Cryptocurrency Exchanges
Now after you bought yourself some bitcoin, the time has come to choose your exchange place. This is where you are able to instantly trade from one cryptocurrency into a different one. Take note of the currency trading pairs – each exchange has a list of their own. There are exchanges, where you are able to only exchange Bitcoin to Altcoin, but not Altcoin to any other Altcoin. This hinders the ability to trade fast and flexible. That is why we have made a list of the best crypto-exchanges. On this list you can find the most competitive bitcoin brokers available, offering lowest transaction fees.
After opening an exchange account, you need to transfer an amount of bitcoin from your wallet to your exchange account. Another option is to deposit fiat currencies (like USD, EUR etc.) – but take into consideration the fact that there are higher fees attached to those transactions.
Cryptocurrency CFDs (Contact for Difference)
Bitcoin and Ethereum CFDs offer a possibility to trade on the cryptocurrency market without the need of owning any coins at all.
A crypto CFD is a contract between the buyer and seller, where typically the seller will pay to the buyer the difference between the current value of the crypto asset and its value at end of the contract. CFD certificates are typically used on goods (derivates) that are hard to store/own like gold, oil barrels and in this case cryptos.
There are pros and cons of using CFDs to trade cryptocurrencies:
Pros and Cons on trading crypto assets over CFDs
The two benefits of using CFDs to trade cryptocurrencies are:
Trust – Most CFD platforms have been established for many, many years. They are also highly regulated by the governments, which leads to a high level of security in comparison to cryptocurrency exchanges.
Simplicity – Usually you can trade with fiat currency and you also don’t need to find yourself a wallet.
Higher Fees – The fees can go up to 5% in comparison to 0.5% of normal cryptocurrency exchanges. Also, it is important to note, that many CFD platforms state that they have 0% fees, yet the spread between the buy and sell price of the crypto certificate is quite big.
Less privacy – You will be asked for more personal information in comparison to normal crypto exchanges.
Example for a high-quality cryptocurrency CFD platform is Markets™
