CFD Crypto Trading: An Elegant Solution
We all remember the news items published in the last three years about huge sums of money stolen through hacks on crypto exchanges. $3.8 billion was lost in this way in 2022 alone, including the high-profile attack on Binance in October of that year, which left the well-known exchange $570 million poorer.
Decentralized financial applications are sometimes believed to be safer, but this is not necessarily the case. “There’s been a worrying trend in the escalation of both the frequency and severity of attacks within the DeFi ecosystem”, says blockchain security expert Mar Gimenez-Aguilar, who points the finger of blame at protocol developers who prioritize growth over security.
It seems clear, at least at this point in time, that no crypto exchange or application can claim immunity to the activities of cybercriminals. The safest storage option for your digital tokens is probably a “cold wallet”, which is detached from the internet. Still, any crypto stored on one of these is only as secure as the USB itself, or your memory of its password.
Knowing that any tokens they bought would be unsafe, many people have begun to feel discouraged about crypto trading. But there’s no need to give up hope: CFD crypto trading neatly avoids many of the pitfalls of traditional token trading. Join us for a minute or two to find out how.
What is CFD Crypto Trading?
When you make a CFD deal on a digital token like Ether, you are not purchasing it. Rather, you are establishing a deal with your brokerage stipulating that you should be paid in the event its prices follow your predictions. Firstly, using your online trading app, you set up the deal according to your preferences. This means you decide on the deal size; choose whether you want it to be a “buy” deal or a “sell” deal; and fix any stop-loss and take-profit orders you’d like.
Once you click “Deal”, your deal goes live. Following this, you monitor the token’s prices, also with the help of your app, until the time you decide to close the deal, which is done manually by your own hand. If Ether’s prices followed your projections (up for a “buy” deal, down for a “sell” deal), your account is credited with new earnings, the amount of which is determined by your deal size. This contractual arrangement renders the token storage issue obsolete, but what are some other benefits of trading in crypto from a CFD trading platform?
CFD Trading Platforms
Your CFD trading platform should be a kind of command center where you can go to tune yourself into market trends. Go to the financial news section of the iFOREX Europe app to get up to date with the news most relevant to the crypto market, but also open up the education center to brush up on any trading concept you want, whether through reading succinct explanations or watching easy-to-follow videos.
Use the iFOREX Europe app to make charts of your token’s price movements on the scale of your choice. This allows you to spy the broader trends that may be guiding its prices, thus setting you up to assess future price activity from a higher vantage point. Choose among the app’s technical indicators and plot them directly on your charts. This can give you a powerful clue as to what sort of price trend to expect down the line, which helps set you up to make a successful deal. iFOREX Europe features a sentiment indicator that helps you assess what other traders are feeling about your token.
Leverage
Trading in crypto through CFDs comes with a tool that can supercharge your deals beyond the limits of your account balance: leverage. When trading with iFOREX Europe, you can employ leverage of up to 30:1 on crypto tokens, which allows you to turn a 500-euro deal into one worth 15,000 euros. Made possible by borrowing funds from the broker, leverage has the power to magnify your earnings many times over when token prices conform with your deal direction. When they don’t, however, it can magnify your losses too, so use this tool with caution.
Signing Off
On the iFOREX Europe platform, you’ll find a generous selection of crypto tokens to trade, from Axie Infinity to Litecoin to Decentraland. It makes no difference whether they are being dragged down by the bears or buoyed up by the bulls because you choose your own deal direction. CFD crypto trading is impervious to bear markets and “crypto winters”.
Visit the iFOREX Europe website to find the full spectrum of assets that can be traded in CFD form, which includes shares, commodities, stock indices, ETFs, currency pairs, and cryptocurrencies. While you’re there, read more about iFOREX Europe and what makes their app, developed in-house from scratch, stand out from the rest. Finally, contact iFOREX Europe’s attentive staff directly with any questions you may have, referring to the email addresses and phone numbers printed on the site.
iFOREX Europe (formerly known as ’Vestle’) is the trading name of iCFD Limited, licensed and regulated by the Cyprus Securities and Exchange Commission (CySEC) under license # 143/11. The materials contained on this document have been created in cooperation with iFOREX Europe and should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.22% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. Please note: Calculations of past performance movements may represent the futures and not the underlying asset.
Full disclaimer: https://www.iforex.eu/legal/analysis-disclaimer.html