Over the past decade, since the debut of Bitcoin, cryptocurrency trading has become increasingly popular. Cryptocurrencies are digital coins that are created using blockchain or peer-to-peer technology that uses cryptography for security purposes.

There are countless ways to profit from cryptocurrency trading, trading strategies help organize these techniques into a consistent structure that you can follow. This way, you can constantly monitor and optimize your strategy. Cryptocurrencies do not have central like a central bank that regulates their circulation in the economy.

Blockchain technology, which is the foundation of each cryptocurrency's creation, has opened up new investment opportunities for traders looking to capitalize. Trading a cryptocurrency means taking a financial position on the direction of the individual crypto's price against the dollar. Online trading has a speculative soul and is often oriented towards the short term, without taking into account the long-term picture. They resort to identifying trends through technical analysis (and let's face it, also through intuition). Whoever trades Bitcoin today does not invest in long-term positions -expecting a slow growth- but also invests in expected short positions.

The CFD, acronym for Contract for Difference, is a financial instrument that replicates the performance of assets. The value, i.e. the quotation of a CFD, therefore depends on that of another instrument (cryptocurrency).

Let's summarize the highlights of online cryptocurrency trading with CFDs:

  • CFD is the instrument that allows us to trade cryptocurrencies, that is, to speculate upwards and downwards on cryptocurrency quotes. On any price variation;
  • Trading includes among its tools also short selling, a complex tool, but made simple by integration on all major trading platforms. With short selling we can get gains even from negative trends, because precisely the more the price drops, the more value our position gets.

The latter has gained a lot of popularity in recent years as it allows a lower capital outlay and at the same time allows traders to speculate on the price movements of the cryptocurrency, without having to actually own it.

Cryptocurrency trading, just like all forms of financial trading, requires adequate knowledge, skills and the availability of capital. Also it must be said that, cryptocurrencies are more volatile than traditional instruments, such instability as may offer more opportunities to make a profit, at the same time it may result in losses.