Unlocking the Hidden Benefits of Trading Cryptocurrencies with CFDs Brokers
When it comes to cryptocurrency trading, many investors instinctively turn to crypto exchanges. However, there's an alternative route that offers unique advantages: trading cryptos via a CFDs broker. While it might involve slightly higher trading costs, there are several compelling reasons why this could be the smarter choice for many traders.
6 Reasons to Choose a CFDs Broker Over a Crypto Exchange
There are many standout features of trading cryptocurrencies with a CFDs broker, but the main 6 are:
1. NBP (Negative Balance Protection for Retail Traders (depending on jurisdiction): This safeguard ensures you won't lose more than your initial investment.
2. Client funds are segregated: Client money is segregated with tier-1 international banks, meaning your money is kept separate from the broker’s own funds, offering peace of mind.
3. No crypto wallet: Unlike using crypto exchanges, with a CFDs broker, there's no need for a crypto wallet to store tokens. This significantly reduces the risk of falling victim to hacker attacks—no tokens, no theft.
4. Ability to go long or short on price action: This allows traders to profit in both rising and falling markets. This flexibility is a huge draw for savvy traders.
5. Most CFD brokers are regulated: Most brokers are regulated by a financial authority and offer dispute resolution services through competent bodies, making the trading environment more secure.
6. Possibility of earning cashback rebates: If you trade cryptos with one of our regulated partner brokers you will also receive rebates for your trading, a great perk offered by CFD brokers!
How to Choose a Broker for Cryptocurrency CFDs
Ready to start trading cryptos with a CFDs broker? Navigate to the Brokers section from the main menu and expand it. Click Forex Broker List / Reviews to open a comprehensive guide featuring several brokers.
1. Click the Show Filter button.
2. Scroll to Asset classes, expand the section
3. Tick Cryptocurrencies.
4. Now the page is set to show only the brokers offering cryptocurrency CFDs!
If a broker you like isn’t immediately showing cryptos as an asset class, don’t worry—just click the grey +3 More button to confirm whether the broker provides this option.
Once you’ve found a promising broker, simply click their logo to read detailed reviews and see what real traders are saying. Happy trading!
Trading cryptocurrencies via a CFDs broker not only offers enhanced security and flexibility but also allows you to profit in both rising and falling markets. It's a smart alternative worth considering for your trading journey.