Cryptocurrencies are in the middle of yet another boom in 2019, as Bitcoin is starting to inch its way towards its all-time high of $19,000 in 2017.
Because of the sudden jump in price levels, many traders have started opting for margin trading options in order to apply leverage to their trades and try to get as much out of it as possible.
Although using leverage is completely safe, it needs to be mentioned where exactly it is safe. With most crypto exchanges, they offer a leverage of only 1:2 in order to maintain the risk of their traders, while other companies, such as CFD brokerages sometimes give as much as 1:100.
No matter how enticing this may sound, traders – especially inexperienced traders – are often better off if they avoid trading cryptocurrencies on CFDs and go for the real coins instead.
Three Reasons Why Crypto Traders Should Avoid CFDs
Leverage is the most enticing feature of a CFD brokerage. The more they offer the more a person can make if they make a smart guess.
For example, if the leverage is 1:100 and you place a $100 trade, that means you’re trading with $10,000 instead and are entitled to the majority of profits. Read More at Bitcoinerx...