Both financial products have their own advantages.
Invest cryptocurrencies as real value/coin
Buy the cryptocurrency at the current market price. The coin can be moved to a wallet or you can also store it with the broker. A quick purchase and sale is possible.
Trade cryptocurrencies via CFD
Cryptocurrencies via CFD offer the advantage that an investor can use leverage. This can increase the profit and loss. It is also possible to speculate on falling prices without much effort. However, a position held overnight will incur financing fees because leverage is used.
Where can you invest in cryptocurrencies?
I recommend the providers listed below for investing in cryptocurrencies on this page. You can create a trading account on these trading platforms in a few minutes and purchase over 15 coins. It works straightforwardly and in just a few steps.
My personal favourite is Etoro, because there you can trade cryptocurrencies by real value and by CFD with leverage in exness fx broker. Both options are available on one platform. In addition, the fees are relatively low in comparison.
Advantages of good platforms:
- Quick account creation and verification
- User-friendly trading platforms
- Short trades possible without problems
- Trade coins with and without a wallet
- Secure and regulated provider
How to get started with an investment
The provider will guide you step by step through the account opening process. Enter your personal details correctly and verify your identity with the requested documents. Security is paramount, so account verification must be completed in full.
After that, you can deposit money into the trading account using known methods:
- Credit cards
- Bank transfer
- online banking
Choose any cryptocurrency and start investing. Buying and selling is possible. In addition, the position can be hedged with a stop loss. This is an automatic limit at which the position is closed.
In the order screen you can see all possible functions for your trading position:
- Buy and sell cryptocurrencies
- Use leverage (if desired)
- Secure the position with a stop loss
- Automatically secure the profit with a take profit
- Use limit orders to invest at certain prices
Protect your investment with a Stop Loss
Not every trading platform offers a stop loss for cryptocurrencies. However, with my recommended providers you can use this function without any problems. The cryptocurrency market is extremely volatile, so price fluctuations of several 10% are not uncommon. Sometimes there are also very rapid sell-offs. The market still has too little liquidity.
That is why I recommend hedging your position. Set a limit at which you automatically sell the position in the event of a loss (stop loss). This way you can protect yourself from a total loss. With a stop loss, it is also possible to hedge profits.