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Author: Admin | 2025-04-28
Able to pick from CFD based exchange, or a platform on which you will be trading an underlying asset (actually buying or selling Bitcoin or another cryptocurrency).CFD Crypto BrokersBy deciding to trade on a CFD platform, you are not buying the asset itself but only speculate on the price difference. A CFD is a contract between you and the broker, which comes with some significant advantages. First of all, by using CFD, you will be able to hold both long or short positions, enabling you to benefit from every price change.What is more, CFDs allow you to use leverage, which can significantly boost your return on investment or magnify losses. The most common type of CFD are perpetual contracts, as we find on BitMEX, PrimeBit, PrimeXBT, ByBit, DueDex and a range of other BTC brokers.The majority of those CFD crypto brokers operate on bitcoin deposits. So even if in the trading instrument of your choice BTC is not involved, the margin of your trade will be taken from your BTC deposit. Think of this as collateral that will back every transaction you are performing on a given platform, instead of a fit currency deposit.For example, if you decide to go long on BTCUSD, part of your deposit will be used to facilitate the trade. After closing it, the difference in price will be added or taken out of your initial deposit. The majority of the CFD-based exchanges will also allow you to trade different altcoins (against BTC or USD), always based on the same BTC deposit.Couple of such brokers also allow certain altcoin deposits, mainly Ether, Tether or Litecoin. And few even allow fiat money deposits, such as SimpleFX or BitFinex. In order to be allowed to make fiat deposits you always need to verify your account first (by photo ID and maybe some other documents).Cryptocurrency ExchangesIn contrast to CFD brokers, on cryptocurrency exchanges the given assets are exchanged “physically”, if this is a word that can be used at all in the case of cryptocurrency. For example, if you want to trade USD against bitcoin, you will have to deposit USD, and by entering a trade (purchasing BTC), you will become an owner of the asset.So cryptocurrency exchanges are large marketplaces (e.g. Kraken, CoinBase, etc) where you can buy BTC, for example, to make a deposit on a CFD broker platform like BitMEX, PrimeXBT etc.While most of that type of exchange focus their operations around the ability to trade different fiat currencies against Bitcoin and other major cryptocurrencies, some also offer Bitcoin against altcoin trades. In many of them, for a trade to be executed, you need to own and deposit Bitcoin, and pick a trading pair. But again there are platforms accepting fiat deposits as well, e.g. Binance or Bitfinex.AnonymityAs Bitcoin is a pseudo-anonymous digital currency by nature, it is common that users prefer to keep their profile low and do not want to share any personal details on the Internet. Pseudo-anonymous means that Bitcoin addresses cannot be
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