DeutschHow Does CFD Trading Work?
To understand what a Crypto Broker is, you should know the different ways you can speculate on price gains in cryptocurrencies. These are the following variants:
- Trading cryptocurrencies
- CFD Trading
The most direct way, of course, is to buy the corresponding cryptocurrency via a cryptocurrency exchange. In this case, you have the coins in your portfolio, but you would of course still benefit from price increases and could sell the corresponding coins on the exchange again at any time.
If the technical effort is too great and you therefore do not want to open a wallet, you can alternatively opt for CFD trading or binary options. CFD trading offers the possibility to speculate on the price development of numerous underlying assets via contracts for difference. These can be indices, stocks, commodities, currencies and, for some time now, also cryptocurrencies. However, by far not all CFD brokers offer cryptocurrencies as underlying assets.
What is a Crypto Broker?
A Crypto Broker is any CFD broker that offers cryptocurrencies as underlying assets, among other things. Currently, there are already almost ten CFD brokers that offer cryptocurrencies, such as:
So far, the offer is still relatively small even among those CFD brokers who call themselves Crypto Brokers, when it comes to the selection of underlying assets in the field of cryptocurrencies. Some brokers offer exclusively Bitcoin and perhaps Ethereum, while other brokers offer at least five or ten cryptocurrencies to choose from. However, it is very likely that the offer in this area will increase significantly in the future and that there will be many more CFD brokers in the future that can also be called Crypto Brokers.
