They are digital currencies that only exist electronically. There are hundreds of cryptocurrencies, including Bitcoin, Ethereum, Ripple and more.

Cryptocurrencies use a technology that lets you make secure payments and store money without needing to use a bank.

The use of cryptography makes these digital currencies tamper proof and very secure online.

Can you trade CFDs on cryptocurrencies?

Yes, but before you start cryptocurrency trading you need to find a contract for difference (CFD) platform that lets you trade on this market.

This comparison only shows CFD platforms that let you trade on cryptocurrencies, but some may also let you trade on forex too.

You never own cryptocurrency when you make a CFD trade, instead, you bet on the value of it going up or down to try and make a profit.

How to start trading cryptocurrency CFDs

Firstly, you need to open an account with a cyptocurrency trading platform.

Once your account is open, you can add money to it and begin trading CFDs on your chosen cryptocurrency.

To find the best cryptocurrency trading platform, you need to consider:

  • If the cryptocurrency you want to trade is available

  • If there are any charges, like annual platform fees

  • The size of the spread, the difference between the buy and sell price

You can compare CFD platforms by the spread they offer on the crypocurrency you want to trade on, such as Bitcoin.

The spread is the price movement you need to break even on a trade, any price movement in your favour that exceeds the spread can give you a profit.

Cryptocurrency CFDs FAQs

Q

Are cryptocurrencies safe to invest in?

A

They are as safe to invest in through CFD trading as any other asset. Here is more information on CFD trading.

Q

Will I need to pay tax when CFD trading on cryptocurrencies?

A

You do not pay income tax on any profits, but you may have to pay Capital Gains Tax if you make a large profit. Find out more about CFD tax here.

Q

Are the risks higher for cryptocurrency trading?

A

The risk of trading cryptocurrencies is the same as any other asset. Any form of trading is high risk, and you should only invest what you can afford to lose.

Q

Am I buying the cryptocurrency when I make a CFD trade?

A

No, CFD trading lets you bet on the price of a cryptocurrency going up or down in value, but you never own the underlying asset.

About our CFD trading accounts comparison

Q

Who do we include in this comparison?

A

We include CFD trading accounts from our panel. They are either authorised and regulated by the Financial Conduct Authority (FCA), or a European regulator and listed on the FCA register as EEA authorised.

Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.