client funds in segregated accounts with the best banks in Europe and ensures that all your data is highly encrypted. Your deposits are also insured with the Investor Compensation Fund (ICF). The process is straightforward and has been narrowed down to just a few simple steps. However, you will need first to create a user account and verify your identity before you can start trading.
This guide is for informational purposes only and is not financial advice. The platform also fosters a vibrant community through its social features, where you can share insights and strategies. This differs from other approaches that require multiple platforms or complex in-house profit-sharing systems.