In the last article, we learned about what is CFD Trading and how it works. In this article, we will talk about CFD trading pros & cons and some of the well-known CFD crypto trading software platforms such as PrimeXBT, etc.
Let’s look at some pros and cons of CFD Crypto Trading.
Crypto Trading Pros and Cons
Pros
- You can trade profitably on both rising and falling markets by either going long or short.
- You don’t have to own the underlying crypto asset to trade.
- Leverage lets you trade with limited capital. Profit made in the trade gets amplified.
- It gives you access to the crypto market 24×7.
Cons
- Very risky as leverage can amplify your loss too.
- They have an expiry date i.e., and your position will automatically close on the expiry day.
- The crypto market is very volatile. So, it can face drastic market changes in a short period of time.
- Tax and commission charges can lower your profit.
PrimeXBT is one of the leading Bitcoin trading platforms. It supports other cryptocurrencies like Ethereum, Litecoin, Ripple. You can set up and start trading in just 40 seconds without KYC.
In addition, PrimeXBT has the best UI/UX and provides leverage up to 1000x. It charges a nominal fee of 0.05%. More information on the fee and trading conditions can be found here.
Read our PrimeXBT review.
Capital.com is one of the emerging platforms for CFD crypto trading. It uses Proof of Identity and Proof of Address for opening an account.
Like other platforms, it also supports a variety of cryptocurrencies like Bitcoin, Ethereum, Ripple, and over 50+ cryptocurrencies.
With zero trading fees, Capital.com also provides an interactive charting feature along with portfolio management.
The leverage provided by them on Cryptocurrencies is up to 2x, and you can start trading with as little as $100. Capital also has a mobile app on both Android and iOS.
AvaTrade is one of the popular CFD Crypto Trading platforms. It supports multiple cryptocurrencies like Bitcoin, Ethereum, Dash, Neo with and provides fastest trade execution services, and better liquidity.
It provides leverage services, which can be 2:1(for EU residents) and 25:1(for non-EU residents). A user can trade crypto against fiat currency, which is not provided by exchanges.
Wrapping Up…
There are many crypto trading platforms that are now enabling crypto CFD trading and we will also review them in the future. If you are a CFD trader, then let us know which is your favorite trading platform.
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