You can either invest in cryptocurrency by purchasing coins at a lower price and selling them later at a higher price. You can also trade digital currencies on our COINSTEC™ trading platform. You can use our web trader or our advanced MT4 platform or using any of your mobile devices. Using a contract for difference, CFD style trading you can go short (sell) or go long (buy).
When trading with CFDs, you execute a contract with your platform provider (COINSTEC™) and earn profits if the digital coins move in the direction you selected. Cryptocurrencies are highly volatile and can be profitable to any trader’s portfolio. A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets while using leverage to ramp up your trading. Some of the benefits of CFD trading are that you can trade on margin, and you can go short (sell) if you think prices will go down or go long (buy) if you think prices will rise. CFDs are tax efficient in the UK, meaning there is no stamp duty to pay*. You can also use CFD trades to hedge an existing physical portfolio.
As traders, our job is to take advantage of opportunities in the markets. Sometimes, these opportunities come in the form of entirely new markets. With CFD trading, you don’t buy or sell the underlying asset (for example a physical share, currency pair or commodity). You buy or sell a number of units for a particular instrument depending on whether you think prices will go up or down.
For every point the price of the instrument moves in your favour, you gain multiples of the number of CFD units you have bought or sold. For every point the price moves against you, you will make a loss. Please remember that losses can exceed your deposits.
CFDs are a leveraged product, which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’ (or margin requirement). While trading on margin allows you to magnify your returns, your losses will also be magnified as they are based on the full value of the CFD position, meaning you could lose more than any capital deposited.
When trading CFDs you must pay the spread, which is the difference between the buy and sell price. You enter a buy trade using the buy price quoted and exit using the sell price. The narrower the spread, the less the price needs to move in your favour before you start to make a profit, or if the price moves against you, a loss. We offer consistently competitive spreads.
Using COINSTEC™'s single wallet you can easily move between owning or trading Cryptocoins. If the right strategy for you is to just buy and hold. Get some well know cryptocurrencies like Bitcoin, Ethereum, Dash, or Litecoin, put them in your wallet and sell them down the road when they increase in value.