Making big profits with our investments is the goal of most people who participate in the crypto market. Fortunately, there are a large number of financial products that allow us to get the best possible benefits from our investment. And today, we will teach you how to use one of them, explaining how to trade Bitcoin CFDs through the Plus500 broker.
What is a Contract for Difference?
Contracts for Difference, or CFDs, are one of the most important financial products in the crypto market. Allowing those traders who use them, can generate huge profits or suffer significant losses, in a very short time.
They consist of financial instruments that allow the investor to predict the increase or decrease in the value of an asset. Perceiving as a gain the difference between the initial price of the asset and the one that it finally reached, if the prediction was correct, and losing this same difference if its prediction was wrong.
Therefore, its operation itself is quite simple. An investor could decide to buy a Bitcoin CFD, predicting that the price of the cryptocurrency will rise. If this is indeed the case, the difference between the starting and ending price of BTC, relative to your investment, will be your profit.
This, of course, opens up an important opportunity, as well as great risk for investors. Which is made bigger due to leverage, the option offered by almost all cryptocurrency brokers, which allows the trader to invest in an asset as if he had several times the amount of money that he actually owns. Substantially increasing your profits as well as your losses.
Trade Bitcoin CFDs with Plus500
Thus, it is clear that investing in Bitcoin CFDs is not an activity that can be taken lightly. Requiring not only enough knowledge to make the right decisions. But also a platform that offers you the services and confidence you need to operate with ease.
Luckily, there is the Plus500 broker, a platform for exchanging financial products, specialized in the purchase and sale of Contracts for Difference of different assets. Offering leverage of up to 1:30 on your investments, as well as explanatory videos on the use of its interface and CFDs in general.
In addition, one of the great attractions of operating with Plus500, is the ease with which you can start doing it. Well, all you need is to create an account on their website, send images of the requested documents to verify your identity, and voila, you can invest in this platform.
From there, all you have to do is deposit the money you want to invest, and enter your Plus500 central panel. From where we will go to “Trading”, to later select the option “Cryptocurrencies” in the list of assets offered by the broker to invest, as shown in the following image:
Once there, we only have to select the option “Buy” or “Sell” in Bitcoin, according to our investment strategy. What will display a menu where we will enter the number of CFDs that we will trade, and the price levels at which our operation must automatically close, to avoid losses or collect profits.
Once this is done, it will be enough for you to keep track of the performance of your investments, clicking on the “Open Positions” section of the left menu. From where you will also close your positions when you consider it prudent.
And in this way, with just a series of simple steps that can be performed in a few minutes, you can start investing in Bitcoin CFDs. Generating profits with this financial product and taking advantage of the Plus500 broker for you.