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Rankings updated October 2026

CFD Crypto Day Trading: Guide & Top Brokers

Crypto CFDs are derivatives where the buyer and seller pay the difference between the opening and closing price of a token when the trade is closed. Day traders can go long and short with these crypto-backed instruments, meaning you can make profits whether digital asset prices rise or fall. They are usually traded using leverage (borrowed capital). This can supercharge profits, but it can also amplify losses when the crypto market moves quickly.

The guide will explain how crypto CFDs work, discuss their advantages and disadvantages, and list the steps to trade these short-term financial products. We’ve also vetted and listed the best brokers for trading crypto CFDs.

Top 6 Crypto CFD Brokers

We've evaluated the range of crypto CFDs and trading conditions at each of these top-rated brokers:

Tested with a live trading account Accepts traders from New Zealand Your capital is at risk. Trade only with funds you can afford to lose.
  1. Our top pick in New Zealand
    • FTSE Spread: 1.5
    • GBPUSD Spread: 0.5
    • Stocks Spread: No mark-up
    • FTSE Spread: 13.33
    • GBPUSD Spread: 0.56
    • Stocks Spread: 0.3
    • FTSE Spread: 1.4
    • GBPUSD Spread: 0.8
    • Stocks Spread: 1.79 (Apple)
    • FTSE Spread: 0.5
    • GBPUSD Spread: 1.5
    • Stocks Spread: 0.13
    • FTSE Spread: 17.5
    • GBPUSD Spread: 0.4
    • Stocks Spread: 0.01
    • FTSE Spread: 1.0
    • GBPUSD Spread: 0.23
    • Stocks Spread: 0.02

Learn how we test brokers and why you can trust our ratings.

Here is a short overview of each broker's pros and cons

  1. BlackBull 4.5/5 BlackBull excels for active traders interested in trading crypto. It has grown its selection of cryptocurrencies, now providing 27+ digital tokens, including Bitcoin, Ethereum, and Trump, with all cryptos paired with USD. But pricing is where it excels, with testing revealing average spreads of around 12 on BTC/USD - less than half that of competitors like Eightcap, plus there’s no commission, making it considerably cheaper than most crypto CFD brokers. BlackBull also offers separate well-presented crypto guides for beginner, intermediate and advanced traders. Up to 1:100 leverage is available on cryptos.
  2. Moneta Markets 4.4/5 Moneta Markets supports trading on popular cryptos against the USD with 1:5 leverage. Moneta Markets also enhanced its crypto offering in 2024 with 6 ETFs that provide exposure to digital currencies. However, tokens can be traded as CFDs only - they cannot be directly bought and sold. Also, average spreads on Bitcoin trail the cheapest crypto brokers.
  3. XM 4.8/5 XM offers a handful of cryptocurrencies against the USD via the South African entity only. These are tradable via CFDs with very high leverage up to 1:500, amplifying potential returns but also losses. You can day trade major tokens like Bitcoin, Ethereum and Ripple, though the suite of tokens trails the 100+ crypto derivatives at some category leaders.
  4. AvaTrade 4.9/5 Regulated in five continents, AvaTrade offers a secure way to access crypto markets. There's a growing range of digital currencies including Bitcoin, Ethereum and Ripple, plus more unusually, a crypto index for diversified exposure. You can also access competitive crypto spreads in the broker's three platforms as well as 1:2 leverage.
  5. RoboForex 4.5/5 RoboForex has launched 24/7 CFD crypto trading for popular tokens, including Bitcoin, Ethereum, and Cardano. Transparent fees, margin trading opportunities, and the reliable RoboForex execution make it suited to active crypto traders. Crypto trading is on select accounts like Pro, ProCent, and ECN accounts, alongside leverage up to 1:500 for BTC/ETH.
  6. IC 4.8/5 IC offers 20+ cryptocurrencies which are tradable via CFDs, including lesser-known tokens such as Avalanche, Kusama and Uniswap. Commission-free trading is available, and experienced crypto traders can access leverage in the MetaTrader platforms.

Compare Crypto CFD Trading Conditions

Compare Crypto CFD Trading Conditions
BrokerCoinsCrypto Spread
BlackBull 2712 average (Bitcoin)
Moneta Markets 6230.81 (Bitcoin)
XM 5Variable
AvaTrade 8BTC <1%, ETH 2%
RoboForex 6Variable
IC 18BTC 42.036

Community Sentiment

See how users rate these brokers based on the average customer ratings submitted on DayTrading.com, plus ratings from Trustpilot, the Apple App Store and Google Play.

Community Sentiment
BrokerOur Users' RatingTrustpilot ScoreTrustpilot ReviewsiOS App RatingAndroid App Rating
BlackBull 4.0 / 54.7 / 535153.7 / 53.7 / 5
Moneta Markets 4.5 / 54.2 / 56365.0 / 54.4 / 5
XM 4.6 / 52.0 / 531334.7 / 53.9 / 5
AvaTrade 4.3 / 54.8 / 5135674.3 / 54.0 / 5
RoboForex 4.4 / 52.1 / 57734.7 / 54.4 / 5
IC 4.3 / 53.0 / 523.1 / 54.2 / 5

BlackBull

After improving its trading infrastructure with Equinix servers in London, reducing latency for traders, BlackBull is an obvious choice if you want to day trade stock CFDs with ECN pricing. With competitive spreads and no commission on a growing roster of digital tokens paired with USD, BlackBull also works for active crypto traders.

Christian Harris Christian Harris, Reviewer

BlackBull quick facts

FTSE Spread
1.5
GBPUSD Spread
0.5
Stocks Spread
No mark-up
Leverage
1:30
Regulator
FMA, FSA
Platforms
BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist
Coins
BTC, ETH, SOL, XLM, XRP, BCH, ADA, SUI, TRUMP, LNK, DOT, DOGE, AAVE, AXS, HED, LTC, TRX, UNI, PYTH, ARB, BNB, AVAX, NEAR, ILV, ATM, INJ, POLY
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
12 average (Bitcoin)
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$0
Account Currencies
USD, EUR, GBP, CAD, AUD, NZD, JPY, ZAR, SGD

Pros

  • BlackBulls’s research is superb, especially the daily ‘Trading Opportunities’ articles that break down complex market movements into easy-to-understand insights, making it simpler to capitalize on emerging trends.
  • With two ECN-powered accounts (Standard and Prime), plus Prime+ - an active trader rewards program offering trading rebates - BlackBull accommodates beginners through to high-volume active traders.
  • After partnering with ZuluTrade and Myfxbook, alongside improvements to its own CopyTrader, and finally enabling cTrader Copy, BlackBull offers one of the most comprehensive copy trading experiences we've seen.

Cons

  • Unlike most top brokers, BlackBull charges an irritating $5 withdrawal fee, which can detract from the overall cost-effectiveness, especially for active traders who frequently move funds.
  • Despite a growing selection of 2,180+ assets, including additions to its Asia Pacific indices, they are mainly stocks with an average selection of currency pairs and indices.
  • Although the Education Hub now features improvements like webinars and tutorials, the courses we’ve explored need more focus on explaining the wider economic factors influencing prices.

Moneta Markets

With ECN pricing featuring spreads from 0 and commissions from $1, leveraged trading, and terrific charting platforms, Moneta Markets is an excellent broker for experienced day traders.

Christian Harris Christian Harris, Reviewer

Moneta Markets quick facts

FTSE Spread
13.33
GBPUSD Spread
0.56
Stocks Spread
0.3
Leverage
1:1000 (via offshore entities)
Regulator
FCA, FSCA, FSA
Platforms
AppTrader, ProTrader 2.0, MT4, MT5, TradingCentral
Coins
BTC, BCH, DSH, LTC, ETH, XRP
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
230.81 (Bitcoin)
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$50
Account Currencies
USD, EUR, GBP, CAD, NZD, JPY, HKD, SGD, BRL

Pros

  • Registering for an account with Moneta Markets is quick and easy through the digital sign-up process, taking just a few minutes with an accessible $50 minimum deposit.
  • Moneta Markets makes account funding a breeze, with plenty of account currencies, zero transfer fees and a wide selection of traditional, digital and now crypto-backed payment methods.
  • Moneta Markets supports a growing suite of 1000+ tradable assets, with a particularly strong selection of commodities and more recently fresh index CFDs.

Cons

  • Although regulated by the FSCA, trading through the Seychelles-based entity may result in limited regulatory protections due to its offshore base and lax mandated account safeguards.
  • While trading costs are generally competitive, index CFDs feature fairly high spreads especially on US products like the S&P 500, trailing IC Markets during testing.
  • The best pricing is reserved for traders who deposit $20,000 for the ECN Ultra account, putting it out of reach for most retail investors.

XM

With a low $5 minimum deposit, advanced charting platforms in MT4 and MT5, expanding range of markets, and a Zero account offering spreads from 0.0, XM provides all the essentials for active traders, even earning our ‘Best MT4/MT5 Broker’ award in recent years.

Christian Harris Christian Harris, Reviewer

XM quick facts

FTSE Spread
1.4
GBPUSD Spread
0.8
Stocks Spread
1.79 (Apple)
Leverage
1:1000
Regulator
CySEC, DFSA, FSCA, SCA, FSA, FSC-Belize, FSC-Mauritius, CMA-Kenya, CMA-UAE
Platforms
MT4, MT5, TradingCentral
Coins
BTC, ETH, LTC, XRP, BCH
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
Variable
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$5
Account Currencies
USD, EUR, GBP, JPY, ZAR

Pros

  • XM’s Zero account is ideal for day trading with spreads from 0.0 pips, 99.35% of orders executed in <1 second, and no requotes or rejections.
  • XM’s growing roster of 1,400+ instruments provides diverse short-term trading opportunities, with unique turbo stocks, fractional shares, and more recently thematic indices.
  • XM secured a category 5 license from the Securities and Commodities Authority (SCA) of the United Arab Emirates in late 2025, strengthening its regulatory credentials and making it a strong option for traders in the Middle East.

Cons

  • XM is falling behind the curve by not offering cTrader, which is favored over MetaTrader by some serious traders for its smoother user experience and superior charting package.
  • Although trusted and generally well-regulated in some regions, XM also has global entities registered with the weak regulators like FSC (Belize) and FSA (Seychelles), whilst UK clients are no longer accepted, reducing its market reach.
  • While the XM app stands out for its usability and exclusive copy trading products, the selection of technical analysis tools needs to be improved to meet the needs of advanced traders.

AvaTrade

AvaTrade offers active traders everything they need: an intuitive WebTrader, powerful AvaProtect risk management, a smooth 5-minute sign-up process, and dependable support you can rely on in fast-moving markets.

Jemma Grist Jemma Grist, Reviewer

AvaTrade quick facts

FTSE Spread
0.5
GBPUSD Spread
1.5
Stocks Spread
0.13
Leverage
1:30 (Retail) 1:400 (Pro)
Regulator
ASIC, CySEC, FSCA, ISA, CBI, JFSA, BVI, FSRA/ADGM, AFM, CMA-Kenya, CIRO (via Friedberg Direct)
Platforms
WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingView, TradingCentral, DupliTrade
Coins
BCH, BTC, BTG, ETH, LTC, XRP, EOS, DASH
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
BTC <1%, ETH 2%
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$100
Account Currencies
USD, EUR, GBP, CAD, AUD, ZAR

Pros

  • The WebTrader excelled in our hands-on tests, sporting a user-friendly interface for beginners, complete with robust charting tools like 6 chart layouts and 60+ technical indicators.
  • Support at AvaTrade performed excellently during testing, with response times of 3 minutes and localized support in major trading jurisdictions, including the UK, Europe and the Middle East.
  • AvaTrade launched AvaFutures to offer low-margin access to global markets, then expanded in 2025 as one of the first brokers to add CME’s Micro Grain Futures, and then later in the year went further by integrating with TradingView.

Cons

  • AvaTrade’s WebTrader has improved, but work is still needed in terms of customizability – frustratingly widgets like market watch and watchlists can’t be hidden, moved, or resized.
  • The AvaSocial app is good but not great – the look and feel, plus the navigation between finding strategy providers and account management needs upgrading to rival category leaders like eToro.
  • While signing up is a breeze, AvaTrade lacks an ECN account like Pepperstone or IC Markets, which provides the raw spreads and ultra-fast execution many day traders are looking for.

RoboForex

RoboForex is great if you want a vast range of 12,000+ day trading markets with ECN accounts, powerful charting and loyalty promotions. It also stands out for stock traders with its user-friendly R StocksTrader platform, featuring 3,000+ shares, fees from $0.01 and sophisticated watchlists.

Christian Harris Christian Harris, Reviewer

RoboForex quick facts

FTSE Spread
17.5
GBPUSD Spread
0.4
Stocks Spread
0.01
Leverage
1:2000
Regulator
FSC
Platforms
R StocksTrader, MT4, MT5, TradingView
Coins
BTC, ETH, XRP, SOL, DOGE, ADA
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
Variable
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$10
Account Currencies
USD, EUR

Pros

  • RoboForex offers over 12,000 instruments, providing more short-term trading opportunities than the vast majority of online brokers, with forex, stocks, indices, ETFs, commodities, and futures.
  • RoboForex is known for its tight spreads starting from 0 pips and low minimum deposits from $10, making it accessible to those on a budget. The ability to trade with micro lots further lowers the barrier to entry for new traders.
  • In 2026, RoboForex introduced swap-free trading across all accounts, removing overnight interest charges, and potentially appealing to swing forex traders, though spreads and commissions may still apply.

Cons

  • While RoboForex offers competitive spreads, some of its account types come with high trading commissions up to $20 per lot, trailing the cheapest brokers, such as IC Markets.
  • Despite offering a range of platforms, RoboForex still doesn't support the increasingly popular cTrader. This might deter traders who prefer this specific platform for their day trading activities and is available at firms like Fusion Markets.
  • RoboForex now restricts base currency options to USD and EUR. This limitation may inconvenience day traders preferring to manage their accounts in other currencies, while potentially leading to conversion fees.

IC

IC (formerly IC Markets) offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders.

Christian Harris Christian Harris, Reviewer

IC quick facts

FTSE Spread
1.0
GBPUSD Spread
0.23
Stocks Spread
0.02
Leverage
1:5000
Regulator
ASIC, CySEC, FSA, SCB, CMA-Kenya
Platforms
MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower
Coins
BTC, BCH, DOT, DSH, EMC, EOS, ETH, LNK, LTC, NMC, PPC, XLM, XRP, ADA, BNB, DOG, UNI, XTZ
Crypto Mining
✘No
Auto Market Maker
✘No
Crypto Spread
BTC 42.036
Crypto Lending
✘No
Crypto Staking
✘No
Minimum Deposit
$200
Account Currencies
USD, EUR, GBP, CAD, AUD, NZD, JPY, CHF, HKD, SGD

Pros

  • As a tightly regulated and widely respected broker, IC prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • IC secured DayTrading.com's 'Best MT4/MT5 Broker' in 2025 for its seamless, industry-leading MetaTrader integration, refined over years to maximize the platform experience.

Cons

  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.

What Are Crypto CFDs?

Crypto CFDs are financial instruments that track price movements in cryptocurrencies, such as Bitcoin, Ethereum and Litecoin.

They enable speculators to bet on whether crypto prices will rise or fall without having to own the underlying asset itself, a characteristic of all CFDs.

You can bet on crypto prices rising by taking a ‘long’ position, or speculate that values will drop by going ‘short’.

Like many derivatives, crypto-backed CFDs are popular with short-term traders who wish to use leverage. These are funds that you can borrow from a brokerage to control a larger position.

You will put down a deposit (known as margin) that allows you to open and hold a position in a cryptocurrency. Your broker will specify the minimum balance you must maintain in your account relative to the total value of the leveraged position.

Based on our many years in the industry, the level of leverage available on crypto CFDs typically ranges from 1:2 to over 1:20. A $100 outlay with 1:2 leverage would give you $200 (2 x $100) in buying power, while 1:20 leverage would give you $2,000 (20 x $100).

Bitcoin CFD conditions on XTB trading platform
Source: XTB

Due to their volatile nature, crypto CFDs are normally available with less leverage than other financial instruments, such as fiat currencies, protecting against significant losses in fast-moving markets.

Importantly, if you fall short of the margin requirements, the brokerage will demand that you deposit more cash. This is known as a margin call. If you fail to do this you may find your cryptocurrency CFD position liquidated by your broker – an extremely frustrating situation.

Crypto CFDs are controversial financial securities. While they can significantly enhance your returns, they can result in whopping losses when things go wrong.

Royston WildRoyston WildAuthor

A Crypto CFD Trade In Action

To help you understand how a crypto CFD trade works in reality, let’s look at an example…

Initial Scenario

  • Current Bitcoin Price: $60,000
  • My Deposit (Margin): $1,000

Objective

I anticipate that the price of Bitcoin will increase following an announcement from an established public company that it’s bought a large amount of the digital currency, so I decide to enter a long position (buy) using a Bitcoin CFD with 10x leverage.

The 10x leverage means that my $1,000 deposit allows me to control a position worth 10 times my deposit, so $1000 x 10 = $10,000.

Trade Execution

  • Price Movement: The price of Bitcoin rises over the next 6 hours
  • New Bitcoin Price: $62,500

Importantly, Bitcoin CFDs are only settled when I choose (or the broker closes it because I have failed to meet margin requirements).

Calculating My Profit

  • Determine the price movement: The price moved from $60,000 to $62,500, which is a $2,500 increase.
  • Calculate the percentage increase: The increase is $2,500 on the original $60,000, which is a 4.17% increase.
  • Apply the percentage to my controlled amount: Since I control $10,000 worth of Bitcoin, a 4.17% increase on my position is $10,000 x 4.17% = $417. My profit excludes trading fees.

If I had not used leverage and simply invested my $1,000 directly into Bitcoin, my profit from the price increase from $60,000 to $62,500 would have been approximately $41.67 ($1,000 x 4.17%), excluding any fees, demonstrating the huge impact of leverage.

If The Price Had Fallen

If, instead, the price of Bitcoin had fallen to $58,000, I would calculate my loss in a similar manner. The price movement would be a $2,000 decrease, equating to a 3.33% decrease. On my $10,000 position, a 3.33% decrease would result in a $330 loss.

While this won’t impact day traders, if you keep a Bitcoin CFD trade open overnight, you may incur interest charges, potentially increasing the cost of trading.

Royston WildRoyston WildAuthor

Should I Trade Crypto CFDs Instead Of Crypto Directly?

You can trade cryptocurrency directly on a specialist crypto exchange like Coinbase. However, trading a crypto-based CFD can have advantages over buying and selling digital currencies themselves. These include:

  • Eliminating wallet management: If I buy cryptocurrency on an exchange, I also need to set up a digital wallet in which to store the asset. These can only be accessed via a private ‘key’, a code that can easily be lost or stolen. Trading cryptocurrency CFDs eliminates this threat and also makes day trading much simpler.
  • Better liquidity: Crypto CFDs tend to have higher trading volumes than digital tokens and, as a consequence, much deeper liquidity. This can result in reduced costs through tighter bid and ask spreads, while short-term traders can also be able to enter and exit positions more quickly.
  • Tighter regulation: Regulatory oversight of CFDs tends to be much tighter than the cryptocurrency market more broadly. This provides traders with an enhanced level of protection. However, day traders who use overseas brokers should carefully check their regulatory status.
  • Leverage: I may be able to obtain higher leverage by trading a crypto-based derivative than by dealing in the digital currency itself, potentially increasing profits (and losses).

Trading crypto CFDs instead of the underlying cryptocurrency also has drawbacks. These can include the potential for higher trading fees and increased counterparty risk (the danger that the broker may fail to meet its contractual obligations).

Also, despite improvements in recent years, there is still often a limited choice of digital tokens beyond the biggest and most well-known, such as Bitcoin, Ethereum and Litecoin.

Royston WildRoyston WildAuthor

How To Trade Cryptocurrency CFDs

If allowed in your jurisdiction, day trading crypto CFDs requires 3 steps:

  1. Choose a CFD crypto broker
  2. Develop a strategy
  3. Place a trade

Choose A Crypto Broker

The first step is to choose a broker with cryptocurrency CFDs. I always start by checking that the company is trusted; there are vast numbers of unregulated crypto CFD brokers doing business across the globe with scams prevalent.

Next, consider the levels of leverage that you’re able to take advantage of. After all, the ability to use borrowed funds from a broker is one of the major selling points of day trading crypto CFDs.

Also look for brokers with negative balance protection. This will ensure that you cannot lose more than the funds that are already in your account when trading with leverage.

Once you’re happy with these points, check the pricing – low spreads will help maximize profits, especially for active day traders.

Finally, make sure the trading platform is easy to use with the charting tools you need to analyze and forecast cryptocurrency price movements. This is really important – an intuitive platform can really enhance the trading environment in my experience.

Develop A Strategy

Successful CFD crypto trading requires a well-thought-out strategy, typically entailing technical analysis if you’re short-term trading, though it could also include fundamental analysis.

Determine in advance your entry and exit points, stop-loss orders, and take-profit levels. Backtest your strategy where possible, making use of a demo account if needed, and remain adaptable to changing market conditions – crypto prices are notoriously volatile.

Two popular strategies for short-term crypto CFD trading include:

Breakout Trading – This strategy involves identifying a channel of resistance and support levels that the asset is consistently oscillating between. A breakout trader would wait until the price breaks through either level and then open a position for the breakout to be consolidated and become a new trend.

Contrarian Trading – This strategy is similar to swing trading, entailing betting against a consolidated trend as you are anticipating its reversal. This can be indicated in several ways, for example, a declining trading volume.

Place A Trade

You should be able to execute a cryptocurrency CFD trade directly in the broker’s platform or mobile trading app in a few clicks, inputting long/short, position size and any risk management parameters.

Importantly, begin day trading crypto CFDs with an amount of capital you can afford to lose. Start small to test your strategy under real market conditions.

Always stay informed about market news and events that could affect crypto prices, and be prepared to adjust your strategy as needed.

A Restricted Asset Class

Their high-risk nature means that trading crypto CFDs is closely regulated in many countries and even outlawed in others.

For example, in January 2021, the Financial Conduct Authority (FCA) in the UK banned retail traders from speculating on cryptocurrencies through derivatives like CFDs. Retail clients in the UK can only trade crypto CFDs with offshore, weakly regulated brokers with limited legal protections.

That said, the FCA has left the door open for professional traders to continue dealing in crypto derivatives.

Screenshot of FCA website with ban on crypto derivatives like Bitcoin CFDs
Source: FCA Website

The high-risk nature of CFDs means many territories have prohibited them regardless of which underlying asset they are linked to. The Securities and Exchange Commission (SEC), for instance, has prohibited any US citizens from dealing in these contracts.

Certain regions like the European Union and Australia have strict rules on the trading of CFDs, including crypto CFDs, while some like Hong Kong prevent their citizens from trading them unless they use an overseas broker.

Bottom Line

Since the creation of Bitcoin in 2009, hundreds of other cryptocurrencies have been created and now form a massive part of the day trading landscape. CFDs are extremely popular ways to capitalize on these new-age assets, although the wide-scale availability of leverage adds extra danger to these trades.

Investors who decide to deal in these financial instruments should be fully aware of these risks, and must have a detailed understanding of cryptocurrency markets before taking the plunge.

To get started, see our ranking of the best brokers with crypto CFDs. Alternatively, trading cryptocurrency-backed CFDs via a demo account is a lowe-risk first step for newer traders.

FAQ

How Does CFD Crypto Trading Work?

Two parties will enter a contract that states that the difference between the opening and closing values of the digital asset will be paid by either the broker or trader (depending on the type taken out and the direction of price movement).

Importantly, CFDs are derivatives, so you do not take ownership of the underlying digital asset, you simply make or lose money based on the change in its value.

Do I Need A Digital Wallet For CFD Crypto Trading?

No, you do not need a digital wallet. Digital wallets are used when you own digital currencies, which is not the case for CFD crypto trading, and is part of their appeal to short-term speculators.

What Cryptocurrencies Can I Trade CFDs With?

It is primarily the cryptos with the biggest market capitalization that brokers will offer CFDs for. These include Bitcoin, Ripple, Ethereum and Litecoin.

Having said that, we’re seeing brokers expand their suite of cryptocurrency CFDs, with Eightcap standing out for its around 100 crypto derivatives.

How Much Money Do I Need To Trade Crypto CFDs?

CFD crypto trading is much akin to betting in that you can put as much or as little money as you wish (to a point) on the trade.

The use of leverage can also increase market exposure by allowing you to front only a portion of a trade’s stake, for example, less than $100.

Importantly, given the derivative nature of CFDs, you do not need to be able to purchase one whole Bitcoin, for example, to begin trading.

What Time Does Crypto CFD Trading Cease?

As cryptocurrencies are not traded on one specific regulated exchange, they are open for CFD trading 24/7, all year round.

That said, there are times of higher and lower market activity that will often follow the peak trading hours of popular physical exchanges, which can affect profits through slippage and volatility.

Article Sources

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