What is the difference between bitcoin and CFD trading?

3 answers

• May 11, 2022 · 3 years ago
  Bitcoin trading involves buying and selling actual bitcoins on a cryptocurrency exchange. When you buy bitcoin, you own the actual digital currency and can store it in a digital wallet. On the other hand, CFD trading allows you to speculate on the price movements of bitcoin without actually owning it. With CFDs, you enter into a contract with a broker to exchange the difference in price of bitcoin from the time the contract is opened to when it is closed. This means you don't own any bitcoin, but you can still profit from its price movements.
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• May 11, 2022 · 3 years ago
  In terms of risk, bitcoin trading carries the risk of losing your investment if the price of bitcoin goes down. However, it also offers the potential for significant returns if the price goes up. CFD trading also carries the risk of losing your investment, but it can be even riskier as it involves leverage. This means you can potentially lose more than your initial investment. On the other hand, CFD trading allows you to profit from both rising and falling markets, giving you more trading opportunities.
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• May 11, 2022 · 3 years ago
  As for ownership, when you buy bitcoin, you have full ownership and control over the digital currency. You can transfer it, spend it, or hold onto it for as long as you want. With CFD trading, you don't actually own any bitcoin. You are simply speculating on its price movements. This means you don't have the same level of control and flexibility as you would with owning actual bitcoin.
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