When you trade CFDs on precious metals, you speculate on prices rising or falling without taking the physical delivery or ownership of the metals.

For example, you can go long (buy) if you believe the value of a metal will rise, or short (sell) if you believe the value will fall. Both are leveraged instruments, which means that you can have complete exposure to the underlying market with a small amount of capital.

There are two major differences between cryptocurrency trading and forex trading. They are – the time available to trade and the market volatility. Cryptocurrencies have a reputation for being extremely volatile, while major price swings in the forex market are less frequent.

The benefits of Cryptocurrency CFD trading are:

Cryptocurrency volatility

The cryptocurrency market experiences significant volatility due to huge amounts of short-term speculative interest. Rapid intraday price movements can open a range of opportunities for traders to go long and short but also come with increased risk.

Improved liquidity

When you trade cryptocurrencies with STARTRADER, you can get improved liquidity because we source prices from multiple venues on your behalf. This means that your trades are more likely to be executed quickly and at a lower cost.

Ability to go long or short

When you trade on the price of a cryptocurrency, you can even take advantage of markets that are falling in price, also known as going short.

Leveraged exposure

With CFD trading you can gain a large exposure to a cryptocurrency market with only a small amount of capital.