How to Trade CFD with Bitcoin, USD Tether and Ethereum

Contracts for difference or “CFD” are trading instruments that allow traders to gain exposure to markets without actually needing to hold the underlying asset, with this providing a range of benefits and also opening up different opportunities that are typically available for traders that will simply buy the assets themselves.

With the increased prevalence of cryptocurrencies in global financial trading there are more and more users around the world that are seeking ways to trade CFDs with cryptocurrencies such as Bitcoin, ether, and USDT, and as well as this there are more options every day for these kinds of services as well.

Scott is breaking down how to trade CFDs with Bitcoin, USD Tether, and Ethereum, starting with a look at how CFD trading is as popular as ever in 2021, before moving on to look at how trading safeties cryptocurrencies is beneficial, and finishing off with a deep dive into how to trades if these of Bitcoin, USDT and Ethereum.

CFD Trading as Popular as Ever in 2021

CFD trading has been a long-standing cluster of trading instruments that have been popular throughout the traditional asset markets and now the cryptocurrency markets for many years, with this stemming from a range of powerful benefits that users can access by trading with CFDs.

There are many different types of CFDs available and there are even hybrid trading instruments that use CFDs and other models together, however at that course if these are essentially used as proxies for the actual underlying asset in order to be able to gain exposure to a particular market or particular asset without actually having to have custody of the asset itself.

Because of the unique opportunities provided to traders by using CFDs, the popularity of this trading instrument continues to grow throughout 2021 and is likely to remain as a core part of global financial trading for many years into the future.

Why is Trading CFDs with Cryptocurrencies Beneficial

The Ability to Speculate on Cryptos without Needing to Take Custody

One of the main advantages of trading CFDs with cryptocurrencies is the ability to gain exposure to the cryptocurrency market without actually having to go through the process of securing the cryptocurrencies themselves, which has a range of different benefits and implications as well.

By using CFDs traders can speculate on the price action in the cryptocurrency market on specific cryptocurrencies without needing to take custody, which may have tax implications for example where in many jurisdictions holding cryptocurrencies themselves can be something that will lead to a different tax schedule to using trading instruments like CFDs to potentially avoid this problem.

Because of the ever developing state of legislation and regulations surrounding cryptocurrencies that are wildly different laws relating to them and this applies to tax laws as well, however in many jurisdictions around the world it is beneficial to invest into large amounts of cryptocurrency positions as opposed to actually buying and holding the assets themselves.

Gain Exposure to the Crypto Market

By using CFDs investors are able to gain exposure to the cryptocurrency market which may be particularly of benefit to large institutional investors such as hedge funds and family offices that may have constraints around the kinds of investments that they are able to make with that client's money, while still being in the position of having clients that would like to be able to gain exposure to the volatile and highly profitable cryptocurrency market as well.

Prior to the prevalence of trading instruments such as CFDs, the only way that this was possible was by actually investing in the cryptocurrencies themselves and taking custody, which prevented many large investors from being able to do so and as we can see over the past few years there has been a shift towards many kinds of trading instruments facilitate these kinds of investments.

The knock-on effect of the introduction of CFDs and other investment tools such as this into the cryptocurrency market has been a huge growth in the size of the crypto market as a result of institutional money being able to freely flow into it.

Large Orders Don’t Move the Market and So Can Be Undetected by Traders

Another advantage of CFDs is that large investors are able to gain exposure to certain assets in the crypto market without their trades moving the market significantly, which may typically be something that would be an indicator to other traders that the price was going to increase or decrease soon based upon this.

The advantage here is that if an investor wants to gain a large position on Bitcoin for example they are able to do so without thereby leading to a pump in the price of Bitcoin, and therefore they overall able to achieve a more optimal average entry price as a result of being able to create large orders without pumping the price of Bitcoin.

Conversely as well this applies for large investors that would like to exit their positions or create short positions but do not want to spook the market by creating large sell orders or large shorts and therefore may use these to be able to do this in an undetected way.

How to Trade CFD with Bitcoin, USD Tether and Ethereum

Create an Account at PrimeXBT

PrimeXBT is the world's leading multiethnic margin trading platform and provides access to CFDs with Bitcoin, USDC, Tether, and Ethereum, as well as access to a wide range of markets around the world with a total daily trade volume of up to $7 billion in any given day on the platform.

In order to trade CFDs with cryptocurrencies the first step is to create a PrimeXBT account at PrimeXBT's registration page which is a fast and streamlined process.

From here once your account is set up you are able to access all of the trading features on PrimeXBT and explore the platform to look at the different CFT trading options that are available.

PrimeXBT 2.0 Upgrade Means Bitcoin, USDT and ETH Trading is Available

Recently news broke regarding an upgrade to PrimeXBT where the infrastructure of the platform in both the backend and the front and in the face has been completely revamped and now there are a range of additional trading currencies that are available including Ether, USDT, and USDC.

This provides traders with the ability to trade with a wider range of different currencies against some of the world's leading traditional assets like stock indices such as S&P500 and FTSE100, forex pairs such as USD/EUR and AUD/CAD, and commodities such as gold and oil, and many of the world's leading cryptocurrencies as well such as BTC, ETH, LTC, and EOS.

The PrimeXBT 2.0 upgrade provides the ability for traders to use USDT and USDC stablecoins to be able to avoid the volatile fluctuations of prosper in the cryptocurrency market when they have no open positions with this being a significant benefit.

Trade CFDs on PrimeXBT and Enjoy Many Other Benefits

As well as the ability to trade CFDs on PrimeXBT there are many other benefits on the platform as well with one of the most obvious of these being PrimeXBT provides the lowest fee schedule of any major crypto trading platform in the market with a low flat rate of just 0.05% on all trades irrespective of the asset class being traded or the size of the trade.

PrimeXBT also provides an intuitive and clean-cut interface that is easy to get the hang of and to navigate throughout the different sections of the platform in order to be able to quickly and effectively create profitable strategies in global markets.

As well as this PrimeXBT is a safe and secure training platform that implements bank grade security measures such as cold storage of digital assets with multi-signature technology and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher throughout the platform, and as a result of this PrimeXBT has never been hacked and has protected its users funds and data with 100% success credits time of operation.

Explore Other Features on PrimeXBT

There are many other features on PrimeXBT as well that provide unique forms of value for users including PrimeXBT's Covesting module, which is the world's first form of cryptocurrency copy trading and allows users to be able to partner with some of the leading traders in the cryptocurrency market in order to take a hands-free approach to investing.

As well as this PrimeXBT has a unique 4-tier referral program where traders are able to affiliates are able to benefit from up to 4 tiers of the indirect referrals as well as direct referrals, with this leading to higher levels of reward for affiliate activities and this program being so successful that last year it netted the top three affiliates more than 1 million dollars.

Finally, at its core PrimeXBT is one of the world's leading margin trading platforms and provides industry-leading leverage of up to 100X on cryptocurrencies and up to 500X on all traditional assets, with this being significantly higher than many other cryptocurrency trading platforms that do provide margin trading and being responsible for much of the growth of the platform of the past few years.

Final Thoughts

PrimeXBT is one of the world's leading destinations for margin trading, copy trading, and also trading CFDs with cryptocurrencies such as Bitcoin, Ethereum, and USDT.

There are many advantages of trading cryptocurrencies with CFDs, and the ability to exploit these advantages has boosted the growth of PrimeXBT as many users have come to the platform in order to be able to trade CFDs with cryptocurrencies.

To learn more about PrimeXBT, the features of the platform, and how to get involved with trading CFDs with Bitcoin, Ethereum, and Tether on PrimeXBT, check out this link.