Guide on how to buy Bitcoin BTC with CFD Broker

Today, cryptocurrencies such as Bitcoin, Ethereum, Ripple and many others became mainstream hugely popular among individual investors and traders. Cryptocurrencies are part of the forex market, the largest in the world with $6 trillion in daily trading volume. The volatility of Bitcoin still presents a huge opportunity to profit from its wild price swings and attracting millions of investors. As cryptocurrency trading becomes more popular, individual investors now have a number of options of how to buy Bitcoin and invest in this digital asset. But for newbie investors, it might not be easy to navigate this space with so many options available. We have seen the good, bad and the ugly of cryptocurrency trading. Some platforms offer highly reliable service and institutional level trading capability. Some other platforms just trying to get by and don’t advance while some others are simply scammed trying to rip off people. 

Our team at EthereumTrading.pro is on the mission to educate ordinary investors about opportunities presented by the cryptocurrency market. We review different trading platforms and prepared a number o guides on how to invest in Bitcoin, Ethereum, Ripple and other cryptocurrencies. 

What is CFD and How to Buy Bitcoin with CFD? 

Contracts for Difference, which are usually called CFDs, are financial derivate instruments that are widely used by day traders to express their views on the market. Unlike in traditional trading where you need to buy an underlying asset and pay a full price, with CFD you make a financial bet on the price more and get the difference between the open and close position in cash but not the physical asset or security. When you trade CFD, you can start investing with a small minimum trade amount usually starting at $10 or less but you need to be able to cover the margin or the difference in price. That is why CFDs considered being risky instruments, as you can potential lose more the originally invested when the price goes against you. Investors can also use leverage to boost their trading profits but that can also result in the magnified losses if traded irresponsibly. 

While CFD considered being complex instruments, if you take some time to understand how they work it becomes very easy. But what is essential is to manage your risk properly and not to invest more then you are prepared to lose. You have to be extremely careful with leverage especially if you are making your first steps in trading and always use features such as Stop Loss. 

So, how you can buy bitcoin with the CFD broker and what are the main things you need to now? 

How to buy Bitcoin with Leverage? 

Leverage is a popular tool in CFD trading and is essentially borrowing money at a low cost for a particular trading transaction. Say if you want to borrow money with a credit card company you will pay 20% p.a. or even more. But you can also borrow money with a broker, for a very short period of time at a low cost. 

Using leverage, say 10:1 means that if you buy $1000 worth of Bitcoin in one transaction, your actual trading position will be x10 or $10,000. If the price of the Bitcoin increases by 10% (which is quite normal given Bitcoin price volatility), your profit on that trade would be $10,000 * 10% = $1,000. And while the price of an asset only increased by 10%, as you invested $1,000 and made $1,000, your actual trading profit equals 100%. That is how leverage works and that is why it is so popular among investors. But you also have to remember about the risks involved and that if the trade goes against you, the losses can exceed the initially invested amount. 

How to Buy Bitcoin with CFD Broker and which platform to choose? 

There is a large number of CFD brokers where you can buy Bitcoin but not all of the platforms are trustworthy and reliable. Our team at EthereumTrading.pro prepared a series of CFD Broker reviews where we provided information on a number of platforms. We covered the main features of these brokers and also explained what pros and cons of using each one of them. We also want our readers to stay away from scam brokers and aiming to uncover the untrustworthy ones. 

But today we want to highlight two of the most popular CFD brokers that we liked and can recommend. 

How to Buy Bitcoin with AvaTrade

AvaTrade is an award-winning CFD broker that has been operating since 2006 and currently regulated in 6 jurisdictions. AvaTrade has more than 200,000 active traders who place more than 2 million trades each month. AvaTrade offers a range of professional trading terminals including Meta Trader, AvaOptions, AvaTrade Web Trading Terminal and mobile trading app AvaTradeGO. 

AvaTrade Review Cryptocurrencies

AvaTrade also offers automated trading and is one of the main partners of ZuluTrade, the world largest social trading platform. With AvaTrade and ZuluTrade you can auto-follow experienced and professional traders and simply copy their trades for a small profit share. That is a great way to start investing with top-performing traders and learn their trading style. It is also a good opportunity to make some passive income as now you don’t have to do all the investment research yourself and can trust it to the professional. With ZuluTrade, you can see all the investment strategies and manager on the social trading platform, and chose to follow these strategies via AvaTrade. 

AvaTrade Review Trading Terminal

AvaTrade offers CFD trading capability in most of the popular asset classes such as stocks, commodities, forex, indices, cryptocurrencies and ETFs. AvaTrade offers leverage which, at the moment of writing this article, for Bitcoin was 20:1. 

How to Buy Bitcoin with IQ Option

Another popular trading platform where you can buy and invest in Bitcoin is IQ Option, a Cyprus based and CySEC regulated CFD broker. It has more than 1,8 million of active traders from more than 100 countries. IQ Option offers CFD trading in stocks, forex, commodities, ETFs and cryptocurrencies. You can buy Bitcoin, Ethereum and 10 other most popular cryptos using leverage and ultra-low spreads. 

IQ Option Review

IQ Option operates a proprietary built web-based platform that is very easy to use and navigate but still offers a full set of professional trading capabilities required for fundamental and technical analysis, have access to forex and earnings calendar, margin calculator and most popular trades that others are making. IQ Option also offers a vast number of educational resources dedicated to trading and investing. The newbies can find out how to buy Bitcoin and other cryptos with IQ Option and professional traders can learn and improve their advanced technical skills. 

IQ Option Review - How to Start Trading

How to Buy Bitcoin and Trade CFDs in the USA? 

While most of the European CFD brokers are open for business and can take customers from anywhere in the world, if you are a US citizen you will find it difficult to onboard with these brokers. That is because US regulations are different and brokers need to have a  separate license for the US. So what can you do if you are a US citizen and how you can buy Bitcoin with CFD in the US?  

One of the options you have is to join ZuluTrade, the world largest social trading platform and their US partner broker. When you visit ZuluTrade, open Free Account and ZuluTrade will connect you to the broker available for US clients. 

ZuluTrade Brokers

After you open Free Account with ZuluTrade and US registered CFD broker, you will be able to follow top-performing traders and copy their trading strategies. But once the broker account is open, you can also make other trades not necessarily via the ZuluTrade. Social Trading is a great tool for newbie traders or if you don’t have time to dive into trading full-time. 

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