DeutschSpeculate on Rising Prices via Direct Purchase
There are currently two different ways you can speculate with cryptocoins. The first option is the so-called direct purchase. You can make the purchase of cryptocurrencies via the so-called cryptocoin exchanges. These prices exist exclusively on the Internet and, in principle, function like stock exchanges. You can place an order on the cryptocoin exchange by specifying, for example, to buy 200 Ethereum.
You must of course pay the equivalent value of the respective transaction, for example with Swiss francs or another currency. Sometimes it is also possible to exchange different digital currencies with each other on the cryptocoin exchange. However, a drawback with this speculation variant is that you cannot speculate on falling prices of certain cryptocurrencies with direct trading. So far, you cannot go short on cryptocoin exchanges, i.e. you cannot carry out short sales. However, this would be a prerequisite if you wanted to speculate on falling prices.
Speculate on Rising or Falling Prices Using Crypto CFDs
The second option, which you can also use to speculate with cryptocoin, is somewhat more indirect. These are the so-called crypto CFDs. This is the name given to Contracts For Difference that include a cryptocurrency as an underlying asset. A major advantage of CFD trading with crypto CFDs compared to direct trading is that in this case you can speculate not only on rising, but also on falling prices of digital currencies. In addition, CFD trading is regulated by the respective crypto brokers, which is not the case with direct trading of cryptocurrencies via the cryptocoin exchanges already mentioned. There is also another difference, namely that you can use leverage when trading crypto CFDs and thus potential price increases or the resulting profits (but also losses) are increased.
In the following overview, we would like to summarize once again how the two main types of cryptocoin speculation, namely direct trading via cryptocoin exchanges and trading with crypto CFDs, differ from each other in detail:
- Regulation: Cryptocoin exchanges not regulated, CFD trading is regulated
- Speculate on rising and falling prices: only possible with crypto CFDs
- Potentiated profits and losses: only with crypto CFDs
- Selection of cryptocurrencies: significantly larger on the cryptocoin exchanges
These differences are certainly of interest if you basically want to decide which way you want to speculate with cryptocoins, namely on the one hand via direct trading via the cryptocoin exchanges or on the other hand preferably via a CFD broker that offers trading with crypto CFDs.
The Best Options for Buying and Trading Bitcoin via Crypto Exchanges or CFD Brokers
Provider
Result
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. Extra: 10 Euro bonus when registering via CoinPro.ch
Trade many different cryptocurrencies without a wallet with our CFD broker test winner Plus500 - 7 days a week.
Regulated provider from Austria - specializing in trading Bitcoin, Ethereum, stocks and many other assets.
CFDs and real stocks in a trading platform with free deposits and no conditions - that's XTB.
OKX is one of the largest crypto exchanges in the world and combines numerous functions such as a wallet, staking, futures, margin, and spot trading in a single platform.
With several hundred thousand customers worldwide, Binance is one of the top 10 largest and most well-known exchanges. The use of the exchange is free of charge, with fees only applying to the purchase and exchange of cryptocurrencies.
CFDs are complex instruments and, due to leverage, carry the high risk of losing money quickly. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
