Start Trading Cryptocurrency CFDs

Cryptocurrency is a form of digital asset which has dramatically changed the face of finance. Cryptocurrency functions as more than just a method of payment for goods like traditional currency, but also as a speculative or investment asset.

In order to buy cryptocurrency, you must find a broker or crypto exchange which facilitates the buying and selling of cryptocurrencies. However, buying and holding cryptocurrency coins is not the only way to gain exposure to these digital assets.

With a Trade.MT5 account from Admirals, you can trade Contracts for Difference (CFDs) on over 20 cryptocurrencies. CFDs allow you to go both long and short whilst never actually taking ownership of the underlying cryptocurrency.

A notable benefit of trading cryptocurrency using CFDs is that it does not expose traders to several risks associated specifically with buying and holding tokens in a crypto wallet. Crypto wallets can only be accessed with a unique set of private keys, meaning that if the owner forgets or loses this information, they will lose access to their tokens.

Furthermore, wallet services – which fall outside of government regulation in many countries – have been targeted in the past by scammers and hackers. Indeed, there have been several high-profile cases of wallet services being hacked and users consequently losing their tokens.

A CFD (Contract for Difference) is a derivative of a financial product or a commodity price and is used for trading.

CFDs enable you to speculate on financial markets such as forex, indices, commodities, shares and cryptocurrencies without having to take ownership of the underlying assets.

Leverage is a trading mechanism to increase individual exposure to the market by allowing you to pay less than the full amount of the investment.

It is a perfect way of maximising profits by increasing purchasing ability, however it also comes with risks (as with anything in trading).

When trading crypto CFDs, you are not buying the underlying asset and therefor do not own the actual crypto asset - you are instead initiating a Buy or Sell contract on the current asset price.

Whilst traders may choose to use crypto CFDs to invest in cryptocurrency, CFDs, as an instrument, are better suited to short-term trading.

This is largely due to the ability to go both long and short, which allows traders to attempt to capture a wider range of opportunities presented by the extensive price movements of this volatile asset class. Whilst this volatility can expand trading opportunities, it is also accompanied by increased risk.

There are many different cryptocurrencies, from coins worth tens of thousands like Bitcoin, or lesser-known coins which cost just a few cents each. There are coins for every kind of risk appetite and budget, so we recommend learning about cryptocurrency to find the right coins for you.

Cryptocurrencies are generally considered to be a form of digital asset. When sold with a profit, such capital gains are generally subject to personal income tax, whereas if the digital asset is sold at a loss, such loss is not tax-deductible.

In contrast, Admirals Crypto CFDs are financial instruments, same like stocks or fund shares. Profits and losses in financial instruments can be counted against each other, thus making Crypto CFDs a tax efficient way to maintain exposure to underlying cryptocurrency markets.

No. You only need a funded trading account with Admirals to start trading CFDs and settle accrued profits or losses.

Review the Contract Specifications page for full details.