Learn How To Make Money With CFD Margin Trading

The month of September showed that cryptocurrencies can not only soar, but also drop sharply. Bitcoin managed to both register at $ 52,870 and find a local bottom at around $ 39,666, having lost around 25% of its value along the way. And, of course, this is an issue of not just the flagship coin, but the broader crypto market as a whole, which makes investors think twice: is it worth it? to invest?

Reduce your risk 300 times

Influencers promise unprecedented growth for bitcoin. According to some experts, its price could reach $ 200,000 or even $ 500,000 in the coming years. Maybe it will be. Or maybe not. And at some point, the cryptocurrency market, crushed by lawmakers and regulators, can burst like a soap bubble. You don’t have to go far for examples; don’t forget the recent decisions of the People’s Bank of China.

The goal of anyone who turns to the digital market is to make as much money as possible.

  • The first is to buy bitcoin by paying $ 40,000- $ 50,000 per coin, put it in your wallet, and stay awake at night waiting for the market to collapse again or for hackers to steal all of your digital savings. .
  • Or, with just $ 150, you can deposit it with a brokerage firm and earn on both the growth and the fall of digital gold. Is the market growing? Fine. Is the market down? We can also make a profit here.

Let’s go back to the example above. In the first case, after buying bitcoin in early September, you would have lost over $ 10,000 in just two weeks. And if the fall continues, you could lose 100% of what you paid for the token, which is roughly $ 50,000. That being said, you don’t stand a chance of winning anything or making a difference in any way.

But things are much better in the second case. Your risk will be more than 300 (!) Times lower since it does not exceed the named $ 150. And if you open and close the sell transaction on time, the profit for the same two weeks can be around $ 10,000.

Okay, this is very impressive: after investing $ 150, you get a profit of $ 10,000 in two weeks. And this is at a time when the owners of coins, after buying them on a crypto exchange, suffer huge losses while sobbing over wallets that are drying up.

Two mighty elephants: Marge and CFD

Of course, the example above describes the ideal situation. But it is very real with a little experience and luck. And there are two reasons. Take a brokerage like NordFX, for example.

  • First of all, by becoming a client, you automatically have the opportunity to trade on margin 11 major cryptocurrencies. As already mentioned, you only need $ 150 to open a 1 BTC trade. For an ethereum (ETH) transaction, the required deposit will only be $ 15; for EOS it’s $ 0.3, and for XRP it’s $ 0.02. At the same time, you can open transactions of smaller (up to 0.01 BTC) and larger (up to 10 BTC) volumes. It all depends on your desire and your financial capacities. By the way, deposits and withdrawals of funds are possible not only in dollars which are usual for CFD brokers, but also in Bitcoins and Ethereum coins.
  • The second reason lies in these three letters, CFD, which stands for Contract for Difference. It is a financial derivative that is actively used in trading in various financial markets. There is no real delivery of commodities in CFD trading. That is, when you sell or buy, say, 100 tons of oil, you don’t need to have a warehouse where the barrels of that product are stored. Simply put, it is an agreement between the seller and the buyer to pay the difference between the value of an asset when a position is opened and its value when it is closed. And the broker plays a passive role here. All the decisions are made by you. This also applies to trade volume and its direction, sell or buy, open and close times, and the asset you will be trading.

All markets in one smartphone

And the list of assets that NordFX offers its clients is very impressive:

  1. Forex (33 currencies, from the main ones like the dollar, the yen, the euro or the yuan, to rather rare currencies like the Norwegian krone),
  2. 11 Crypto-currencies mentioned,
  3. Precious metals (gold and silver)
  4. Oil,
  5. Main indices (Nasdaq, Dow Jones, Nikkei, etc.),
  6. CFDs on stocks of nearly 70 major global companies, such as JP Morgan Chase, IBM, Coca-Cola, McDonald’s, Mastercard, Microsoft, Twitter, UBER, eBay, Deutsche Bank, Alibaba, etc.

Transactions with all these assets can be carried out simultaneously from a single account and from a single terminal installed on your computer or smartphone. And such a variety of them allows you to hedge risks and diversify your trading strategies, obtaining significant additional profits. For example, the leverage on Gold and Forex currency pairs reaches 1: 1000 at NordFX. That is, with only $ 100 in your account, you will be able to carry out transactions worth $ 100,000. And with $ 1000, as a result, you can operate with $ 1 million.

Reliability and reliability again

And another important point is the reliability and security of your funds. Unlike crypto exchanges, the problems of Forex and CFD brokers have long been spelled out in law, so the investment risks are lower here. In addition, brokers who have been working in the financial markets for a long time have accumulated a wealth of experience in combating hacker attacks. So, for example, not a single penny of client funds has been lost or stolen in NordFX’s 13 years of business. For this reason, the company has repeatedly received honorary professional awards. It has been recognized as the most trusted Forex and Crypto broker, and the number of trading accounts opened by its clients in nearly 190 countries has already exceeded 1,500,000.

Previous Reduced deposit in an identity theft case
Next Open banking, BNPL and banking transformation