Crypto vs CFDs On Crypto

  • CFDs stand for the contracts for differences
  • CFDs crypto trading offers traders the ability to trade cryptos without having to own them directly
  • While trading crypto CFDs, you can have access to higher leverage
  • While trading CFDs, you are speculating on the price movements of cryptos

CFD Crypto Trading – What Even Is It?

Start crypto trading: There are two main ways you can trade crypto: using CFDs or opening an account at a crypto exchange.

CFD crypto tradingThe general idea behind cryptocurrency trading is very simple: you are buying crypto when the price is low and selling it once the price goes up. The difference between the price you paid and received is your profit. However, simply buying and selling cryptocurrencies is not the only way to invest in this ever-growing market.

Another way to invest in the crypto market is to use CFDs. In fact, CFD crypto trading is very popular globally, and lets traders benefit from price fluctuations in the market without having to own the actual asset.

Before we go any further, let’s talk about the meaning of CFD itself. In the world of finance, CFD stands for the contract for difference. CFDs are a type of derivatives that act as a contract between a trader and broker.

While trading CFDs, you do not buy or sell the underlying asset, in this case, cryptocurrency, directly. This is the main difference between trading cryptocurrency vs. cryptocurrency CFDs; when you are trading cryptos directly, you buy and sell the assets. As for the CFDs, you are simply speculating on the possible price movements of the asset.

CFD trading also gives traders the ability to profit from both uptrend and downtrend, which is considered a huge advantage of CFD trading. In most cases, those who prefer to use CFDs to trade cryptos do so because it is easier to use the platform you are already familiar with rather than opening a new account on crypto exchanges.

There are several distinct advantages of trading crypto CFDs, such as:

  • Higher Leverage
  • No Exchanges
  • Higher Volumes

At the same time, there are some disadvantages of trading crypto CFDs as well, including:

  • Lower Variety
  • Deadlines
  • Commissions

So, let’s discuss the main differences between trading crypto compared to crypto CFDs and see the advantages and disadvantages of trading crypto CFDs.

Regular Crypto Trading or CFD? – Advantages

When it comes to the advantages of CFD trading over regular crypto trading, there are several of them that we can discuss. For example, unlike regular crypto exchanges, brokers that offer traders CFD crypto trading usually offer them higher leverage as well.

But, this is not all. There are many other reasons people decide to trade CFD cryptos, So, let’s talk about some of the most significant advantages below.

Higher Leverage

Trading Crypto vs Crypto CFDsWhile talking about the advantages that CFD trading has over regular crypto investment, one of the first things that come to mind is the higher leverage. In most cases, crypto traders are offered zero or very little leverage to traders.

CFDs are known for offering traders higher leverage, which is one of the main reasons why many people are trading cryptos using CFDs. While regular cryptos may offer leverage of about 1:2 or none at all, CFDs can offer leverage up to a few hundred.

Leverage is used by millions of traders every day to increase their positions and generate higher turnover. However, it should be noted that higher leverage can also be quite dangerous for traders as it can increase trading risks.

That said, many people choose to trade crypto CFDs instead of actual cryptos because of the difference in available leverage.

No Exchanges

As we have already said before, one of the major differences between trading crypto vs crypto CFDs is that while using CFDs, you do not have to own the cryptocurrency directly. This is making trading a lot easier, and you do not have to spend any time or money exchanging fiat currencies to cryptos.

Crypto CFDs use fiat currencies while trading, which means that traders do not have to withdraw their coins to the bank account or any other payment system, paying a lot of money in commissions during the process.

While trading CFDs, there is no need to buy cryptocurrency directly. The process of CFD trading involves traders and brokers filing a contract about the possible direction that the price of a particular cryptocurrency might take.

If you end up making the correct prediction, you are earning profits; however, if your prediction is not correct, you end up losing your money.

Higher Volumes

In general, when it comes to the amount of money you can trade, deposit, and withdraw on a regular crypto exchange is much lower than what a CFD broker would allow. This gives you the ability to trade more and grow as an investor.

Many traders keep this fact in mind when deciding which one to use for trading, regular crypto trading or CFD crypto. However, this is not all. There are many other advantages of trading crypto CFDs as well.

For example, many traders prefer CFD crypto trading over regular crypto trading because of the lack of regulations. Although this can be seen as a negative side, many traders think that because CFDs are less regulated than other financial markets, it is easier to trade them.

Being less regulated gives CFDs brokers the ability to offer traders higher leverage and trading volumes. However, it should also be noted that the lack of regulations of the CFD market is increasing the risks of trading. Still, many people prefer to trade cryptos with CFDs.

Trading Crypto vs Crypto CFDs – Disadvantages

trading crypto compared to crypto CFDsAlthough there are many advantages that CFD crypto trading has over regular crypto trading, there are some drawbacks as well. While talking about physical crypto compared to crypto CFDs, it is very important to understand these disadvantages fully.

Among the disadvantages that CFD crypto trading has are the lower variety, deadlines that the traders should keep in mind, and higher commissions that might be associated with CFDs trading.

So, let’s talk about some of the biggest disadvantages of the CFD crypto market below.

Lower Variety

One of the biggest disadvantages of crypto trading with CFDs is that it offers traders less variety. If you think which one is better, crypto trading or trading of crypto CFDs, and you want to invest in different types of cryptocurrencies, it might be better to go with actual crypto exchanges instead of CFD brokers.

In general, the majority of CFD brokers do not have as many cryptos offered to traders as a crypto exchange would have. In most cases, most CFD traders only offer traders access to the most popular cryptos, such as BTC, ETH, LTC, and maybe BCH. But even this is not guaranteed.

As for the actual crypto exchanges, they offer traders access to dozens of different cryptocurrencies. Thus, if you want to invest in different types of cryptos, it might be better to go with actual crypto trading instead of CFD trading.


Among the most significant disadvantages of CFDs that come to mind while discussing CFD crypto vs classic crypto trading are the deadlines. In most cases, CFD traders stay open for about a week.

After the time expires, the trade closes, and there is not much that can be done. Because of this, it is tough to invest in CFD cryptos long term. In most cases, the contracts last from short to medium term.

To extend the contract’s deadline that you opened with the broker, you will have to pay a certain fee, which can be quite high.

On the other hand, if you trade cryptos directly, there are no deadlines that you have to worry about. All you have to do while trading actual cryptos is buy and sell the asset whenever you see fit. You can buy crypto today and sell it tomorrow or hold it for weeks, months, or even years.


bitcoin CFD compared to bitcoinTo understand which one is better, physical Bitcoin vs bitcoin CFDs, it is very important to grasp the major differences, advantages, and disadvantages between them. One of the most important things that traders should think about is the commissions.

The amount of money you might have to pay while trading crypto directly or using CFDs is different. When it comes to CFDs trading, the commissions tend to be higher. Almost everything about CFDs is connected to commissions.

This includes opening a position, extending the positions, closing ti or doing anything else in the market that requires traders to pay some kind of a fee. On the other hand, trading cryptocurrencies directly cost traders a lot less.

Because of the higher commissions, many traders try to avoid trading CFD cryptos.

While many people think about the advantages and disadvantages of trading crypto CFDs vs regular crypto trading, others prefer to trade actual cryptos simply because they want to own the cryptocurrencies.

On the other hand, others prefer to trade CFDs because they feel more comfortable without buying the cryptos directly.

What Did We Learn With This CFD Crypto Trading Article?

Trading bitcoin CFD compared to bitcoin means that you are basically speculating on the possible price movements of the bitcoin.

Although there are many advantages of trading CFD cryptos, there also are many disadvantages.

One of the biggest advantages of trading crypto CFDs is that it offers traders higher leverage, higher volumes, and no exchanges.

As for the disadvantages, one of the biggest disadvantages of trading CFD cryptos is that the list of available cryptos is considerably limited.

CFDs trading stands for the contract for differences and is very popular around the world. However, it is not available in certain jurisdictions, including the USA.

Detailed Info On CFD Crypto Trading

Is Crypto A CFD?

No, crypto is not a CFD. CFDs are a type of contract made between a broker and a trader where the sides agree on the possible direction that the market can take. If the trader turns out to be true, he or she makes a profit, however, if the prediction was wrong, they lose the position.

Regular crypto trading is very simple, you just buy and sell cryptocurrencies whenever you can. While trading crypto CFDs, you are speculating on the possible price movements in the market. CFDs themselves stand for the contracts for differences and are used for trading different types of assets, including crypto, stocks, indices, and so on.

What Is Crypto CFD Trading?

Crypto CFD trading stands for the process of speculating on the price movement of cryptocurrencies in order to make a profit. CFDs are special derivatives, which give traders the ability to speculate on cryptocurrency price movements without the need of owning any of the underlying assets. CFD trading gives traders the ability to go long or short with cryptos, giving them the ability to make a profit during an uptrend as well as during a downtrend.

Crypto CFD trading is quite a new field, but it should not come as a surprise whatsoever. Crypto trading is a new market on its own. However, it is becoming more and more popular around the world.

How Do I Trade Bitcoin CFD?

Trading Bitcoin CFD is very simple. All you have to do is to find a broker that offers you access to Bitcoin CFD trading. In most cases, the majority of the CFD brokers offer traders access to the Bitcoin CFDs.

Opening a CFD position is very simple, and you can go both long and short. Depending on the direction you think the market might take, you can easily open any of the positions.