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What is the difference between spread betting and CFD trading in the cryptocurrency market?

avatarBD Computing LimitedDec 27, 2021 · 3 years ago1 answers

Can you explain the key differences between spread betting and CFD trading in the cryptocurrency market? What are the advantages and disadvantages of each?

What is the difference between spread betting and CFD trading in the cryptocurrency market?

1 answers

  • avatarDec 27, 2021 · 3 years ago
    Spread betting and CFD trading are two popular ways to speculate on the price movements of cryptocurrencies. While spread betting is more like gambling, CFD trading is a more traditional form of trading. With spread betting, you can bet on whether the price of a cryptocurrency will rise or fall, and potentially make a profit even if the price goes down. On the other hand, CFD trading allows you to buy and sell contracts for difference (CFDs) based on the price of a cryptocurrency. This means that you can profit from both rising and falling markets. However, it's important to consider the tax implications of CFD trading, as it is subject to capital gains tax in many countries.