Many things can be said of cryptocurrencies, including that they are an unregulated and unpredictable market. Because of their increase in value over the years, sometimes reaching billions of dollars on the cryptomarket, cryptocurrencies are advertised everywhere, from social media to tube stations.
Despite its significant increase in the last quarter of 2017, the value of Bitcoin has since gone down to $6,600 from its record-breaking $20,000.
CFD stands for ‘contract for difference’. It is a derivative which makes speculating with a small deposit easy. CFDs are directly negotiated financial instruments. As unregulated derivatives they allow traders to take advantage of prices moving up or down on underlying financial assets.
The truth of the matter is that you need to have a brokerage account before you can start investing in the stock market. Your brokerage account will be run and managed by a stock broker, and this is the person who will have their ears on the ground, listening to any changes that the market might experience.
It would be worthwhile to note the difference between CFDs (contracts for differences) and ordinary shares, before getting into the advantages of using one for the other. Contracts for differences are basically agreements that are made on the price movement of an underlying asset.