Looking forward to learn about Bitcoin, Litecoin CFD trading, but don’t know how to start? Well you’ve just landed to right place. Following is the in depth detail to learn the basics of Bitcoin and Litecoin CFD trading.
One of the most significantly used trading styles of Bitcoin is the CFD or Contracts for Differences. This trading pattern can offer you a lot of scope to make money if you know Contracts for Difference and how to trade them. It’ssimple and gives you a lot of leverage which made this system most popular. Even though it has acceptance as a fair trading style, but without the right guidelines it may be difficult for the users to extract profit out of this heavily used trading system.
Bitcoin Contracts for Difference (CFD)
The Bitcoin CFD is the contract made between a trader and a broker on the difference that is predicted in future market. The trader controls all the decision and can position himself based on the individual conjectures of the company. This trading is flexible and earning opportunities are offered regarding the Bitcoin market is high or low. If the market runs lower than the trader can buy the Bitcoin. As for the seller, he can decide to sell Bitcoin if the market is running higher. The only condition in making money with Bitcoin CFD trading which compared to spread betting is that you can sell the Bitcoins only if it is available in your portfolio otherwise the earning opportunity will be lost.
Bitcoin CFD trading tips for the beginners
Making money with the Bitcoin CFD trading has a lucrative outlook but it is always difficult for the beginners in terms of taking their first position and for most of the starters it’s not about their lack of experience but the lack of primary guidance. Once the users become aware of Contracts for difference and Bitcoin trading system, from then onthings get pretty smooth.
Research, Strategy and Planning
For new beginners it’s a must to perform an extensive research on CFD trading and Bitcoin in order to moderate the risks of getting bankrupt. Even for old users the research is a continuous process in order to keep up to date about all the latest Bitcoin trading market. You must have a strategy and planning as a backup before entering Bitcoin CFD trading otherwise you would be like targeting in dark. This is an up and down road to profit and if you do not have an adoptive strategy than you can’t expect anything in return from your investment.
The trading platforms offers the Bitcoin trading graphs which represents every knowledge you would like to acquire about the past performance Bitcoin trading. It may not predict the future but would certainly point out the potential Bitcoin trading. At first the technical parts of the graph may look quite complicated but with training and practice the task will get simple. Crucial information about highs and lows of the Bitcoin trading as well as the trigger prices are offered by the graph.
Leading services in the market of bitcoin CFD trading
Two of the most commonly used services in today’s Bitcoin CFD trading market are Plus500.com and Avatrade.com. These two trading engines deal with 90% Bitcoin CFD trading in the current market. These two sites same basics with different policy and profit. Here is a short review on these two sites.
Bitcoin CFD trading using Plus500 trade engine
· The Unit amount is 100 Bitcoin daily contracts which equals a value of $914, the rounded USD value of 1 Bitcoin ($913.65).
· The leverage is 1:10 that means for every dollar you have available you can open a position 10 times more in value.
· For Bitcoin Daily instrument at Plus500 the premium Buy is -0.1500 %.
· For Bitcoin Daily instrument at Plus500 the Premium Sell is -0.1500 %.
· Accept Paypal and major Credit Card as deposit method.
· The Initial Margin is 10%.
· Maintenance margin is 5%.
· Bitcoin expires every two weeks, at least.
· Trading hours: Sun 3:00 PM-Sun 1:00 PM.
Bitcoin CFD trading using Avatrade trade engine
· The Unit amount is 5 Bitcoin daily contracts which equals a value of $5000.
· The leverage is 5:1 that means for every dollar you have available you can open a position 5 times more in value.
· For Bitcoin Daily instrument at Ava Trade the premium Buy is 0.0000 %.
· For Bitcoin Daily instrument at Ava Trade the Premium Sell is 0.0000 %.
. Accept Paypal and major Credit Card as deposit method.
· The minimum deposit at Ava Trade is $100.
· The Initial Margin is 20%.
· Maintenance margin is 10%.
· Avatrade Offers two type of Bitcoin securities
*Bitcoin Weekly – Expires Weekly. All OPEN positions WILL be CLOSED at market rate every Friday @ 21.00 GMT.
**Bitcoin Mini – No trading available over the weekend. OPEN positions will NOT be CLOSED every Friday @ 22.00 GMT
It’s up to the trader to decide which service he chooses. Whichever the decision is, the portfolio should include both instruments to get the profit of both terms. So to be successful in making money with Bitcoin CFD trading, these are the four tips you should remember:
1. Research the market.
2. Strategize your steps.
3. Plan for the future
4. Flexible portfolio
A new trader must keep this instructions in mind which will make using this two trade engines more efficiently. It’s the basic guide you need if you want to make money with bitcoin CFD trading.