What’s the main difference between crypto CFDs and crypto coins?

CFD (or ‘Contract for Differences’) trading involves different types of contracts covering a diverse set of financial instruments such as indices, commodities or crypto - whereas crypto coins refer to assets held as virtual currency.

Crypto coins normally need to be held in a special wallet and their value is affected by market events. As you don’t own the asset directly with a crypto CFD, you can open a position for a crypto coin’s price increasing (go long) or decreasing (go short). This allows the trader to capture potential profits on the rise or fall of prices - and to increase a position at a fraction of the deposit by using leverage. Always remember that prices can move up or down, so it’s important to always trade within your means and use appropriate risk management.