The risks you expose yourself to by holding cryptocurrencies are numerous. Be it market fluctuations, self-management, smart contract risks or hacks – no trader is safe from them. That’s why many traders turn to CFDs (contracts for difference). These can be traded at online brokers such as XTB and allow you to trade your favorite cryptocurrencies without having to hold them yourself. In addition, you can also bet on falling prices through short selling, which is particularly interesting when volatility is high.
But what are CFDs actually? CFD stands for Contract of Difference. These allow you to bet on the prices of cryptos and other assets without actually having to hold the underlying asset. In this way, you can take full advantage of every market phase through long and short selling and trading with leverage.
CFDs are particularly suitable for those who are looking for a fast trading environment and high potential returns. It should be noted that risks (especially in relation to leverage and market fluctuations) should not be ignored. The leverage effect in leverage products multiplies both: possible profits and possible losses. Example: A 10 or 20% profit on a single trading day is certainly possible, but so is a 10 or 20% loss. As a beginner, you should therefore start carefully and start with small, manageable transactions that do not exceed your freely available capital.
Contracts for difference have some key advantages that make them attractive for traders. Through leading brokers like XTB you get access to global markets including stocks, ETFs, Forex, commodities, indices and of course cryptocurrencies. You can trade these through a single account without the contracts having an expiration date.
XTB: The market leader for contracts for difference, CFDs
Through XTB’s contracts for difference, you trade stocks, ETFs, forex, commodities, indices and cryptos without holding the underlying assets. The whole thing is possible via a single account, which you can manage via the professional trading app on the desktop and use the best tools.
XTB’s technology enables you to execute orders reliably and ultra-fast – at any time. The professional trading platform xStation is available for Windows and Mac and is very easy and intuitive to use. The mobile apps allow you to trade from anywhere and work completely in sync with the desktop version.
No matter what goals you have and how long your investment horizon is, XTB’s savings plans are designed for automatic savings in ETFs and can be used flexibly. This means you can invest up to a monthly turnover of EUR 100,000 free of charge. The easy-to-use app allows you to create your savings plan in no time and from as little as EUR 15.
In addition, you automatically earn interest on your uninvested capital. This means you will earn 4.20% annual interest for the first 90 days after you open the account. After those 90 days it’s a whopping 2%. Interested? Then open your trading account with XTB today.
Customer service and safety first
The leading CFD broker has existed since 2002 and is represented worldwide. The company is monitored by the largest regulatory authorities in the world, including FCA, KNF, CySEC, BaFin (German branch) and FSC. Not least for this reason, more than a million customers worldwide now rely on the excellent service.
XTB also sets the highest industry standards in the area of customer service. XTB Global Customer Support is available 24 hours a day, 5 days a week to help you with any issue you may have. The German-speaking customer service, which is based directly in the branch in Berlin, is available to you on weekdays from 9 a.m. to 6 p.m.
Additionally, receive all important financial news in German directly in the trading platform and the app. Experience the difference that XTB technology offers every trader and investor. Join a million more investors worldwide and open your account with XTB.
Disclaimer: CFDs are complex instruments and involve a high risk of losing money quickly due to the leverage effect. 76% 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 money.”
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