CFDs vs crypto trading
Education Forex

CFDs vs crypto trading


Contracts for Difference (CFD) is a “derivative”, which means it derives its value from something else.


A CFD allows you to trade price movements of an asset rather than the actual underlying asset itself.

What are some advantages of using CFDs?

It can be used as a tool for hedging risk.


For example, if someone has purchased Bitcoin and thinks that the prices will fall, they could short sell Bitcoin through a broker providing this service.


Another advantage is that you can access crypto exchanges worldwide, whereas cryptocurrency exchange platforms only allow trades within their country/region of origin due to regional trading laws.


It is not applicable with decentralized exchanges, but their volume is still low since they are relatively new.

What does crypto trading mean?

Crypto trading refers to buying and selling cryptocurrencies. Such as Bitcoin, Ether etc., for fiat currency (real money) or other cryptocurrencies.


Trading platforms exist that facilitate this process and provide buyers and sellers meet by the applicable price of the asset being traded.


Traders can also trade cryptocurrency pairs without converting from one currency to another.

What is holding you back from CFD trading?

The requirement of keeping funds tied up until settlement means that it won’t be used by frequent traders who only want to make a few trades each day, but rather more long term investors who will hold onto positions for weeks or months at a time to get better rates.

What are some of the problems with crypto trading?

Many issues need to be addressed before it could become more widely used, one being security.


The Mt Gox hack, which saw nearly half a million Bitcoins stolen, is still fresh in everyone’s minds, and solutions to keep your crypto coins safe have been developed since there isn’t an industry standard yet.


Not forgetting high transaction fees for small transactions make micro trades uneconomical unless you purchase significant amounts at once.

What Is Cashaa?

Cashaa is building a better bank, utilizing blockchain technology to globalize the use of the world & local currencies and cryptocurrencies.


People can send money to their families, undertake cash transfers for business payments, receive salaries in cryptocurrencies or make an instant payment without inner bank charges.


The utility of the CAS token allowing users to access advanced features on the platform is built into our infrastructure using smart contracts, which transactions made by customers trigger.

Can Cashaa make a difference?

Can Cashaa change how CFDs or crypto trading works?


Cashaa plans on revolutionizing financial services by bringing together crypto traders, CFD providers and global fiat money payment networks via its CAS token.


It will allow users to benefit from all the features and services offered by them and provide access to anyone who wants to join.

How will this change CFD trading?

Cashaa is a financial platform that will allow traders to trade cryptocurrencies without actually having to own any through regulated CFDs providers.


Brokers can provide exposure to the cryptocurrency market with only a 1% margin requirement instead of over 30–40%, thus allowing investors exposure with minimized risk.

What does this mean for crypto trading?

Providers on the network will accept both crypto payments and traditional fiat payments.


It allows individuals in countries where payment systems are more established than their cryptocurrency infrastructure to utilize cryptocurrencies.

How does this help me?

You are then allowed to trade cryptocurrencies on an established platform with all the tools and features required for successful trading.


Including technical analysis indicators, market sentiment indicators etc., without transferring funds several times between different platforms, which can be slow and expensive due to withdrawal fees and crypto broker commissions eating into your profits.

Let’s change CFDs vs crypto trading

Cashaa is creating a better way of trading cryptocurrencies with regulated brokers that provide more options than ever before.


You could get $10 worth of free cash when the ICO ends in December via their referral program by signing up today.


Cashaa wants to make a difference, and we hope you will help us in any way you can.