The volatility of cryptocurrencies is one of the main reasons why some investors do not want to get involved in the industry. This is completely normal since you need to have a higher risk tolerance to be active.
CFD investments allow you to put your funds in cryptocurrencies without actually having to buy them. This is an inherent advantage that attracts even those that are not experienced and with lower risk tolerance. CFD trading, according to cipher.tech, brings in some really clear benefits you might be aware of, like:
Zero Ownership Commitment
Similarly to the better-known stock CFDs, the trader is trading based on an asset’s underlying price. This is possible without committing to stock ownership. Something like this turns out to be very useful for the day traders, especially during those days when markets are really choppy.
As already mentioned, this is of particular importance for those that do not want to own cryptocurrencies.
Margin Trading Magnifies Profits
Most of the high reputation CFD brokers offer traders the possibility to leverage investments up to 5 to 1 ratio. This means that when you invest $100 in the BTC/USD pair and you have a 5 to 1 leverage, your profits can be 5 times higher than what is made through the cryptocurrency exchange when you actually own the coins.
In addition, because of the many markets that are present, like commodities, indices, stock CFDs and forex, the traders that want to trade crypto through the CFD option enjoy increase liquidity when compared to investors that just go through the traditional crypto exchanges.
You Do Not Have To Use Crypto Storage Wallets
The cryptocurrency wallet is a common target for hackers interested in stealing from traders these days. Crypto CFDs automatically mean that you do not use a cryptocurrency wallet. You are thus exposed to lower hacking vulnerability.
This benefit should not be underestimated since the number of wallet hacking reports seen every single month is growing. Since many of the investors do not actually know much about the technology behind these wallets, they are particularly vulnerable.
Great Customer Support
This is a benefit that is often not mentioned but it is quite important to think about. When you look at crypto exchanges, customer support is much harder to reach. Most good CFD brokers out there offer 24/7 live customer support for deposits, withdrawals and potential technical issues. Due to this, whenever there is a problem, you are sure that it is solved as fast as possible.
The Use Of Stop-Loss Signals
Last but not least, the use of stop-loss signals automatically minimizes potential losses for CFD traders. Besides this, there are countless other tools and features that are available and are proprietary to specific trading platforms.
Always take a look at all the features that are available for crypto CFD trading accounts. You might be surprised to see something that is quite useful and that you never even thought about in the past. Crypto CFD trading is simply much more advanced right now than what people expect.