The hottest new assets for CFD trading are bitcoin and altcoins. Bitcoins are a digital currency representing the new age of internet dollars and the future of business and finance. Altcoins are similar to bitcoin as they are also a digital currency, the term altcoin represents all the other cryptocurrencies such as Ethereum and Litecoin. OptionWeb offers the widest range of coins and currency pairs to make leverage CFD trading in cryptocoins a step into the future. As the market has grown with Bitcoin rising above $5000 so has the interest in cryptocoins and their technology. The demand for bitcoin has sparked the growth of the market and the introduction of close to 1000 altcoins. When you trade coins using CFDs, you engage in a contract with OptionWeb in which you don’t actually own the currency, but rather enter an agreement at the end of which you settle the difference and earn the profit or take the loss. If prices rally between the time you opened and closed the position, you will get the profits, if they go down, the loss is deducted from your account. A unique advantage is that you can also sell/short coins and benefit from declines.
The cryptocurrency market is volatile and new, which can give you massive gains or losses in no time at all. Many are predicting that Ethereum will surpass bitcoin others show less faith in the relatively new cryptocurrency. For CFD traders it’s all about volatility and Ether and other new altcoins surely offer that.
CFD’s are slightly easier for the newer players as well as experienced speculators. With built in leverage you can control a larger portion of the market. OptionWeb provides a variety of potential instruments and methods to gain exposure and leverage to digital coins. Contracts for differences offer investors ways to make money off of changes in bitcoin and altcoin prices without the hassle associated with directly buying them via an exchange. As such, contracts for differences are very popular among traders. Such contracts allow investors to generate profits off of changing conditions in global markets as demand and supply rises and falls for various commodities using leverage to ramp up their market positions with minimal capital investments.
If your intuition about rising or dropping coin prices turns out to be correct you will be paid the difference by the trading company. On the other hand, if your intuition turns out to be incorrect and prices don’t go as you expected, you will have to pay the difference, in this case to the trading company. In a certain sense, the buyer and seller are essentially betting on whether or not prices will rise or drop. The OptionWeb trading platform allows you to protect yourself from adverse moves by setting a stop loss to close your position if it moves against you.