As you know, cryptocurrency trading allows you to make money on fluctuations in the rate of assets traded on exchanges through speculative operations designed for both short-term and long-term periods. On the one hand, this implies the possibility of making a profit from the purchase of one cryptocurrency with its subsequent sale, at a higher price. But, in addition, you can make money on the decrease in the value of the cryptocurrency, since you also have the opportunity to profit from the fall in its price by opening a deal in the “short”. The most successful and most common strategy for making a profit during a rise in the price of a cryptocurrency is the so-called “Buy and Hold” tactic. Using this strategy, traders make money on the growth of asset prices, both in the cryptocurrency market, as well as in the stock, foreign exchange and commodity markets. Its key feature is the correct entry into a long position after a strong correction in the market, followed by holding the open trade until the target level is reached, determined using technical analysis.


Long and short in the crypto cfd market

“In order to sell something unnecessary, you first have to buy something unnecessary.” This well-known phrase, with some degree of probability, determines the possibility of concluding short transactions on a cryptocurrency exchange. Indeed, until the organizers of the trades come up with a civilized way of depositing funds to the crypto-exchange deposit, most traders will still have to buy one of the cryptocurrencies available in the “exchangers”, with its subsequent exchange for the desired token directly on the exchange.

This is how it turns out, whatever you want, you don’t want, but to buy, for example, the CVC cryptocurrency, you will have to take a “meek” position in relation to BTC or ETH.


How to avoid this inconvenience

Someone may disagree, but the fact remains when it comes to trading cryptocurrency using CFDs. And here we are not talking about the substitution of concepts, if your goal is not positional trading for the long term. However, if you have chosen “speculation” as your specialization, then you will definitely enjoy trading with one of the “forex brokers”, which give you the opportunity to use the widest range of tools and strategies to make a profit in both Long and Short. At the same time, all opened transactions will have a relation of the traded cryptocurrency to the dollar, greatly simplifying both analysis and profit calculation. In addition, when trading CFDs, you automatically receive a leverage bonus that allows you to open orders with a volume of five times your deposit, which allows you to receive five times more profit. Well, as you can see, cryptocurrency trading provides an excellent opportunity to make money both on the rise and fall of assets such as Bitcoin and Ethereum. It remains only to choose a convenient method for this, and go ahead for profit.

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