Since the beginning of 2020, the cryptocurrency market has been booming. Support from prominent investors and growing institutional adoption contributes to the popularity of coins and tokens. They are used for payments, investment, lending, and trading. To make money from Bitcoin or altcoins, you do not have to own them. The Forex market offers a great opportunity to profit indirectly — CFDs on crypto.

The Principles of CFD Trading

Contracts for Difference are virtual derivatives whose value is linked to the underlying asset. For example, CFDs on Bitcoin rise or lose value in line with the dynamics on the BTC USD price chart shown here. The principle of trading is simple: you need to buy low and sell high. As the derivatives are entirely digital, just like the coin itself, all you need is an account with a brokerage, a deposit and an internet-connected device with the right software.

Trading through CFDs eliminates the need for crypto wallets, so traders need not worry about their private keys. CFDs are merely virtual contracts between a broker and a trader. Their subject is the price difference between the entry and exit points — hence the name.

By following the dynamics of Bitcoin and applying technical indicators to the chart, you can make profitable decisions in rising and falling markets. One of the biggest advantages of CFDs is profitability in both bearish and bullish conditions. You can also create a diversified portfolio. Forex brokers offer fiat currency pairs, spot metal trading, stocks, and CFDs on many other assets, such as shares of the largest corporations like Tesla or market indices like FTSE 100.


CFDs on Bitcoin are becoming increasingly popular with Forex traders, so more and more brokers are adding them to their offerings. The minimum deposit requirement varies, but you can usually get started with $100 or less.

Finding a reputable provider is the first step. Traders in the UK should choose regulated brokers authorised by the FCA or its counterparts abroad. Make sure the company offers free demo accounts, so you can learn to trade safely.

Risk Management

CFDs are convenient and more flexible than actual coins, but they are still risky. Any asset in the Forex market requires a solid strategy. The basic principles include:

  • using Stop Loss and Take Profit for every position (triggers for automatic execution at specific price levels),
  • limiting each trade to 1% of the overall capital, and
  • diversification

What Software To Use

Any broker offering Bitcoin CFDs will provide you with the necessary tech tools. These are either proprietary or generic solutions. Modern trading terminals can be installed on any popular OS, and there are also web-based terminals that do not require installation. Always begin with the demo mode. Nobody can master this market overnight, and even experts never stop learning.