How to make money on cryptocurrencies? Trading BTC and crypto CFDs

The cryptocurrency market has been living in recent weeks with the third halving of the most popular virtual currency - Bitcoin. In previous years, lower remuneration for miners meant a rising BTC exchange rate, which greatly pleased investors. However, as it turns out, buying cryptocurrencies is not the only way to make a profit in this market. Investor platforms are increasingly offering the opportunity to buy crypto CFDs. What is it about? How to start earning crypto without having them? Check it out.

There are several options for investing in Bitcoins. One of them is to buy the right equipment and become a miner extracting more units of virtual currency. In other words, you can set up your own cryptocurrency mine.

However, if you do not have specialized knowledge of advanced software, you should be interested in two other ways to earn money on cryptocurrencies:

method 1) trading on the Bitcoin market,
way 2) CFDs on cryptocurrencies.

How to trade cryptocurrencies on the stock exchange?
This is the most obvious way to invest in cryptocurrencies. All you need to do is open an account with one of the brokers and then purchase Bitcoin or another virtual currency.

Importantly, after buying a currency, it becomes our property and we can freely manage it. The accumulated cryptocurrencies are then stored in a special investment portfolio, to which only its owner has access.
How to make money on it? As it is with trade. Cheap to buy, more expensive to sell. So if the Bitcoin price reaches a satisfactory level, it is "enough" to sell the resources you own.
The difference between the buy and sell rate will be either a gain if the rate rises, or a loss if Bitcoin's rate falls since the time you buy it.

CFDs are popular derivative instruments that reflect the price of the underlying instrument.
In practice, it is a type of bet with a forex broker where one party agrees to pay the other party the difference between the value of the purchase price (start of contract) and sale price (end of contract).
So if you bet that the price of e.g. Bitcoin will increase and it will actually happen, the broker will pay you the value of the difference in odds.

Cryptocurrency speculation in Forex
You can also earn on cryptocurrencies without having virtual currencies. Such a possibility is provided by Contract for Difference. What is CFD?
Most importantly, Cryptocurrency Contracts allow you to earn both when the value of the currency goes up and when it goes down. This is because you can buy down contracts. CFD is a widely used tool for many financial instruments - stocks, gold, cryptocurrencies and commodities.
However, what distinguishes the use of CFDs from classic virtual currency trading is the financial leverage on cryptocurrencies. Its use allows you to open positions several times higher than your funds would allow. In practice, if you want to use a 10,000 contract with a leverage of 20: 1 you only need 500

High optimism - this is the shortest way to describe the mood of people investing in Bitcoin in 2020. In early January, there were at least a few reasons for this. First of all, the upcoming halving, which, looking at historical data, has always marked the beginning of the course's climb.

To this can be added a few forecasts from established investors, growing interest in cryptocurrencies and their limited supply. It all made up an excellent forecast for Bitcoin.

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