Many traders wonder whether to trade cryptocurrencies directly (spot trading) or via CFDs. Both have merits, but they suit different goals.
Spot Trading
-
Involves buying actual cryptocurrencies through exchanges.
-
Ideal for long-term holders (HODLers).
-
Requires wallets and understanding blockchain security.
-
Profits only when prices rise.
CFD Trading
-
Lets you speculate on price movements without owning crypto.
-
Easier access to short-selling.
-
Requires less capital due to leverage.
-
Suitable for short-term strategies.
Verdict
If you’re an investor who believes in blockchain’s long-term potential, spot trading may suit you. But if you’re a trader focused on price action and volatility, trade crypto CFDs offer more flexibility.
