Cryptocurrencies have indisputably made an impact in the trading sphere since their inception in 2009. So it might not come as a surprise that many traders and investors alike seek access to these digital currencies’ world which keeps enveloping and developing over the years. This Trader’s Guide video delves deeper into Cryptocurrencies and explains how you can trade CFDs on Cryptocurrencies with Plus500’s fintech platform. Watch this video to untangle Cryptocurrencies, the different ways through which they can be traded, and the myriad of Cryptocurrencies CFDs offered on Plus500’s trading platform.
What Are Cryptocurrencies?
Cryptocurrencies are digital assets that use cryptography to secure information and prevent third-party attacks. This means that Cryptocurrencies are nearly impossible to fake or spend twice. Moreover, a vast majority of Cryptocurrencies are also decentralised and block-chain based, meaning they are based on a network that is distributed across multiple computers and is not governed by governments or authorities. Furthermore, unlike fiat currencies’ transactions which require a third-party intermediary validation like a bank, Cryptocurrencies secure online transactions without the need for a third party.
How to Trade Crypto CFDs
Traders may trade Cryptocurrencies through Crypto exchanges and therefore own them. Alternatively, traders may access the Crypto market by trading Crypto CFDs with a provider like Plus500. Crypto CFDs may be adequate for those seeking to dip their toes into the Crypto market without having to worry about storing their Cryptocurrencies in a safe digital wallet away from hackers or for those who wish to benefit from Cryptocurrency prices without owning them.
Trading Cryptocurrency CFDs means that you do not own Crypto, since you speculate on its price movements instead. In addition, in comparison with traditional Crypto exchanges, Crypto CFDs allow for easier access to your account’s available balance and can thus be liquidated more easily since accessing your funds is relatively more manageable than withdrawing from a complex Crypto exchange. Nonetheless, traders should bear in mind that since CFDs are leveraged they can potentially maximise their gains and their losses depending on the direction of their trade.
How to Trade Cryptocurrency CFDs with Plus500
For those interested in trading Cryptocurrency CFDs, Plus500 offers CFDs on some of the market’s most popular Cryptocurrencies including Bitcoin (BTCUSD), Ethereum (ETHUSD), and Cardano (ADAUSD). As for traders that like to access multiple Cryptocurrencies at once, Plus500 also offers its Crypto 10 (Crypto10) index, which gauges the movements of 10 popular Cryptocurrencies simultaneously.
To trade Cryptocurrency CFDs with Plus500, go to your trading platform or app, click on the Cryptocurrency category, scroll down to your favourite Cryptocurrency and open a position by either clicking on the sell or buy options depending on your goals. Alternatively, you can simply type the name of your chosen Cryptocurrency in the search bar and open a position then.
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FAQs
To trade Cryptocurrency CFDs with Plus500, go to your trading platform or app, click on the Cryptocurrency category, scroll down to your favourite Cryptocurrency and open a position by either clicking on the sell or buy options depending on your goals.
Is Plus500 good for crypto? ›
If you're interested in trading cryptocurrencies and actually owning the coins yourself, then Plus500 online trading isn't really for you. If, however, you do actually want to participate in CFD trading, then read on - Plus500 might be the perfect option!
Is Plus500 beginner friendly? ›
Plus500 provides some resources to help you get started with trading CFDs on the platform. The company also offers a Trading Academy, which provides various educational products including eBook, video traders guide, and FAQs to ease trading for both beginner and experienced traders.
How do you actually trade crypto? ›
To start trading cryptocurrencies, you first need to open a trading account with a reputable broker or exchange. Once your account is set up and funded, you can start trading. It's recommended to start with a demo account to practice trading without risking real money.
How do you make $100 a day trading cryptocurrency? ›
If you're new to crypto day trading, here's what you need to know to make money. The most effective way to make $100 a day with cryptocurrency is to invest approximately $1000 and monitor a 10% increase on a single pair. This approach is more realistic than investing $200 and tracking a 50% increase on the pair.
Is Plus500 good for day trading? ›
Yes, Plus500 is suitable for day trading via CFDs and Futures, offering a user-friendly trading platform, diverse markets, competitive spreads, and a handy mobile app. It includes leverage options, enhancing potential gains but with increased risks.
What is the safest site to trade cryptocurrency? ›
The Bottom Line
If you're looking to trade on a highly secure, regulated crypto exchange that offers a large number of supported cryptocurrencies, Gemini is your go-to choice. If, instead, you're looking to trade a wide range of new and small-cap crypto tokens, BitMart is arguably the best choice.
Which platform is best for crypto trading? ›
In conclusion, the best crypto exchanges in India include Mudrex, CoinDCX, CoinSwitch, WazirX, ZebPay, and BitBNS based on several factors like ease of use, security, fees, coin availability, and more.
What is the minimum withdrawal from Plus500? ›
The Plus500 minimum withdrawal is $100 for bank wires or credit/debit cards and $50 for e-wallets. Traders should also consider potential third-party payment processing costs.
Can you go into debt with Plus500? ›
Can I be in debt to you? / Can my account go into a negative balance? Customers cannot lose more than the funds they have on their account. The “Margin Call” feature exists in order to prevent your account from having a negative balance.
Swing trading, which involves holding an investment for more than one day and less than a couple of months, can be a good option for beginners. It allows them to get a feel for the market without diving into more complex trading options like options, short selling, and margin trading.
Does Plus500 have crypto wallet? ›
To trade on the cryptocurrency market, traders can refer to platforms offering cryptocurrency CFDs such as Plus500. These platforms enable crypto trading without the necessity of a cryptocurrency wallet.
How to place a trade on Plus500? ›
To open a position, sign up / log in to your Plus500 account and go to the main “Trade” tab. Search for the instrument you wish to trade, click Buy/Sell, and the position screen will be opened. In the position screen, you can choose the trade size (i.e. the number of shares, barrels, ounces, etc.)
How does +500 work? ›
Plus500's trading platform is understandable, with clear options in the trade window, which allow you to select the size of the CFD contract, choose a buy or sell position and to attach and define risk management tools, such as Stop Loss and other limit orders.
Is trading 212 better than Plus500? ›
Plus500 is rated as Great", with 4.1 out of 5.0 stars, according to around 13,000 reviews on customer review site Trustpilot. Trading 212 is even more highly rated, with 4.6 out of 5.0 stars, based on over 30,000 reviews. Of those, 77% think the company is "Excellent".
