With the flare-up of cryptocurrencies in the last few years, more and more people are looking for new ways to trade. Traders around the world have started to move towards CFD trading which stands for contract-for-difference, a specific type of trade that involves trading asset contracts.
The CFD market can be considered as the “digital” version of real markets, except for the fact that you are buying a price contract instead of an underlying asset, be it a stock, commodity, indices, or crypto assets. When the price of an asset rises, so does the price of the corresponding CFD contract. The main difference is that when you buy a CFD, you are making a bet on the asset’s price but you do not get to own the asset it represents. The easiest way to start trading CFDs is through a reputable platform like Bitop Exchange.
Benefits of CFD Trading
One of the biggest differences between a cryptocurrency and a CFD is whether you own or not the digital asset and opposite to the traditional investments where you had to put the exact amount of trade value, in CFD, you just need to put the required amount of margin which allows you to have a large portion of your capital with yourself that you can use to open other positions.
The high leverage available in CFD does create the potential for greater profits, but if things go wrong, then you will also have magnified losses. A good way to avoid enormous losses is to have a stop-loss limit and a limited trade size. Bitop provides perfect examples of demo trading where you can test yourself for some period of time before jumping in the deep waters of real trading.
Choose The Right CFD Platform
It can be a little overwhelming to know which trading platform to register at. Some of the key considerations you need to look for are security, reputation, KYC, AML, fees, volume and user experience. Luckily, Bitop got you covered all over Answers:
- Security: One of the most important factors in digital assets exchange is security and the best way to ensure the safety use of a crypto exchange is looking for two-factor authentication (2FA). Other security implementations include cold storage asset reserves and custodial storage services.
- Reputation: It’s very important that the crypto exchange you choose has a good reputation. Not all digital asset trading platforms are free of scams, hacks and illicit activities. We recommend you to look for online reviews, visit their social media platforms and websites to be able to pick the one that suits your needs.
- Volume : Another key fact is checking the number of users utilizing the trading platforms you’re interested in. The best way of finding accurate numbers and information is to check the order book on different exchanges as well as taking a look at third-party websites that offer this type of data. Why third-party websites? Unfortunately, it is known that a few trading platforms post fake volume numbers on their own websites/apps.
- User experience: if you are new to trading, you can pick a basic and intuitive design that fits your needs and if you are an experienced trader, well, a more developed or complex interface. We encourage you to read blogs and threads on what other users have to say about the platforms and compare them to see the difference.
It’s time to move onto Bitop Exchange
Bitop is a digital assets trading platform that focuses on CFDs and provides a unique trading experience, especially towards new users allowing them to seamlessly trade, conduct transactions of any size, and have a free and open trading environment, secure deposits and withdrawal environment. In addition, Bitop Exchange also offers users other various products such as futures, spot trading, derivatives and much more than a normal centralized exchange.
Bitop’s one-click copy-trading allows investors to closely follow the trades of experienced traders on the platform. Users can easily access Bitop’s copy trading system and select the corresponding model which gives customers the opportunity of collecting income without doing all the work in exchange for a fee for every copied trade.
Key advantages of Bitop Exchange include 100+ CFDs in multiple pairs, free demo account with 100K virtual USDT funds for practice, innovative mirror trading (copy trading) system, 3 levels of API security and MSB licenses from the US and Canada.
Official Website: https://www.bitop.com
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