New instrument: CFD Bitcoin

In addition to buying the underlying asset, you can buy certificates that follow the development of Bitcoin, but another very popular and interesting alternative is to speculate on the movement of the price of Bitcoin by trading CFDs. The tool is new and unusual, but definitely worthy of an investor's attention.

Supply and Demand

Let's start with the base.

As with most asset types, the price is largely determined by supply and demand. The value of Bitcoin fluctuates greatly, and one of the reasons for this is whether those who own the currency are willing to sell, and whether or not there are many buyers.

The more owners are willing to sell the currency, the higher its availability, which tends to drive the price down. The fewer owners are willing to sell the currency, the less availability there will be, which generally increases the price. However, you should be aware that there are other factors that can affect the price.

Growing popularity

Bitcoin has grown significantly since its launch. The currency came into the world in 2009, was worth only $0.0008 per coin for a long time, and in April 2021 was valued at about $63,000 per coin. This is unimaginable growth and proves just how popular bitcoin has become over the years.

Some of the reasons for Bitcoin's growing popularity are as follows:

More and more people and companies are opening their eyes to the currency. Since the launch of Bitcoin, many companies and people have changed their attitudes toward the industry. There are now several commercial organizations that accept bitcoins as payment, giving the currency an additional openness to the public.
Bitcoin is considered by many to be the currency of the future. Many people are tired of the transparency and regulation that exists in traditional fiat currencies and would rather see bitcoin or another cryptocurrency take over the market. This is one of the reasons why users prefer to discover bitcoin one way or another.

Benefits and risks of buying bitcoin CFDs

It is worth noting that buying bitcoin CFDs comes with both benefits and risks.

Below you will find some of the biggest advantages:

Access to leverage. With CFDs, you can take advantage of the effects of leverage. This means that you only have to pay a small fraction of the theoretical value of the contract, even if you put yourself at risk for the total amount of the trade.
You don't have to own the underlying asset. One of the big advantages of buying bitcoins using CFDs is that you don't have to own the underlying currency. This means that you don't have to directly own bitcoins. Instead, you buy a derivative instrument that follows the development of the cryptocurrency. It also means that you can speculate on both the rise and fall of the price of the underlying asset.
There are also a few major risks that can't be overlooked:

You can lose some or all of your invested capital. When you trade bitcoin CFDs, you are opening up the underlying asset using the leverage effect. This means that a rapid movement in the price of the underlying currency can instantly lead to losses if the price moves in the wrong direction. Such a situation is particularly painful for the beginner.
Bitcoin is a very volatile currency. Given that Bitcoin has proven to be very volatile, trading cryptocurrency CFDs is fraught with risk. This adds additional risk to the risk that already exists.
Those who prefer calmer investing tactics can exchange cryptocurrency with minimal fees at our exchanger.