Trading Crypto CFDs is Sleek, Secure and Straightforward
The funds stolen in crypto hacks last year were much less than in 2022. This isn’t necessarily cause for celebration, though, because hackers were still relentless, mounting a greater number of attacks, in fact, than in that record year of blockchain burglary. $197 million was stolen in a single attack in March 2023, and a shocking 33 separate hacking incidents occurred just in July.
The most popular type of attack aimed at smart contracts and, unfortunately, the underlying vulnerabilities that make them possible are yet to be remedied. Blockchain security expert Mar Gimenez-Aguilar, who investigated the incidents, reported back that “a large proportion of the affected contracts we examined had either not undergone an audit or had been audited inadequately”.
Developers in the industry are tending to under-prioritize security in their pursuit of endless growth. Even if they get their act together, crypto hackers aren’t going anywhere and they’re more than willing to adapt their strategies according to need. Holding your tokens on an exchange or in a hot wallet leaves them susceptible to hacking theft. Keeping them in a cold wallet means you could lose them in mere forgetfulness. Is there any secure way of trading in crypto?
Yes, there is. Trading in crypto tokens as CFDs removes every worry we have mentioned so far. But that’s just the beginning: CFDs also open up all kinds of new opportunities, as we’ll explain. Join us for a couple of minutes while we introduce you to the world of crypto CFDs.
Crypto CFDs: How Do They Work?
Opening a CFD deal, whether it be in Bitcoin or any other financial instrument, means you are establishing an agreement with your brokerage stipulating you should be paid in the event the instrument’s prices follow your predictions. It follows that, when making a CFD deal, you can choose to base it on falling prices (called a “sell” deal) rather than rising ones (a “buy” deal). In the world of cryptocurrency, this implies that the well-known volatility of tokens becomes your friend, no matter what direction it carries prices. Bear markets are no more a problem than bull runs, as far as you’re concerned. It also follows that token storage becomes a non-issue, since you didn’t actually purchase any crypto in your CFD deal.
When it comes to the question of the correct size of your CFD deal, the answer lies in your hands. It’s entirely up to you how big or small the deal should be, which instantly removes the price barrier that holds back so many people from trading in the more popular cryptocurrencies. More than this, you can fashion your deal to work just as you prefer with respect to stop loss and take profit orders. These mechanisms automatically close your deal when certain preset price levels are touched off, either on the upside or the downside.
And then there’s leverage. When setting your crypto deal in CFD form, you have the power to beef it up exponentially, thus increasing your potential earnings many times over. Taking an example, let’s say you believed Solana prices were due to surge and wanted to open a “buy” deal on the token. The trading capital you have to work with is $1,800, and you want to devote it all to this deal. You open the deal at 9 a.m. and monitor Solana prices throughout the day. At 4 p.m. you notice that prices have indeed ticked up 2% since the morning, and you close the deal. Your earnings will equal $36 (2% of $1,800).
If, however, when fixing the terms of your deal, you opted to use leverage of 400:1, your trading power would be multiplied by a factor of 400, amounting to $720,000 (400 times $1,800). Then, that same 2% jump in Solana prices would earn you, not $36, but $14,400 (2% of $720,000). This is quite a pleasing result, especially after only putting down $1,800! When utilizing leverage, do it with caution because it can also magnify your losses when the market goes against you.
Trading Crypto on the iFOREX Platform
You can trade crypto in CFD form on iFOREX’s signature trading platform, which supports your ability to trade effectively in various ways. One of the most powerful of them is by arming you with the weapon of education. iFOREX offers clients an integrated education center that is designed to constantly keep you up to speed with relevant data for your instrument. This means you’ll get live rates for your token coming in directly to your smartphone, but also a daily stream of financial news and market analysis.
You’ll be given the power to analyze this information with live charts and generate trading signals with technical indicators. Beyond this, there’s an extensive library of articles, PDF guides, and video tutorials ready to convey trading concepts in a pleasant and straightforward manner. iFOREX signups also get to consult with a real trading coach to improve their strategies, which can be tremendously helpful. Finally, you can make use of the app’s demo account to practice techniques and get the feel for the platform before starting in earnest.
Signing Off
Available on the iFOREX app, you’ll find a large selection of tokens including names like Ethereum, Dash, NEO, Decentraland, and Cardano. Should you decide to expand the repertoire of your CFD deals beyond crypto, you’ll also have the option to trade in company shares like Tesla, Samsung, and BMW; commodities like cotton, oil, and silver; big name ETFs in various industries; stock indices from around the globe; and major and minor currency pairs too.
Possessing all this choice on a single platform is a convenience that is drawing more and more people into the sphere of CFD trading. And iFOREX is a great partner to choose in this endeavour because they’ve been operating as a licensed, regulated broker since the early days of online trading in 1996, pleasing customers and enhancing their app continuously all the while. Visit the iFOREX website to find out more.
